Flipping and Wholesaling are Dead... RIP

Rehabbing & House Flipping
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Flipping and Wholesaling are Dead... RIP

Travis Biziorek
Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes

OK, so I admit the title is a bit dramatic, but I can't stop thinking about the implications for the flipping and wholesaling markets after reading about Zillow's expansion into 11 more markets for their Zillow Offers program.

I wrote a bit more about it in a post about mainstream players getting into flipping and wholesaling, but I'd love to hear thoughts from others.

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Jerryll Noorden
Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes
7y

Keep this in mind!

You are not looking for EVERY SINGLE LEAD in your market that possibly exists (well I am but I am an over achiever).

How many deals can you seriously handle? No matter what the new fad is out there, there are plenty of people that want to deal with an actual person cash buyer that can come to their house and make offers.

You need to market yourself the right way. Surround yourself is insane crazy amazing reviews. Become the authority in your market. The go-to guy. No matter how many dollars Z is throwing at marketing, no one can buy off your reputation of THE go to person that buys and flips houses.

Don't be scared of Zillow. Be scared of that other small business dude with that amazing website that is building a real rep for himself!

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  • Greg H.Pro Member
    Moderator
    Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
    7y

    Thank you for telling me I am done after doing this for 28+ years.  Oh, I only heard this several times every one of those 28 years

    Adjust, adapt and overcome ! There will always be a way but hey, I never had a guru sell me his system.  

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  • David RobertsonBusiness Member
    Flipper/Rehabber · Kansas City, MO · Member since 2010 · 755 posts · 778 votes
    7y

    Correct me if I'm missing something here, but I haven't seen anywhere that says Zillow or these other 'iBuyers' are buying distressed properties and then rehabbing the properties?  

    OpenDoor's website specifically states they don't focus on distressed properties.

    https://www.opendoor.com/w/faq/is-opendoor-a-home-flipper

    If they aren't focused on buying distressed properties & rehabbing them then it doesn't sound like these 'iBuyers' are 'killing' the rehabbing business.  If anything they are killing realtor's businesses...

    FlipperForce
    WebsiteView Page
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  • David RobertsonBusiness Member
    Flipper/Rehabber · Kansas City, MO · Member since 2010 · 755 posts · 778 votes
    7y

    It sounds like Zillow & the other iBuyers are focusing on 'wholetailing' where they buy properties that are in good/decent condition and then try to quickly resell the property to a 'retail' buyer for a small spread.

    If you're a wholetailer or realtor then I would be worried, but until they start buying distressed properties and rehabbing them, not so much...

    FlipperForce
    WebsiteView Page
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  • Wes Johnson
    Developer · Dallas, TX · Member since 2015 · 84 posts · 79 votes
    7y

    @Travis Biziorek

    Well They're not very good at it. They just released their earnings report and they're home buying program is posting a loss.

    No global corporation will have the local market knowledge to make flippers completely obsolete maybe the newbies and those who don't know what they're doing but the real flippers will adapt. They said the same thing about realtors "oh zillow is going to make the agent obsolete" yea right. Heck half the time their zestimate is more wrong than 2 left shoes.

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