I think, if executed properly, it could work, but there are a lot of hurdles to overcome. Frankly $6M of funding for this kind of undertaking seems a bit low.
Specialist · Houston, TX · Member since 2012 · 579 posts · 301 votes
12y
Hmm, looks like someone's comments got deleted. But I'm trying to see how this will work without someone physically verifying that:
There is actually a house at the site and not a burned out hull
Repairs are not unusually high.
I can see the algorithm gurus in silicon valley being pretty good with standard homes but it's the outliers that could kill them. I had a guy 'buy' a wholesale deal via an auction a few months ago, site unseen, and then when he saw the house and realized the repairs were not for the faint of heart (all disclosed and photographed), he backed out and lost his earnest money. If their prices are anywhere near Zillow or epraisal prices then I'd sell them my houses all day long!
Real Estate Agent · Chicago, IL · Member since 2013 · 31 posts · 5 votes
11y
I just heard of this company. From what I have learned they are legit. They are offering market value! They are not trying to buy at a discount. They get you the value quick online. I think they send a person to your home to do an inspection. They do charge 5.5% similar to real estate agent commissions. They are in phoenix now and will be moving to dallas soon.
Seems like a pretty cool business. I could see them having a major impact on any market they enter.
What do they do with the homes they purchase? How can they pay full market value and then flip it to make a profit? Is this a buy-and-hold company that's renting these homes out?