Open Door Activities in Austin

[Alex G.]

Just did a quick lil research on Open Door activities in Austin. They've entered our local market in 2019. I've been getting their mailers for the last 3-4 months on some of my properties. It apears they are quite effective. 

In Wilco they bought 146 houses in 2019 already. In Travis they bought 82 houses in 2019. 

And it's still mid-May.

They already resold/closed 30 in Travis and 26 in Wilco. Probably more under contract to sell. 

It looks like they are getting mortgages on some of them. Perhaps, they'll be holding these. Anybody knows what their margins are on buy/sell scenario?

They use their own brokerage company, so they make some money on listing fees.

[Aaron Gordy]

@Alex G.Hey Alex. Whats up? Open door is operating on very slim margins. I saw a house that they "flipped" and probably made at most $10k before taxes. It was all done on the mls. They bought a house they thought was a bargain apparently. I could see what they paid for it and the price that they sold it. I had a buyer that was interested in it when it was for sale so I researched it. We passed but I still kept up with it. They are making headway in the market, it seems but their margins seem to be very slim.