Wholesale to Opendoor, Offerpad, and Zillow Offers?

6 Replies

I listened to a BP podcast in which the guest pulled a list of all business entity purchases of homes in the past six months in order to find where her competitors were buying. I did the same to find the zip codes where the most fix-and-flips are happening in order to market to those zips. It also turned out to be a good way to find buyers. I arrived at one with three separate entities with a similar name that had purchased 11 properties in the last six months, highest on the list. The buyer - Zillow.

I’m guessing this is through their Zillow Offers platform. That got me thinking, could I just wholesale properties to Opendoor, Offerpad, Zillow Offers, etc.? They would probably be a very reliable buyer assuming the deals are solid. I’m just not sure if it’s possible to do so with the property just under contract.

Thoughts?

Find out if they want to deal with wholesalers.

A WS means of doing business are kinda shady, so as a legitimate large buyer would you buy from someone without a RE license who expects a fee?

Originally posted by @Steve Morris :

A WS means of doing business are kinda shady, so as a legitimate large buyer would you buy from someone without a RE license who expects a fee?

I would imagine a huge company with over $2.5 billion in revenue would be primarily concerned with what could help their top line. If they consider wholesaling "shady", I doubt that's going to stop the ginormous corporation from snapping up great deals. If they fall on the "it's illegal" side of the debate held on BP, then that would stop them most likely.  

 

The house would probably have to fit their criteria as well. I heard that they don't really like buying the houses that need too much in repairs. But it wouldn't hurt to contact an Zillow employee to see if they buy from wholesalers. They might not though.

If they consider wholesaling "shady", I doubt that's going to stop the ginormous corporation from snapping up great deals.

OK, if you think.  Usually, ginormous corporations have large marketing groups concerned with image, zillions of lawyers to go thru contract and plenty of shareholder lawyers looking for anything to start a class action suit.

And on the other side we have the fiercely independent wholesaler who lives in freedom, abhors rules like transacting RE without a license in expectation of fee isn't legal and likes to tie up properties for nothing and can't even tell the seller who the true buyer is.

Your turn.

@Matthew Berry Thanks for that information. I googled a bit and yes it appears they don't want to do extensive renovations to the properties they buy. I've seen multiple different definitions for wholetailing, but the definition I'm going to use here is to wholesale properties that don't need much work. I suppose that may be essentially what Zillow is doing. 

@Steve Morris Thanks for your perspective. 

No problem. Im also a wholesaler too in the Dallas Fort Worth area and I look up recent cash transactions too. The ones that are buying more than one are the ones like yours when its the same company with slight differences in the names that are buying a bunch. I guess they are hedge fund buyers but I find it hard to add them to my buyers list. They're like the top buyers and I can't get a hold of them lol