All Forum Posts by: Account Closed

Are you referring to Cash in Cash Return?

You're getting 20% cash on cash? if so, in what market?  Michigan?

If so, I'd so your appreciation is probably slim to none. But if you're getting that return from cash flow alone, then that's great.. we've got different approaches to the same return.  I'm investing in markets with both high population and job growth.  I feel like I've got a lot of upside by investing in quickly expanding markets.

no @Joe Villeneuve , I'm not asking what yours is.

What is a CCR?

@Andrew S. 

No, never assume people will do right thing.  Trust, but verify everything and have ways out of every deal, while minimizing risk every way possible.

Keith Rabois' new startup, Opendoor, starts buying homes in Phoenix; Dallas, Portland next

Cromwell Schubarth

Silicon Valley Business Journal

Opendoor, the startup co-founded by Khosla Ventures partner Keith Rabois, launched Monday in its first market.

It is offering to buy homes in Phoenix, Arizona, and plans to move into the Dallas, Texas, and Portland, Oregon, markets next.

"Homeowners can trust and rely on Opendoor during one of the most stressful times in their lives," said co-founder and CEO Eric Wu, who used to work at online residential real estate site Trulia.

As I outlined in a Business Journal cover story in June, Opendoor makes an offer to buy a home after the owners give their address and some basic information. It arrives at the offer price without ever setting foot in the home, using an algorithm that mines data from public and private data sources.

Prices are usually a few points below what a seller might get on the open market. But Opendoor believes there are enough people willing to give up some cash to move quickly that it will be able to build its business around them. Before a sale is completed, a real estate agent or inspector working for Opendoor visits the home to make sure the description was accurate.

What do you think?

You'll be competing against not only funds and REITS, but now tech startups for single family rentals?

@Angelo Behar 

There are lots of rules that prevent parties from obtaining credits... Risky to have it done any other way than negotiating price... I've been in your position before....deals requiring considerable work prior to being able to get a lender to lend on it.  I've generally past on these deals, though I have negotiated down purchase prices, few ever get accepted.  For me, most of the deals have presented quite a bit of risk that I'm not willing to take.

This is a good opportunity to alter your approach going forward on these types of deals...

@Arlen Chou 

Congrats!

@Angelo Behar 

A better structure would have been to negotiate down the purchase price significantly to cover your cash out expenses.

@Joe Villeneuve 

Maybe that means I'm conservative?  But I buy only well-built quality housing in the best markets.

I haven't given up, but I gave up my corporate job over 12 months ago...so I feel like I've done quite well.

@Joe Villeneuve 

CCR?

What's your cash on cash and internal rate of return requirements?

@Chet Hingle 

I look to generate 10-12% COC and 20%+ IRR.