How is this any different from the countless companies that have been doing them for ages?
I'm hoping to see alternatives to the "I-saw-the-house-flipping-infomercial-at-2AM-and-want-a-piece" crowd.
The biggest difference is price. Those companies offer 65 to 80 cents on the dollar for homes. We offer full market value, and take fees that are comparable to a traditional transaction when you consider the full cost of selling. (Our total fees are generally 8 to 10%)
The article has many key inaccuracies that the reporter refused to correct, mostly around profit. If we made $20k per home, we'd give most of that back to sellers through higher offers and lower fees. And the data science team would panic, since their key metric is accuracy.
Thanks for your response. I am not knocking on you or the product because it is a lucrative market (if done right). So, you are taking the risk on the houses? Do you guys rent out the house? What happens if it doesn't sell?
If they don't sell, we lower the price until they do. Homes are hard assets, and always have a price. In many cases, we lose money.
What is the case is that finding cash buyers often requires some informal connections. My metro has a fair amount of flipping going on, but it's hard to point to the marketplace where all this occurs. There's the foreclosure trawlers, the agents who knows a guy who just sold his latest project and is looking for the next one, the guys from the billboard who are looking for total wrecks, ... It's daunting.