Fintech Boy is currently working for a small venture capital startup, and we just launched a real estate business 3 months ago that could blow up the traditional real estate business model.
Recalling the Tech Service Trend posted around 7 months ago, I touched the Real Estate Tech area a little bit, suggesting to decentralize the property sales and purchase transaction, real time deal, and low fee. This revolutionary service, does exists. The company is called Opendoor.com
What is Opendoor.com?
Opendoor business model is simple: Buy homes, renovate, and sell. Although they take a 6% service cost to buy and resell homes, the main revenue stream is on the difference of purchase and selling price. You can find a comparison of charges to sell to Opendoor versus listing on market thru agents.
Services Opendoor provides:
- Buy and sell homes directly to consumers
- Quick homes evaluation
- Handle all cumbersome things for the home owners
- If the buyer doesn’t like the home they bought from Opendoor, Opendoor is willing to buy back.
Its model echoes perfectly with the tech service trend. It eliminates the real estate agents in between; it provides very quick home evaluation (can be quicker); it doesn’t take commission that agents take.
Source: https://www.opendoor.com/pricing
Opendoor Fundraising
Opendoor was founded on March of 2014. In only 4-month time, they raised $9.95 millions US from 16 investors. In less than 3 years, they raised approx. $320 millions US in total, in which $210 millions US was raised on 1st Dec 2016. The result is stunning, giving the fact that the real estate market is directly and easily influenced by the financial environment. Crisis of subprime in Aug 2008 explains itself.
Source: Angel List: https://angel.co/opendoor
A round of applause for your blog article.Much thanks again. Want more.