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by cragfar 1316 days ago
Open Door has laid off 20% of it's work force, it's stock has gone from $24 to $1.5 in a year, and it's losses are increasing.

Black Rock was buying entire subdivisions developed for the purpose of being sold to investors. They were basically large scale apartment complexes. That's wildly different than buying up random homes throughout a city.

Zillow had to give up last year and showed a $300 million loss, and now Redfin is too. I'm not saying it's impossible, but SFH flipping doesn't scale well at all.
1 comments
oldstrangers 1316 days ago
I still dont know what you're talking about or if you're just unaware of the data.

"Locally, NAR data showed 38% of single-family properties purchased in Harris County in 2021 were bought by institutional investors. Property data from the Harris County Appraisal District shows nearly 7,000 homes in Harris County as of June are owned by five NRHC members and their subsidiaries."

https://communityimpact.com/houston/bay-area/city-county/202...

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cragfar 1316 days ago
>Citing NRHC member-provided data, Howard said that out of 23 million single-family rental homes in the U.S., only about 300,000, or 1.3%, are owned by large companies.

NRHC includes the aforementioned Blackrock. Your quote says the top 5 SFH companies own 7,000 homes in Harris County. A county with 1.6 million homes. The sexy headline of 28% of all homes being bought by institutional investors says an LLC is an institutional buyer. It wasn't Blackrock hoovering up all these homes, it was smaller shops and normal people flush with cash and leverage.

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oldstrangers 1316 days ago
Your idea of "normal people flush with cash" is ... private equity lol. It's incredibly common for companies to spin off random LLCs to buy up whatever they want.
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cragfar 1316 days ago
Putting a rental in an LLC is very standard advice for anyone buying one. You've clearly made your mind up about this and won't change it if you think PE is buying up all these homes when you linked an article saying 5 public companies with $110 billion in market cap with access to almost unlimited amounts of cash only managed to capture 1.3% of the market.
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oldstrangers 1315 days ago
7,000 homes in ONE county isn't a big deal to you, so there's clearly no convincing you either. Take care.
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