The issue a lot of people have with OpenDoor is their business model. Only some people in silicon valley can raise $320mm to wholesale homes using algorithms. The skepticism I have is that OpenDoor isn't disrupting anything because they're not Airbnb or Uber. They're not going after unused inventory and taking huge amounts of business from incumbents, they're simply amassing massive amounts of debt like no wholesaler could and when the economy crashes, and it will as nothing goes up forever, they're going to have this backfire on them. And then what?
When the economy goes down, Airbnb will do just fine. More people will want to do short term hospitality to earn cash and more people will want to drive for Uber. OpenDoor will have to liquidate their debt which will prove difficult. Also if I remember correctly, Keith Rabois said he was talking with Peter Thiel and Peter mentioned how real estate has rarely changed. Later Keith helped create, more like fund, OpenDoor. What I wonder is, why hasn't Peter invested in Keith's new company? It's not because he's too busy with Trump's transition team.
OpenDoor isn't a startup you should emulate. I wholly disagree with this article.
When the economy goes down, Airbnb will do just fine. More people will want to do short term hospitality to earn cash and more people will want to drive for Uber. OpenDoor will have to liquidate their debt which will prove difficult. Also if I remember correctly, Keith Rabois said he was talking with Peter Thiel and Peter mentioned how real estate has rarely changed. Later Keith helped create, more like fund, OpenDoor. What I wonder is, why hasn't Peter invested in Keith's new company? It's not because he's too busy with Trump's transition team.
OpenDoor isn't a startup you should emulate. I wholly disagree with this article.