Zillow crashing is a GREAT THING for EVERYONE

You are 100% on point. Bad company decisions doesnt mean bad market.

Great condensed video of #ZillowFlips #NeelHouse 👨🏽‍💼🏠

As always - great content and valuable perspective!

@NeelDhingra

2 жыл бұрын

Thanks Darius!

Zillow's house flipping business was a poor idea from the start. Having flipped numerous houses I can tell you if the acquisition price isn't right the profit will be small to nonexistent. So what did Zillow do? Offer at or slightly above ask price. The acquisition price wasn't right. The most profitable acquisitions are when sellers are under duress - sad, but a fact in this business - and they have to sell or the house is so dated no one wants it and the seller just wants to get rid of it. The common element is sellers want to - have to - sell. Second problem, if you are not running your own work crew you will lose in the end. Contractor costs eat into profits. Also, from experience, usually the first and last word out of a contractor's mouth is a lie - as is everything in between. Unforeseen problems cause contractor's costs to go up - profit go down. Contractors don't show up - not late - they just don't show up and worse yet they won't take your call or return your call. If Zillow didn't have their own crews, they were going to lose eventually. Zillow apparently believed the rate of price increases would cover their excess costs. They were wrong - obvious now. And finally, their flipping business has nothing to do with the overall housing market. Their losses are specific to their poor idea and execution.

@NeelDhingra

2 жыл бұрын

I agree and this is great info / great explanation. 🙌

@Rickhelps

2 жыл бұрын

Stated perfectly. Zillow shot themselves in the foot. This does not at all predict any changes in the overall market.

@CaptainCaveman1170

2 жыл бұрын

From someone who works in the construction field, your points are excellent. But I disagree that it has nothing to do with the overall market. I strongly disagree. But time will tell.

@davidb.3395

2 жыл бұрын

Well said..

Great explanation Neel. I do wonder; however, if this CEO will remain as the CEO for very long. I have to imagine that the board of directors are furious and he may be the sacrificial lamb.

@NeelDhingra

2 жыл бұрын

Yeah that may happen , I wouldn't be surprised if that happens.

Pervasive house flipping only works for a while (when assets are consistently appreciating) and then one day it doesn't. Thanks to the Fed constantly pushing rates down for 40 years, it has given people the false impression that flipping is a sustainable business model when Historically speaking it isn't stable. Now that rates are near zero and home prices have descended from the covid absurdity peak it should become harder and harder for house flipping to be profitable for all but the most experienced and efficient flippers. I personally suspect Open Door is next on the chopping block, followed by most others.

Great video

It's not magic. There's an art to it.

I can't believe i have 4k+ subscribers with almost less than 5 videos, you are underrated man ❤️👑 you deserve better

Please lets talk about the wooden and concrete houses , pros and con

you do good work - good video's

@NeelDhingra

2 жыл бұрын

Thanks!

You can not commoditise property like a security on the stock market putting together a willing seller and willing buyer is far more complicated and liquidity is provided by credit expansion linked to personal income and expenses holding large portfolios of low margin property gives exposure to consumer sentiment volatility you can not create equity by just owning a property for a few weeks in a long term sustainable way I ha e worked for developers for many years equity growth and profits come from creating new properties

Did you say rates in the 4 & 5 !?

How does this impact Canadians? If at all

They lost millions because they were BUYING HIGH and SELLING LOW.... money was their solution instead of finding good leads. Basic economics when you get into the business.

Open door loses money

Just for clarity, are you a real estate agent?

@NeelDhingra

2 жыл бұрын

I am a mortgage lender, and real estate investor - but I do not sell real estate / am not a real estate agent. I also consult with a lot of agents to help with marketing, but do not make money from sales.

I think Zillow overpaid to manipulate the market. When a home sells, that price goes to the appraiser. Now, your house is worth more, supposedly. So Zillow could sell properties at much higher prices then they paid. Bye bye Zillow.

@NeelDhingra

2 жыл бұрын

there is a lot of speculation on why they overpaid, and they claim its just an error. I still dont get how a company this big and resourceful could make this type of error.... A lot of unanswered questions from the CEO

Zillow exposed the con man !

Zillow are the masters in losing money

Happy those crooks crashed !!!!!

Zillow is dying....