[quote]Zillow seeks to buy, renovate and then resell the properties in 90 days or less. Zillow said as part of its long-term goals, it believes it can purchase 5,000 homes a month, originate more than 3,000 loans a month, and achieve annual segment revenue of $2 billion, more than doubling its size.[/quote]
I have no idea if Zillow will succeed or fail at this venture, but it sure strikes me as proof that the dot-com venture capitalists were busy screwing flippers in the oughts and now this venture is their bastard child.
Hopefully fail. Techbro VC scum shouldn’t be competing with mom and pop investors.
Here’s a way to harsh their game, BTW … figure out which homes are owned by Zillow. Anonymously report the work being done to code enforcement — chances are, with a 90-day flipping window, they’re hiring unlicensed subs and not pulling proper permits. Good luck to them handling code issues in a timely manner if they don’t have anyone local…
[quote=spdrun]Hopefully fail. Techbro VC scum shouldn’t be competing with mom and pop investors.
Here’s a way to harsh their game, BTW … figure out which homes are owned by Zillow. Anonymously report the work being done to code enforcement — chances are, with a 90-day flipping window, they’re hiring unlicensed subs and not pulling proper permits. Good luck to them handling code issues in a timely manner if they don’t have anyone local…[/quote]
lol.. quite the opposite imho.
You see, the one most likely to use unlicensed contractors are people individuals like you to save money.
Zillow will probably use licensed contractors and do it by the book, burning through equity and vc money to do it Just so they can report “substantial customer growth” even as they bleed though ewuity and VC money.
They won’t be cutting corners on the flip… They’ll just burn through money to do it in order to acquire a bigger customer base… This is the way VCs run these growth vertical business and there are plenty examples of this sort of bzioness models.
CarOrder.com
Pets.com
and from recent time
Moviepass…
Even the big developers cut corners — witness the spate of lawsuits that usually show up a few years after a condo conversion. What makes you think that Zillow will be any better? You’ll have someone in an office trying to hire talent 1000 miles away. Without someone to watch over the circus, how do we know that even licensed people aren’t hiring sketchy subcontractors?
Small renovators generally hire licensed contractors because they can get local recommendations for good people to hire.
.
