SoftBank-Backed Home-Flipping Company Says It’s Time To Resume Buying Properties

Read more on this subject: Housing
News Story Source: Zero Hedge – Tyler Durden
Far be it for us to question motives here at Zero Hedge, but one also must dryly note that their survival as a company likely depends on the market picking up, as well. The company's main service allows owners to sell their homes without open houses or in-person closings, according to Bloomberg.

Opendoor allows owners to request bids online and then buys homes from those who accept. Then, it makes light repairs and re-lists homes without large markups, instead profiting by charging a fee above normal real estate commissions. Opendoor uses debt to buy homes and its borrowing costs move higher the longer it holds onto a property. 

The company purchased about 19,000 homes in 2019 and 3,800 homes through March of 2020.

The company had previously halted purchases in March and laid off more than 33% of its staff as the housing market, like the rest of the economy, simply disappeared due to the coronavirus.

Chief Executive Officer Eric Wu said in an intervi
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