House flipping company Opendoor targeting $2B valuation

Company hoping to expand into Charlotte and San Antonio

TRD New York /
Mar.March 30, 2018 10:00 AM

Eric Wu (Credit: Guy Kilroy via Flickr)

The house flipping company Open Door Labs Inc., which does business as Opendoor, is looking to raise at least $200 million from investors at a valuation of about $2 billion.

The money is meant to help the company expand its business to markets and metro areas across the United States, including Charlotte and San Antonio, according to the Wall Street Journal.

Opendoor offers cash to purchase homes online, then makes basic improvements to them and tries to sell them at slightly higher prices. It also helps secure mortgages and offers title insurance services. The company hopes its expansion will allow it to get more profits from its house flips.

The company bought about $1 billion of real estate last year and plans to buy between $3 and $4 billion this year.

Although some are concerned that Opendoor could falter if the housing market cools down, the company’s executives say they can spot declines in the market before others and manage risk by lowering their offer prices.

Opendoor partnered with Miami-based homebuilder Lennar Corp. earlier this year to help customers sell their old homes and move into their new ones. [WSJ]Eddie Small


Related Articles

arrow_forward_ios
New York’s real estate market is becoming two different stories: Manhattan, where deals are falling — and the suburbs, where demand is spiking. (iStock, Unsplash)

Manhattan’s cold, suburbs and Brooklyn are hot: July contracts

Manhattan’s cold, suburbs and Brooklyn are hot: July contracts
Home sale price declines are expected for July, after a recent bump, according to a CoreLogic report. (iStock)

Home sale prices got a bump, but a drop is coming: Report

Home sale prices got a bump, but a drop is coming: Report
The weekly survey tracking purchase loans saw a seasonally adjusted decline of 2 percent in the final week of July. (iStock)

Home loan applications fall again amid tight credit rules, weak job market

Home loan applications fall again amid tight credit rules, weak job market
(Images courtesy of Victor Group)

The Getty condo chops prices up to 53%

The Getty condo chops prices up to 53%
442 Union Street and 257 Berry Street (Google Maps)

Brooklyn’s luxury market reaches new pandemic high

Brooklyn’s luxury market reaches new pandemic high
Marwan Kheireddine (inset), Jennifer Lawrence and 400 East 67th Street (Getty, Compass, BDL Accelerate)

Jennifer Lawrence’s Upper East Side PH sold at 37% loss

Jennifer Lawrence’s Upper East Side PH sold at 37% loss
Senate Minority Leader Chuck Schumer and Senate Majority Leader Mitch McConnell (Schumer by Tasos Katopodis/Getty Images; McConnell by Ting Shen/Xinhua via Getty)

Schumer v. McConnell on SALT: Who’s gonna give?

Schumer v. McConnell on SALT: Who’s gonna give?
111 Leroy Street and 817 Fifth Avenue (StreetEasy, Google Maps)

Luxury deals plummet in Manhattan — again

Luxury deals plummet in Manhattan — again
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...