Caroline Gerardo, C. G. Barbeau the Loan Lady nmls 324982 (Licensed in 20 states)

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2,119,086
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

Maybe they should buy a lottery ticket.

Nov 07, 2022 04:42 AM
Rainmaker
1,373,608
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

Well...

2020 Presidential Election Gloating Mug “I Hate To Say 'I Told You So', But  I Told You So“ Let Them Know Your Candidate Won & Pour A Little Salt In  Their Wound

Nov 07, 2022 06:20 AM
Ambassador
4,079,585
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

Makes me happy to hear about companies that rip people off not doing well themselves.

Nov 07, 2022 03:32 AM
Rainmaker
2,116,126
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

Funny that number should come up Caroline Gerardo , I think I got it covered with my next Powerball ticket. 😉

Nov 06, 2022 06:28 PM
Ambassador
2,819,356
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate Brokered by Real - St. George, UT
St. George Utah Area Residential Sales Agent

Those who ride the fun wave of an up market with wild abandon will eventually be pulled under. ~ Wanda Kubat-Nerdin c-2022

You can quote me on that!

Nov 06, 2022 05:47 PM
Rainmaker
892,884
Pete Xavier
Investments to Luxury - Pacific Palisades, CA
Outstanding Agent Referrals-Nationwide

 

"Using technology to buy and sell", I guess their proprietary technology Failed! Further proof that the iBuyer model isn't bulletproof.

 

No fear, just stay clear of ticker "OPEN" on the Nasdaq. It's not a good investment, it's more of a gamble. In February '21 it had a high of about $28./per share, it's now down to about the price of a Two Buck Chuck at Trader Joe's.

 

Curious about Zillow? In February '21 it reached a high of a little more than $161./per share, this past Friday it had a closing price of $32.52/per share.

Nov 06, 2022 05:00 PM
Rainmaker
4,575,743
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

What Pete Xavier said! I saw this coming a long time ago. It's not a sustainable model the way they were throwing money at homes. Zillow shut their operation down, as well.

Nov 07, 2022 06:15 AM
Rainmaker
826,086
Carla Freund
Keller Williams Preferred Realty - Raleigh, NC
Carolina Life RealEstate & Relocation 919-602-8489

It will be interesting to see what happens over the next several months. They were fined $62m for deceiving people. That seems like a drop in the bucket compared to what they lost. People have invested in other RE online portals after years of losing money. We'll see if this is any different.

Nov 07, 2022 05:06 AM
Rainmaker
541,894
Buzz Mackintosh
Mackintosh REALTORS - Frederick, MD
“Experience, reliable, leadership”

A recession always seems clean out the limited service models  from the industry.

Nov 07, 2022 03:47 AM
Ambassador
3,426,370
Anna Banana Kruchten Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

Well that isn't surprising to me at all. I've been watching their buys and sells here for a long time and the handwriting was on the wall.  Buy high and sell low.  Duh.

Nov 06, 2022 07:53 PM
Ambassador
4,777,899
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Hmmm. Might there be a problem with the business planning?

Nov 06, 2022 07:41 PM
Rainmaker
955,781
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

🎵 Tell me what I say!🎵

We're not replaceable, even by the best technology. 

Nov 07, 2022 06:19 AM
Rainmaker
874,618
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

I doubt if too many companies that lose a billion dollars in one quarter can survive for very long.

Nov 07, 2022 05:47 AM
Rainmaker
4,636,085
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

If you buy high and sell low, pretty soon you have no dough! Not a great business plan.

Nov 07, 2022 03:54 AM
Ambassador
5,829,578
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Glad I am not one of their investors.

 

Nov 07, 2022 02:22 AM
Rainmaker
1,439,771
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

That's a big number.

Nov 06, 2022 10:15 PM
Ambassador
3,175,675
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

 

OUCH !!!

Nov 06, 2022 05:27 PM
Rainmaker
5,403,431
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

I am not surprised, they offered Sellers amounts way over fair market value.   When they sell, they start high, and decreasing sales price.   Their homes are on the market for many days longer.   They are still advertising on the radio.

Nov 07, 2022 05:20 AM
Rainer
359,757
Caroline Gerardo
Licensed in 20 states - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982
Nov 06, 2022 03:58 PM
Rainmaker
1,776,162
Lyn Sims
Schaumburg, IL
Real Estate Agent Retired

Read an article yesterday about their buyers were duped (or just didn't understand) what they were getting into. 

I'm not sad at all.

Nov 07, 2022 06:26 AM
Ambassador
4,628,949
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

I believe it, and in fact, called it a long time ago! Now they are partnering with Zillow. #DesperationIsSettingIn

Nov 07, 2022 09:06 AM
Rainmaker
2,701,065
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Paper money losses comes and goes. The big picture, getting lucky and cash flow still remains. Also, many attempt to reach for the next twitter, Facebook and tik-tok hoping to score. When they don't, losses are reported. 

Nov 07, 2022 07:13 AM
Rainmaker
1,055,738
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

Too bad for the disruptor getting disrupted.

Nov 07, 2022 06:49 PM
Rainmaker
1,392,741
Gary Frimann, CRS, GRI, SRES
Eagle Ridge Realty / Signature Homes & Estates - Gilroy, CA
REALTOR and Broker

What do I say?  GOOD NEWS!  I've been following a couple of nationwide real estate franchisors and their stock price has been in the toilet-- one is down 75% and the other is down 80%!  

Nov 07, 2022 10:23 AM
Rainer
267,800
Adam Feinberg
Elegran - Manhattan, NY
NYC Condo, Co-op, and Townhouse Advisor

I spent many years working in a variety of areas of investment banks including multiple areas of risk management/modeling/reporting prior to moving into real estate. As soon as I heard of these iBuyer programs- I expressed concern that they really were not comprehending the risks they were taking on. These iBuyer programs weren't likely to move into my market- so we didn't have to deal with them but we did stand back to watch this experiment in motion. That said, with a Blood in the Streets mentality (perhaps a bit early- maybe just a bloody nose for now- with more rate hikes coming it may be inevitable)-  then I can actually see a risk on approach.  

That said- Real Estate might not return to the low risk investment it has traditionally been as the investment world is always looking for a new quick addictive drug fix.  One of the owners in my building was asking me if insurance company's offer policies against new expensive regulatory compliance requirements for small buildings. My response was no, but the derivatives structurer in me was salivating at this idea. MMMM....I bet I could create a derivatives market (yes I started my career out of college at AIG, no it wasn't the same group as the one that brought down the economy back in 2008...at least not until several years after I left- and the two AIG derivatives trading firms merged).

Nov 08, 2022 07:19 PM
Ambassador
1,893,909
Alan May
Jameson Sotheby's International Realty - Evanston, IL
A moving experience!

Couldn't happen to a better business model.

Nov 07, 2022 04:08 PM
Rainmaker
920,078
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

As we all followed the outcome of Open Door listing, sold at less than aquisition costs, I sure we all mareled how they have lasted this long.
There remains many predators out their to take advantage of the uninformed and desperate.
However, it is useful to keep track of the alternatives that ARE having success. The recent Blackstone acquisition of Home Parners of America suggests the alternatives they offer is getting traction, is below the radar and will prove hugely detrimental to the housing marketplace. They are below the radar and sucking more executives' homes into the rental pool to add to Blackstone's portfolio of bread-and-butter single-family homes.

Nov 07, 2022 11:59 AM
Ambassador
1,021,257
John Meussner
Mortgages in AZ, CA, CO, DE, FL, GA, MD, MN, MT, NC, NJ, NV, OK, OR, PA, SC, SD, TN, TX, UT, VA, WI - Fair Oaks, CA
#MortgageMadeEasy Fair Oaks, CA 484-680-4852

It's easy to run a business burning through billions of OTHER people's money.

 

It's difficult to run an efficient, good, or lasting business that way...

 

Real estate FinTech has been one of the easiest ways to set money on fire.   Second perhaps only to government spending.

Nov 07, 2022 11:42 AM
Rainmaker
590,558
Jason E. Gordon
AmeriFirst Financial Inc, San Diego, CA - San Diego, CA
Sr Loan Officer, CMA, CMPS, CDLP, CDRE, RCSD, CDPE

While I don't usually like to celebrate the failures of others, I was admittedly quite happy to hear this news.  It's never been a more critical time than now for real estate & mortgage professionals to sharpen their skills and fight back against these iBuyer platforms.

Nov 07, 2022 11:14 AM
Rainmaker
1,071,351
Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

WOW! Maybe they used it to buy Powerball tickets

Nov 07, 2022 11:08 AM
Rainmaker
708,658
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Group Valencia & Aliso Viejo

It's great to see the bully get beat up.

Nov 07, 2022 09:23 AM
Rainer
380,030
Derrick Guevremont
Counselor Realty of Rochester - Rochester, MN
Rochester MN Homes for Sale

A company despised by professionals because of their nonchalant arrogance which suggested we had become irrelevant.  Kind of like homeowners just using a “Zestimate.

Nov 09, 2022 01:30 AM
Rainmaker
1,006,134
Peter Mohylsky
PMI. Destin - Miramar Beach, FL

Thanks for sharing,  bad business plan.

Nov 07, 2022 08:59 AM