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"Given the considerable attention paid to the Vision Fund, people have become more curious," he said.
Opendoor, one of the largest startups in the construction technology category, is giving the Vision Fund an entry into the housing sector. The company Silicon Valley was founded in 2014 by venture capitalist Keith Rabois and Eric Wu, CEO of Opendoor. Thanks to SoftBank's money, it has raised more than $ 1 billion from investors such as Khosla Ventures and GGV Capital.
Opendoor's goal is to make moving as simple as the click of a button, according to Mr. Wu. Although this remains a distant reality, the company has simplified the sales process of a business. House. He uses a combination of data, software and a team of 50 human evaluators to assess the value of a home. If a customer accepts the value of Opendoor for their home, the business will buy the property for an average of 6.5%.
The company said it was offering sellers certainty – many sales of conventional homes are falling through – and flexible closing dates, helping them avoid paying double mortgages. This also eliminates the need for a real estate agent. Opendoor employs 100 licensed real estate agents to advise clients when they request it.
Opendoor only buys houses built in 1960 or later, worth $ 175,000 to $ 500,000, and does not require any major renovations or repairs. Present in more than a dozen cities, mostly in the South, it bought $ 316 million of housing in August, up from about $ 100 million in January. After some light repairs, he sells houses on average 90 days.
Before his last injection of funds, Opendoor was planning to expand into a new city each month. Now, he plans to double that pace. The company hopes to be present in 22 cities in the United States by the end of the year.
Its growth has created competitors: OfferPad and Knock offer comparable services to Opendoor, and Zillow and Redfin, both listed, have also entered the home market.
"For a while, we were literally the only ones to do it because it's complex," Wu said. Size is an advantage, he said, "More transactions mean more data for help Opendoor to offer its offers more accurately, as well as greater buying power from local suppliers for renovations.
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