(Disclosure: Rose Law Group represents Offerpad.)
By Laura Forman | Wall Street Journal
You can take the agent out of the real estate hustle, but you can’t take the hustle out of the agent.
That is good news for investors already sold on the economic opportunity of home-flipping. Online real estate platform Offerpad said last week that it will merge with former Zillow chief Spencer Rascoff’s special-purpose acquisition company to become the newest publicly traded iBuyer. The hope is no doubt to reap some of the success market leader Opendoor Technologies has enjoyed since announcing last year it would go public via a SPAC merger. That company’s market value has since grown to a whopping $15 billion, more than twice that of Redfin and almost half that of Zillow, the two other publicly traded iBuyers.
Offerpad is essentially a smaller version of Opendoor, generating less than half the revenue last year. According to an investor presentation published this month by the company, Offerpad has done a whole lot with very little, purchasing nearly 38% as many homes as SoftBank -backed Opendoor despite raising just $200 million, less than 10% of what Opendoor did before its SPAC merger.