Here in the Denver Metro, I inspect a lot of Zillow owned fix-n-flips. I just watched the Zillow CEO announce that they aren’t making money with them and are getting out of the biz. They still have around 7000 nationwide to fix and sell, and then they are done.
Turns out that the fix-n-flip biz is hard. Well shazam…I wonder if there was anyone…anywhere who could have told them that?
Zillow Group Inc. is calling it quits on the home-flipping business, while disclosing losses of more than $550 million on homes purchased in the second half of this year for which the company admits it paid too much.
The real-estate giant on Tuesday blamed a faulty algorithmic model for ditching its iBuying business of buying and selling homes quickly, and said it will lay off about a quarter of its staff.
Zillow Group’s stock is down 34% in 2021
All these dot.com CEO’s think they are smarter than entire industries. Pretty brazen thinking they could just play “middle-man” and turn a profit.
Exactly, they bought like a buy and hold player, but operated like flippers. You would think someone would have seen this fault immediately (most of us would have).