A couple of PayPal and Trulia executives have decided they want to get into the “flipping” business. Starting in July, they’re launching a big data online home flipping platform, where potential sellers can log-on, get a value for their home — and instantly — sell their home to the Web’s latest real estate entrepreneurs. If the seller likes the price, they click a button and the deal is closed in 72-hours.
No loan contingency. No escrow. No appraisals. No hassles. Just all cash deals.
Called OpenDoor, the latest big data startup is the brainchild of Harvard Law School alum Keith Rabois, a former PayPal, Square and LinkedIn executive, and Eric Wu, the head of “geo” products at Trulia. A third partner is Ian Wong, a former Square data scientist. The San Francisco-based company has raised $6 million in start-up money, according to U.S. Securities and Exchange filing.
They will work with sellers directly to purchase homes, then rehab and list the properties for sale with a local broker and sell them retail to buyers and investors.
“My belief is that if you added a frictionless, convenient, simple process, more people would sell their homes,” said Rabois, a Stanford-trained venture capitalist at Khosla Ventures, speaking to Venture Beat. “The process of (selling a home) hasn’t been transformed by technology.
Rabois’ latest online startup is code named HomeRun, according to GeekWire. HomeRun will analyze lots of data — some being proprietary, some not — to make split-second valuations of properties, with minimal human interaction.
As the HomeRun project steps up to the plate this summer, it will be interesting to see if they get on base or strike out.
What are your thoughts? Will home sellers be comfortable selling their home online to VC capitalists? Write your comments below.