Private Consultations vs Buyer Seminars

2020-05-01 Private Consultations vs Buyer Seminars

We are available for private consultations, to answer your questions about buying a home or anything else related to real estate, on a variety of video conferencing platforms. I lead with that because I’ve noticed an explosion of virtual buyer seminars advertised since video conferences became the norm. Buyer seminars happened before Zoom, of course, so it’s not like they are totally new. However, they are much more efficient to organize virtually. And the big

Hartford County Multi-Family Review

2020-01-18 Hartford County Multi-Family Market Review 2019

The Hartford County multi-family residential market continued to improve in 2019. The total number of closed deals increased about 3% over the previous year to 928 sales. Activity was up more than 56% from the low point in 2012 when the market was in disarray. Of the three residential property types (single-family, condominium, and multi-family), the multi-family market is the strongest and healthiest. This is true despite the fact that sales totals are well below

House Hacking in Central Connecticut

2020-01-21 House Hacking

I recently became aware of the term “House Hacking.” For those that don’t know, the term describes a strategy for becoming a property owner without following the traditional path of buying a single dwelling unit in which to live solo. The underlying idea is that the house (or condo, or multi-family building) is an asset that can generate income. There are various potential income strategies, allowing the house hacker the flexibility to find an approach

Zillow Should Treat iBuying as a Marketing Expense

iBuying is a Marketing Expense

In theory, Zillow’s Homes Segment could make money flipping residential real estate. Zillow leadership claims each deal will one day make a small profit according to a preferred metric that omits an actual cost (interest) and all of the overhead. However the target per-deal profit appears uncertain due to structural profit limitations on flipping homes, and is dwarfed by the overhead of building, operating, and marketing the iBuying platform. Zillow Offers, the public brand of

Zillow’s iBuyer Activities

Zillow Q2 2019 Homes Economics Exhibit

Zillow has an iBuying operation. Zillow is also a public company. Therefore they regularly disclose their financial results to the investing public. Their Shareholder Letter and Supplemental Financial Tables contain interesting details about their flipping activities. (Note: There are other iBuyers who are private companies, and the expense analysis likely applies to them too.) Overall iBuying Revenue For the 2nd quarter of 2019, Zillow’s Homes Segment (iBuying) reported revenue of $248.9 million and a loss