Opendoor potential
What are folks thought on the potential of opendoor as a startup? Mainly interested in understanding the following: 1. Growth potential in terms of valuation 2. Quality of engineering 3. How is the leadership
Most buyers of homes, especially in markets that Opendoor operates in, are not equity compensated. Most markets are not as inflated as the sfbay area. A housing slowdown will have some impact, but precisely what that is isn't clear. If selling a house becomes harder the value proposition for Opendoor's model becomes stronger in many ways. It's critical to get pricing (and price trends) modeled correctly, and include a fee that represents the holding costs based on resale timing. Time will tell.
Believe strongly in top level leadership. Mid and immediate management is spotty, as you’ll find anywhere. Eng is focused on quality now, but from past decisions (which were the right decisions at the time to keep the company moving and growing) we’re in a place with some challenges technologically. It’s a good time to come in, with lots to learn and huge opportunity for impact.
How easy is it transitioning into management?
With slow down in housing market due to too many people buying homes with 3%, 5%, and 10% down and hoping their bonuses and RSUs cover them over the year, I have zero faith in our housing market and OpenDoor will go down because of it. The concept is great but the timing might kill the company and this isn't their fault but a circumstantial death due to economy.