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Just some quick figures. They purchased 15k homes in Q2 alone. Debt on 15,000 homes with average purchase price of 350k (as a ballpark figure) comes to 5.25B.
by ianai 5y ago
Just some quick figures. They purchased 15k homes in Q2 alone. Debt on 15,000 homes with average purchase price of 350k (as a ballpark figure) comes to 5.25B.
There’s a lot of information we don’t have but them laying off huge percentages of staff is a scary indicator. Edit-also note their market cap is about 17B.
- FFRefresh 5y agoCan you point me to the source that says they bought 15k homes in Q2 alone? Zillow says they bought 3,805 homes in Q2: https://s24.q4cdn.com/723050407/files/doc_financials/2021/q2/Zillow-Q2'21-Shareholder-Letter_Exhibit-99.3.pdf https://s24.q4cdn.com/723050407/files/doc_financials/2021/q2...
- ianai 5y agoThis might be where google got that figure. Again, as I state above, I was using rough figures to get an idea of the magnitude of the funds they were devoting to their flipping/analysis unit. It looks like they were doing thousands of units instead of tens of thousands with discrepancies among the sources I'm finding in google: https://www.zillow.com/research/zillow-ibuyer-report-q2-2021-30011/ https://www.zillow.com/research/zillow-ibuyer-report-q2-2021... What's not changed is the fact they were leveraging a significant portion of their company's market cap into this segment and it resulted, so far, in them laying off a quarter of their labor and completely terminating the program - amongst other things. This is not good news for their business and prospects of continuing to be an ongoing concern.