OpenDoor's Instant Liquidity Blueprint
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A story about how Keith Rabois helped create OpenDoor and pioneered the "instant liquidity" business model.
"OpenDoor is now a publicly listed company because it did a SPAC and is a multibillion dollar company. The concept was simple - selling your house is a time consuming and stressful process, what if the day you want to sell you could just sell your house right away?
OpenDoor would just buy your house directly. They had data to know how much to buy houses for, then they'd be the brokers and keep the broker fee for themselves. They'd sell it within 90 days, doing this in markets like Arizona. They've done very well, and now Zillow does the same thing to compete with them.
They changed the way real estate companies' business models worked. The money now is in auto-buying houses and reselling them using technology. This created a blueprint for the 'instant liquidity' model - taking something that was illiquid and making it instantly liquid. Now we're seeing this model applied to used electronics with Backflip, gift cards with Rays, and potentially private company shares and other assets."
Shaan Puri
Host of MFM
Shaan Puri is the Chairman and Co-Founder of The Milk Road. He previously worked at Twitch as a Senior Director of Product, Mobile Gaming, and Emerging Markets. He also attended Duke University.