I’m just a guy with a chain and I happen to be on in a hat. I don’t know. I’m just here. They lose how much money per house. Inman says it’s a lot. Let’s take a look at the producer. So let’s split the screen and show off with him and has to say so. There was an article put together on an annual reference that will chat in the link for you so you guys can see.
And as we scroll down, we are going to see that there’s a few things here that are really relevant. Let’s take it. Let’s stop right there. Oh, my gosh. Loss per home.
OK, this is incredible. I saw this and I was like, we totally have to share this. What would you do if you operated your business like this? Does this even make sense? Right. Like I’ve heard of a loss leader I’ve heard of, like building it for later. I’ve heard of, like, losing money, making it up in volume by losing more.
And that’s exactly what’s going on here. This is one of the crazier things we see the operating loss per home that they purchase. OK, and I think this is ultimately long term going to pay off in some way, shape or form for these people. But I don’t know. But to lose look at these numbers.
There’s a line in here of one hundred thousand dollars per home, huh? How long could you as a business do that? Right. That you could lose one hundred thousand dollars per home in best case. Right. Best case of any one of these because they stop doing it is they’re losing like, I don’t know, ten thousand dollars per home. That’s a crazy number. A business can’t operate like that.
It’s just completely right, complete.
I don’t know if you guys have noticed, but I saw a couple of articles at Zillow is kind of like revamping their entire program, and I expect to see more of that from them and Zillow.
I do think Zillow is amazing. I think they’re gaining market share. The things are doing strategically are super impressive.
And if you’re losing that much money, where are you going to do. Yeah, like, how does that work?
You need to make a lot of money somewhere else. That’s a lot. A lot of money home sold. What we saw last year and we talked about this earlier in a past episode, you can go back and look at some past episodes and fact check me here. But how many homes less were transacted this year? Right.
Through the entire program, is that what you’re saying?
Yeah, there are so many less homes sold or purchased through the Ibarra program last year. There’s uncertainty and they didn’t know what to do. But look, I mean, they were at five thousand and then they dropped down to a thousand homes.
Well, plus one over here. People can take can do the forbearance program and take advantage of programs and felt like they could hang out of the house and wouldn’t have to sell it.
I mean, I just look at these loss per home. Eighteen thousand, twelve thousand, I think thousand fifty five thousand, one hundred and three thousand. What is that for real people. I mean, come on.
Well, they might need to. I mean, there’s just like some complete lunacy. Yeah. This doesn’t even make sense to me. Omkar, get us out of here before I get upset.