Interpreting interest rates is not always as straightforward as it seems, and getting it right can have important implications for all parties involved in a commercial real estate transaction. Interest rates can take two forms: nominal interest rates and effective interest rates. As a result, there can be some confusion about what a quoted interest rate actually means. In this article, we will take a deep dive into the differences between nominal and effective rates. We’ll start with the basic intuition behind effective and nominal rates, then walk through the math step by step, with several examples along the way.…
Author: Private Lending Agent
As the US real estate website Zillow belatedly discovered, online shopping can be dangerous. While many of us wasted countless hours during the pandemic clicking through Zillow property listings and daydreaming about what kind of house we would buy if we had the money, the company was running a side business apart from its real estate search website, using algorithms to buy and resell its own homes.The company has been buying a lot, but selling hasn't been so great. This week the company announced that its home-buying division, Offers, lost more than $300 million in the past few months. Offers…
Zillow shares have fallen as much as 28% this week, reeling from the failure of its home-flipping business. The online real estate company reported disappointing earnings and said it plans to take a $304 million impairment charge related to its iBuying service. But Cathie Wood's Ark Invest is looking to buy the dip, buying about 300,000 shares on Tuesday. Thank you for subscribing! Access your favorite topics on the go with your personalized feed. Download the App By clicking “Sign Up”, you agree to our Terms of Use and Privacy Policy. You can unsubscribe at any time by visiting your…
Some things are easy to sell. Pizza sells for what's on the menu, and buyers don't have to wait weeks for an inspector to check that the olives or pepperoni are OK. A slightly worn hockey jersey sells for what an eBay seller can get someone to pay, and to ensure everyone is honest, all they need is a seller rating, not a lawyer or a license. Inventory is even easier: it sells for what the seller says, and the price goes up or down depending on how many people want it, and the agreed-upon price is just a two-second…
Alan Evans Online real estate company Zillow is shutting down its home-buying business and laying off 25% of its workforce after missing third-quarter profit expectations. The company said in a statement accompanying its earnings report on Tuesday that it was halting its Offers program, which helps people buy and sell homes, after reporting a net loss in part due to failures in the Offers division. Zillow said the change was due to its inability to accurately predict the housing market. “Home pricing unpredictability has far exceeded our expectations, and we have determined that continuing to expand Zillow Offers would result…
Zillow, a real estate website known for estimating home prices, said on Tuesday it was exiting its quick home buying and selling business after suffering heavy losses and plans to lay off about 25% of its workforce.The announcement was a major strategic setback and a blemish on Zillow CEO Richard Burton, who founded the company 16 years ago and has long spoken about turning Zillow's popular website into a marketplace. Last year, Burton estimated that Zillow Offers, which allows people to make instant offers on homes through a process known as iBuying, could generate $20 billion in annual revenue.Zillow, which…
In this latest “print” edition of my episodes of PVC’s Art of the Frame podcast we’re back talking unscripted and reality post-production talking about A&E’s Zombie House Flipping. This chat is with Jeanette Christensen and Dan Wolfmeyer both of whom are editors living in Los Angeles and have a long resume in the unscripted world. If you’re on Twitter you may have been following Dan as he’s been on there for years. In fact, click over there if you want to see Dan’s smiling face (I’ve got a picture of Jeanette below). They’ve both spent a lot of years working…
Real estate company Zillow said on Tuesday it would lay off a quarter of its 6,400 employees as it shutters its home-flip business, a blow to the company as it seeks to expand its role in connecting buyers and sellers of real estate.In a statement explaining why the company was abruptly discontinuing a side business called Zillow Offers, CEO Rich Barton said, “The uncertainty in home price forecasts has far exceeded our expectations.” As a result, continuing to grow Zillow Offers would “result in over-inflated margins and a destabilizing balance sheet,” he added. Barton said on Twitter that the decision…
Before and after photos of a Utah Valley home. Everyone knows Salt Lake City's housing market is hotter than a $2 pistol. Home prices have risen 24.7% over the past year, and the median home price hovers around $485,000. Still, buyers are lining up to buy while interest rates are low, and many are happy to do so, even if it means paying a premium for a home. In fact, more than 55% of homes are selling for above list price. Inventory is low, and most homes sell within 13 days of listing: According to Redfin, 369 homes sold this…
Zillow is exiting the home-flip business and laying off most of its employees after admitting that it overestimated its ability to handle “home price unpredictability.” In a dismal quarterly earnings report released Tuesday, the company said it was shutting down Zillow Offers, a division focused on flipping and buying homes. The company, which operates primarily as a digital real estate listing service, also said it was laying off a quarter of its workforce, or about 2,000 people. Company executives said the dissolution of Offers will cost Zillow about $540 million in losses. Zillow is one of several companies hoping to…