$OPAD - A Dark Horse In Real Estate

I feel like this company gets lumped into the other real estate "iBuyers" without further analysis on exactly who they are and what they do. I think this company is a STEAL at the current share price and we're going to see some serious appreciate in the future. From its lows, it's already up something like 50%. For the purposes of transparency... Disclosure: 295 shares at $5.31 average. ​ Who are they? Offerpad is a Chandler, Arizona company who engages in buying and selling homes AND offers direct listing with a backup cash offer in case the seller can't sell on the open market. Why do I mention where their headquarters is? Because I've been living in the "valley" in Arizona for most of my life and am quite familiar with this company. I even interviewed with them for a software developer position. Based off of what they said in the interview (take it for what its worth) they are trying to differentiate themselves from the likes of OpenDoor and Zillow by focusing on pure profit and revenue rather than willy-nilly selling and buying at any cost, which has burned Zillow big time. ​ Why are they different? Well first, Offerpad has an extremely good reputation from both employees and customers. They do business right and it really shows from their customer acquisition and strong growth. What really differentiates them most in my opinion is the addition of allowing the seller to try the market by themselves with an extra backup offer from Offerpad in case they can't strike a deal with anyone. This really softens up the apprehension that some have when considering selling their home to an iBuyer. Here's the main jist of their services: https://preview.redd.it/14daeqrbbfq81.jpg?width=1212&format=pjpg&auto=webp&s=75d9f77001d2b987f1ea7f0f43b7eeb97343a659 ​ Where's the numbers? I'm glad you asked! They've had amazing growth in the past with 2021 being a standout especially, and with much more growth on the way. Last year had full-year revenue of over $2 billion dollars (https://finance.yahoo.com/news/offerpad-announces-record-fourth-quarter-212000430.html). Comparing that to the market cap of $1.3 billion, you can see why I think this is a pretty good deal! If revenue vs. market cap isn't your thing, how about profits? Gross profits increased 137% YOY to $207 million. And unlike most SPACs, their net profit is actually positive at $4 million. A few other interesting tidbits here is that homes acquired went up 156% YOY, profit from those homes acquired went up 154%, AND they are expanding to new markets, which I will discuss next. ​ Where's the growth going to come from? Other than slowly dethroning Zillow and OpenDoor, which have announced that they are moving away from iBuying, Offerpad also has fantastic organic growth opportunities. For starters, they are in less than HALF the United States, meaning that their $2 billion in revenue doesn't even scratch the surface of what they are capable of in the future. They are barely jumping into California, which is a massive market, and they haven't even touched the northwest nor the northeast. Here's a map of where they are in the U.S. as of five months ago: https://preview.redd.it/q1eo9pezdfq81.jpg?width=1080&format=pjpg&auto=webp&s=9dca64cbfc15023f5b93f213372cf5342a8241fd ​ Closing Notes... I tried to make this as short and as digestible as possible but feel free to poke holes in my thesis if you want and do as much research as you would like to. I only write this up to share what I think is a fantastic long-term investment opportunity. I'm looking at this as a multi-year multi-bagger (hence why it's in my IRA). Check the links below if you want to look at more information on the company! Latest financial report: https://finance.yahoo.com/news/offerpad-announces-record-fourth-quarter-212000430.html Website: https://www.offerpad.com/ ​ Disclaimer: Since people can't think for themselves (come on auto-bot..)... note that I am not a financial advisor, do some research.

back

$OPAD - A Dark Horse In Real Estate

bullish

I feel like this company gets lumped into the other real estate "iBuyers" without further analysis on exactly who they are and what they do. I think this company is a STEAL at the current share price and we're going to see some serious appreciate in the future. From its lows, it's already up something like 50%. For the purposes of transparency...

Disclosure: 295 shares at $5.31 average.

Who are they?

Offerpad is a Chandler, Arizona company who engages in buying and selling homes AND offers direct listing with a backup cash offer in case the seller can't sell on the open market. Why do I mention where their headquarters is? Because I've been living in the "valley" in Arizona for most of my life and am quite familiar with this company. I even interviewed with them for a software developer position. Based off of what they said in the interview (take it for what its worth) they are trying to differentiate themselves from the likes of OpenDoor and Zillow by focusing on pure profit and revenue rather than willy-nilly selling and buying at any cost, which has burned Zillow big time.

Why are they different?

Well first, Offerpad has an extremely good reputation from both employees and customers. They do business right and it really shows from their customer acquisition and strong growth. What really differentiates them most in my opinion is the addition of allowing the seller to try the market by themselves with an extra backup offer from Offerpad in case they can't strike a deal with anyone. This really softens up the apprehension that some have when considering selling their home to an iBuyer. Here's the main jist of their services:



Where's the numbers?

I'm glad you asked! They've had amazing growth in the past with 2021 being a standout especially, and with much more growth on the way. Last year had full-year revenue of over $2 billion dollars (https://finance.yahoo.com/news/offerpad-announces-record-fourth-quarter-212000430.html). Comparing that to the market cap of $1.3 billion, you can see why I think this is a pretty good deal! If revenue vs. market cap isn't your thing, how about profits? Gross profits increased 137% YOY to $207 million. And unlike most SPACs, their net profit is actually positive at $4 million. A few other interesting tidbits here is that homes acquired went up 156% YOY, profit from those homes acquired went up 154%, AND they are expanding to new markets, which I will discuss next.

Where's the growth going to come from?

Other than slowly dethroning Zillow and OpenDoor, which have announced that they are moving away from iBuying, Offerpad also has fantastic organic growth opportunities. For starters, they are in less than HALF the United States, meaning that their $2 billion in revenue doesn't even scratch the surface of what they are capable of in the future. They are barely jumping into California, which is a massive market, and they haven't even touched the northwest nor the northeast. Here's a map of where they are in the U.S. as of five months ago:



Closing Notes...

I tried to make this as short and as digestible as possible but feel free to poke holes in my thesis if you want and do as much research as you would like to. I only write this up to share what I think is a fantastic long-term investment opportunity. I'm looking at this as a multi-year multi-bagger (hence why it's in my IRA). Check the links below if you want to look at more information on the company!

Latest financial report: https://finance.yahoo.com/news/offerpad-announces-record-fourth-quarter-212000430.html

Website: https://www.offerpad.com/

Disclaimer: Since people can't think for themselves (come on auto-bot..)... note that I am not a financial advisor, do some research.

read-time
3 min
7.00
Target Price
9/ 10
Confidence
6-12 Months
Timeframe
catalyst icon
Earnings Release
catalyst icon
News
catalyst icon
SEC
Filing
catalyst icon
Sentiment
catalyst icon
Other Catalyst

Access the latest tools and discussion channels with an account

reddit-sentiment

Reddit Sentiment
Analysis

portfolio-balancer

Portfolio Balancer
with brokerages

sec-dashboard

SEC Dashboard
with NLP

*/}aiodd-ad
next