1 Small-Cap Real Estate Stock to Put on Your Radar
Offerpad isn’t exactly a household name, despite being one of the bigger players in the fast-growing iBuying industry. And with the company’s IPO via a SPAC merger Acquisition of Supernova partners (NYSE: SPNV), it’s a name that growth investors want on their radar. In this Fool Live video clip recorded on August 23rd, Fool.com Contributor Matt Frankel, CFP, sits down with Brian Bair, Offerpad CEO, to get an idea of what the company is doing and why it could be an exciting opportunity in the years to come.
Matt Frankel: Today we have a special guest. He’s Brian Bair, he’s CEO and Founder of Offerpad. Brian, before we get into that, can you just give us a short version of what Offerpad is doing because I feel like there are some people out there who are not too familiar with your company?
Brian Bair: Secure. I founded Offerpad about six years ago. Before Offerpad, I was involved in tens of thousands of real estate transactions and realized how broken the traditional process was. Offerpad was born to really change all of that. Now a customer can come to Offerpad, spend three to five minutes telling us about their home and then receive a cash offer within 24 hours. We also have many other products that we will probably talk about more. It is a direct homebuyer. Instead of going through the listing process and all of the uncertainty out of control, homeowners can now come to Offerpad and receive a cash offer for their home in minutes.
Frankel: In fact, you mentioned other products, so Offerpad doesn’t just buy and sell houses. What are some of the other services that you offer your customers to make it a one stop experience?
Bair: Secure. When I started Offerpad we were called iBuyer somewhere because we bought a lot of houses, but in reality I created Offerpad to be a solution center, a one-stop solution center. Whatever you think of real estate, we will have a product or solution for that customer that will help them with the timing, convenience and safety. We have our iBuying product, which is our cash offer that we give to a customer within 24 hours, but we also have another product for people who come to Offerpad. Let’s say, “Hey, listen up, I want to explore the open market. I received your cash offer, but since the market is in a really hot place right now, I might want to explore the open market and see if I can get more.” We say this is great. We’re bringing them into what we call our flex department and we’re going to work with this homeowner and really work with them to see if they can maximize the price of this home. For example, we even do front repairs on this house. We put the house on the open market, we renovate the house for her, carpet, paint, appliances, whatever. Whatever they can do to see if they can maximize the value of this home. If so, that’s great, and if they can’t, we’ll keep our backup offering in a backup position for 60 days. It really gives them peace of mind that they are in control and whatever is right for that client at that moment.
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