eli5: How does We Buy Ugly Houses work as a business model?

Question

I looked at their website after seeing one of their billboards and they have like 100+ locations listed. They must be making bank but what exactly is their business model?

In: 0

Answer 1

It’s a house flipping business.

They prey on people with houses in bad shape that can’t sell them otherwise. The make low-ball offers to buy the house or sometimes just the land.

Then they’ll spend the minimum needed to renovate or upgrade the house on the cheap and sell for way more than they paid.