Home flippers hire Uber and Lyft drivers to scout properties

  • Competition is fierce among home flippers, because the returns are falling. Nationwide, flippers saw an average return on their investment of about 39% in the first quarter of this year, falling from 42.5% in the previous quarter.
  • The number of flips are down 8% annually, so the stakes are up.
  • Investor Daniel DiGiacomo has hired about 150 Uber and Lyft drivers to scour the streets for opportunities. It’s his way of getting ahead of the competition in a larger geographical range.
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DiGiacomo used to go to auctions, but he says there are too many bidders there now, driving prices even higher. As for regular property listings from real estate agents, low mortgage rates have too many regular buyers competing with him. That’s why he’ll pay a driver $500 for a lead that turns into a sale. So far this year he says his team of 150 drivers has put in about 2,200 leads, and he normally closes about one deal per 100-150 leads. Overall, he makes about 15 deals a year.

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Nice work. He turns those drivers to old school where you pay high school kids to do.

The BP guys has a special term for it: driving for dollars. Except it’s the Uber guys doing the driving. I also think it’s very clever.

Who’s ready to pay me to drive around in the Bay?