NAR REACH

Dubai Land Department, Second Century Ventures Celebrate Start of REACH Middle East

Thu, 12 Feb 2026 21:38:01 GMT

DUBAI, UAE (Feb 12, 2026) With the endorsement and backing of Dubai Land Department (DLD) and Dubai Technology Entrepreneurship Campus (Dtec), Second Century Ventures, the strategic investment arm of the National Association of Realtors® and the world’s most active global real estate technology fund, is proud to announce the start of the 2026 REACH Middle East programme.

The inaugural cohort includes innovative proptech companies from the UAE, Saudi Arabia and India, who marked the accelerator’s launch with booth presentations at PropTech Connect, one of the world’s largest real estate exhibitions.

The programme has been specifically designed to support the wider goals of the UAE Digital Economy Strategy, the Dubai Economic Agenda (D33), and the Dubai Real Estate Strategy 2033.

Supporting regional and international start-ups, REACH will provide a proven framework, financial backing, tailored mentorship, enhanced network and investor access, long-term alumni support and access to a global proptech community. The eight-month accelerator is designed to scale opportunities for the programme cohort and to drive deeper connections among company founders.

The initiative is driven by Siddiq Farid and Karim Helal, two leaders with extensive experience in the GCC’s real estate and technology markets. Farid founded the highly successful real estate fractionalisation company, SmartCrowd, while Helal is one of the region’s most recognisable entrepreneurs and a founding board member of the Dubai PropTech Business Council.

Majid Al Marri, CEO of Real Estate Registration Sector at Dubai Land Department, commented: “REACH Middle East will directly contribute to the goals of Crown Prince of Dubai, His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum’s inspiring Real Estate Strategy 2033. The selected start-ups are developing innovative solutions for citizens and residents that will enhance the real estate ecosystem and underline Dubai’s role as a global leader in the property sector.”

Siddiq Farid, Managing Director of REACH Middle East, said: “This programme brings together strategic influence and financial support to spur innovation within the real estate sector. With the robust backing of Dubai Land Department and Second Century Ventures, as well as world-class industry mentors, the programme provides our cohort companies with the very best chance of becoming future unicorns.”

“The Middle East real estate market, with Dubai as a focal point, has become a hotbed for some of the most innovative minds in technology. The latest expansion of the REACH programme will support exciting new ideas and propel the region’s prop-techs to excel on the global stage,” added Dave Garland, Managing Partner at Second Century Ventures.

Hans Henrik Christensen, Vice President and General Manager of Dtec, commented: “We are proud to welcome and support REACH, and provide a collaborative and entrepreneurial environment to stimulate these exciting start-ups.”

Companies accepted to the 2026 REACH Middle East programme include:

Asano : a real estate development intelligence platform that unifies financial, development and spatial data to improve capital planning across large-scale real estate projects

Coraly : an AI-powered growth platform for real estate agencies

Fixit : an AI employee solution for real estate sales, helping agencies sell faster and smarter

HoloX : creator of digital twins for off-plan real estate sales, transforming complex master plans into interactive 3D experiences

Rewa : a platform that turns rental payments into rewarding financial experiences for tenants, while enabling landlords and property managers to collect rent digitally

Takeem : a digital rental platform to simplify processes, save upfront fees, pre-qualify tenants and de-risk landlord investments by protecting rental income

Watad : an AI-powered building materials procurement platform with embedded finance

This is the first expansion of the REACH programme to the Middle East region, part of a global network that has supported more than 300 new businesses worldwide since its establishment in 2019.

The programme launch coincided with Dubai’s PropTech Connect 2026, one of the world’s biggest real estate technology conferences and exhibitions, hosted in partnership with Dubai Land Department. Cohort members and REACH partners, as well as 14 global REACH companies exhibited.

Visit https://www.nar-reach.com/middle-east for more information.

Second Century Ventures Selects Four Tech Companies for 2026 REACH Canada Program

Mon, 20 Oct 2025 15:00:05 GMT

CALGARY, AB (October 20, 2025) – Second Century Ventures, the strategic investment arm of the National Association of REALTORS®, today announced the selection of four dynamic technology companies for its 2026 REACH Canada program. This year’s cohort is focused on creating a more secure, efficient, and accessible real estate journey by integrating verifiable digital identity, foundational data infrastructure, innovative housing affordability models, and modern financial services into a cohesive ecosystem.

"Our mission with REACH has always been to identify and nurture the technologies that will define the future of real estate," said Dave Garland, Managing Partner of Second Century Ventures. "The 2026 REACH Canada cohort exemplifies this by bringing together companies that address critical points across the entire homeownership lifecycle. From establishing trust with verifiable identity and providing the data backbone for new applications, to creating new pathways to homeownership, these innovators are building a more connected and accessible experience for everyone."

Second Century Ventures is the most active global venture fund in real estate technology, with a portfolio of over 310 companies worldwide. SCV operates the global REACH scale-up program in seven major markets: U.S. Residential, U.S. Commercial, Australia, Canada, the United Kingdom, Latin America, Israel, and the Middle East. The 2026 REACH Canada selection marks the 6th cohort of high-growth companies to be scaled through the program since its Canadian launch in 2020.

"The 2026 REACH Canada class is uniquely positioned to address some of the most pressing needs in the industry today, particularly housing affordability and the pace of innovation," said Lynette Keyowski, Managing Partner of REACH Canada. "We are seeing a clear demand for greater security, more powerful developer tools, and creative solutions to financial barriers. This cohort directly answers that call, offering solutions that build trust, empower innovators, and introduce new models for accessing homeownership. We are excited to champion these founders as they redefine the Canadian real estate landscape."

The four companies selected for the 2026 REACH Canada program are:

Credivera : A secure digital identity platform that allows accredited professionals and their clients to instantly verify credentials and identities, fostering unprecedented trust and security in every transaction.
Repliers : A real estate data platform providing developers with the APIs and tools needed to build and scale next-generation real estate applications, accelerating innovation across the industry.
Cedar : A housing affordability solution that lowers the financial barriers to homeownership by separating the cost of the land from the home itself.
Neobanc : A modern financial services platform offering tailored business banking for real estate professionals and innovative financial products for their clients, streamlining everything from commission payouts to closing costs.

REACH Canada will provide its 2026 cohort with a comprehensive curriculum featuring education, mentorship, exclusive networking opportunities, and significant exposure to the global real estate marketplace.

Learn more about the companies selected for the REACH Canada program and how you can get involved at www.narreach.ca .

About NAR

About REACH

REACH is a unique technology scale-up program created by Second Century Ventures, the most active global fund in real estate technology. Backed by the National Association of Realtors®, Second Century Ventures leverages the association's members and an unparalleled network of executives within real estate and adjacent industries. The REACH program helps technology companies scale across the real estate vertical and its adjacent markets through education, mentorship and market exposure. For more on REACH, visit www.narreach.com

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Information about NAR is available at nar.realtor . This and other news releases are posted in the newsroom at nar.realtor/newsroom .

Second Century Ventures Unveils REACH UK 2025 Cohort

ldonegan@scv.vc (Louise Donegan) — Mon, 02 Jun 2025 15:16:29 GMT

Second Century Ventures Unveils REACH UK 2025 Cohort

Second Century Ventures, the global venture arm of the National Association of Realtors®, has selected eight high-growth startups for its 2025 REACH UK scale-up programme. Tackling critical challenges across the property sector - from late rent and retrofit finance to water use, waste and leasing inefficiencies, the companies represent the next wave of innovation set to modernise housing, lettings, finance, and sustainability. Delivered in collaboration with Propertymark and TDS Group, the programme provides a tailored pathway to growth through industry access, investment, and targeted support.

Watch our full reveal video HERE.

Announcing the REACH UK 2025 Cohort

Since launching in 2020, the REACH UK program has become one of the most recognised technology programs in the UK property sector. Backed by Second Century Ventures and supported by the co-investment agreement with Propertymark and TDS Group, the program continues to foster innovation and scale high-potential companies. The 2025 cohort spans FinTech, PropTech, and InsureTech — from AI-powered rent collection, embedded risk screening, and retrofit finance to tools tackling waste, water efficiency, leasing automation, and agent productivity.

Fixing the Fundamentals: Expanding Access, Managing Risk, and Financing Retrofits

Husmus ( https://husmus.net/ ) AI-powered InsurTech solution for rental platforms, insurers, and landlords enabling real-time tenant screening and custom insurance to expand eligibility by 50% and cut fulfillment time from days to hours.

Casapay ( https://www.casapay.com/ ) AI-powered payments and risk platform for letting agents and portfolio landlords helping to guarantee on-time rent, eliminating arrears, and cutting operational costs by up to 90% through automated workflows and precision underwriting.

Factored ( https://factored.co/ ) Financing platform for landlords delivering same-day funding for energy efficiency upgrades and refurbishments without upfront costs and expanding access through partnerships with letting agents and retrofit providers.

Boosting Productivity: Driving Process and Performance across Residential & Commercial Operations

Prospector Pro ( https://www.prospectorpro.co.uk/ )AI call intelligence platform for estate agents and call-driven teams transforming phone conversations to improve conversion, unlock lost revenue, and enhance compliance.

SquarePlan ( https://sqarplan.com/ ) Commercial leasing automation for landlords, developers, architects, and leasing teams accelerating space planning by 100x and streamlining technical design, fit-out estimation, and immersive 3D/VR/AR outputs.

Hybr ( https://www.hybr.co.uk/letting-agents ) SaaS enabled lettings platform for letting agents cutting workloads by up to 80%, turning leads into lets faster, and building transparency into a stressful rental process.

Advancing Net Zero at Scale: Tackling Waste in Commercial Real Estate and Water Use Across the Built Environment

Watergate ( https://watergate.ai/ ) AI-powered leak prevention and water efficiency platform for landlords, asset managers, and property operators cutting leaks, water waste, and costs by up to 68%.

Carrot ( https://carrot.tech/ ) Waste data and analytics SaaS platform helping property managers, owners, and occupiers to reduce waste by 30%, cut cost, and achieve net zero targets across portfolios.

Collectively, these companies have raised just north of $20m in capital, with a combined valuation of over $100 million.

Strategic Partnerships Driving Industry Modernisation

The REACH UK 2025 cohort was selected with significant input from Propertymark and TDS Group, ensuring that the chosen startups align with the strategic goals of driving innovation and modernisation within the property industry. The unique structure of the REACH program allows for unparalleled industry participation and engagement, setting these companies on a path to success.

“This year’s cohort reflects where the market is heading - with technologies addressing real structural inefficiencies across finance, compliance, sustainability, and access. We’re backing exceptional founders, including two female-led companies and a standout impact venture focused on underserved renters. These are the types of businesses with the potential to deliver both commercial returns and industry-wide relevance.”

Natasha Terinova, Managing Partner at REACH UK

Nathan Emerson, CEO of Propertymark, comments:

“We are extremely excited to be supporting REACH UK again this year as we recognise the importance of accelerating digital innovations in the marketplace, which ultimately propel businesses even further.

“Receiving early engagement from property professionals helps define and fine-tune new technology, and we are excited to give Propertymark members early exposure to some of the best-in-class tech solutions and continue to see these companies progress and streamline areas within the industry.”

Steve Harriott, CEO of TDS Group, comments:

“At TDS Group, we’re committed to raising standards and making life easier for everyone in the property sector. Through our partnership with REACH UK, we’re proud to support innovative startups and solutions that are helping to build a fairer, more efficient property market for the future.”

What’s Next for the REACH UK 2025 Cohort?

The REACH UK 2025 program is designed as a strategic growth engine — not a one-size-fits-all accelerator. Over the next 9 months, each company will follow a curated track, combining targeted mentorship, exclusive market exposure, and tailored support. From headline opportunities at major global conferences to behind-the-scenes industry introductions, we’ll be building a personalised path to scale. With access to education, perks, and hands-on guidance, these startups are positioned to drive both commercial growth and lasting industry change.

Applications for REACH UK 2026: Opening Soon

Applications open in Q4 2025. If you're building a high-growth solution for the property sector and are ready to scale in the UK and beyond, now’s the time to connect.

Only a select number of companies will join the next cohort - each chosen for their potential to transform the industry.

Register your interest ( https://share.hsforms.com/187Q6UB7PQhG1g4Znnf6yqA3vdql ) or follow REACH UK on Linkedin ( https://www.linkedin.com/company/reach-united-kingdom ) for updates.

Second Century Ventures Announces 8 Companies for 2025 REACH Scale-Up Program

astinton@scv.vc (Ashley Stinton) — Wed, 14 May 2025 13:47:33 GMT

CHICAGO (May 14, 2025) – Second Century Ventures, the strategic investment arm of the National Association of Realtors® and the most active global real estate technology fund, today announced the acceptance of eight companies to the 2025 NAR REACH program. For more than a decade, the REACH program has vetted, selected and accelerated unique technology solutions focused on the U.S. residential real estate sector, significantly impacting real estate agents, consumers and the economy. Since 2019, REACH has expanded to offer a program focused on the U.S. commercial market, and six global programs, collectively accelerating more than 300 new technologies worldwide.

"REACH serves as a strategic lens into where innovation is heading and how emerging technologies will shape the broader real estate landscape," said Mark Birschbach, NAR's executive vice president, strategic business innovation and technology. "Our work with these companies reflects a long-term commitment to fostering ideas that influence markets and unlock new possibilities."

Companies selected for the 2025 program represent a diverse range of solutions that support critical industry needs and further accelerate the digital transformation of real estate. Collectively, these companies serve every major stakeholder across the residential real estate ecosystem – from agent to consumer, association and MLS, and adjacent industries including finance and home services.

Companies accepted to the 2025 REACH program include:

Foyer : a financial technology company offering a "401(k) for homeownership" and personalized guidance to accelerate the journey to homeownership.
Guest House : helps real estate professionals get listings to market faster and generate a higher return by automating home preparation through a suite of services including staging, photography, cleaning and moving.
Infinityy : a city-scale network of AI-guided personalized experiences of every property and neighborhood in an MLS that engages and qualifies prospects 24/7.
NEO : a multilingual platform that partners with associations and MLSs to provide agents with a sales and marketing tool to help sell new construction more efficiently.
Pitch59 : video PitchCards that make it easy for real estate professionals to introduce themselves, network and get more referrals.
Pixlmob : a curated network where real estate professionals can connect with verified photographers, editors and AI tools to create property visuals.
Tether RE : safeguarding real estate agents from contact to close with 24/7 live monitoring, discreet SOS alerts, struggle detection and criminal background checks.
QwikFix : enabling agents and their clients to turn home inspection reports into repair quotes that are fulfilled by licensed contractors.

"Industries evolve by innovating. The eight companies selected for the 2025 REACH program have the potential to drive meaningful change across real estate now and well into the future," said Ashley Stinton, managing partner, NAR REACH. "With a range of solutions that drive efficiency, streamline business operations and enhance the consumer experience, these technologies are empowering real estate professionals to operate thriving businesses and better serve their clients."

REACH offers a robust curriculum including education, mentorship, exclusive networking opportunities and significant exposure to the global real estate marketplace. To learn more about REACH and how you can get involved, visit narreach.com .

About REACH

REACH is a unique technology scale-up program created by Second Century Ventures, the most active global fund in real estate technology. Backed by the National Association of Realtors®, REACH leverages the association's membership and an unparalleled network of executives within real estate and adjacent industries. The REACH program helps technology companies scale across the real estate vertical and its adjacent markets through education, mentorship, and market exposure.

About the National Association of Realtors®

As America's largest trade association, the National Association of Realtors® is involved in all aspects of residential and commercial real estate. The term Realtor® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of Realtors® and subscribes to its strict Code of Ethics . For free consumer guides about navigating the homebuying and selling transaction processes – from written buyer agreements to negotiating compensation – visit facts.realtor .

REACH Program Named Top Accelerator by PropTech Outlook

Tue, 19 Nov 2024 20:59:03 GMT

REACH programs now accepting applications across multiple markets to support real estate innovators

CHICAGO (November 19, 2024) – The National Association of Realtors®' REACH technology growth program has been awarded PropTech Outlook's 2024 Accelerator of the Year. This commendation reinforces REACH's vital role in supporting and accelerating innovation within real estate and adjacent industries.

REACH was created by Second Century Ventures, NAR's strategic investment arm. As the most active venture fund in global real estate technology, REACH leverages an unparalleled network of 1.5 million NAR members and executives from across the residential and commercial real estate sectors.

"Being recognized as 2024 Accelerator of the Year highlights REACH's incredible journey from its first U.S.-based program in 2013 to now operating across seven major markets," said Ashley Stinton, managing partner, NAR REACH. "Fostering a community of more than 250 technology companies, this award celebrates the powerful partnerships and collective efforts that are transforming real estate worldwide."

In 2024, REACH welcomed 55 new companies across seven global programs, offering solutions in building automation, decarbonization, brokerage, finance and banking, asset and property management, data analytics and more. As part of one of the world's largest asset classes and a major aspect of the global economy, REACH's role in advancing real estate innovation is a key contributor to economic growth and job creation.

REACH operates two programs for the U.S. market – residential and commercial – as well as programs in the United Kingdom, Canada, Australia and New Zealand, Latin America, and Israel, with ambitions to serve additional markets in future years. The REACH program accelerates promising new technologies through mentorship from a deep and diverse pool of thought leaders, education from industry experts, and market exposure through Demo Days and unique partner events in each program region. REACH taps into the unique strengths and opportunities of each market by fostering networks of local experts and partners.

"REACH UK's unique co-investment partnership with industry organizations Propertymark and TDS has enabled us to foster even greater industry collaboration and support for our startups, accelerating their growth and market reach," said Natasha Terinova, managing partner, REACH UK. "The strength of REACH lies in our ability to scale innovative startups globally while delivering tailored support that addresses regional market needs."

Applications are currently open for REACH programs serving the U.S. residential sector , the United Kingdom , Australia and New Zealand , Latin America , and Israel . Entrepreneurs driving innovation in real estate and adjacent industries are encouraged to learn more and apply at narreach.com .

About the National Association of Realtors®

The National Association of Realtors® is America's largest trade association, representing 1.5 million members involved in all aspects of the residential and commercial real estate industries. The term Realtor® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of Realtors® and subscribes to its strict Code of Ethics . For free consumer guides about navigating the homebuying and selling transaction processes – from written buyer agreements to negotiating compensation – visit facts.realtor .

About REACH

REACH is a unique technology scale-up program created by Second Century Ventures, the most active global fund in real estate technology. Backed by the National Association of Realtors®, Second Century Ventures leverages the association's 1.5 million members and an unparalleled network of executives within real estate and adjacent industries. The REACH program helps technology companies scale across the real estate vertical and its adjacent markets through education, mentorship and market exposure. For more on REACH, visit narreach.com .

REACH Latam 2024 Graduation

Fri, 08 Nov 2024 03:44:02 GMT

MEXICO (November 08, 2024)- REACH Latam Graduation: On October 23, 2024, REACH Latam proudly celebrated the graduation of its Class of 2024. During the Tech Week event in Mexico City, companies had the opportunity to participate in a panel before showcasing their pitches to a distinguished VC jury.

�� Congratulations to our remarkable Cohort 2024!

We are thrilled to celebrate the graduation of the second generation of the Reach Latam Program. ��

In recent months, these innovators have turned their visions into concrete solutions that are transforming the real estate landscape. We can’t wait to witness their ascent to new heights and their continued disruption of the market with their innovative ideas.

NEO - New Estate Only

Propi

Wbuild.io

VIVENTA

cuid

Mica (Techstars'23)

Hippo.Build (YC W22)

Alterhome.es

Second Century Ventures Selects Eight Tech Companies for 2025 REACH Canada Program

Fri, 01 Nov 2024 14:28:48 GMT

CALGARY (November 1, 2024) – Second Century Ventures, the strategic investment arm of the National Association of Realtors®, today announced eight companies selected for its 2025 REACH Canada program. These firms operate within a diverse range of market segments and specializations, offering productivity and efficiency solutions for real estate professionals while addressing some of society’s growing housing challenges.

"The vision for REACH and Second Century Ventures has remained crystal clear: to empower industry innovators to work hand in hand with agents and brokers, enhancing services that support seamless operations, secure transactions and pathways to new opportunities," said Dave Garland, managing partner of SCV. "We are committed to helping these transformative companies make lasting impacts on real estate by prioritizing efficiency, adaptability and security in a rapidly evolving market."

Second Century Ventures is the most active global venture fund in real estate technology, with more than 280 portfolio companies worldwide. SCV operates the global REACH scale-up program in seven major markets – U.S. Residential, U.S. Commercial, Australia, Canada, the United Kingdom, Latin America and Israel. The 2025 REACH Canada cohort marks the fifth group of high-growth-potential companies scaled by the Canadian program since its launch in 2020.

"The 2025 REACH Canada cohort reflects the power of diverse technological innovations to address real estate’s unique challenges," said Lynette Keyowski, managing partner of REACH Canada. "Focusing on quality-driven technology and mission-oriented founders, this cohort brings solutions that redefine property management, foster financial inclusivity, expand rental flexibility and facilitate secure investment and property enhancements. We're thrilled to support these companies as they create meaningful solutions that resonate across the real estate community."

The eight companies selected for REACH Canada 2025 are as follows:

Bidmii connects real estate professionals and homeowners with contractors, making home improvements easier, faster and more secure by holding project funds in trust to ensure peace of mind for everyone involved.

REITIUM is a real estate marketplace empowering churches to raise capital through donations, debt and equity to build community centers, day cares and affordable housing on excess church land.

ReLease is the simplest way for apartment buildings to offer residents flexible renting benefits, including the option to end their lease for any reason.

RocketPlan is a mobile-first business operating system for property restoration insurance claims, professionals streamlining documentation, reporting, estimating and billing.

SHARE SFR is an efficient way to build a portfolio of U.S. rental properties, unlocking institutional real estate service providers for every step of the investing value chain for retail investors.

Stelor provides condo managers and boards with capital replacement tools, analytics and predictive forecasting to help avoid special assessments and optimize reserve fund fees.

Upfront provides real estate native financial services for brokers and agents.

Voiceflip makes data accessible with advanced AI and voice technology delivering real-time, multilingual insights across 25 languages, giving users instant access to property data, market trends and organizational information.

REACH Canada will offer its 2025 program a robust curriculum including education, mentorship, exclusive networking opportunities and significant exposure to the global real estate marketplace. Learn more about the companies selected for the REACH Canada program and how you can get involved at www.narreach.ca . Find the release also at: https://www.nar.realtor/newsroom/

About the National Association of Realtors®

About REACH

REACH is a unique technology scale-up program created by Second Century Ventures, the most active global fund in real estate technology. Backed by the National Association of Realtors®, Second Century Ventures leverages the association’s 1.5 million members and an unparalleled network of executives within real estate and adjacent industries. The REACH program helps technology companies scale across the real estate vertical and its adjacent markets through education, mentorship and market exposure. For more on REACH, visit narreach.com .

Second Century Ventures Announces REACH UK 2024 Cohort Backed by Propertymark and TDS Group

Tue, 03 Sep 2024 09:18:00 GMT

LONDON (03/09/24) – Second Century Ventures (SCV), the venture capital arm of the National Association of Realtors® (NAR), proudly announces the eight companies selected for the REACH UK 2024 technology scale-up program. This year’s cohort, supported by the landmark co-investment agreement with Propertymark and TDS Group, marks a milestone in SCV’s mission to act as a catalyst for emerging technologies, new opportunities, and top talent. SCV invests in ideas and teams looking to scale across the real estate, financial, insurance, and home service verticals.

Announcing the REACH UK 2024 Cohort
The REACH UK program, launched in March 2020 with the support of Propertymark,
has quickly become one of the most competitive and recognised tech scale-up
programs in the UK. The 2024 cohort is particularly significant as it benefits from
enhanced investment and the strong backing of two of the UK’s largest industry
organisations—Propertymark and TDS Group. These partnerships have been
instrumental in the selection of the following eight companies, each positioned to make a substantial impact on the property sector:

Just Move In (https://justmovein.com/) – A platform helping property professionals provide a seamless moving experience for home movers by automating home services like utilities and insurance, increasing customer satisfaction and retention.

HIPLA (https://www.hipla.co.uk/) – Digital legal pack helping property professionals
reduce transaction times and simplify sales with a suite of industry leading products –
ID/AML, Material Information, Document Signing and Quote Referral.

Building Passport (https://www.buildingpassport.com/) – A SaaS solution for
building owners and professionals, offering a permanent common data environment
on a building-by-building basis to ensure compliance, improve governance and
reduce costs in property management.

Infersens (https://www.infersens.com/) – A water sensor technology for property
managers and owners that enhances water safety, reduces waste, and supports
sustainability in the built environment.

Propalt (https://propalt.co.uk/) – A property data platform helping agents, landlords,
property owners, and financial services by presenting a single data view automating
lead generation to driving higher conversions.

SuSy (https://susy.house/) – Intelligent software to streamline domestic retrofit and
enhance resident engagement, for estate agents, landlords, local authorities and
property professionals.

BuiltAPI (https://builtapi.com/) – A low-code data integration platform for real estate
investors and managers, facilitating cost-effective data exchange and data
governance.

Zonifero –(https://zonifero.com/en/) – An integrated platform for businesses,
optimising building and workplace efficiency, reducing costs, enhancing security, and
improving employee satisfaction for the age of hybrid work and ESG goals.

Collectively, these companies have raised over $12.5m in capital, with a combined
valuation just north of $100 million.

Strategic Partnerships Driving Industry Modernisation
The REACH UK 2024 cohort was selected with significant input from Propertymark
and TDS Group, ensuring that the chosen startups align with the strategic goals of
driving innovation and modernisation within the property industry. The unique
structure of the REACH program allows for unparalleled industry participation and
engagement, setting these companies on a path to success.

“The REACH UK 2024 cohort represents a strategic investment in high-potential
companies that are positioned to deliver significant value across the property
industry. Our strong, established partnership with Propertymark, along with the
support from TDS Group, gives us the insight and alignment needed to scale these
technologies and drive both innovation and measurable impact in the sector.”
— Natasha Terinova, Partner at REACH UK

Nathan Emerson, CEO of Propertymark, comments: “We are extremely pleased to
again be supporting REACH UK in accelerating technology in the marketplace. The
industry’s early engagement helps define and fine tune new digital innovations, and
we are excited to see these companies progress and streamline areas within the
property sector.”

“We are pleased to support the REACH UK 2024 cohort, which aligns with our
mission to foster innovation and elevate standards across the property sector. The
collaboration between Propertymark, TDS and Second Century Ventures, creates an
ecosystem where these property related technologies can thrive. We look forward to
seeing how these companies will drive positive change and improve the property
experience for all stakeholders.” stated Steve Harriott, CEO of TDS Group.

What’s Next for the REACH UK 2024 Cohort?
The selected companies are set for significant growth through the REACH UK 2024
program, which will run for up to 9 months. They will benefit from a tailored series of
bespoke events, opportunities to showcase and speak about their technologies at
major global conferences, and targeted mentorship from industry leaders. With
access to exclusive perks, education, and resources designed to accelerate their
progress, these startups are strategically positioned to scale their businesses and
deliver strong returns. The program’s structured approach ensures that their
technologies will have a lasting impact on the property industry.

Applications for REACH UK 2025: Opening Soon
As the REACH UK 2024 cohort embarks on its journey, the SCV and REACH UK
teams are gearing up to open applications for the REACH UK 2025 program.
Offering unparalleled opportunities for growth, industry engagement, and strategic
investment, the REACH UK program is the perfect platform for startups looking to
scale in the UK and globally.

If you’re interested in being part of the next cohort, we encourage you to express
your interest now. Please fill out this form:

(https://share.hsforms.com/187Q6UB7PQhG1g4Znnf6yqA3vdql) or follow REACH
UK on Linkedin (https://www.linkedin.com/company/reach-united-kingdom) to sign
up for updates, and our team will contact you when applications officially open.

Second Century Ventures Announces 7 Companies for 2024 REACH Commercial Scale-Up Program

Mon, 29 Jul 2024 18:06:00 GMT

CHICAGO (July 29, 2024) – Second Century Ventures, the strategic investment arm of the National Association of Realtors® and the most active global real estate technology fund, announced today the acceptance of seven companies to the 2024 REACH Commercial program. Launched in 2019, this marks the sixth cohort dedicated to scaling solutions for commercial real estate.

Companies selected for the 2024 program represent a diverse range of solutions across the real estate ecosystem. These innovations span large land transactions, real estate ownership, commercial lease abstraction, digital sales and leasing, lowering of carbon emissions and improving building operations, among others. Collectively, these companies have raised more than $150 million in funding and employ more than 150 individuals worldwide.

“These seven companies are driving innovation within the commercial real estate ecosystem,” said Dave Garland, managing partner of Second Century Ventures. “By investing in and supporting these forward-thinking businesses, we ensure that commercial real estate professionals have access to the latest technologies, empowering them to enhance operations, make informed decisions and deliver value to their clients.”

Companies accepted to the 2024 REACH Commercial program are as follows:

“This year’s REACH Commercial cohort, selected from our most competitive application pool yet, is set to significantly impact the industry,” said Bob Gillespie, managing partner of REACH Commercial. “They are addressing major challenges in our rapidly evolving field with innovative solutions in lowering carbon emissions, leveraging artificial intelligence and big data, and creating better fintech solutions to drive real estate transactions. We are excited about this outstanding group and their potential for substantial growth.”

About REACH

REACH is a unique technology scale-up program created by Second Century Ventures, the most active global fund in real estate technology. Backed by the National Association of Realtors®, REACH leverages the association’s 1.5 million members and an unparalleled network of executives within real estate and adjacent industries. The REACH program helps technology companies scale across the real estate vertical and its adjacent markets through education, mentorship, and market exposure.

About NAR

The National Association of Realtors® is America’s largest trade association, representing 1.5 million members involved in all aspects of the residential and commercial real estate industries. The term Realtor® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of Realtors® and subscribes to its strict Code of Ethics .

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Second Century Ventures Announces Eight Companies for REACH LATAM 2024 Cohort

Wed, 15 May 2024 13:34:42 GMT

MEXICO CITY (May 15, 2024) – Second Century Ventures, the strategic investment arm of the National Association of Realtors®, has announced the selection of eight companies for the second annual REACH Latin America (LATAM) cohort. Those selected for the 2024 program will join a portfolio of more than 250 technology companies across six major markets worldwide.

The acclaimed REACH program aids in launching and accelerating companies with high-growth potential in the real estate, construction, financial services, banking, home services, and insurance sectors.

“The 2024 REACH LATAM cohort is at the forefront of a technological revolution in the real estate and construction industries,” said Carlos Rousseau, managing partner of REACH LATAM. “These eight innovative startups harness AI and blockchain to reshape how we invest, build and manage properties. We are excited to support their growth and witness their impact on the industry and people across Latin America.”

The companies selected include:

WBuild optimizes the investing and asset management processes through advanced legal frameworks, blockchain and AI. This enables investors to access and build personalized portfolios while allowing developers and asset managers to better service their customers.

Propi accelerates the sales and rental of residential real estate in Central America, making the process easier for buyers, landlords and tenants.

HippoBuild provides construction companies with a comprehensive platform to optimize procurement and supply chain processes using real-time data.

Mica improves the renting process for all parties involved through its underwriting risk model and provision of financial tools.

Viventa assists Latin American migrants to purchase homes in their countries of origin, providing expert legal and financial guidance throughout the process.

Neo is an AI-enhanced platform connecting developers, agents, home buyers and international investors, addressing market needs in pre- and under-construction real estate.

Cuid offers reliable AI security for homes and businesses.

Alterhome is a Platform as a Service (PaaS) model launching vacation rental businesses worldwide.

“The diversity of solutions within this group is truly remarkable,” said Dave Garland, managing partner, Second Century Ventures. “We’re thrilled to support their growth and witness the synergies that will emerge as they collaborate and innovate together.”

REACH LATAM provides an extensive curriculum, including education, mentorship, exclusive networking opportunities and substantial exposure to the global real estate marketplace. To learn more about REACH LATAM and how you can get involved, please visit nar-reach.com/latam .

About REACH

REACH is a unique technology scale-up program created by Second Century Ventures, the most active global fund in real estate technology. Backed by the National Association of Realtors®, REACH leverages the association’s 1.5 million members and an unparalleled network of executives within real estate and adjacent industries. The REACH program helps technology companies scale across the real estate vertical and its adjacent markets through education, mentorship, and market exposure.

About the National Association of Realtors®

REACH Announces the 2024 Cohort

Wed, 17 Apr 2024 18:08:00 GMT

Second Century Ventures Announces 8 Companies for 2024 REACH Scale-Up Program CHICAGO (April 17, 2024) – Second Century Ventures, the strategic investment arm of the National Association of Realtors® and the most active global real estate technology fund, today announced the acceptance of eight companies to the 2024 REACH program. Launched in 2013, this marks the 12th cohort focused on accelerating technology solutions for the U.S. residential real estate sector.

“Through the REACH scale-up program, we’re catalyzing transformative advancements at the intersection of technology and real estate,” said Mark Birschbach, NAR’s senior vice president, strategic business innovation and technology. “Our aim is to push the boundaries of what’s possible, equipping agents who are Realtors® with tools and insights that foster exceptional client service and operational efficiency.”

Companies selected for the 2024 program represent a diverse range of solutions across the entire transaction life cycle, from pre-contract to post-close. Collectively, these companies have raised more than $55 million in funding and employ more than 300 individuals worldwide.

“The eight companies selected for the 2024 REACH program are at the forefront of the industry’s greatest challenges and opportunities,” said Ashley Stinton, managing partner, NAR REACH. “Supporting real estate professionals and the clients they serve has never been more important and we firmly believe this group of innovators will have an immeasurable impact throughout the real estate, finance, title, mortgage and home services industries.”

Companies accepted to the 2024 REACH program are as follows:

“These companies are poised to significantly advance the real estate landscape in the year ahead and for many to come,” said Dave Garland, managing partner, Second Century Ventures. “By scaling solutions through the REACH program, we are providing real estate agents with promising new tools and technologies, empowering them to better serve their clients and stay ahead in an ever-evolving industry.”

About REACH

REACH is a unique technology scale-up program created by Second Century Ventures, the most active global fund in real estate technology. Backed by the National Association of Realtors®, REACH leverages the association’s 1.5 million members and an unparalleled network of executives within real estate and adjacent industries. The REACH program helps technology companies scale across the real estate vertical and its adjacent markets through education, mentorship, and market exposure.

About the National Association of Realtors®

Second Century Ventures Opens Applications for 2024 REACH Commercial Program

Tue, 05 Mar 2024 20:21:00 GMT

CHICAGO (March 5, 2024) – Second Century Ventures, the strategic investment arm of the National Association of Realtors®, today opened applications for the 2024 REACH Commercial technology growth program. Second Century Ventures, the most active global venture fund in real estate technology, operates the award-winning REACH program across North and South America, Europe, Australia and Asia-Pacific.

Led by managing partner Bob Gillespie, the REACH Commercial program is in its sixth year of operation. It will run a curriculum supporting entrepreneurs developing innovative solutions across all commercial sector asset classes.

“The REACH Commercial program excels at nurturing growth within the proptech sector,” said Gillespie. “We have a long track record of working with our participating companies to navigate through the industry’s significant challenges, transforming these obstacles into unique opportunities for innovation. This strategy elevates the market presence for these companies and accelerates their development.”

NAR’s REACH Commercial program aims to scale the most promising new technology companies in real estate, including brokerage, developer, housing and financial solutions. Program participants receive premier access to the following:

“REACH Commercial champions pioneering companies poised to shape the future of real estate tech,” said Dave Garland, managing partner, Second Century Ventures. “Our program empowers these innovators with unparalleled resources and expertise, fostering their growth and impact within the industry.”

Applications for the 2024 REACH Commercial program will be accepted through April 15, 2024. For more information about REACH, or to apply, visit www.narreach.com(link is external) .

About REACH

REACH is a unique technology scale-up program created by Second Century Ventures, the most active global fund in real estate technology. Backed by the National Association of Realtors®, Second Century Ventures leverages the association’s more than 1.5 million members and an unparalleled network of executives within real estate and adjacent industries. The REACH program helps technology companies scale across the real estate vertical and its adjacent markets through education, mentorship and market exposure. For more on REACH, visit www.narreach.com(link is external) .

About the National Association of Realtors®

The National Association of Realtors® is America’s largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries. The term Realtor® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of Realtors® and subscribes to its strict Code of Ethics .

# # #

REACH Australia and New Zealand Unveils Nine Companies Selected to 2024 Scale-up Program

astinton@scv.vc (Ashley Stinton) — Mon, 12 Feb 2024 14:45:54 GMT

SUNSHINE COAST, QUEENSLAND, AUSTRALIA (February 12, 2024) – Second Century Ventures, the strategic investment arm of the National Association of Realtors®, is delighted to announce the inclusion of nine innovative companies to the 2024 REACH Australia and New Zealand program.

Launched in 2019, the REACH Australia and New Zealand program is now entering its fifth year and is the longest-running REACH program outside the United States. This initiative has evolved to become a cornerstone for technology companies aiming to scale their growth and make a lasting impact on the real estate communities of Australia and New Zealand.

"We are honored to have the opportunity to work with more exciting property technology startups," said Peter Schravemade, managing partner, REACH Australia and New Zealand. "These nine companies represent the largest number of companies taken on in a calendar year for the REACH Australia and New Zealand program. Regardless of your area of specialization, there is significant value within this group."

Recently awarded as Residential VC of the Year by the Center for Real Estate Technology and Innovation, the REACH program consistently asserts its dominance within the Australian property technology community, solidifying partnerships with multiple real estate institutes and the Proptech Association of Australia. This commitment underscores REACH's integral role in propelling innovation and collaboration within the industry.

"For five years, this program has been a driving force for Australian and New Zealand real estate technology, opening doors to global markets," said Dave Garland, managing partner, Second Century Ventures. "The diverse and forward-thinking 2024 cohort demonstrates our unwavering dedication to fostering the best innovation and talent from the Asia Pacific region."

The companies accepted to the REACH Australia and New Zealand 2024 program are as follows:

Arcanite is the ultimate real estate sales management and channel distribution platform to accelerate the transaction rate for all connected parties within the real estate ecosystem.

Erin Living Technologies is a resident experience company meeting the demands of modern living. The core product – Erin – is a community-led livability super-app designed to make the lives of residents more connected, secure and convenient.

Milk Chocolate has verticalized all parts of the property journey into one experience, offering planning, buying, building and management services.

Leesy digitizes and centralizes the leasing process, helping renters to secure a home they love without the stress, landlords to maximize their rental yield, and agencies to reduce the time they spend leasing properties by up to 74%.

FLK it Over streamlines residential leases and all real-estate document signing for your office with its seamless dashboard, SMS-powered communication and powerful proptech integrations.

Agent Profit Planner fine-tunes your real estate agency business for maximum return with online modeling tools to test profit and efficiency outcomes.

Square by Square empowers anyone to buy and sell tiny squares of conservation land, making it profitable to protect nature.

GXE is the all-in-one platform for investment funds, family offices, and syndicates that provides real-time visibility, efficient workflows, automated administration, reporting and more.

THDR Group (aka THEODORE) is an Australian-born custom-tailored menswear brand with the vision of providing property professionals with access to affordable luxury menswear, by innovating and simplifying the customer experience via the use of emerging technology.

For further information about REACH Australia and New Zealand and to explore ways to get involved, including attending the 2024 kickoff event in Brisbane, visit www.reachau.com/portfolio .

About REACH

REACH is a unique technology scale-up program created by Second Century Ventures, the most active global fund in real estate technology. Backed by the National Association of Realtors®, Second Century Ventures leverages the association's more than 1.5 million members and an unparalleled network of executives within real estate and adjacent industries. The REACH program helps technology companies scale across the real estate vertical and its adjacent markets through education, mentorship and market exposure. For more on REACH, visit www.narreach.com .

About the National Association of Realtors®

The National Association of Realtors® is America's largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries. The term Realtor® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of Realtors® and subscribes to its strict Code of Ethics .

Second Century Ventures Opens Applications for 2024 REACH U.S. Program

Wed, 13 Dec 2023 18:14:00 GMT

CHICAGO (December 6, 2023) – Second Century Ventures, the strategic investment arm of the National Association of Realtors®, opened applications today for the 2024 U.S. REACH technology growth program. SCV, the most active global venture fund in real estate technology, operates the award-winning REACH program across North and South America, Europe, Australia and Asia-Pacific. The U.S. REACH program focuses on solutions supporting the residential real estate sector, including innovations from adjacent industries such as banking, finance, home services, title, mortgage and insurance. Applications for the U.S. REACH Commercial program will open in March 2024.

“The support and developmental opportunities that REACH provides to the proptech sector are unmatched,” said Ashley Stinton, managing partner, REACH. “Our goal is to turn the industry’s significant challenges into opportunities for creative solutions and advanced development, offering substantial advantages for the participating companies in terms of innovation, market positioning and economic impact.”

NAR’s REACH program selects and helps scale the most promising technology companies across the real estate ecosystem. Participants in the program receive premier access to the following:

“As real estate technology continues its rapid evolution, the startups we welcome into the REACH program this year will play a key, central role in our industry’s future,” said Dave Garland, managing partner, Second Century Ventures. “Participation in REACH offers these companies a unique platform and access to a variety of diverse resources and professional expertise, providing these entrepreneurs support as they work to expand their networks and grow their enterprises.”

Applications for the 2024 U.S. REACH program will be accepted through January 31, 2024. For more information about REACH, or to apply, visit nar-reach.com/apply/ .

About NAR

Second Century Ventures Selects Seven Tech Companies for 2024 REACH Canada Program

Wed, 01 Nov 2023 17:01:19 GMT

CALGARY (November 1, 2023) – Second Century Ventures, the strategic investment arm of the National Association of Realtors®, today announced seven companies selected for its 2024 REACH Canada program. These firms operate within a diverse range of market segments and specializations, from empowering agents and brokers through productivity and efficiency solutions, to resources that help real estate businesses combat fraud and address some of society’s growing housing challenges.

“Each year, the REACH Canada program showcases the powerful blend of technology and innovation that is transforming the real estate market,” said SCV Managing Director Dave Garland. “The 2024 class emphasizes the role of technology and collaboration in addressing some of real estate’s core challenges in Canada and across the globe. We’re thrilled about the transformative potential these companies bring, and we’re proud to be supporting their efforts to shape this industry’s future.”

Second Century Ventures is the most active global venture fund in real estate technology, with more than 230 portfolio companies worldwide. SCV operates the global REACH scale-up program in six major markets: U.S. Residential, U.S. Commercial, Australia, Canada, the United Kingdom and Latin America. The award-winning REACH program helps high growth-potential companies scale across the real estate, financial services, banking, home services and insurance industries.

Companies joining the 2024 program are broadly categorized within three verticals: affordable and equitable access to housing; enhancing housing supply; and streamlining the agent and consumer experience. The seven companies selected for REACH Canada 2024 are as follows:

Collegium : Makes real estate development a data-driven process by bringing owners, architects, engineers, building trades, constructors, financiers, and insurance underwriters together onto one platform, with an end-to-end process and next-generation digital tools.
Maket : Revolutionizing design with generative AI that empowers architects, designers, builders, contractors and developers to automate residential floor plans, create 3D renders and explore limitless styles.
Proxima HQ : A digital, end-to-end real estate sales platform that enables agents to sell anywhere with the best buying experience.
Propra : A suite of property management tools that improves efficiency, communication, and cost-savings while elevating the resident experience.
ilumin.ai : A continuous anti-money laundering (AML) compliance and monitoring tool for the real estate sector.
Infinite Creator : Helps real estate professionals create captivating content for real estate that’s fast, easy, affordable and professional
PropTexx : Provides generative AI, data analytics and actionable, real-time business intelligence for the real estate industry.

“This cohort of companies offers a remarkable range of diverse solutions that leverage REACH’s rapidly expanding global presence,” said Lynette Keyowski, Managing Partner of REACH Canada. “These innovators are working to advance the real estate ecosystem through unique value-added solutions for homeowners, asset owners, real estate operators and agents.”

REACH Canada will offer its 2024 program a robust curriculum including education, mentorship, exclusive networking opportunities and significant exposure to the global real estate marketplace. Learn more about the companies selected for the REACH Canada program and how you can get involved at www.narreach.ca .

About NAR

 About REACH

REACH is a unique technology scale-up program created by Second Century Ventures, the most active global fund in real estate technology. Backed by the National Association of Realtors®, Second Century Ventures leverages the association's more than 1.5 million members and an unparalleled network of executives within real estate and adjacent industries. The REACH program helps technology companies scale across the real estate vertical and its adjacent markets through education, mentorship and market exposure. For more on REACH, visit www.narreach.com

# # #

Information about NAR is available at nar.realtor . This and other news releases are posted in the newsroom at nar.realtor/newsroom .

Second Century Ventures Selects Seven Tech Companies for 2024 REACH Canada Program

mmcara@scv.vc (Mike McAra) — Wed, 01 Nov 2023 13:48:42 GMT

"Each year, the REACH Canada program showcases the powerful blend of technology and innovation that is transforming the real estate market," said Dave Garland, managing partner of Second Century Ventures. "The 2024 class emphasizes the role of technology and collaboration in addressing some of real estate's core challenges in Canada and across the globe. We're thrilled about the transformative potential these companies bring, and we're proud to be supporting their efforts to shape this industry's future."

Collegium : Makes real estate development a data-driven process by bringing owners, architects, engineers, building trades, constructors, financiers, and insurance underwriters together onto one platform, with an end-to-end process and next-generation digital tools.

Maket : Revolutionizing design with generative AI that empowers architects, designers, builders, contractors and developers to automate residential floor plans, create 3D renders and explore limitless styles.

Proxima HQ : A digital, end-to-end real estate sales platform that enables agents to sell anywhere with the best buying experience.

Propra : A suite of property management tools that improves efficiency, communication, and cost-savings while elevating the resident experience.

ilumin.ai : A continuous anti-money laundering (AML) compliance and monitoring tool for the real estate sector.

Infinite Creator : Helps real estate professionals create captivating content for real estate that's fast, easy, affordable and professional

PropTexx : Provides generative AI, data analytics and actionable, real-time business intelligence for the real estate industry.

"This cohort of companies offers a remarkable range of diverse solutions that leverage REACH's rapidly expanding global presence," said Lynette Keyowski, Managing Partner of REACH Canada. "These innovators are working to advance the real estate ecosystem through unique value-added solutions for homeowners, asset owners, real estate operators and agents."

About NAR

About REACH

REACH is a unique technology scale-up program created by Second Century Ventures, the most active global fund in real estate technology. Backed by the National Association of Realtors®, Second Century Ventures leverages the association's more than 1.5 million members and an unparalleled network of executives within real estate and adjacent industries. The REACH program helps technology companies scale across the real estate vertical and its adjacent markets through education, mentorship and market exposure. For more on REACH, visit www.narreach.com

Second Century Ventures Announces Inaugural REACH LATAM Cohort

Thu, 15 Jun 2023 13:56:20 GMT

MEXICO CITY (June 15, 2023) – Second Century Ventures, the strategic investment arm of the National Association of Realtors®, announced today the selection of eight companies to its inaugural REACH Latin America (LATAM) cohort. Second Century Ventures is the most active global venture fund in real estate technology, with more than 200 portfolio companies in six major markets worldwide. "This is a groundbreaking moment for Second Century Ventures as we extend our REACH program into Latin America," said NAR CEO and SCV President Bob Goldberg. "We're confident our partnership with these new innovators will offer tremendous benefits to consumers and real estate agents in Latin America and across the globe."

The award-winning REACH program helps launch and accelerate high-growth potential companies in the real estate, financial services, banking, home services and insurance industries. "We're excited to welcome these new innovators to the Latin America PropTech community," said Carlos Rousseau, managing partner of REACH LATAM. "The solutions provided by this group of companies have demonstrated considerable relevance and strong innovation, and we can't wait to see what's next for the remainder of this year and beyond."

The companies chosen for the 2023 REACH LATAM program offer solutions in digital marketing, cross-border investing, financial transaction management, mortgage, property services, data and AI modeling, and more.

The eight companies selected include:

Ambana : Provides cross-border fractionalized real estate investment opportunities across Latin America and the United States.

Koggi : Connects developers, financial institutions and home buyers to simplify home financing throughout Latin America.

Kolonus : An integrated residential property management platform with neighborhood maintenance services, access control, payments and collaboration for residents and tenants.

Alohome : Helps homebuilders increase their conversion rates through simple-to-use sales and marketing software.

Propmeteus : Provides a centralized and verified analytics database for real estate professionals in Mexico. Kipp

Storage : Helps commercial landlords monetize vacant spaces by transforming them into storage and logistic solutions across Chile and Mexico.

Ai360 : Provides data and AI models to improve financing and investment decision-making in the real estate industry. Beleta : A hand-curated marketplace for premium residential properties in Mexico.

"We are excited to debut the 2023 REACH LATAM cohort, a remarkable lineup of solutions across the Latin American real estate ecosystem," said Dave Garland, managing partner of Second Century Ventures. "Guided by the vast knowledge and backing from our worldwide community of real estate professionals, investors, strategic partners and mentors, we are optimistic that this inaugural cohort will lead positive and enduring transformation for real estate in Latin America and worldwide."

REACH LATAM will offer its 2023 program a robust curriculum, including education, mentorship, exclusive networking opportunities and significant global real estate marketplace exposure. Learn more about REACH LATAM and how you can get involved at https://nar-reach.com/latam/ .

About REACH

REACH is a unique real estate technology program created by Second Century Ventures, the most active global venture fund in real estate technology. Backed by the National Association of Realtors®, SCV and REACH leverage the association's more than 1.5 million members and an unparalleled network of executives within real estate and adjacent industries. The program provides education, mentorship, and market exposure to one of the world's largest industries. For more on REACH, visit www.narreach.com .

About the National Association of Realtors®

Second Century Ventures Announces 14 Companies Selected to 2023 REACH and REACH Commercial Programs

Thu, 27 Apr 2023 18:52:00 GMT

CHICAGO (April 11, 2023) – Second Century Ventures, the strategic investment arm of the National Association of Realtors® and the most active global real estate technology fund, announced today the acceptance of 14 companies to the 2023 REACH and REACH Commercial programs. Launched in 2013, this marks the 11th cohort focused on solutions for the residential and consumer sectors, and the fifth cohort dedicated to scaling solutions for commercial real estate.

“We are thrilled to welcome these innovative companies to the 2023 REACH and REACH Commercial programs,” said SCV President and NAR CEO Bob Goldberg. “Their solutions are poised to make a significant impact and help overcome the complex challenges that lie ahead in the real estate industry.”

Companies selected for the 2023 program represent a diverse range of solutions across the real estate ecosystem, including innovations in financial planning, second home property ownership, property management, lead generation, marketing, mortgage asset management, and tenant retention, among others. Collectively, these companies have raised more than $100 million in funding and employ more than 400 individuals worldwide.

“These 14 companies represent some of the most promising and innovative solutions in the real estate technology space,” said Dave Garland, managing partner, Second Century Ventures. “By supporting and investing in innovative small businesses through the REACH program, we can ensure that Realtors® have access to the latest and most effective tools and technologies, enabling them to better serve their clients and stay ahead in an ever-evolving industry.”

Companies accepted to the 2023 REACH and REACH Commercial programs are as follows:

2023 REACH

2023 REACH Commercial

“From hundreds of applicants, the companies selected for the 2023 REACH Commercial program are already well on their way to becoming market leaders,” said Bob Gillespie, executive director of REACH Commercial. “They bring solutions that fundamentally change commercial real estate operations, finance and brokerage, as well as how we manage, experience and understand the properties in which we live and work. We have an outstanding 2023 cohort and look forward to helping them achieve exponential growth.”

The REACH program is led by Executive Director Ashley Stinton, and the REACH Commercial program is led by Executive Director Bob Gillespie. REACH offers a robust curriculum including education, mentorship, exclusive networking opportunities and significant exposure to the global real estate marketplace.

About NAR

Second Century Ventures Opens Applications for 2023 REACH U.S. Programs, Appoints New Executive Director

Tue, 06 Dec 2022 14:09:00 GMT

CHICAGO (December 6, 2022) – Second Century Ventures, the strategic investment arm of the National Association of Realtors®, opened applications today for the 2023 U.S. REACH and REACH Commercial technology growth programs. SCV, the most active global venture fund in real estate technology, operates the award-winning REACH program across North and South America, Europe, Australia and Asia-Pacific.

“Real estate technology continues to undergo a significant transformation, and the startups selected for the REACH program will play a critical role in helping to drive that change,” said NAR CEO and SCV President Bob Goldberg. “REACH companies get access to resources and expertise to help expand their network and accelerate their growth. Their ideas and ingenuity will help ensure that Realtors® continue to have access to the latest technology and remain in the best possible position to serve consumers here in the U.S. and across the world.”

NAR’s REACH program aims to select and help scale the most promising new technology companies in real estate and adjacent industries, including banking, insurance and home services. Participants in the program receive premier access to the following:

REACH recently expanded its operations to Latin America , and this week appointed a new executive director to the helm of the U.S. NAR REACH program. Ashley Stinton, who previously served as SCV and REACH’s head of marketing and communications, will lead the organization’s U.S.-based team focused on technology that serves residential and consumer markets. Stinton brings more than a decade of sales, marketing and business development expertise from some of the world’s most influential real estate and consumer goods organizations.

“Ashley has been instrumental to the growth of the REACH brand and in the expansion of our flagship program across geographies and verticals,” said Dave Garland, managing partner, Second Century Ventures. “She has worked closely with our global team and portfolio, helping accelerate more than 100 companies during her tenure and time spent previously as a REACH mentor. We have immense confidence in Ashley’s ability to lead the NAR REACH program through the next decade of innovation and to further amplify the depth of transformative technology REACH helps cultivate.”

“REACH offers an unmatched level of support and growth to the proptech community,” said Ashley Stinton, executive director, REACH. “I am honored and excited to lead the NAR REACH team as we continue to elevate the role of technology in and beyond real estate. As we look to the year ahead, we will embrace the market’s most pressing challenges as an opportunity to source new ideas and evolve existing solutions to benefit consumers, real estate professionals and the economy as a whole.”

The REACH Commercial program, led by executive director Bob Gillespie, is now in its fifth year of operation and will run a congruent curriculum, supporting entrepreneurs developing innovation across all asset classes of the commercial sector.

Applications for the 2023 U.S. REACH and REACH Commercial programs will be accepted through January 31, 2023. For more information about REACH, or to apply, visit https://www.nar-reach.com .

# # #

About NAR

Second Century Ventures Expands REACH Program to Latin America, Opens Applications for 2023 Program

Tue, 06 Dec 2022 14:08:00 GMT

MEXICO CITY (November 29, 2022) – Second Century Ventures, the strategic investment arm of the National Association of Realtors®, today announced the expansion of the award-winning REACH technology growth program to Latin America.

After successfully accelerating more than 100 companies through its U.S.-based programs, REACH began global expansion in 2019 and has since opened programs in Australia, Canada and the United Kingdom. Selected as the next region for expansion, the Latin American real estate industry represents nearly $1 trillion USD in opportunity, and proptech has rapidly become one of the most attractive sectors for venture capital investment.

“REACH Latin America is a new chapter in our program’s history, furthering our dedication to supporting entrepreneurs and innovators throughout global real estate,” said NAR CEO and SCV President Bob Goldberg. “We welcome all standout startups to apply to join us as we partner to propel our profession into the future.”

REACH Latin America (REACH LATAM) will be led by Carlos Rousseau, who brings more than 20 years of expertise from the property development, technology and venture capital markets. Rousseau serves as the president of the Mexico Proptech Association and is the founder and former president of Orange Investments, a multinational real estate developer and investment company with a proven track record of more than 300 projects and over $1 billion USD in assets under management.

“I am very excited to lead such a forward-thinking program across Latin America’s proptech ecosystem. This program will change how things are done in the region and open a world of opportunities for Latin America’s real estate tech startups,” Rousseau said. “We are thrilled to start recruiting our first REACH LATAM cohort. The 2023 class will bring firms from across the continent and the entire real estate ecosystem, with each member carefully selected to deliver improved real estate customer experiences.”

Based in Mexico City and Monterrey, the REACH LATAM team will work closely with top real estate organizations, corporations and technology partners to help accelerate the adoption and engagement of new innovations. Focused on early to mid-stage technology companies innovating in and around the real estate sector, the program will offer an annual curriculum including mentorship, exclusive events, network exposure, strategic planning and access to a portfolio of more than 200 like-minded, high-growth tech companies.

“The opportunities provided to REACH companies are unparalleled,” said Dave Garland, managing partner of Second Century Ventures. “Our program is uniquely positioned to support and grow aspiring tech companies, helping them build agility and resiliency as they power innovation across real estate. The burgeoning property technology market in Latin America is the ideal next chapter for REACH and is a vital component of our continued global expansion.”

Applications for REACH Latin America will be open through February 28, 2023. For more information and to apply, visit https://www.nar-reach.com/latam .

About NAR

The National Association of Realtors® is the United States’ largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries.

About REACH

REACH is a unique technology scale-up program created by Second Century Ventures, the most active global fund in real estate technology. Backed by the National Association of Realtors®, Second Century Ventures leverages the association’s more than 1.5 million members and an unparalleled network of executives within real estate and adjacent industries. The REACH program helps technology companies scale across the real estate vertical and its adjacent markets through education, mentorship and market exposure.

Second Century Ventures Selects Six Tech Companies for 2023 REACH Canada Program

Mon, 07 Nov 2022 15:09:00 GMT

VANCOUVER (November 7, 2022) – Second Century Ventures, the strategic investment arm of the National Association of Realtors®, today announced the six companies selected for its 2023 REACH Canada program. These firms operate within a diverse range of market segments and specializations, helping agents and brokers become more efficient as they serve consumers, enhancing business capabilities, and addressing some of the persistent challenges facing global housing markets.

“Our REACH program aims to partner with companies that empower Realtors® to succeed,” said NAR CEO and SCV President Bob Goldberg. “These innovators are developing technologies that will help our members navigate the current market and build their businesses for the years ahead. We are thrilled to collaborate with the 2023 REACH Canada cohort to ensure that Realtors® remain at the forefront of the real estate industry.”

Second Century Ventures is the most active global venture fund in real estate technology, with more than 200 portfolio companies worldwide. It operates the global REACH scale-up program in five major markets – U.S. Residential, U.S. Commercial, Australia, Canada and the United Kingdom – with plans to expand the program to a sixth global region in early 2023. The award-winning REACH program helps high growth-potential companies scale across the real estate, financial services, banking, home services and insurance industries.

Leveraging REACH’s rapidly expanding global presence, the 2023 REACH Canada cohort represents technology companies based in Canada and around the continent – each with ambitions to advance the real estate ecosystem through unique value-add solutions for homeowners, asset owners, real estate operators and Realtors® alike.

The six companies selected for REACH Canada 2023 include the following:

Collectively, these companies have raised over $11 million USD in capital and represent a market capitalization of more than $75 million.

“The 2023 REACH Canada cohort offers an impressive range of diverse solutions and demonstrates that technology truly has no borders,” said Lynette Keyowski, Managing Partner of REACH Canada. “These six companies – led by a diverse group of founders with expertise spanning multiple industries, geographies and ideologies – are focused on addressing some of the most critical and evolving real estate challenges, including aging in place; access to housing; environmental responsibility; and space utilization. We are excited to work with companies that are helping solve industry challenges in partnership with the Realtor® community.”

REACH Canada will offer its 2023 program members a robust curriculum including education, mentorship, exclusive networking opportunities and significant exposure to the global real estate marketplace. Learn more about the companies selected for the REACH Canada program and how you can get involved at www.narreach.ca .

About NAR

NAR’s REACH Labs Puts Innovation at the Forefront with Launch of First Multi-Association Program

Mon, 01 Aug 2022 16:45:00 GMT

CHICAGO (August 1, 2022) – The National Association of Realtors®’ REACH Labs program, which identifies and connects innovative early-stage startups to the Realtor® community, today announced its expansion to Chicago to launch its first multi-association and multiple listing service (MLS) REACH Lab. Collectively representing over 46,000 Realtors®, the new REACH Lab will be jointly run by the Mainstreet Organization of Realtors®, the Chicago Association of Realtors®, the North-Shore Barrington Association of Realtors® and Midwest Real Estate Data (MRED).

Chicago represents a deep pool of startup innovation, with local tech firms raising $7 billion in 2021, according to venture data firm Pitchbook. Through the REACH Labs program, Chicagoland startups developing solutions for real estate and adjacent industries like mortgage, home services and insurance have a significant opportunity to connect with thousands of real estate professionals.

“Chicagoland has an incredible technology ecosystem, and the Mainstreet Organization of Realtors® is committed to bringing opportunities to our members that keep them on the cutting edge,” said Kate Sax, vice president of professionalism and career development for the Mainstreet Organization of Realtors®. “REACH Labs will allow us to connect Mainstreet members with new technologies and provide them with a path of entry to local startups that will help build their businesses with an eye on the future.”

The REACH Labs program helps Realtor® associations engage with the startup community and source innovation for its members efficiently and effectively. REACH Labs are staffed and operated by local associations or MLSs with support from the REACH scale-up program, created in 2013 by NAR’s venture arm, Second Century Ventures. Each REACH Lab presents selected startups to their members through quarterly “innovation showcases”. REACH Labs Chicagoland will host its first innovation showcase in the fourth quarter of 2022.

“Chicagoland is rich in new technology, and the Chicago Association of Realtors® is excited to help bring emerging technology to Realtors® throughout the area,” said Zack Wahlquist, Chicago Association of Realtors® chief operating officer.

In other regions where REACH Labs is already established, Realtors® have connected with tech companies that modernize the home tour experience, allow agents to manage deals more seamlessly from start to finish and provide home buyers with connections to local contractors.

“MRED is always looking to serve the industry and provide products that improve our subscribers’ workflow,” said Katrina Bressler, director of customer experience at MRED. “While we already work with many wonderful providers across the country, I’m excited to be a part of a movement that enables local startups to connect with us and support our subscribers and community.”

“The North-Shore Barrington Association of Realtors® has a long history of supporting its members through our personalized service and tech support,” said Michael Gazdzik, NSBAR IT and member support director. “We could not be more excited to work with our neighboring associations to bring the latest in technology to all our members.”

“We are thrilled to establish the first multi-association REACH Labs program in Chicago, where the startup scene is thriving,” said Dave Garland, managing partner, Second Century Ventures. “This partnership will set the stage for tech entrepreneurs to scale their businesses by meeting the needs of a dynamic Realtor® community.”

Second Century Ventures, NAR’s strategic technology investment arm, launched the REACH Labs program in the third quarter of 2021 with the Austin Board of Realtors®, the Denver Metro Association of Realtors®, the Miami Association of Realtors®, and the Northern Virginia Association of Realtors®. It has expanded the program to include the Greater Tampa Realtors®, the Metro Texas Association of Realtors®, the Orlando Regional Realtor® Association and the multi-association Chicagoland program, extending the program to reach nearly 200,000 Realtors®.

For startups looking to get involved with the Chicagoland REACH Labs program, contact Kate Sax at kate@succeedwithmore.com.

About REACH

REACH is a unique technology scale-up program created by Second Century Ventures, the most active global fund in real estate technology. Backed by the National Association of Realtors®, REACH leverages the association’s more than 1.5 million members and an unparalleled network of executives within real estate and adjacent industries. The REACH program helps technology companies scale across the real estate vertical and its adjacent markets through education, mentorship and market exposure.

About NAR

Second Century Ventures, the Strategic Arm of the National Association of Realtors®, Appoints Peter Schravemade to Helm of REACH Australia Tech Program

Thu, 14 Apr 2022 13:34:00 GMT

MELBOURNE (April 13, 2022) – Second Century Ventures, the strategic venture arm of the National Association of Realtors® and the most active global real estate technology fund, has appointed Peter Schravemade as managing partner of REACH Australia. With over 20 years of experience in the Australian real estate industry, Schravemade rose to prominence on the international property scene as the global director of sales, marketing, and revenue for BoxBrownie.com,(link is external) an Australian property marketing firm and 2018 REACH portfolio company, which gained considerable global market share under Schravemade’s guidance.

Peter is a well-known speaker and author within the property, technology and marketing world, routinely called upon to share his fresh perspective on innovation in real estate. Often featured in major publications around the globe, his appointment to lead the REACH Australia technology scale-up program will leverage his expertise and operational knowledge to the startup ecosystem in Australia and Southeast Asia.

“The idea of combining my love for accelerating property technology companies, and working alongside the REACH team in a greater capacity to what I am already doing, feels as though this position and direction was a very natural fit,” said Schravemade.

Schravemade’s experience with BoxBrowie.com as part of the 2018 REACH U.S. program, and consequently serving as a mentor for REACH in the United States, Canada, U.K. and Australia, offers a unique lens and level of enthusiasm for the new role as managing partner.

“We are excited to welcome Peter to the Second Century Ventures and REACH team,” said Tyler Thompson, managing partner, Second Century Ventures. “We are confident Peter’s wealth of expertise and passion for innovation in real estate technology will help us achieve our ambitious plans for growth in Australia and Asia-Pacific, along with continued expansion of the global REACH program.”

REACH Australia’s unique link to NAR, with a parent office in Chicago, Illinois, provides access to over 100 worldwide bilateral partnerships in 85 countries and an unparalleled network of executives within the commercial and residential real estate marketplaces.

Schravemade replaces Shelli Trung as REACH Australia’s managing partner.

“Shelli has been an instrumental part of our global expansion,” said Dave Garland, managing partner, Second Century Ventures. “She helped launch the first REACH program outside the U.S., has scaled the REACH Australia portfolio to 19 companies valued at more than $220 million, and successfully guided the program through the recent pandemic period.”

Peter joins the REACH team effective immediately.

For more about the REACH Australia program, visit www.nar-reach.com/australia

Second Century Ventures Selects 17 Companies For 2022 U.S. REACH and REACH Commercial Programs

Tue, 05 Apr 2022 14:20:00 GMT

CHICAGO (April 5, 2022) – Second Century Ventures, the strategic investment arm of the National Association of Realtors® and the most active global real estate technology fund, announced today the acceptance of 17 companies to the 2022 REACH and REACH Commercial programs. Launched in 2013, this marks the tenth cohort focused on solutions for the residential sector and the fourth cohort dedicated to scaling solutions for commercial real estate.

“The innovative companies that have come out of the REACH program over the years have had a dramatic effect on the real estate landscape,” said SCV President and NAR CEO Bob Goldberg. “The influence of technology in this industry is undeniable and the entrepreneurs in REACH continue to redefine our understanding of what is achievable today. We are so excited to work hand-in-hand with these pioneering companies to ensure that Realtors® remain at the forefront of the real estate industry.”

Companies selected for the 2022 program represent a diverse range of solutions across the real estate ecosystem, including innovations in inspection, appraisal, fractional property ownership, lead generation, due diligence, underwriting and tenant retention, among others. Collectively, these companies have raised more than $200 million in funding and represent a combined valuation of $1.4 billion.

“This year marks multiple significant milestones in NAR and Second Century Ventures’ legacy of innovation,” said Dave Garland, managing partner, Second Century Ventures. “Not only are we celebrating the depth of a 180-plus company strong portfolio and the continued expansion of the REACH program, but we are also scaling some of the most ground-breaking technologies the industry has witnessed to date. The 2022 NAR REACH and REACH commercial programs represent the top new companies in property technology, whose teams are as talented as the innovation they deliver.”

Companies accepted to the 2022 REACH and REACH Commercial programs are as follows:

REACH 2022

REACH Commercial 2022

The REACH program is led by Executive Director Kia Nejatian , and the REACH Commercial program is led by Executive Director Bob Gillespie . REACH offers a robust curriculum including education, mentorship, exclusive networking opportunities and significant exposure to the global real estate marketplace. To learn more about REACH and how you can get involved, visit https://nar-reach.com .

Second Century Ventures Announces 11 Companies For 2022 REACH UK Program

Tue, 29 Mar 2022 10:07:00 GMT

LONDON (March 29, 2022) – Second Century Ventures, the strategic investment arm of the National Association of Realtors® and the most active global real estate technology fund, announced today the acceptance of 11 companies to the 2022 REACH UK program. Launched in 2020, this is the second cohort for the REACH UK program, which focuses on helping technology companies accelerate their growth throughout the real estate, finance, banking, home services and insurance industries.

“We are excited to launch our second cohort and welcome 11 new companies to the REACH UK portfolio,” said Valentina Shegoyan, managing partner, REACH UK. “We have listened to the real estate industry’s most pressing challenges over the last year and answered the call with a diverse range of solutions in this year’s cohort. These include some cutting-edge innovations which are helping improve environmental footprint, the sharing economy, property and facility management, and agent tools.”

REACH UK announces the 2022 program with support from strategic industry partner Propertymark, the UK’s leading professional body for property personnel, representing members who practice from over 15,000 offices in all aspects of property services. Through this collaboration, NAEA Propertymark is able to further help its members navigate new market conditions with unique access to the best-in-class technology.

“We’re excited to be working with REACH UK to help accelerate their growth to drive digital innovations in the industry,” said Nathan Emerson, CEO, Propertymark. “Early engagement with these exciting companies will help members of Propertymark navigate the world of technology as it develops and give them early exposure to some of the best-in-class tech solutions.”

Companies selected for the 2022 program are domiciled in the United Kingdom, France, Austria, and Estonia, and operate across a diverse range of market segments and specializations. Collectively, this cohort represents a combined valuation of $220 million and employs over 200 people globally.

The companies accepted to the REACH UK 2022 program are as follows:

Solutions in Sustainable Futures

Solutions for the Commercial Sector

Solutions for Consumer Experience

Solutions for the Residential Sector

REACH UK’s 2022 program kick-off is supported by Savills, an event partner with a shared enthusiasm to grow the community of technology, real estate, and capital providers from across the globe to share ideas, exclusive news and cutting-edge insights and drive digitalisation and innovation in the industry.

REACH UK will offer its incoming cohort a robust curriculum comprised of education, mentorship, exclusive networking opportunities and significant exposure to the global real estate marketplace. To learn more about REACH UK and how you can get involved, visit https://nar-reach.com/uk/ .

Second Century Ventures Announces NAR REACH Labs Program

Tue, 15 Mar 2022 14:12:00 GMT

CHICAGO (March 15, 2022) – Second Century Ventures, NAR’s strategic technology investment arm, announced today the launch of the NAR REACH Labs program. This program helps Realtor® associations engage with the startup community and source innovation for its members more quickly, efficiently and effectively.

“Over the past decade, Second Century Ventures has supported and advanced innovation that reinforces Realtors®’ essential role in the real estate transaction,” said SCV’s Managing Partner Dave Garland. “Our REACH growth program has expanded to additional sectors and geographies, now offering five premier scale-up programs around the world. To further our mission to accelerate technology in every corner of the marketplace, we are excited to launch REACH Labs. This program will provide Realtor® associations with a framework to engage more deeply with their local startup ecosystems and bring additional technology to their members.”

REACH Labs are staffed and operated by local associations with support from the REACH scale-up program. Each association can leverage well-established REACH techniques and processes to build relationships with local technology investors, incubators, university programs and entrepreneurs, who all play a vital role in the tech startup ecosystem. Associations present selected startups to their members through quarterly “innovation showcases,” which empower attendees to learn about and provide feedback on these new tech solutions.

“Local Realtor® associations play a vital role in connecting with members and affiliates across the nation,” said NAR CEO Bob Goldberg. “The new REACH Labs program enhances our ability to deliver innovation to Realtors®, both locally and globally. We have been impressed with the pilot group and look forward to seeing the great things ahead.”

The REACH Labs program was initially piloted in 2021 by the Austin Board of REALTORS®, the Denver Metro Association of REALTORS®, the Miami Association of REALTORS®, and the Northern Virginia Association of REALTORS®. These pilot associations hosted innovation showcases throughout the fourth quarter of 2021 and the first quarter of 2022, which were met with overwhelming enthusiasm by association leaders and members.

“Working collaboratively with NAR and other innovative Realtor® associations throughout the country allows us to shape the technology landscape for our industry in a way that has both immediate and long-term benefits for our members and their clients,” said Ryan McLaughlin, CEO of the Northern Virginia Association of Realtors®.

The program has since expanded to include the Greater Tampa REALTORS®, the MetroTex Association of REALTORS®, the Chicago Association of REALTORS® and the Orlando Regional REALTOR® Association. These new partners will each host innovation showcases in the months ahead. With the addition of these four associations, the REACH Labs program now directly benefits more than 160,000 Realtors®.

For more information about REACH Labs or to get involved, please contact the REACH team directly at labs@narreach.com and visit us online at https://nar-reach.com/labs .

Second Century Ventures Names Seven Companies to its 2022 REACH Australia Tech Scale-Up Program

Wed, 02 Mar 2022 21:16:00 GMT

MELBOURNE (March 2, 2022) – Second Century Ventures, the strategic investment arm of the National Association of Realtors® and the most active global real estate technology fund, announced today the acceptance of seven companies to the 2022 REACH Australia program. Launched in 2019, REACH Australia is a unique technology scale-up program that helps propel technology companies throughout the real estate, finance, banking, home services and insurance industries across Australia and Southeast Asia. Companies selected for the 2022 program are domiciled in Australia, Indonesia and Singapore.

“The impact of COVID-19 has had a sustained effect on the region and sector, providing an opportunity to fast-track the digitization of many products and services that support the property ecosystem,” said Shelli Trung, managing partner, REACH Australia. “We have listened to the real estate industry’s most pressing challenges over the last 12 months and answered the call with a diverse range of solutions in this year’s cohort, including innovation in cleantech, digital conveyance, and property management.”

The seven companies selected for the 2022 REACH Australia program are as follows:

“We’ve seen great things come from REACH Australia over the past two years,” said Dave Garland, managing partner, Second Century Ventures. “These new entrants will be joining companies that have demonstrated immense value for the real estate ecosystem across Australia and Southeast Asia, and we are excited to welcome them to our portfolio.”

REACH Australia will offer its incoming cohort a robust curriculum comprised of education, mentorship, exclusive networking opportunities and significant exposure to the global real estate marketplace. To learn more about REACH Australia and how you can get involved, visit www.narreach.com/australia(link is external) .

CREtech and Second Century Ventures Partner To Raise Awareness Of Technology’s Role In Solving The U.S. Affordable Housing Crisis

Wed, 09 Feb 2022 17:58:00 GMT

CREtech , the largest international community of professionals devoted to technological innovation in the real estate sector, has announced a partnership with Second Century Ventures , one of the most respected and active PropTech investors in the industry, to raise awareness of technology’s role in solving the affordable housing crisis plaguing much of the world today. The newly launched CREtech Affordable Housing initiative aims to be a comprehensive resource for professionals to discover startups, venture investors, thought-leaders and real estate companies leading the way in affordable housing tech investment.

The lack of affordable housing is one of the U.S.’ s most pressing social economic crises. According to Habitat For Humanity, the coronavirus pandemic has accentuated housing affordability issues, especially for low-income households. In 2019, 37.1 million households were “housing cost burdened,” spending 30% or more of their income on housing. This represented 30.2% of all households nationwide. One in 7 households — 17.6 million in total — were “severely cost burdened,” spending half or more of their income on housing.

Renters were significantly more cost burdened than homeowners, with 46% of renters cost burdened compared to 21% of homeowners. Also, 24% of renters and 9% of homeowners were severely cost burdened. In total, though, homeowners made up 40% of all households with severe housing cost burdens, given the larger number of homeowners in the overall population.

The CREtech Affordable Housing technology initiative seeks to galvanize the real estate and tech sectors to align in order to inspire and develop the innovative technology solutions that will most effectively solve the housing affordability crisis. Some of the technology solutions that are already having an impact in this crisis are focused on creating construction techniques, 3-D printed homes, the digitalization of applications and financing solutions, and land development tech, among others.

“It is an honor to launch this important initiative in partnership with the team at CREtech. We share a passion and a commitment to making housing affordable and accessible to everyone and believe technology will play a vital role not only in alleviating the current crisis, but in building sustainable communities for generations to come,” commented Tyler Thompson, Managing Partner, Second Century Ventures. “Working hand in hand with industry innovators, owners, operators, developers, investors, and the field of academia reinforces our collective ability to support new ideas that will transform the real estate ecosystem.”

CREtech Affordable Housing’s leadership team consists of leaders from Second Century Investors and CREtech’s Consulting team. The Leadership team includes Tyler Thompson , Managing Partner, Second Century Ventures , Ashley Stinton , Head of Marketing, Second Century Ventures , Michael Beckerman , CEO, CREtech and CREtech Climate , Yan Khamish , Advisor, CREtech and Thatcher Milholland , Advisor, CREtech .

“Thanks to our partners at Second Century Ventures, CREtech is now able to devote the resources necessary to tackle the affordable housing crisis by building a community of professionals dedicated to investing and adopting technology solutions,” stated Michael Beckerman, CEO, CREtech. “The real estate industry has an enormous opportunity to be the catalyst for solving the affordable housing crises. It is our collective view at CREtech and Second Century Ventures that when the worlds of real estate, venture capital and technology all come together, the Built World is capable of extraordinary innovation for the greater good,” Beckerman concluded.

The CREtech Affordable Housing initiative comes on the heels of CREtech’s successful launch of their CREtech Climate initiative aimed at galvanizing the real estate industry to invest in decarbonization strategies.

To subscribe for the NEW CREtech Affordable Housing website and receive news and updates, click here .

About CREtech

CREtech is Reimagining Real Estate. We are the largest international community of professionals devoted to technological innovation in the real estate sector. Our mission is to help the industry embrace, adopt, and future proof its businesses. Our streaming, live/virtual events, and consulting platform inspires the next generation of ideas, processes, and people to champion the world’s largest asset class. Learn More: CREtech.com

About Second Century Ventures

Second Century Ventures (SCV), the strategic investment arm of the National Association of REALTORS®, is the most active global real estate technology fund. SCV helps scale its portfolio companies across the world’s largest industries including real estate, financial services, banking, home services, and insurance. Second Century Ventures also operates the award-winning REACH technology growth program. Learn More: scv.vc

Second Century Ventures Opens Applications for 2022 REACH U.S. Programs

Tue, 07 Dec 2021 16:36:00 GMT

CHICAGO (December 7, 2021) – Second Century Ventures, the strategic investment arm of the National Association of Realtors®, opened applications today for the 2022 U.S. REACH and REACH Commercial scale-up programs. SCV, the most active global venture fund in real estate technology, operates the award-winning REACH technology scale-up program across North America, Europe, Australia and Asia-Pacific.

“The rapidly changing property technology industry looks to REACH as a crucial source for new innovation in real estate – the world’s largest asset class,” said Bob Gillespie, executive director, REACH Commercial. “From acquisition and operation to valuation and disposition, we are investing in technologies that impact each and every step in the value chain. We encourage all companies building innovative real estate technology that will bring significant change to our industry to apply for our 2022 program.”

The mission of NAR’s REACH program is to select and help accelerate the most promising new technology companies in real estate and adjacent industries, including banking, insurance and home services. Participants in the program receive premier access to the following:

“We’ve seen some amazing companies grow and develop within the REACH program,” said Bob Goldberg, NAR CEO and the president of SCV. “Technology moves fast and it’s vital for us to be in tune with every evolution taking place inside of the industry. The great work being done by Second Century Ventures and REACH ensure that Realtors® will remain at the forefront of the industry.”

Companies in the REACH program have achieved significant milestones during and after participation, including major fundraising rounds, securing key brokerage partnerships, completing strategic acquisitions, and launching new products.

“We are proud of our 2021 REACH cohorts, which have collectively raised more than $250 million,” said Kia Nejatian, executive director, REACH. “Additional notable achievements include Knock’s(link is external) expansion to 60 markets in less than two years, Feather’s(link is external) Pitch Battle win at NAR’s iOi Summit and Lex Market’s(link is external) first-of-its-kind real estate IPO accessible to all U.S. investors.”

Applications for the 2022 U.S. REACH and REACH Commercial programs will be accepted through January 31, 2022. The program will begin in April and run through fall of 2022. For more information about REACH, or to apply, click here.

Second Century Ventures Announces Early Acceptances to 2022 REACH Australia Program

Tue, 23 Nov 2021 21:16:00 GMT

MELBOURNE (November 23, 2021) – Second Century Ventures, the strategic investment arm of the National Association of Realtors®, announced today the early acceptance of three companies as part of the 2022 REACH Australia program. REACH Australia is a scale-up program that helps propel technology companies throughout the real estate, finance, banking, home services and insurance industries in Australia and Southeast Asia.

The companies chosen for early acceptance to the 2022 REACH Australia program are as follows:

“The early announcement of these three companies selected ahead of the 2022 program demonstrates the caliber of technology that REACH supports across the financial tech, legal tech and marketing tech industries,” said Dave Garland, managing partner, Second Century Ventures. “We’ve seen great things come from REACH Australia over the past two years. These new entrants will be joining companies that have demonstrated immense value for the real estate ecosystem across Australia and Southeast Asia.”

Notably, the 2021 graduating cohort, comprised of six property technology solutions, secured more than twice the number of pilots and partnerships within the real estate community when compared to 2020. Other successes from the REACH Australia portfolio included Openn Negotiation listing on the Australia Stock Exchange as well as substantial acquisitions and funding rounds by Soho and Propic.

“We believe a major component of the success of the 2021 program is a result of border restrictions and lockdowns in much of APAC, which resulted in the property sector prioritizing and fast-tracking adoption of tech to facilitate remote work,” said Shelli Trung, managing partner, REACH Australia. “We are extremely happy with the many successes of our 2021 REACH Australia portfolio as we continue to be a leader in scaling the top new technology platforms within and beyond the real estate sector. I’m excited about what the future holds for 2022.”

REACH Australia expects to unveil the remaining participants for the REACH Australia 2022 cohort in early February. The program will offer its incoming cohort a robust curriculum comprised of education, mentorship, exclusive networking opportunities and significant exposure to the global real estate marketplace. To learn more about REACH Australia and how you can get involved, visit www.narreach.com/australia(link is external) .

About NAR

About REACH

REACH is a unique technology scale-up program created by Second Century Ventures, the most active global fund in real estate technology. Backed by the National Association of Realtors®, Second Century Ventures leverages the association’s more than 1.5 million members and an unparalleled network of executives within real estate and adjacent industries. The REACH program helps technology companies scale across the real estate vertical and its adjacent markets through education, mentorship and market exposure. For more on REACH, visit www.narreach.com

Second Century Ventures Selects 10 Tech Companies for 2022 REACH Canada Program

Thu, 07 Oct 2021 14:06:00 GMT

VANCOUVER, TORONTO (October 7, 2021) – Second Century Ventures, the strategic investment arm of the National Association of Realtors®, announced Thursday the 10 companies selected for its 2022 REACH Canada program. These firms operate within a diverse range of market segments and specializations, from empowering agents and brokers through the elegant use of data and content, to developing tools that enhance the efficiency and transparency of the real estate transaction.

“The REACH program has a proven track record of bringing cutting-edge technology to the forefront of the real estate landscape,” said NAR CEO and SCV President Bob Goldberg. “From the beginning, our goal has been to help propel emerging firms into the global market, which in turn will help thousands of small businesses, millions of Realtors® and consumers everywhere. The addition of these companies will help bolster SCV’s and NAR’s efforts to drive innovation in our industry.”

Second Century Ventures is the most active global venture fund in real estate technology, with over 150 portfolio companies worldwide. SCV operates the global REACH scale-up program in five major markets – U.S. Residential, U.S. Commercial, Australia, Canada and the United Kingdom. The award-winning REACH program helps high growth-potential companies scale across the real estate, financial services, banking, home services and insurance industries.

Leveraging SCV’s rapidly expanding global presence, the 2022 REACH Canada cohort represents firms from around the globe and across the entire real estate ecosystem, each delivering value-added solutions to homeowners and Realtors® alike.

Collectively, companies accepted to the 2022 REACH Canada program have raised over $51 million USD in capital and represent a market capitalization of more than $140 million. Companies joining the 2022 program are broadly categorized within four verticals: Financial Efficiency and Transparency, Homeownership Accessibility, Broker and Agent Tools and Environmental Sustainability.

“The 2022 Canada cohort offers an impressive range of diverse solutions, demonstrating that technology truly has no borders,” said Lynette Keyowski, Managing Partner of REACH Canada. “When making the final selection, we felt the need to focus on technology and founding teams that are quality dominant. Through this lens, the resulting 2022 Canada Cohort – which comprises solutions from Israel, Australia, Canada and the United States, led by both men and women founders representing multiple cultures and diverse ideologies – is poised to deliver exponential value to the global real estate ecosystem, enhancing the consumers’ experience via the Realtor® community, today and well into the future.”

The 10 companies selected for REACH Canada 2022 are as follows:

Financial Efficiency and Transparency

Homeownership Accessibility

Broker and Agent Tools

Environmental Sustainability

“We are excited to welcome the REACH Canada Class of 2022 to our rapidly expanding global portfolio,” said Dave Garland, SCV’s Managing Partner. “These 10 companies are poised to make a significant impact on real estate in North America and well beyond. We are eager to accelerate their growth and share their unique and progressive solutions with Realtors® around the world.”

REACH Canada will offer its 2022 program a robust curriculum including education, mentorship, exclusive networking opportunities and significant exposure to the global real estate marketplace. Learn more about the companies selected for the REACH Canada program and how you can get involved at www.narreach.ca .

Second Century Ventures Opens Applications for 2021 REACH Canada Program

Mon, 07 Jun 2021 16:01:00 GMT

TORONTO (June 7, 2021) – Second Century Ventures, the strategic investment arm of the National Association of Realtors®, has opened applications for the 2021 REACH Canada scale-up program. SCV, which is the most active global venture fund in real estate technology, operates the award-winning REACH real estate technology growth program in five major, international markets.

REACH provides a unique opportunity for technology companies to earn sizable exposure and accelerate their businesses within a $1 trillion global real estate industry. REACH Canada is seeking high growth potential technology companies across the residential and commercial sectors and will offer the selected group of entrepreneurs access to a worldwide network of peers, mentors and investors in conjunction with its sister programs in the U.S., Australia and the U.K.

“REACH Canada successfully launched its scale-up program in 2020 with an inaugural class of eight companies delivering innovation to Realtors® and real estate professionals throughout North America,” said Bob Goldberg, NAR CEO and the President of SCV. “We are excited to open applications for REACH Canada’s 2021 class and we look forward to welcoming a new group of PropTech innovators. Their ideas and entrepreneurial spirit help ensure Realtors® continue to have access to the latest technology.”

REACH has attracted technology startups aimed at developing solutions for multiple aspects of the real estate industry, including marketing automation, pay-at-close renovation, agent safety, leasing, lending, transaction management and tokenization, among others. Participating companies show impressive results both during and after program completion. Specifically, REACH companies have in aggregate raised more than $800 million of follow-on financing, achieved revenue growth rates of more than 2000%, and secured key partnerships with major technology and real estate brands including DocuSign, Google, Facebook, Keller Williams, Century 21 and Compass.

“With the strength of a portfolio curated with amazing foresight, many REACH companies have become household names,” said Lynette Keyowski, REACH Canada Managing Partner. “These businesses have powered the industry and the homebuying and homeownership experience forward through the pandemic and into a post-COVID era.

“On the heels of our first successful program, we are extremely excited to continue working with companies that are not only providing immense value to the practitioner and consumer, but empowering solutions, companies and founders alike that are bringing new solutions, perspectives and strength to an evolving market and a new societal norm,” Keyowski added.

Participants in the REACH Canada scale-up program receive numerous benefits, such as:

Applications for REACH Canada will be accepted through July 31, 2021, at www.narreach.ca . The 8-month virtual and event-based program will kick off in October 2021 and run through May 2022.

For more information about REACH Canada, or to apply, visit www.narreach.ca

The National Association of Realtors® is America’s largest trade association, representing more than 1.4 million members involved in all aspects of the residential and commercial real estate industries.

REACH is a unique real estate technology growth program created by Second Century Ventures, the most active venture fund in the global real estate technology space. Backed by the National Association of Realtors®, SCV and REACH leverage the association’s more than 1.4 million members and an unparalleled network of executives within real estate and adjacent industries. The REACH program helps technology companies launch into the real estate vertical and its adjacent markets. The program provides education, mentorship and market exposure to one of the world’s largest industries.

SCV Selects Eight Companies for the 2021 REACH Technology Scale-up Program

Mon, 26 Apr 2021 15:05:00 GMT

CHICAGO (April 26, 2021) – Second Century Ventures, the strategic investment arm of the National Association of Realtors ^® , announced today the selection of eight technology companies for the 2021 REACH scale-up program. SCV, which is the most active global venture fund in real estate technology, operates the award-winning REACH growth program in five major, international markets. The 2021 REACH cohort will focus on scaling high-growth potential technology companies in and beyond the residential real estate sector.

“In spite of a once-in-a-century health crisis and all of the challenges it has created, U.S. residential real estate has fared remarkably well over the past 13 months,” said SCV President and NAR CEO Bob Goldberg. “However, there are factors which will pose long-term challenges to America’s housing market, and every problem we face will require innovative solutions from both the private and public sectors. Through the REACH program, we are able to help facilitate these critical conversations by supporting forward-thinking small businesses, investments today which will allow us to overcome the complex problems of tomorrow.

“We’re excited to welcome eight transformative technologies to the 2021 REACH program alongside the nine companies named to the 2021 REACH Commercial program earlier this month.”

Companies selected for the 2021 REACH program offer pioneering tools and solutions for multiple aspects of the market, including financing, senior living services, home maintenance and repair, marketing tools and more. Collectively, these companies have raised more than $700 million in capital, employ more than 125 people worldwide and represent a valuation in excess of $1 billion.

“The continued success of our industry is dependent on technology that benefits homebuyers, sellers and the Realtor ^® community,” said Kia Nejatian, executive director of REACH. “This group of eight companies has been hand selected from an impressive pool of applicants based on the incredible potential for their solutions to transform the real estate transaction.”

The eight companies selected for the 2021 REACH program are:

“We are very excited to welcome these eight companies into our global REACH community,” said Dave Garland, managing partner of Second Century Ventures. “Growth is the root of everything we do at Second Century Ventures and REACH. By working hand-in-hand with the top entrepreneurs in the property technology field, we deliver scale to new technologies, help real estate professionals find new ways to use technology and in turn help advance the rapidly evolving global real estate ecosystem.”

REACH announced the companies selected to its commercial real estate technology program earlier this month . Both U.S. based cohorts will experience an intensive program which includes education, mentorship, a curated insight panel, exclusive networking opportunities and significant exposure to the global real estate marketplace. Learn more about the 2021 REACH program and how you can get involved at narreach.com .

SCV Announces 2021 REACH Commercial Cohort

Mon, 19 Apr 2021 15:34:00 GMT

This year’s corresponding REACH residential real estate technology group to be unveiled in the coming weeks

CHICAGO (April 19, 2021) – Second Century Ventures, the strategic investment arm of the National Association of Realtors ^® , announced today the selection of nine technology companies for the 2021 REACH Commercial scale-up program. SCV, which is the most active global venture fund in real estate technology with more than 130 portfolio companies worldwide, operates the award-winning REACH growth program in five major, international markets. The REACH Commercial program helps high-growth potential technology companies scale in and beyond the commercial real estate sector.

“This pandemic has underscored the foundational role commercial properties play in the sustainability of vibrant communities,” said SCV President and NAR CEO Bob Goldberg. “NAR has been on the frontlines on Capitol Hill and in every state capital this past year fighting to support our commercial practitioners as they work to attract investment, create jobs and revitalize communities. The unveiling of the 2021 REACH Commercial class is another critical step in our work to ensure commercial real estate can adapt to and flourish in the markets of the future.”

Companies selected for the 2021 REACH Commercial program offer innovative tools and solutions for multiple aspects of the CRE market. Collectively, these companies have raised over $34 million in capital, employ more than 400 people worldwide and represent a valuation of $200 million.

“We have selected nine companies for our 2021 REACH Commercial cohort that are already well on their way to being market leaders in their spaces,” said Bob Gillespie, executive director of REACH Commercial. “They bring solutions that fundamentally change commercial real estate design, investment and transaction management, as well as how we manage, experience and understand the properties in which we live and work. We have an outstanding 2021 class and look forward to helping them achieve exponential growth.”

The nine companies selected for the 2021 REACH Commercial program are:

“These nine companies have been selected from an impressive list of highly qualified candidates,” said Tyler Thompson, managing partner of Second Century Ventures. “We are confident the nine technologies, and the founders who lead them, will not only help the market navigate post-pandemic challenges, but will revolutionize the future of real estate. We look forward to announcing the companies selected for our residential technology scale-up in the coming weeks as these two cohorts will work together to leverage our rapidly expanding global community of real estate industry professionals, strategic partners, investors, and mentors.”

REACH will announce the companies selected to its residential real estate technology program later this month. Both U.S.-based classes will experience a robust curriculum including education, mentorship, a curated insight panel, exclusive networking opportunities and significant exposure to the global real estate marketplace. Learn more about the 2021 REACH Commercial program and how you can get involved at narreach.com .

Second Century Ventures Announces REACH Australia’s 2021 Accelerator Class

Wed, 03 Mar 2021 20:18:00 GMT

MELBOURNE (March 3, 2021) — After successfully launching its inaugural class last year, Second Century Ventures, the strategic investment arm of the National Association of Realtors®, today announced the members of its 2021 REACH Australia class. REACH Australia is a growth technology accelerator program helping launch companies into the real estate, financial services, banking, home services and insurance industries throughout Australia and Southeast Asia.

“I’m proud that we’ve been able to take the REACH program to new levels over the past two years, leveraging the ingenuity that is driving our industry to ensure Realtors® remain at the forefront of innovation and the center of the real estate transaction,” said SCV President and NAR CEO Bob Goldberg. “Competition anywhere benefits consumers everywhere, and the companies being welcomed today will provide critical support to Realtors® and their clients in the years ahead. We congratulate each member of the 2021 REACH Australia class, and we’re excited to welcome them into the global REACH community.”

REACH Australia demonstrated immense value for the real estate ecosystem across Australia and Southeast Asia with its inaugural class. Graduates of the Class of 2020 have been invited to deploy their technology to green field projects, have worked directly with city planners to help build new cities, and continue to work closely with major real estate groups like AMP Capital and Charter Hall to establish transformative pilot programs.

“We look forward to continuing our growth of this award-winning accelerator and supporting the recovery of the real estate sector across APAC,” said Shelli Trung, Managing Partner for REACH Australia. “REACH is more important than ever given the exponential increases in technological demands with a workforce that is now simultaneously working from home and returning to the office.”

The six companies chosen for the 2021 class are:

REACH Australia will offer its 2021 class a robust curriculum including education, mentorship, exclusive networking opportunities and significant exposure to the global real estate marketplace.

To learn more about REACH Australia and how you can get involved, visit www.narreach.com/australia .

Second Century Ventures Announces Inaugural REACH UK Class

Wed, 03 Feb 2021 13:24:00 GMT

London (February 3, 2021) – Second Century Ventures, the strategic investment arm of the National Association of Realtors®, today announced its inaugural REACH UK cohort. Second Century Ventures is the most active global venture fund in real estate technology – with more than 100 portfolio companies worldwide – and operates the global REACH scaleup program in five major markets.

REACH UK launches its first program, the REACH UK Class of 2021, with support from strategic industry partner Propertymark, the UK’s leading professional body for property personnel, representing members who practice from over 15,000 offices in all aspects of property services. Through this collaboration, Propertymark will have a significant role in accelerating innovation to help its members navigate new market conditions with unique access to top new technology.

“We’re excited to work with the REACH UK class of 2021 to accelerate their growth during a time when many start-ups are concerned about the ongoing impact of COVID-19,” said Mark Hayward, chief policy advisor of Propertymark. “Proptech is an exciting and growing industry and the need to adapt to remote working this year has shown the importance of innovation in the property sector. Early engagement with these companies will help Propertymark members navigate the world of technology as it develops and will offer early exposure to some of the most innovative start-ups in the sector.”

The REACH UK Class of 2021 represents companies based across Europe which offer solutions for the entire real estate industry. Collectively, this class has raised over $15 million in capital, represents a combined valuation of just under $150 million and employs over 100 people.

The 7 companies selected for the REACH UK Class of 2021 are:

“While the world today feels smaller than ever before in so many ways, NAR and SCV are focused on pivoting to ensure our members are positioned to succeed in the marketplaces of the future,” said Second Century Ventures President and NAR CEO Bob Goldberg. “Leveraging the ingenuity that we see on display throughout Europe and across the globe becomes even more critical in the aftermath of COVID-19 and will help us guarantee Realtors® remain at the forefront of industry innovation and adaptation in the years ahead.”

Companies that have participated in the REACH program have collectively raised more than $350 million of follow-on financing and have secured key partnerships with DocuSign, Google, Facebook, Keller Williams and Berkshire Hathaway HomeServices, among others.

“We are eager to help accelerate the growth of the seven companies selected and excited to work so closely with their dynamic teams,” said Valentina Shegoyan, managing partner of REACH UK. “We had an overwhelming caliber of applicants for our inaugural programme and have appreciated the opportunity to connect with so many talented entrepreneurs. We believe the technologies selected for the REACH UK Class of 2021 will be instrumental in shaping the future of the property sector, both in the UK and globally.”

If you are interested in helping advance the next generation of real estate technology entrepreneurs, sign up for REACH UK’s insight panel and get more information at nar-reach.com/uk.

Second Century Ventures Joins the Oxford Future of Real Estate Initiative

Tue, 12 Jan 2021 14:08:00 GMT

CHICAGO (January 12, 2021) – Second Century Ventures, the strategic investment arm of the National Association of Realtors® and the most active global fund in real estate, has joined the Oxford Saïd Business School’s Future of Real Estate Initiative. Through this initiative, SCV will collaborate with FORE’s industry partners and academics to address key questions on the future of global real estate

“The future of the industry will be influenced as never before by technology and innovation, and relevant real estate research requires significant industry collaboration from across the globe,” said Oxford’s Professor of Practice and Director of FORE Andrew Baum. “We’re delighted to welcome SCV to FORE and look forward to working with them on key questions around the future of real estate.”

The new partnership will enable SCV and FORE to continue exploring the impact of technology, housing challenges, emerging sectors and models for real estate ownership and operation.

Through partnerships with several industry leaders, including Arcadis UK, CBRE, EY, and Redevco, the FORE Initiative aims to predict many of the changes and challenges real estate can expect to face over the next decade.

We are thrilled to join FORE and work closely with esteemed industry partners to discuss and collaborate on pivotal research for the property sector,” said Dave Garland, managing partner, Second Century Ventures. “Joining this initiative truly amplifies our ongoing efforts to advance real estate through technology and innovation on a worldwide scale.”

In joining the program, SCV looks to provide resources and support to the University of Oxford’s Research team’s efforts akin to that of the recently published PropTech 2020. “

Learn more information about the SAID Business School FORE Initiative .

Learn more about Second Century Ventures .

# # #

About Saïd Business School

Saïd Business School at the University of Oxford blends the best of new and old. We are a vibrant and innovative business school, but yet deeply embedded in an 800-year-old world-class university. We create programmes and ideas that have global impact. We educate people for successful business careers, and as a community seek to tackle world-scale problems. We deliver cutting-edge programmes and ground-breaking research that transform individuals, organisations, business practice, and society. We seek to be a world-class business school community, embedded in a world-class university, tackling world-scale problems.

About Second Century Ventures

Second Century Ventures is the most active global real estate technology fund backed by the National Association of REALTORS®, which leverages the association’s more than 1.4 million members and an unparalleled network of executives within real estate and adjacent industries. SCV helps scale its portfolio companies across the world’s largest industries including real estate, financial services, banking, home services and insurance. SCV operates the award-winning global REACH technology scale-up program.

Second Century Ventures Accepting Applications for 2021 REACH & REACH Commercial Classes

Tue, 12 Jan 2021 14:07:00 GMT

CHICAGO (December 14, 2020) – Second Century Ventures, the strategic investment arm of the National Association of Realtors® and the most active global real estate technology fund, is now accepting applications for the 2021 REACH and REACH Commercial programs. Applications for the 2021 REACH and REACH Commercial programs will be accepted through February 14, 2021 , at www.narreach.com/apply . Both programs will kick off in April and run through November 2021.

REACH offers education, mentorship and exposure for technology companies working to scale their businesses across the U.S. residential and commercial real estate markets and expand into adjacent markets, including insurance, mortgage and financial services. With recent expansion into Australia, Canada and the UK, REACH also provides a unique opportunity for technology startups to earn sizeable exposure within the multi-trillion-dollar global real estate industry along with access to a worldwide network of entrepreneurs, mentors and investors.

“NAR’s continued commitment to source the world’s newest and most promising technologies through programs like REACH will allow us to deliver the tools Realtors® and their clients need in both favorable and rapidly changing market conditions,” said NAR Senior Vice President of Strategic Business, Innovation & Technology Mark Birschbach. “For over a decade, Second Century Ventures has led efforts to find the most talented entrepreneurs and the technologies that have and will continue to revolutionize real estate. With over 100 companies in the global SCV portfolio, we are excited to open applications for the 2021 REACH programs and welcome the next wave of innovators.”

REACH has attracted technology startups developing solutions for multiple aspects of the industry, including energy solutions, virtual staging, transaction management, marketing automation, pay at close renovation, Realtor® safety, leasing, lending, tokenization and more.

Participating companies have exhibited impressive results both during and after program completion. Specifically, REACH companies have in aggregate raised more than $400 million of follow-on financing; have increased revenue, customer and/or user growth rates between 50 to 2,000 percent; and have secured key partnerships with major companies including DocuSign, Porsche, Google, Facebook, Compass, Coldwell Banker, RE/MAX and BHHS.

“As the most active global fund and top growth program in real estate, we are steadfast in our mission to find technology with the greatest potential to revolutionize real estate today and well into the future,” said Dave Garland, managing partner, Second Century Ventures. “We’re looking for innovative teams eager to navigate the complex and dynamic residential and commercial marketplaces and help shape the future of real estate. We encourage companies building innovative technology solutions for all aspects of real estate to apply.”

Participants in the REACH and REACH Commercial scale-up programs receive numerous benefits, including:

For more information about REACH or to apply, visit www.narreach.com(link is external) .

# # #

About REACH

REACH is a unique technology scale-up program created by Second Century Ventures, the most active global fund in real estate technology. Backed by the National Association of Realtors®, Second Century Ventures leverages the association’s more than 1.4 million members and an unparalleled network of executives within real estate and adjacent industries. The REACH program helps technology companies scale across the real estate vertical and its adjacent markets through education, mentorship and market exposure. For more on REACH, visit www.narreach.com(link is external) .

About the National Association of REALTORS®

Meet the Inaugural REACH Canada Class – Innovation from Coast-to-Coast

Sun, 18 Oct 2020 16:00:00 GMT

Back in February when REACH Canada was announced, it would’ve been impossible to predict where we would be today. While the real estate and technology industries have both been significantly impacted by COVID-19; business has continued, practices have adapted, and products have evolved. Throughout the globe, REALTORS® have evolved to deliver new and improved consumer experiences, adopting new technologies at rates never before seen. REACH and Second Century Ventures’ goal to help transform technology firms of tomorrow into top real estate solutions today, has never been so timely.

REACH Canada Class of 2020

With that, we are thrilled to introduce the newest members of the REACH family and the first class of REACH Canada. The 2020 class brings in firms from across the continent, and across the entire real estate ecosystem, each striving to deliver improved customer experiences to homeowners and REALTORS® alike. These companies touch on a diverse range of segments, from helping consumers gain access to housing and homeownership, to empowering agents with through elegant uses Artificial Intelligence and Big Data.

By focusing on what is needed today as well as what comes next, we believe that these companies are some of the most promising in the space and best positioned to enhance the consumers’ experience with REALTORS® and drive even more value today and well into the future.

Without further ado, here is an overview of the 2020 REACH Canada Class

Consumer Insights

Across all industries, consumers continue to seek data and insights, allowing for better experiences. With this in mind, we selected each of these companies as they strive to give consumers even more insights throughout their homeownership journey and in alignment with their preferred REALTOR® partner.

Local Logic

Local Logic is a data and AI company which uses a combination of geospatial, user generated, and real estate data to quantify the qualities of any given location. We’re a team of urban planners, engineers, data scientists and real estate experts – giving us a holistic perspective on location, the way people perceive and value it and how technology can introduce transparency into the real estate market.

We are passionate about location and have amassed the largest unique location data set in Canada and the US, with over 20Bn data points. Our technologies allow us to capture, clean and integrate traditional and alternative location insights at scale. Our comprehensive location database includes geospatial data, school data, business listing data, demographic data, neighbourhood data and real estate market supply and demand data. The products developed by Local Logic are used to guide the decisions of online consumers when looking for real estate or travel accommodations and to build predictive models to inform decision makers investing in the urban environment.

HonestDoor

HonestDoor is an Edmonton-based, VC-backed company that combines real estate data with data science to produce estimated values and future projections on houses and condos. In addition to the estimated HonestDoor price, Honestdoor aggregates property taxes, transaction data, permit data, and neighbourhood growth rates. By creating the most comprehensive database of commercial and residential real estate information in Canada, it empowers REALTORS® and existing/potential homeowners to make more informed decisions.

Setter

Setter empowers homeowners with software and resources to properly manage their most valuable asset. Through an annual virtual walkthrough, Setter delivers prioritized and actionable reports with clearly defined next steps providing homeowners with the piece of mind that their home is cared for. Through risk mitigation, the proprietary HomeScore and encouraging better homeownership, Setter can reward clients, save them money and help them tackle life’s todos.

Homeownership Gap & Affordability

By helping enhance consumers’ access property ownership, the next group of companies are innovating to build build a more equitable tomorrow. Building on the NAR Operating Values’ where we believe that every individual should have access to safe, decent, and affordable housing (Right to Housing) as well as NARs support for the broadest opportunity for homeownership (Homeownership), these companies mirror that mission.

Key

Key is solving a generational crisis with home ownership-on-demand. For most, homeownership in the big city means taking on big debt with big down payments. Today, it takes an average of 21 years for first-time buyers in Toronto to save for a down payment, which creates a vicious circle for renters, current owners, and communities. The challenge is generational and a global issue for 24/7 cities.

Key is making the dream of homeownership a reality again for aspiring first-time home buyers by fundamentally changing the way real estate works for the better, for the many, making financial prosperity realistic and attainable. Instead of wasting 21 years saving for a big down payment, home buyers can start owning and building home equity with Key many years earlier. Plus, they can own without being locked into a mortgage.

Our patent-pending model makes home ownership attainable with an initial investment of only 2.5% (versus the typical 20%) and no need for a mortgage. Key also delivers the benefits of ownership – growing equity and security of tenancy – with the freedoms and flexibility of renting. So, aspiring homeowners can now have a place to call home and start building their equity many years earlier.

RentMoola

RentMoola’s SaaS platform helps landlords create recession-resistant businesses by empowering them to mitigate risk, improve their cap rates, and increase the value of their holdings. With RentMoola, landlords are able to manage processes such as marketing their properties, tenant screening to ensure they target the right renters, credit reporting, improving their cash flow, eliminating risks with rental insurance, eliminating missed payments, and generating working capital as needed.

Tenants can take control of their finances in one comprehensive and convenient platform. From accessing interest free microloans, searching for the perfect place to live, to improving their credit score by reporting their rent payments to the credit bureaus, improving their chances of approval through tenant screening checks, accessing security deposit alternatives, rental insurance, and more, tenants enjoy a more convenient way to manage their finances.

REALTOR® Tools

BrokerAssist

BrokerAssist is the gig economy for real estate professionals! As the new go-to collaboration and referral network, BrokerAssist is a FREE mobile marketplace connecting agents and brokers in real-time for fractional assistance on deal specific tasks (showings, open houses, inspections, etc).

Even more, BrokerAssist offers a FREE platform for on-demand referral opportunities nationwide!

Parkbench

Parkbench provides an all-in-one sales & marketing platform to help REALTORS® become branded as the local market expert in their desired geographic farm area. We only work with 1 realtor per neighbourhood and our system is specifically designed for realtors who want to build their brand and business through relationships and referrals instead of advertising and lead buying schemes. We provide daily business coaching & marketing training, a crm, sales scripts, follow up templates, and a client success team to hold you accountable to doing the work you need to do to become the go-to local realtor in your target market.

It’s a unique approach to help realtors get back to the basics of real estate: relationship building, prospecting, and word of mouth marketing. We’ve worked with thousands of REALTORS®. We provide a step-by-step blueprint to acquiring more clients. And we’re so confident in our system, that we’re able to offer a Money Back Guarantee! This means, if a REALTOR® uses our hyperlocal platform, and follows our sales system, and doesn’t get a positive ROI after 1 year, then we will simply return you your money back…spoiler: it’s never happened before.

Commercial

Clik.ai

Document extraction based machine learning software that makes due diligence and workflow 90% more efficient by eliminating manual repetitive tasks from the daily workflow of CRE analysts. Data extraction APIs and document extraction technology for real estate firms to fully digitise millions of documents sitting on real estate companies desktops.

We are thrilled to welcome the 2020 REACH Canada Class and look forward to bringing even more value to the entire real estate ecosystem!

About REACH Canada

REACH Canada is a growth accelerator created by Second Century Ventures, an early-stage technology fund, backed by the National Association of REALTORS®.

REACH leverages 100 worldwide bilateral partnerships in 85 countries and an unparalleled network of executives within real estate and adjacent industries. Second Century Ventures’ REACH Accelerator manages a portfolio of over 82 technology companies.

REACH Canada will helps accelerate the most promising technology companies in real estate and adjacent industries through an intensive event-based program. REACH Canada will leverage an exceptional community of real estate industry executives, investors, mentors, and entrepreneurs across North America and throughout the global REACH Accelerator network.

About the Author

Mike McAra is the Director of REACH Canada/Second Century Ventures, the most active global Proptech venture capital fund and co-host of the leading Canadian Proptech podcast, Beyond the Box. As both a VC and former Proptech founder, Mike brings a unique lens into the world of Canadian Proptech.

REACH Australia Opens Applications for 2021 Class

Thu, 15 Oct 2020 15:45:00 GMT

MELBOURNE (October 15, 2020) – Second Century Ventures, the strategic investment arm of the National Association of Realtors®, announced Thursday the opening of applications for the 2021 REACH Australia program. Following the success of its inaugural 2020 class, REACH Australia expects an even higher volume of applicants for the 2021 program.

“We have been delighted with the results of our first year,” said Shelli Trung, managing partner, REACH Australia. “Even in the middle of a pandemic, we have been able to make more than 500 strategic introductions for our 2020 class, deliver over 100 hours of programming and provide exposure to numerous experts from the US, Europe, Hong Kong, Singapore and Australia. This is the power of REACH’s global network.”

The six companies within the inaugural REACH Australia class achieved significant milestones during their time in the program. Most notably, UbiPark, a smart parking mobility solution, announced a major partnership with Porsche, while property management platform Sorted closed an AU$5.6M fundraising round. Additionally, cohort companies have been invited to deploy their technology to green field projects, have worked directly with city planners to help build new cities from the ground up across Asia, and continue to work closely with major real estate groups to establish transformative pilot programs in Australia and Southeast Asia.

“The property industry has welcomed us with open arms, looking to us as a crucial source for new innovation as the workforce becomes digitized and as markets begin to rebuild after a tumultuous year,” Trung continued. “From solutions to help tenants and consumers safely return to offices and shopping centers, to tools that help agents complete inspections, we are committed to advancing the property sector across Asia Pacific. We encourage all companies building innovative real estate technology that supports our industry’s recovery to apply.”

Applications for the 2021 REACH Australia program will be open until November 30, 2020. The 2021 program will commence in March 2021, and will provide selected participants with integral industry insights, mentorship and significant market exposure throughout Australia and Southeast Asia, along with access to the global REACH network.

For more information or to apply, visit nar-reach.com/australia

REACH Canada Selects Inaugural Class

Wed, 14 Oct 2020 18:08:00 GMT

TORONTO (October 14, 2020) – Second Century Ventures, the strategic investment arm of the National Association of Realtors®, announced Wednesday the companies selected for its inaugural REACH Canada program. Second Century Ventures is the most active global venture fund in real estate technology – with more than 100 portfolio companies worldwide – and operates the global REACH scale-up program in five major markets. The award-winning REACH program helps launch and accelerate high growth potential companies in the real estate, financial services, banking, home services and insurance industries.

“This year has highlighted the significant impact that technology has and will continue to have on the real estate industry. With the help of virtual staging tools, e-signature platforms, remote notarization and even moving services, Realtors® and consumers have been able to continue to list and close transactions in the midst of a year unlike any other,” said Second Century Ventures President and NAR CEO Bob Goldberg. “NAR’s ability to find the world’s most promising and productive new technologies through programs like REACH will help Realtors® navigate the current market and build their businesses for the years ahead.”

The 2020 REACH Canada class represents companies based across North America, offering solutions for the entire real estate ecosystem as each strives to deliver improved customer experiences to homeowners and Realtors® alike. Companies selected for REACH Canada 2020 are broadly categorized within four verticals: Consumer Insights, Homeownership Solutions & Affordability, Sales & Marketing Tools and Commercial Applications. Collectively, this class has raised over $50 million in capital and represents a market capitalization of more than $180 million.

“After opening two new global REACH programs earlier this year in Canada and the UK, we are elated to welcome the first class of companies selected for the REACH Canada program and look forward to debuting the inaugural REACH UK class in the months ahead,” Goldberg continued.

REACH Canada will offer its 2020 class a robust curriculum including education, mentorship, a curated insight panel, exclusive networking opportunities and significant exposure to the global real estate marketplace.

“Our inaugural REACH Canada program was flooded with interest from numerous high-quality companies, which made the selection process extremely challenging,” said Lynette Keyowski, Managing Partner, REACH Canada. “In narrowing such a competitive field to our final selections, we focused on technologies that are essential today and solutions that address what is coming next for real estate. We believe the 2020 REACH Canada Class represents the most promising tools and applications to enhance the consumer experience within the Realtor® community and drive maximum value throughout the transaction.”

The eight companies selected for REACH Canada 2020 by category are:

Consumer Insights

Homeownership Solutions & Affordability

Sales & Marketing Tools

Commercial Market

“We are excited to welcome the REACH Canada Class of 2020 to our rapidly expanding global portfolio,” said Dave Garland, Managing Partner, Second Century Ventures. “These eight companies are poised to make a significant impact on real estate in North America and well beyond. We are eager to accelerate their growth and share their unique and progressive solutions with Realtors® around the world.”

Learn more about the companies selected for the REACH Canada program and how you can get involved at narreach.ca .

REACH UK Opens Applications for Inaugural Class

Fri, 31 Jul 2020 08:15:00 GMT

London, UK (July 31, 2020) – REACH opens applications today for the inaugural class from its newest region, REACH UK. The award-winning technology scale up programme was created by Second Century Ventures, the strategic investment arm of the National Association of Realtors ^® .

REACH UK has already garnered the support of NAEA Propertymark, the leading professional body for estate agency personnel in the United Kingdom and a bilateral partner of NAR. Through a strategic partnership with NAEA Propertymark, REACH UK will help scale real estate tech start-ups developing innovation to support and advance the UK property industry.

Applications for REACH UK will be accepted through September 30, 2020, at www.nar-reach.com/uk . The programme will include both virtual and in-person events beginning in February 2021 and running through October 2021.

The programme offers education, mentorship and exclusive access to key industry events for technology companies aiming to launch into the property sector, accelerate their businesses and expand into adjacent markets such as insurance, mortgage and financial services. As funding for the European proptech sector continues to rise at a rapid rate, REACH UK will provide its companies with unique and sizeable exposure to the industry.

“As the European leader in proptech funding and home to the region’s largest proptech sector, the UK represents a significant opportunity to help scale emerging innovation in real estate,” said Bob Goldberg, NAR CEO and president of Second Century Ventures. “We are excited to officially open applications for REACH UK, the third REACH program opened outside the United States, and have great confidence in the UK team’s ability to source the top proptech entrepreneurs to join our global REACH community.”

As part of REACH’s growing global community, REACH UK will also offer access to a worldwide network of peers, mentors and investors in conjunction with its sister programs in the U.S., Australia and Canada.

“We are excited to launch the inaugural REACH UK class, which will join a global community of entrepreneurs revolutionizing the property sector around the world,” said Valentina Shegoyan, managing partner of REACH UK. “We are also extremely pleased to be working with NAEA Propertymark, with whom we share a vision to equip the UK property market with the top technology now and for years to come.”

For more information about REACH UK, or to submit an application, visit www.nar-reach.com/uk

The National Association of Realtors ^® is America’s largest trade association, representing more than 1.4 million members involved in all aspects of the residential and commercial real estate industries.

Beyond the Box – Season 1 – Episode 10 – Jeff Turner, Entrepreneur-in-Residence, Second Century Ventures

Wed, 29 Jul 2020 15:50:00 GMT

Beyond the Box – Season 1 – Episode 10 – Jeff Turner, Entrepreneur-in-Residence, Second Century Ventures.

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Watch on YouTube

On the tenth and LAST episode of Beyond the Box’s first Season, we had the pleasure of interviewing Jeff Turner , Entrepreneur in Residence, NAR REACH . Click the links below to hear Jeff and Mike McAra discuss Jeff’s experiences with a diverse variety of founders, the dynamic of uncertainty, and using technology in the way it was meant to be used. You will NOT want to miss this well-rounded meal of an episode!!!

Full Transcript of the Show

Mike McAra – Beyond the Box Host: Awesome. We’re back on
Beyond The Box here. Mike McAra, your cohost and today I’m joined with the
esteemed Jeff Turner, Entrepreneur-in-Residence with Second Century Ventures,
among many other things. Jeff, welcome to the show!

Jeff Turner – EIR – Second Century Ventures: It’s good to
be here. How are you?

Mike McAra – Beyond the Box Host: I am fantastic! it’s
sunny, it’s summer, of course, obviously, there are lots of things going on,
but all things considered, I’m great. How are you?

Jeff Turner – EIR – Second Century Ventures: Same. Same.
Got in a great hike this morning so life is good.

Mike McAra – Beyond the Box Host: There you go! If you
start your day with a hike, you know you’re doing something right.

Jeff Turner – EIR – Second Century Ventures: I would agree,
I would agree.

Mike McAra – Beyond the Box Host: So, for those people who
don’t know you or haven’t had the privilege to know you yet, so maybe give me a
little bit of a background of who is Jeff Turner. How did you get to where you
are?

Jeff Turner – EIR – Second Century Ventures: Oh wow. Yeah,
it’s funny these… you know, you could take 2 hours explaining how you get to
where you are in your life or you could condense it into 30 seconds. So I’ll
choose the second option. I’ve been an entrepreneur almost the entirety of my
adult life. I started my first company when I was 24-25 years old. I sold
that company in 1999.

Mike McAra – Beyond the Box Host: Good timing!

Jeff Turner – EIR – Second Century Ventures: Yeah, so I’ve
been at this a long time. My first real estate startup was a company called
Real Estate Shows, which was the first company that really did take that Ken
Burns effect and apply it to static images to create a new kind of virtual
tour. That company is still in existence, I sold it to one of my partner’s back
in 2011, when I discovered, I like to say discovered because it makes me feel
like an adventurer. I was speaking at the Australian real estate conference at
*** in Sydney, Australia and just happened to be on the showroom floor doing a
podcast with a guy named Kevin Turner, no relation. And a company logo was
behind my head during this entire podcasts and was called “Real Satisfied.” And
I talked to the founders afterwards, curious about you know what they did. It
just happened to be their first show that they had gone to. They had just
launched in Australia and it was an agent-customer satisfaction survey. Which I
found interesting. It was different than what was happening in the United
States and agent ratings. Back in the time, I don’t know if you remember back
then, but usually, it just forayed into agent ratings on their website. Zillow
was just barely getting started with agent ratings and I thought their approach
was really, really thoughtful on the way that they handled that. So, I asked
them right there then if you thought about bringing this to the US. They said,
no, I said I think you should, long story short, we ended up bringing
Realsatisfied over to the United States, sold it in 2016. I’ve been a
mentor with the REACH program since its inception in 2013 and as a result
sort of found a fondness for mentoring startup entrepreneurs. I have an
affinity for it. And, as a result, approached David Tyler who sort of head-up
Second Century Ventures with some ideas on what I thought was missing from the
REACH program. This was after I had met *********, who is the founder of
Immivure, which was the first international company to be accepted into the
REACH program based on Austin, Germany. And took over as North America CEO for
a year to help them launch the product into a different marketplace. What I
really felt was missing was an attempt by REACH or a visible attempt. But what
I couldn’t see at the time and you’ll laugh at this now, because you see
behind the curtain of what’s going on, a desire to bring in more companies from
other countries and a desire to connect with companies that weren’t quite ready
for the REACH program. And as it turned out, and as you now know, they had
already been talking about those kinds of things. It excited me to be able to
potentially participate in helping them expand, and taking an active role on a
part-time basis with Second Century Ventures and specifically with the REACH
and the growth accelerator. Not dissimilar probably to how you got attracted to
it and into the same position you are in. Your desire to go deeper into helping
these companies grow and really understand the complexities of the North
American Real Estate Market. So, that’s where I find myself today. I keep
myself busy wearing multiple hats, we talked about it before we started
recording. I still spend a good portion of my time consulting with
Immoviewer and now DocuSketch the product that we created to go to the
restoration market. I consult with a couple of different startups in Europe, as
well. I also am on the Entrepreneur-in-Residence for Second Century Ventures
and with my former partners at RealSatisfied in Australia, we’re also
building a new Association Management platform from scratch on some modern
technology that we are really very excited about. So life is busy!

Mike McAra – Beyond the Box Host: Do you sleep?

Jeff Turner – EIR – Second Century Ventures: Yeah, I do
sleep and that took longer than 30 seconds, I realize now.

Mike McAra – Beyond the Box Host: You know, that’s amazing
though because there’s so much to work from there. And it’s interesting because
I’ve been talking to a lot of people about travel, as an aside. And a lot more
people are starting to read adventure books or travel books. But you’re getting
that travel element by working with startups abroad! You’ve got a taste of
it!

Jeff Turner – EIR – Second Century Ventures: It’s funny,
it’s really been very, very interesting as I’ve had the opportunity to work
with founders from other countries. The difference in the thought processes
that exist, but is sometimes shaped by the culture itself, and sometimes it’s
shaped by the fact that the real estate industry just works differently in
those countries than it works in the United States. And I think sometimes…
not sometimes… all the time, those differences and experiences allow us to
create unique things. It changes the nature of the conversations, it changes
the way you speak about things because you’re having to constantly, sort of
check your own understanding of what the world looks like at the door and
listen to someone else explain how they think the world works. And I find that
refreshing and entertaining and challenging.

Mike McAra – Beyond the Box Host: It keeps the days not
boring right? Not repetitive.

Jeff Turner – EIR – Second Century Ventures: Yeah,
yeah. And it makes me better, I mean it makes me sharper.

Mike McAra – Beyond the Box Host: So, on that thread then,
I guess you know, it’s and it’s a nice segway, because obviously right now with
everything that’s going on there is so much uncertainty. The economy, in
society, on travel, immigration. All of these different things. And you this
really unique lens because you are consulting, and you’re with all of these
different companies abroad, locally and in the US as well. I’d be really
curious to get your take on how each respective sort of region is kind of
viewing that uncertainty and how they’re dealing with that. Because, obviously
as an entrepreneur, we deal with uncertainty all the time. But,
obviously, that come snack to your culture too. And so, I’d be really
interested and maybe you could speak to that. You know, how the Europeans are
being, how the Americans are being, how the Australians are being and I think
that’d be very interesting.

Jeff Turner – EIR – Second Century Ventures: Well, it won’t
surprise you that Europeans think we’re crazy. I’ll say this, you know
because I deal almost exclusively in my business relationship with
entrepreneurs, I don’t have a lot of diversity in opinion on how to deal with
this. You know you said it squarely, as an entrepreneur you’re used to dealing
with uncertainty. It’s just, it’s always there. You know, if starting a company
came with certainty, everybody would do it. It is that uncertainty which sort
of weeds out certain types of personalities, typically, from even deciding to
venture into entrepreneurship. And so, there is a certain makeup of an
entrepreneur that allows them to handle, I believe, handle these kinds of situations,
I won’t say better, I’ll say from a different perspective than most people.
That constant of uncertainty that’s a part of starting a business doesn’t
really change much when another piece of uncertainty is thrown into the
mix.

Mike McAra – Beyond the Box Host: Just put it on the
pile!

Jeff Turner – EIR – Second Century Ventures: Yeah, no,
really, I don’t mean that to sound trite in any way, it’s just on another layer
of uncertainty that gets added into the already multiple layers of uncertainty
that exists. Especially in very, very early stages of a startup when you’re
really just trying to figure out whether or not your product will even work in
a specific vertical. I mean, I know we’ve talked about this and in
various situations and across all of Second Century Ventures and the REACH
Global Networks. It’s an interesting task to sort of go through the process of
vetting a company for inclusion in one of our REACH classes because there’s
uncertainty on our side of the table as well, just as there is uncertainty. But
you sort of level all of that out with your experience and your understanding
of a market and I think the thing that I’m seeing from leadership that I engage
with outside of the entrepreneurs, but inside of the real estate industry
are the leaders who are responding best to this, are the ones who seem to
be able to easily gravitate towards relaxing a bit, and drawing from their
experience to calm themself down to say, “we’ve been through bad times before,
we’ve been through uncertain times before, here’s how we handle the past,
here’s how we’re going to do it in the future, this is what I need to be
doing.”And the panic that sometimes has set in and uncertainty doesn’t set in
with those leaders.

Mike McAra – Beyond the Box Host: Well, you know it’s one
of those things where traditionally you’re working with a business plan, strat-plans,
and obviously in the entrepreneurial space, business plans don’t exist anymore.
It’s business model canvases, pitch decks, something that’s you know, because
it’s the idea that you can pivot, you can iterate and you have to learn with
all of that uncertainty. With the corporates, the larger associate players, big
franchises, they’re still in that business model, strat plan. And when the
world comes and slaps you in the face, for lack of a better analogy, and that
goes out the window, you absolutely have to do that. You know I wonder if… it
would be really interesting to hear how that parallels when you’re entering new
markets. Because you’ve brought a lot of companies to the US right and kind of
coming in there, so I’d be quite curious about that.

Jeff Turner – EIR – Second Century Ventures: I think it’s
similar, you know, for example, the Australian… actually, you know what, let’s
talk about Immoviewer and the German market. Immoviewer launches in
Germany with what is essentially a version of what real estate shows did, only
in an automated way. So, sort of think of CirclePicks or a company like that,
that is automating via a feed of images these sort of slideshow of videos. When
they launched the 360 in Europe it was met with some pretty decent adoption for
one reason, and one reason only. Most of the agents in Europe shoot their own
photos, you bring the same technology, same exact technology over to the United
States where most agents don’t shoot their own photos, and the adoption is not
the same. And so, it’s just that single difference in behaviour ends up
throwing you for a loop and forcing you to have to look at things in a
completely different way. And so, there are sometimes major differences between
one market in another, in Australia, there’s really no buyer’s side to the equation.
Vendors pay for advertising upfront. Those are big differences in a market and
how that shifts behaviour. And so, you have to sort of take a step back and
say, “okay I’ve got to approach this differently.” And thankfully, it sharpens
both sides of the equation. RealSatisfied didn’t really take off in Australia
until it came and perfected itself in the United States in a different
market.

Mike McAra – Beyond the Box Host: It’s funny, you mention
it that way, because of what I know of RealSatisfied, my first exposure
to them was their partnership with I believe C21 at least here in Canada. And
so you know, any C21 agents all the sudden have these RealSatisfied posts
everywhere. And I go, oh that’s interesting, how do they do that? Because,
prior to that, the prevailing, I guess, the notion of reviews and ratings was
that it was going to be, and it was kind of perceived negatively. And then here
you had Century 21 agents who were actually actively promoting it, to your
point earlier that it was this unique till that really did it thoughtfully.
But, to get there, I can only imagine the learning that it took.

Jeff Turner – EIR – Second Century Ventures: Yeah, and I
mean it required a bit of an educational shift and I think because the way
RealSatisfied approached it, using a survey model, where you were really going
deeper into identifying what parts of the transaction were performed well, what
parts weren’t performed well. You gave them the option for the consumer to
provide constructive feedback that didn’t necessarily, you know, it’s possible
for you to be very, very happy with the transaction and still want to be able
to and are still capable of providing constructive feedback to the agent. If
the only thing you’re trying to assess is, you know, a four or a
five-star rating, you’re forcing me to give an overview of the entire
transaction based upon the cumulation of that experience. if the last
experience I had was bad, I’m going to rate you lower. This allowed us to
create, I think of a more accurate picture of what took place around the entire
transaction. I think, as a result, agents felt more comfortable with it and
certainly brokers felt more comfortable with it because they had access to data
that actually help them improve their processes.

Mike McAra – Beyond the Box Host: Which, is so crazy
because you take this thing that’s almost perceived as largely negative
reviews, right? It was at one point. And position it as this opportunity where
now it’s not just helping great, great product, especially on the tech side.
But it is helping grow and get that constructive feedback to actually increase
and ask the consumer’s experience. So, on that thread, I just want to
change gears a little bit, but you know right now we’re in what is a really a
negative time, I would think is very fair to say. Negative from the fact that
there’s a lot of things happening, right? Pandemic, societal changes, however,
I would really be cured on the entrepreneur’s, the optimistic view on what
hopefully this can do for us going forward and how we can look at these
opportunities to really capture this and make those positive changes. Much like
you’ve done in the past with products.

Jeff Turner – EIR – Second Century Ventures: Yeah, no, I…
listen. I think there’s an interesting dynamic that’s taking place today that
is important to understand, that we’re going through this global pandemic,
globally. We see shifts sometimes that take place in technology that are driven
by one side or the other. So, consumers gravitate towards social media,
they sort of drag agents towards social media. We see agents adopt a specific
technology and they want to try and drag consumers into that technology as
well. And in this case, everyone’s being dragged toward certain kinds of
technologies by the necessity of what has to be done during this global
pandemic. And I was reading, there was an article in I think it was IEEE
Spectrum or one of the tech journals that I was reading was talking about
whether or not the coronavirus pandemic was going to make early adopters out of
all of us because these stay-at-home orders were triggering this boom in the
use of consumer technology on both sides of the equation. And I think that’s
going to be good for the real estate industry long-term. I think there’s going
to be a positive impact of both the consumer and the realtor engaging in the
use of these consumer technologies. These technologies may have been seen as
“business only” like Zoom for example. We’re sitting here on a Zoom meeting. If
I would have walked up and down my cul-de-sac 4 months ago and said “hey, have
you ever used Zoom?” They look at me like a third eye. But if I do that today,
I guarantee you every single human being on this street would be able to
describe to me what Zoom was. And that’s, I think that’s a really unique and
interesting dynamic that is going to drive the adoption of technology and make
people less technology averse as a result. You know, you’re all being forced
towards it and now they’ve touched these new technologies, they felt them.
There’s an ease that’s coming about it as a result of it that I am actually
hopeful. Yes, it’s a bad time, but I’m hopeful that it actually drives more
early adoption to technology.

Mike McAra – Beyond the Box Host: So then, just to take it
back to the real estate industry and specifically before this though, because
one of these things that people always talk about is that it’s a
relationship-based industry, it’s all about the human connection, it’s all
about the face to face. But you know, for those people that are saying, well
the technology is great but I don’t want it to replace the human element.
What’s your take, do you think you could ever replace the human element?

Jeff Turner – EIR – Second Century Ventures: No, I don’t
think it’ll replace it entirely, but you know, I also think that we spent… we
wasted time on certain things that we didn’t need to waste time on. I look at
virtual tours as a good example of this. You know, virtual tours were always
judged and have always been judged and you know, this may not change
behaviour, but they were always judged on the marketing side of the equation. I
don’t need to do a virtual tour to sell the home, even though the vast majority
of consumers, like 84% of consumers said that I want to see a virtual tour
before I go visit a home. 2 years ago, less than 3% of homes had an actual
virtual tour and I just did the count again two weeks ago. I went onto
Realtor.com and Realtor.com has an investment in Matterport, so they have an
investment!

Mike McAra – Beyond the Box Host: If anyone’s going to have
them, they’ve got it!

Jeff Turner – EIR – Second Century Ventures: If anyone’s
going to have them, they’ll have it. It’s still less than 5%! We’re sitting in
the middle of a global pandemic where people can’t get out and do it and still
less than 5%. But here’s the thing, other forms of what are called “virtual
tours” have begun to emerge as well. The ability to do a virtual open house by
taking a camera in and walking around using the Zoom meeting to hold a virtual
open house. I think if we feed this through the lens of both efficiency, and
the ability to make certain that we’re delivering what the consumer is looking
for and needs. And now that the consumer is more comfortable with this, imagine
now that I’ve got you on a zoom meeting and I share my screen and I’ve got
multiple virtual tours of homes that I have listed and I can walk you through
these listings, ask and answer your questions. I’m not diminishing the value of
that relationship, I’m actually empowering a different kind of relationship.
I’m taking advantage of the efficiencies that have come from being able to
engage with someone in a different way. And now I can show you seven
properties, walk you through them, answer your questions and then take you out
to the two that seem most interesting to you. You see more, you get more
benefit, I express my knowledge and then transfer that into something that’s
more real when I have the opportunity to actually get face to face. I think
those are the kinds of changes that we’re going to see come about, where you
shift thinking about a specific technology in one way and now begin to see it
as a way to use it differently. And that’s why I think virtual tours are a good
example of where that might take place.

Mike McAra – Beyond the Box Host: Yeah, I love that. And
you know, where my mind is kind of going on this, is that not only do you get
the efficiency, but you actually get the return on life on both sides.

Jeff Turner – EIR – Second Century Ventures: Agreed.

Mike McAra – Beyond the Box Host: So both the consumer and
the realtor now have that time to go to their kids’ soccer practice or play the
piano together, or colour, or whatever they’re doing with their family or work
a little bit. And you know, through this pandemic, there’s a lot of things to
talk about in efficiency, and adoption. And all of this is that ROI thing,
Return on Investment.

Jeff Turner – EIR – Second Century Ventures: Agreed.

Mike McAra – Beyond the Box Host: However, there’s a
component that I’m really excited about is the return on life. It’s the no
commuting. It’s the lack of traffic. It’s these ancillaries that allow us to do
it and even if it’s 10 or 15 minutes more with our children, or whatever it
might be, is what I’m getting really excited about and I think those are the
secondary permutations down the line that could really be cool.

Jeff Turner – EIR – Second Century Ventures: Honestly,
that’s been the promise of technology. And I’m not certain it’s technology’s
fault that we haven’t taken advantage of it if you understand what I’m
saying. The notion that now we’ve been forced… As much as I’m like over
zoomed, it’s 9:30 am, and this is my fourth zoom already. It’s 9:30 a.m. here
in Southern California. I’m actually becoming more comfortable in them, even
though I would rather do less of them. So I know when I will want to use this
in the future, and when I will not want to use it in the future. And other
technologies are going to be the same way. You know, we’ve been talking about
this “oncoming surge” of natural language processing chatbots that feel more
human. One of the companies in this year’s REACH class Ylopo has an AI system
called Raiya and Raiya uses certain elements of natural language processing to
give you more of your life back. I mean no one wants to be constantly tied to
their phone. If I’m sitting at my kids’ baseball game, or my kids’ track meet
and I’ve got a listing and there’s somebody sitting out in front of that
listing if 90% of the questions they’re going to ask could be answered by an
intelligent chatbot, why shouldn’t they be? Why shouldn’t that technology
engage me when my expertise and my necessity to build relationships end up
coming to the fore and introduced me into that conversation at a more
appropriate time. That to me is taking advantage of the promises of technology
in ways that give us back the things we’re most longing for. And the thing I’m
most longing for right now, as a result of this pandemic is not more business
meetings. That’s not what I’m longing for, I’m getting plenty of business
meetings in. What I’m longing for is the ability to go sit with friends and
enjoy that social contact that I’ve been missing. And there’s a part of me that
believes that we’re going to value that even more on the backside of this.
We’re going to want to have as much of it as we can have and to use these technologies
to deliver that for us.

Mike McAra – Beyond the Box Host: I love it. And you know
what, I feel the exact same way. And even on the natural language, I just
turned Siri on, on my iPhone. I’ve had an iPhone since they came out and I have
been against it, and I consider myself an early adopter. But just the text
wasn’t there and I’m still a little bit of fighting.

Jeff Turner – EIR – Second Century Ventures: But you know,
it’s not there on Apple. Apple is way down there. Google’s way better
from an accuracy standpoint.

Mike McAra – Beyond the Box Host: I know! It pains
me!

Jeff Turner – EIR – Second Century Ventures: Google is
like, 20% higher than Alexa even. You know, everybody’s judging this by Alexa.
I remember a conversation at NAR New Orleans between Bill Lublin, Bill Madder,
and I, and we were arguing about who is going to win this natural language
processing war. It was going to be Google or Amazon. I was arguing it was
Google because they have better data. Bill was arguing that it was Amazon
because they have so many devices you know inside. I think I’m going to win
that argument.

Mike McAra – Beyond the Box Host: I agree!

Jeff Turner – EIR – Second Century Ventures: I think Google’s
going to win on the natural language processes.

Mike McAra – Beyond the Box Host: I saw a GIF on Twitter
the other day and they had it side-by-side and it was Google just crushing
it.

Jeff Turner – EIR – Second Century Ventures: Just crushing
it!

Mike McAra – Beyond the Box Host: On that note, you
know, I think I’m taking more time than I needed to Jeff, but this has been
awesome. Let’s do it again and thanks so much for coming on the show!

Jeff Turner – EIR – Second Century Ventures: Thanks for
inviting me, I really, really appreciate it.

Mike McAra – Beyond the Box Host: Alright, take care!

— End of Podcast —

Beyond the Box: Conversations with real estate executives, venture capital partners and technologists on what lays ahead for the real estate industry in a world after COVID-19.

Beyond the Box Podcast Hosts

Beyond the Box – Season 1 – Episode 9 – Tom Rossiter, CEO, RESAAS

Tue, 21 Jul 2020 16:47:00 GMT

Beyond the Box – Season 1 – Episode 9 – Tom Rossiter, CEO, RESAAS.

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Episode 9 of Beyond the Box is out now!! Mike McAra talks with Tom Rossiter, CEO of RESAAS to get his diverse perspective on what Canada is bringing to the table with regards to technology in the real estate landscape.

“… the Canadian investor market is more predisposed to the idea of investing in companies that go public that have the opportunity to be huge. They’re more open to the venture mindset. If you think about Canadian investment over the years, it’s been around mining and oil and gas and resource, where there’s an idea and there’s a possibility of a huge return… that risk tolerance for venture type companies in the public markets is very strong in Canada and it’s been here for decades.”

Full Transcript of the Show

Mike McAra – Beyond the Box Host: So, I have Tom Rossiter,
CEO of RESAAS joining us here on Beyond the Box. So, thanks so much Tom for
coming on the show.

Tom Rossiter, CEO, RESAAS: Oh, no problem. Good morning
Mike, how are you doing?

Mike McAra – Beyond the Box Host: I am doing fantastic it’s
a nice sunny day here. It looks kind of Sunny where you are, so that’s good
too. Maybe not, I don’t know. Where are you Tom? Whereabouts are you?

Tom Rossiter, CEO, RESAAS: We’re in Vancouver.

Mike McAra – Beyond the Box Host: Oh, so it’s actually
would be rare that it’s sunny.

Tom Rossiter, CEO, RESAAS: Yeah, it’s usually
raining.

Mike McAra – Beyond the Box Host: Anyways, so obviously
these are interesting times and we have lots to talk about with the way that
the world kind of shaping out here, especially when it comes to the real estate
technology landscape. But before we jump into that, I would love to get a
little bit of a background of who is Tom and how did you become the CEO of
RESAAS?

Tom Rossiter, CEO, RESAAS: Sure. Well thanks for having me,
first of all. I’m a big fan of what you’re doing at REACH and REACH in Canada.
So, yeah, we’re in Vancouver. RESAAS is a platform for real estate agents and
it was really born out of the concept, that real estate agents are one of the
most social groups of professionals that exist in the industry today. And that
was really apparent to myself, when I moved here from the UK in 2007. My
background prior to that was in the marketing, advertising and ad agency world.
And so, when I came here and in the first few people, because I knew no one,
were these really friendly, really socially forward, groups of professionals
that were well-dressed and they smile all the time, and they were just
interesting people. And they were realtors. And as I started to hang out with
them, I realized that actually very social people and when you witness them
kind of face to face and in groups and in person, the collaboration’s
incredible. And so that was really the “aha” moment to kick off RESAAS. Prior
to that, my background was in technology in the agency world. And what brought
me to Canada was the lifestyle, the mountains. And what’s being cool is, being
here for the past thirteen years I’ve got to see the technology landscape
change. So, Vancouver they referred to as Silicon Valley North. We could get
into this a little bit later, but there’s a tremendous amount of incentives for
tech companies to be in Canada and specifically in BC. So, yeah, fascinating
time to be in Canada in the tech landscape. Real estate has changed an awful
lot in the time that I’ve been involved with that, over the past decade or so.
And so, yeah, it’s a really fascinating time and I think is you will see from
your side of the lens Mike, there’s a lot of change happening, and I think it’s
all for the good.

Mike McAra – Beyond the Box Host: Yeah, totally. So,
that’s very interesting how that all came to be. So, explain this to me; so
you’re almost you’re kind of an industry outsider and you’re a national
outsider too. So you’ve moved countries, you coming in from the marketing
perspective and I’m going to start a company in real estate technology? How
does that… talk me through the genesis idea of that and how all of that comes
together.

Tom Rossiter, CEO, RESAAS: When you see registered agents
in real life collaborate at the brokerage office, or at the golf club, or you
know, at the bar, or specifically at industry events, the quality of the
content, the value that they get from talking to each other is second to none.
And what was apparent to us when we started to research like, “how does this
work really and how does it work at scale?” was… there was no scale story.
Okay, so, the principal was we take that incredible social interaction that
agents have in real life and gives them a way to do that, where it’s not just
local, it’s more national and perhaps global. And so, the way that we did that
was building what we originally called the real estate social network. So,
remember when Facebook was everything, you know, 10 years ago?

Mike McAra – Beyond the Box Host: Yeah, the good old
days.

Tom Rossiter, CEO, RESAAS: The good old days. We thought,
let’s create a foundation for agents to be as social as they are in real life,
but online. Keep it industry only, so that the quality of the conversation, the
data of the contents all has to do with referrals and leads and listings and
valuable content. And if we do that, then we give agents and perhaps their
brokerages a way to generate more leads, generate more business and share more
information. And that was what was missing before.

Mike McAra – Beyond the Box Host: Gotcha.

Tom Rossiter, CEO, RESAAS: So, that was really the genesis
for it, and what was interesting for us, is you know, that was our idea and we
just kind of spun it up and threw it at the wall and see what stuck. And it
really caught fire quite quickly and it was very apparent to us, the agents
were looking for a platform to broadcast who they were little bit wider afield
than their local market. And more than that, at more of an industry level, from
a brokerage and a brand standpoint, there’s a lot of those organizations that
have a big footprint physically but they didn’t have the means to really unite
their membership properly. And that was really, you know, a big part of what we
were doing, is if we can bring agents together, first of all it
strengthens the industry, but secondly, it’s great for the brands, great for
the brokerages, it’s great for the organizations within real estate.

Mike McAra – Beyond the Box Host: So, okay. That’s awesome.
So, you got the idea, obviously let’s create a LinkedIn meets Facebook industry
specific, but also a referral like aggregation national presence. So, that’s
the idea. So, what is RESAAS today?

Tom Rossiter, CEO, RESAAS: Well, RESAAS is really been born
out of the activity the agents have used it for. So, our idea was, let’s create
a world just for licensed agents. Let’s just digitize NAR, really. Let’s create
a digital version of all agents. It went global really quick, because as you
know, as well as I do, real estate is a global business. So, fast-forward to
today, we’ve got 485,000 agents that use our platform in 161 countries. Now,
the majority of our usage is in the US, because that’s where we focus, and
that’s where I think there’s the biggest problem that we solve, and perhaps the
most inefficiency in the way that organized real estate is structured. But what
we saw pretty early on Mike, was that agents really use RESAAS for a couple of
main thing. It was a lot of collaboration, a lot of discussion, a lot of
low-grade content-sharing. But the two standouts were on a local level
listings, as in “I just caught a listing and I’ve signed it this morning on a
Thursday morning.” It’s going to take a week to ready for the market, but I’m
going to share it with my peer group now, so we saw a lot of pre-market
listings hit our system first.

Mike McAra – Beyond the Box Host: “Coming soons” if you
will.

Tom Rossiter, CEO, RESAAS: “Pre-coming soon.” So, we’ll get
into that later. And then more of a national and global scale, we saw a lot of
referrals, because I think that notion of, you know, I’m an agent with a client
and they’re moving somewhere else and searching for them on Google or trying to
find an agent through looking them up in the directory, it didn’t always
yield the best results. And so, if you think about it, when we’ve got this is
network of agents that was thriving, so it became a community, suddenly you
give agents the great ability to find the right agent to refer their client to.
And so, our two standout trends like, pretty early on that we built a lot of
our business on around now, is the high temper, real-time nature of hot
listings especially in seller’s market and referrals at a national and
international level.

Mike McAra – Beyond the Box Host: Very cool. And so, when
it comes to the referrals, your platform facilitates that end to end process,
from sending the referral, to tracking it through, making sure that
connections… So, if I’m an agent, it really broadens that opportunity for me
to refer up my client base.

Tom Rossiter, CEO, RESAAS: Completely. Yeah, and you know,
we’ve become, obviously brands like to refer business within their own
brokerage, right. They want to keep it on both my side and the seller
side. And we facilitate that. So, a big platform has agents only
but we have every major brokerage represented, it’s a complete mix of all the
different brokers that exist because you know as well as I do, that it doesn’t
really matter which brokerage you’re with. If I’ve got a requirement, and
you can fill it, it’s Mike the agent I’m dealing with, not Mike the agent with
a certain brand. And so, we do a lot of work with brokerages. We have an
Enterprise division that sells white-labelled versions of RESAAS to the big
brands and we create a private world just for their agents inside our big
ecosystem. But the real beauty is that you can start internally, you can start
privately within a company, within a firm, within a brokerage and try and do
the referral that way. If it doesn’t work, perhaps there are agents in that
market you’re referring to you can click a switch inside RESAAS and then open
up to the whole community of all agents that we have and get the referral done
that way. So, we’ve become very very popular, certainly in a nationwide
referrals and increasingly in global referrals as well.

Mike McAra – Beyond the Box Host: Gotcha. And so, when it
comes down to the agents that are utilizing your platform, is it kind of every
agent, is it normally the team leads, is it, you know, more established agents?
Like, really who, or is it everybody?

Tom Rossiter, CEO, RESAAS: It’s certainly top agents using
RESAAS and we see that very clearly with the markets that we focus on a lot.
And we’ve worked really hard Mike, to make sure that our product and our
experience on our mobile apps are very suited to the industry. Okay, so it’s
widely known that the average age of a real estate agent is your late fifties,
and we found them, we heard them, and I think it’s widely known that a
lot of technology that exists within real estate isn’t a designed to be used by
people that were a little bit older. And so, we’ve worked hard to make sure
that our interface, our product, our technology is very clear, very simple and
very efficient. And so, we end up with a really good spectrum of agents that
use our product. You know, we have the top producing agents, the tech forward
ones, the guys that have assistants and teams that run things for them, and
they do very well using RESAAS. We also have agents that have been around a
while, maybe they do less transactions, but they make up part of the market.
And I think they’re relieved and perhaps excited to find a product in a
technology that they can use and they enjoy making the most of and they get
business and referrals from.

Mike McAra – Beyond the Box Host: Gotcha. And so, when it
comes to the agents, how do most of them hear about you? Is it through these
larger deals that you have with the major franchises or is it they come about
you through, you know, I’m actually looking for referrals and they find you
online. Like, how are your clients finding you guys the most?

Tom Rossiter, CEO, RESAAS: Yeah, both of those things you
said. Certainly when we work with organizations and that can be as big as
international franchises, like Remax is one of our clients, and we power their
global referral exchange. All the way through large brokerage’s, small
independent brokerages and teams. We work a lot with local real estate
associations and MLS’s. So, those are more of the enterprise type of deals that
we do where we create a private world just for those members. So, all agents
that are a part of that organization can share the same data. That’s a big part
of where agents come from. We also have agents that join organically.
Whether being invited by another agent, or just discovering us through word of
mouth. So, an example of that is, of our 485,000 agents, we got 18,000 agents
in Canada. Yet, we haven’t focused on Canada at all. So, they’ve just joined I
think from, you know, being invited by other agents or perhaps learning and
reading about the volume of referrals that we do.

Mike McAra – Beyond the Box Host: That’s, you know, 20
percent of the market, basically.

Tom Rossiter, CEO, RESAAS: It is, yeah, and as you know,
about 1/3 to 1/2 of the market aren’t really that active anyway, so we
definitely have the sharp end of the agents that are in this business.

Mike McAra – Beyond the Box Host: That’s a good business
model right there. We’re not going to market here, but yet what we get
customers here. It’s one of the holy grails. So, that’s really cool. So
now, changing gears, we’re obviously in a new, I don’t even want to say a
“new normal.” We’re in a new world where online communities, digitization of
processes, exchanging of information is becoming more of a norm and people are
adopting new technology more and more. How have you guys seen Covid possibly
things with the way that your agents are interacting on the platform? Or, how
has it shifted your lens with respect to today with RESAAS and then also the
future as your kind of playing it out?

Tom Rossiter, CEO, RESAAS: Well, Covid has forced every
industry to change. We’ve all had to adapt. I think real estate is one of the
prime victims of that, if you will. And I think real estate in general is sometimes
slow to adopt change. And we’ve been saying for many years technology can help
real estate agents do better. And those that adopt it, we see it all the time,
do really well. And those are a little bit in a shy to move forward, they’re
missing out. What Covid has done specifically in real estate is it’s forced
agents, almost overnight to have to use technology more than they were before.
Real estate is such a social, such an in-person industry, and when you can’t do
that…

Mike McAra – Beyond the Box Host: Belly to belly.

Tom Rossiter, CEO, RESAAS: Belly to belly, right. And when
you can’t do that, then you have to find alternatives, right? It’s, how do you
do an open house when you can’t have people in it? So, it’s all of these
examples where agents have to kind of scratch their head and reinvent have been
doing things for a number of years. And honestly Mike, RESAAS has never been
busier. You know, our platform has been built for this. It’s the idea is, you
can be an agent, you still operate how you do now, but you use RESAAS as a
technology extension to your business and from doing that, things become a lot
more efficient and you’re ending up with more business from doing so. So, it’s
been fascinating for us to look at how this is really affected the industry.
We’re fortunate in that we have a macro view of things, right. We work with all
of these agents from around the world, specifically America with all of these
brokerages represented, and we get to see these really interesting trends and
the data that we gather which is often unique, shows us really interesting
pieces of information. So, for example, the number of listings that we’ve been
seeing in the last 3 months is unsurprisingly down. But, the time that the
listings are out there before they close, is also down. It’s actually faster.
So, what does that tells us? It tells us that there’s a supply shortage. Right?
Because people aren’t listing their homes.

Mike McAra – Beyond the Box Host: Don’t come into my home
right now. I don’t want you to come through.

Tom Rossiter, CEO, RESAAS: Totally. But it also tells us
that, if you are an agent and you win a listing and you’re the selling agent,
you’ll probably sell it the same, if not more quickly than you would do
normally. As long as obviously it’s priced correctly. So, it tells us this is
something where agents look at these trends within RESAAS and use it to
reinvent and refined their business model. If you’re out there and you’re
pitching and you’re trying to win listings and you win that listing, the
changes are you’ll be okay and it will sell well and you’ll do a deal. These
are the kind of things that we see from our kind of vantage point going above
the local market, so you can see things at a macro-level. The trends, the data,
it’s really fascinating and the agents that use RESAAS benefits from
that.

Mike McAra – Beyond the Box Host: Right, so tell me more
about that. So, you’re a user of the platform, you get these benefits, but
obviously you’ve been more active, or, have it, more active I think is what you
said with your customers. But you guys, it looks like you are extremely active
in the development side. I was going through your press releases, and it was
integration here, integration here, you got YouTube, you’ve got Uber, you’ve
got new coaches coming in. It’s all of these different things. So, maybe speak
to that. Like, what does that, other than the value of referrals, what else are
the other value-adds within RESAAS for the agents?

Tom Rossiter, CEO, RESAAS: Yeah, so here’s the thing. So,
we felt when we began RESAAS, we felt there wasn’t much trust within real
estate. And so, our premise was, let’s build a network and bring all the agents
into one place and let them work as a collective, as an industry at large, to
create more opportunity within themselves. And as that caught on, and we got
more bands and seeds, and we grew our numbers, and that networking effect
kicked it, then the conversations, the content, the data, the interactions
turned the network into a community. So, it’s thriving and it’s really
exciting, it’s very vibrant and in our case, it’s vertically focused on real
estate all around getting business. So, it’s great for agents to use. What
happened off the the back of that, is a number of larger organizations said,
“Hey wait a sec, this is really fascinating. We would love this same thing, but
privately for our own company.” So, we started working more in a brokerage, in
a franchise and then later on in the local associations space. The byproduct of
that, is the a lot of those organizations have infrastructure in place already,
whether it be CRM tools, or e-signature partners, or even email providers. And
so, what we found is, because RESAAS is a place where data often originates
before anywhere else, agents would use RESAAS as part of their daily rhythm.
And what we wanted to do, was make sure that all of the data that we helped agents
discover that’s unique,that we can root that, we can funnel that, we can
send that to the other tools, or the services, or the products that they use.
So, an example of that would be DocuSign. So, we don’t want to build an
e-signature platform. That’s not my business. We’re a platform for the industry
and we have a ton of unique data. But, we like to make sure that, that
data ends up in the places that are helpful. So, part of our plan and where we
are going with this business, is morphing not just from a network to a
community, but from a community into a platform. And as you know Mike from your
background, a platform is a very overused word in the world of tech. But, we
believe that we’ve really created one, because we provide a foundation for the
industry. And we do like to integrate with what we believe is best to breed of
the services. So, if we can plug into an e-signature platform like DocuSign, or
a CRM platform like Salesforce, or you mentioned Uber, YouTube, Vimeo. There’s
a lot of different products and companies that we see good agents use. And if
we can plug into them and use these integrations that allow our data to flow in
the right way that helps agents and help the industry, then that’s what we’re
all about.

Mike McAra – Beyond the Box Host: Love it. Love it. It’s just
that whole trend where people are realizing that they need to deliver more
value, and so what’s the easiest way, and well that’s the integrations. But you
gotta be smart with the integrations, right? Because if you add too many, it
doesn’t end up adding any value, and then you’re burdening your tech team. Then
you build up that technical debt. So, it’s that fine line, but when you have so
many users giving you that feedback, it’s like, well, this is what we need to
do. And Compass is famous for this right, they just say, “Hey agents, tell us
what you need,” and then they just upload it. So, you’ve got more agents at
Compass telling you the exact same thing, so really I’m it helps streamline
that.

Tom Rossiter, CEO, RESAAS: It does and there’s a real
pattern. The top agents, regardless of which market their in in the world,
certainly in the US, they often positioned themselves and market themselves in
a certain fashion. And so, part of what we like to do, is look at what the top
agents are doing in different markets and then educate the rest of our platform
on what they can do to be the same. Real estate is such an aspirational
industry, and you see it locally, you know if you’re in Calgary like you are,
you know who the top agents are you see that face everywhere. And as an agent,
you try and mirror what they doing, and work like they have worked to be a
successful as they are. In our position, as kind of overseeing the whole of,
well, not the world in its entirety, but certainly the US, we can see
what the top agents in New York or LA or Austin, or Miami or Seattle are doing,
and we can let other agents learn from that and mirror how they run their
business. Then, we can help elevate the professionalism in real estate.

Mike McAra – Beyond the Box Host: Gotcha. Okay, so building
on that, can you give an example of some of the top trends that you’re seeing
top agents right now with Covid that you guys are saying, “Okay, we need to
help empower this or where we’ve already helped it at work with that one?” What
would be a good one?

Tom Rossiter, CEO, RESAAS: Well, so a couple of things. So,
Covid, if you didn’t like your home before Covid,a you’ve just spend the last
three months of living in it, chances are you going to want to move pretty
soon. So, it’s going to be… there’s a lot of talk around the surge that
is coming. So, it’s really about making sure as an agent that you position
yourself to capitalize on that. That’s a fairly widely known standout
opportunity that exists. The other piece to it, when it comes to where people
live. And for number of years we’ve seen more and more of the population
migrate into the cities because of work. And what we’ve all experienced over
the last two or three months, is that it’s okay to work from home and maybe,
and we see it in the news all the time increasingly now, companies are okay
with people working remote full-time. So, it’s not just even work from home
now, it’s work from anywhere is a new trend we’re seeing. What’s really
interesting from our standpoint when it comes to real estate is and ***red
Mike***, we’re seeing referrals from cities out to the suburbs and actually
sometimes beyond that from beyond the suburbs, out to the countryside because
people realized, well, okay we’re allowed to work remotely. It’s actually going
really well, they’re still efficient and they don’t need to spend all that
money on housing in a city that’s expensive for not much space. They can use
that to get a much bigger place out in the ****.

Mike McAra – Beyond the Box Host: Well we’ve got Shopify,
Canada’s largest company by market cap, is now digital by default. That followed
on the back of Square, and Twitter doing the exact same thing the week prior.
And so, now you have the ability to go and make Silicon Valley dollars but you
know conceivably from the Canadian perspective, you could go live your country
fantasy life and pay $50,000 for a beautiful acreage. Why not? Yeah it’s so
interesting that you’re already seen those trends, but I’m going to come back
to that in a minute, but I want to switch gears quickly because one of the
interesting things about RESAAS is very, very counterintuitive to most people
in the tech space. You guys went the public route. So, you’ve IPO’d so you’re
publicly traded on the Venture exchange, I believe. So the Toronto Stock
Exchange. Talk to me about the thought process and why you chose to go to the
public route, instead of the more standard VC, Series ABCD and then IPO when
you’re further down the line.

Tom Rossiter, CEO, RESAAS: Well, we’re in Canada, okay, and
the Canadian investor market is more predisposed to the idea of investing in
companies that go public that have the opportunity to be huge. They’re more
open to the venture mindset. If you think about Canadian investment over the
years, it’s been around mining and oil and gas and resource, where there’s an
idea and there’s a possibility of a huge return. Invest in this vehicle and it
may be something that’s huge. And that risk tolerance for venture type
companies in the public markets is very strong in Canada and it’s been here for
decades. In the US, it’s the opposite. And, as we’ve travelled and given that
all of our customers are in the United States, often when they learn that we’re
publicly traded their eyebrows shoot off of their forehead, and they’re like,
what? Because it’s just not done in the States, right, they often go the
private route. We chose to go public because we felt that to build a platform
to support an industry as big as real estate, that we would need we would need
runway. We’d need time. And we felt that in a private route, and raising some
money from the standard VC options, that there’d be pressure to after 6 months
or so, launch a product, get it out, the typical VC route. But quite honestly,
if we were build an app, or some cute little tool, that would be fine. But to
build a platform that had a shot at helping an industry’s biggest real estate
that’s right out there beside travel for size, we knew it would take a while.
And so, we went public early, not just pre-revenue, but really pre-product. And
we raised enough money to give us the runway, to let us get the talent to build
out this robust, scalable multilingual platform that we created.

Mike McAra – Beyond the Box Host: So, talk to me about that
for a minute. So, you know, if I want to start tech company, I have a really
great idea. I’ve got a team of people. How did you go and do that? How do you
go and IPO with a prospectus, really? Did you go do road shows? How did you
raise that initial capital for the IPO?

Tom Rossiter, CEO, RESAAS: Yeah, there’s been a lot of
travel, certainly that’s the case. And you know, I thin in the new world, that
means a lot of Zoom calls. But yeah, it was more about the commitment and the
vision, and the opportunity. And we realized early on, that there was a gap
within real estate. That there wasn’t a foundation to bring the industry
together. It was very fragmented, it was very siloed. But if we bring this
principle of foundation to an industry, of what’s become a platform and if we
do that, and we can stand a shot at bring together the best agents with the
best brokerages and the best infrastructure in technology and tools and vendors
into one place, then we’ve created a huge a valuable company. And that was
really the principle of the early message. There was a prototype that we had,
but raising money through the public markets early on, allowed us to hire the
right talent. We would closely with Microsoft in the early days, and spent a
lot of time at their campus in Redmond, just down across the boarder here.
Building out a platform. So, all of our technology is all of our own. It’s
proven to scale. And like I said, it gave us the ability to raise enough
capital to fund the company to do it the right way.

Mike McAra – Beyond the Box Host: Gotcha. So, going forward
though, as a public-co, and I mean every company has reporting requirements,
whether they be legal or to their to their investors, but as a public-co,
you’re under an additional level of scrutiny. Have you found that, that is an
additional burden or it’s just “part of doing business” and that’s just given
the vision, the way that you have to go? That’s just a necessary evil for lack
of a better word?

Tom Rossiter, CEO, RESAAS: Yeah, I mean, you’re right.
There’s an overhead to running a public company, that’s certainly the case. And
it certainly feels in many occasions, that you’re running a business and you’re
running a public company and they’re sometimes separate. But, you look at the risk-reward,
it was only something that has been good to us, it was worth and it is still
worth the overhead in terms of filing and disclosure requirements. But we’ve
raised 32 million dollars through the public market since we IPO’d. And from
doing that, we managed to become known across Canada, and are known in the US
for a lot of different reasons, for a lot of great industry opportunities, and
from investment opportunities too. It’s certainly surprising to Americans, but
it’s great, because provide a way for investors that understand the
opportunity, hopefully understand the space that they’re going to invest in, to
come in and and be part of the company as it grows. And obviously, being public
there;s liquidity. So it’s not like, putting money to a private company, where
you may or may not see that come back, and you’re going to have to wait for
their IPO. With a public company, if you believe in the management team and you
believe in their vision and you see proof and traction and the liquidity
piece is a fantastic piece of mind, that you can put some money in as it goes
up, take some off the table and reinvest those elsewhere if you choose to. Or,
double down. So, it’s a great vehicle for savvy investors to actually benefit
from the voice of the company.

Mike McAra – Beyond the Box Host: It’s so interesting cuz
nobody does it, right? And perhaps that’s just simply as you said, this is the
difference in the two markets with the American; that’s just the American
mindset is, to do a tech startup you have to go private. Where as in Canada,
you know, having our mining, and our oil and gas roots, it just seems to be
more palatable, in oil and gas I suppose on the Canadian side. So, I
guess the question on my head and it’s just something for a future thought is,
I wonder if that will be an emerging trend of the Canadian side. A they look to
RESAAS and say, “hey these guys did it, why should we go to the Venture
Exchange Route?” It seems like it made a lot of sense, like, why why couldn’t
we do that the same? Especially, when you say that you have 32 million dollars
raised. Like that’s a number that makes headlines.

Tom Rossiter, CEO, RESAAS: It certainly is, and we IPO’d
and we raised another 1.5 million dollars at the IPO and then raised another
two million dollars about a month later and then raise another two million
dollars later that year. So, it’s one of those things, that you do it at the
right time with the right valuation so it’s respectful to invest as much
from a dilution standpoint. But it’s been good to us, and it’s allowed us to
build-out the platform in accordance to our vision, which it certainly has been
a long road, but it’s been a high road. And it means, that with these news
releases that you were doing your homework with, that we finally got a number
of leading companies, leading brands, leading technology providers that now see
the value in the platform that RESAAS has created. And the fact that they want
to be part of our ecosystem and they want to integrate. So, we’ve certainly
taken the time to do it the right way, and now it’s paying dividends.

Mike McAra – Beyond the Box Host: Love it. Love it. Okay,
so that all is so interesting. I know that there’s going to be tons of founders
watching this being like, I wonder if we should have gone to seed route or the
series a. So, taking away interesting tid-bits. Going back to some of the
things you said before, based on what the emerging trends are that you’re
seeing within your platform. These things that a lot of people probably
don’t know. Maybe maybe speak to sort of the top three and then, tell me based
on those trends, a year from now, what you would be speaking to you as a
keynote speaker at say the NAR Annual Conference or a Innman Connect
Conference. Based on what you’re seeing within the data in the platform.

Tom Rossiter, CEO, RESAAS: There’s a number of trends. And
as a technology company, we capture all of that data and probably more data
than we know what to do with at the time, but we’ve got it then to look at and
analyze. So, RESAAS is really popular in big, hot markets. So, seller’s
markets. Typically, right now we’re seeing that to be places like Austin,
Denver, Nashville, Seattle, obviously California, Northern California is pretty
consistent. Though, despite a bit of a drop in just the number of listings
coming onto the market for sale, the temper is still there. So, as I said a bit
earlier, from an industry standpoint, from an agent standpoint perspective. Be
there, be present, knock on some doors, go win those listings, because if you
do, you’ll be just fine. So that’s one. Two, we talked about that
migration. Relocation is a thing, it certainly seems to be picking up
already, and we’re only two-and-a-half 3 months into this whole new world
that we’re all still adapting to. And we’re already seeing those trends, Mike.
So, it would seem logical to us that there’s going to be a big ‘ol wave coming
off the back of that, as people react more over time. Like, it’s still early in
the cycle and we’re already seeing those movements. So, I think as an
agent, you want to position yourself as being in the business of referrals and
certainly receiving referrals. Because, as you know, a referral from
another agent is about the best kind to get. And we’re seeing that from more
and more agents on our platform. We have a premium product that sends agents an
instant alert to their phone when there’s a referral land in their market. And
the number of agents that are signing up to that so that they do get an alert,
and increase their chance of winning that referral has certainly gone up in the
last 2 or 3 months, which is fantastic. And then, *** interest industry
at large from a headcount standpoint. So, NAR says they have 1.4 million
members right now. On average there’s what, 5 million home transactions
happening in the year, in the US? I think, talking to Lawrence Yan who’s the
Chief Economist at NAR, that’s going to be more like three and a half maybe
four million this year. So, four million transactions, 1.4 million realtors in
the US, the ratio of deals per head is not great. And so, I think what’s going
to happen is, there’s going to be a natural adjustment, a natural correction in
the size of professionals in real estate. I think it’ll be a lower number. I
think those that treat it professionally and seriously and are active, will end
up better off because there will be more deals to go around. So, it’s one of
those times to, if you’re an agent and you’re treating this seriously, double
down in your business. Invest in making yourself known and popular and in
position for success. And I think if agents do that, then they’ll be here for
the long run and ultimately be better off.

Mike McAra – Beyond the Box Host: Love it, Tom. And I think
there couldn’t be a better time to have a referral platform like yourself with
RESAAS being one element of it. Obviously, with people thinking where they can
go now with this freedom and flexibility. I personally have friends that have
already, already started renting, which is the precursor to moving, in
Satellite communities in the mountains or are close to the mountains. And
they’ve left the city because they don’t have to commute daily and they’re
working from the mountains. And so, I’m already see personal anecdotes from
that. But clearly, a very interesting time. I can’t thank you enough for coming
on the show, and in breathing in some insight into RESAAS as well as in
taking the public route. Really appreciate it, Tom and thanks so much for
coming on the show.

Tom Rossiter, CEO, RESAAS: You’re welcome. Anytime.

— End of Podcast —

Beyond the Box: Conversations with real estate executives, venture capital partners and technologists on what lays ahead for the real estate industry in a world after COVID-19.

Beyond the Box Podcast Hosts

Beyond the Box – Season 1 – Episode 8 – Rob Richards, CEO/Co-founder, Key

Tue, 14 Jul 2020 23:57:00 GMT

Beyond the Box – Season 1 – Episode 8 – Rob Richards, CEO/Co-founder, Key Living.

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Hard to believe but here we are with Episode 8 of Beyond the Box!!

Today we highlight and celebrate Rob Richards , Co-founder and CEO of KeyLiving which introduces a new model of homeownership that provides the freedoms of renting, with all the benefits of owning your own property. “Homeownership as a service”.

“Homeownership is still a culturally ingrained value and we want that low-risk investment. We want to be able to invest in where we live. Owners think differently than renters. They’re more located to their property. They feel the pride, and the comfort and security than tenancy that goes with ownership, and they want that.”

Full Transcript of Conversation between Mike McAra and Rob Richards

Mike McAra – Beyond the Box Host: We are on! So, I have Rob Richards on our show here today. Rob is the co-founder and CEO with Key Living, which is a very cool, very innovative take on a kind of ownership, which we’ll get to later. You can correct me on that as well, I’m sure there’s some nuances there. But, he’s also a general partner with Plaza Ventures. So, Rob has this unique lens to be able to see things form the venture capital side and an entrepreneurial side which is really, really cool. But more importantly to that, Rob has a really cool story that I want to get off the start to here. Because one of the things I’ve read about you Rob is that you’re one of the first companies to do SaaS in Canada. So, I would love to hear the story of what that was, and how it came to be. Because you guys went all the way to IPO. So, let’s hear the Rob Richard story as the first SaaS, one of the first SaaS companies in Canada.

Rob Richards – Co-founder and CEO of Key: Thanks Mike, I’m very pleased to talk to you today. I’ve spent my whole career digitizing stuff. If I had to sum it up into two words. You know, physics degree at Waterloo where I majored in Digital Signal Processing. I spent the next dozen years in and around Nortel building digital telecom. And then the transport layer of the internet. Dozen years after that, working in the application layer of the internet using software and web to transform businesses. And the last one during that run of my career was called e-cruter.com. We were in the .com era, one of many companies looking to transfer both industries. In our case, recruiting. When we emerged from being the first job board in Canada to really focus in on the back-end application, you know, the processing software we had created. So, we became what we were called back then, an “application service provider,” there was no SaaS. We were first to market selling concurrent licenses to rental software outside the company firewall. So, everywhere I went, heads were exploding. It was just so much fun! But we got traction, we developed good revenues with a lot of great organizations and took it public on the NASDQ in December ’99. We were like the second last company to get out before the “you know what” hit the fan with the telecom induced meltdown of 2000 to 2001. So, timing accounts for a lot in life and we were fortunate to get our money and we were then able to consolidate a number of companies that weren’t as fortunate and we sort of moved all of the operations out into our data center in Kaneda in Ottawa. And it was a really good, fun run. I left that to become an angel investor, kind of 2001. I did that for several years and moved back to Toronto and met up with the folks at Plaza Corp. And Plaza Corp is one of the more larger, more successful condominium developers out here in Toronto. But they also sort of have a knack for technology investment side to what they did and will probably on 50 or 60 cap tables. Nobody knew about the Plaza principle of being angel investors and they kept it quiet. So, we kind of formalized angel investing an investment club back in 2007-2008. Then evolved that to what Plaza venture sis now today, back in 2012, 2013 we recognized the tremendous gap in growth stage capital in Canada. You could get seed financing and by then the seed eco-system bubbled up and there were accelerators and incubators and university-based program everywhere, and you know, two kids with fifty grand could start a software company out of university, right? So, there were thousands of those happening every year. So, we said, “Okay, let’s leave that ecosystem to itself because it’s doing really well.” And be kind of a farm team for us to find companies that break out of the pack and start to develop revenue traction. And so, in 2013 we brought on our third partner, Matt **** (4:22), who would have a lot of experience in funding companies with cash flow in the venture debt industry. We moved our practice into series A, series B, investments. So, companies with really good traction, recurring revenue had proven product market fit, but now needed money to hire more humans to scale and to contract opportunity. So, it’s all about scaling, and we need a much bigger scale of eco-system in Canada. Everybody was recognizing that at the time, and even more so now. Back then you can count the number of series A, B, funding on probably three fingers. Now there’s maybe 15 or 20 of us in Canada and it’s still 1/20th or 30th on a per-capita basis that you have down in the United States. So, we have a long way to go, but we’re getting there. Now there’s more local money accessible to our growing community and Canadian companies and we really want to get more founders to the level where they can think about going public and becoming a billion-dollar pillar company, like Shopify. And we hope to see many more of those happen, or at least develop to the point where if you’re going to sell or do it at a 200 or 300-million-dollar level, not an aqua hire at 30, 40 or 50 million. So, it’s really just creating this environment for communities and entrepreneurs to scale up, to have more confidence, and then we’re starting to produce repeat entrepreneurs, who had exits and are coming back with that knowledge and that capital back into the eco-system. So, we’re finally starting to get there, and we see that in Toronto, and Waterloo, out in Montreal, and Ottawa, Vancouver, even Calgary. It’s just really starting to bubble up where we’re getting some critical mass so that’s really, really exciting. So, here I was a co-founder and managing partner of a thriving venture capital company, and I loved that lifestyle where you have to think of three of four different things a day, you’re always intellectually challenged, your time is your own. I mean, you’re busy as heck, but basically your time is your own. And I had no intention of leaving that lifestyle, but something started to happen within me being a tech guy inside a condo development shop over the last decade or more, I started to observe some things that became deeply troubling to the point where I pulled out my cheque book and decided to do something about it, and formed Key. The first area of concern was the lack of alignment between developers and the eventual owner or operators of our multi-family infrastructure. We’re developing to build and sell, and you’re invested and you’re off to the next one. So, you’re not acting economically incentived to make the capital investments into technology that would improve the energy stack or the water stack, or the waste management stack. You know, really strive toward creating that zero-build industry or even energy positive builds. Those investments are expensive, they take a long time to pay back. But they do payback and you know the operator of this infrastructure benefits from that stack and they’ve taken their energy bill to zero, or at least with today’s technology they can easily get 50-60% reductions. That lack of alignment was disturbing to me, because we’re not developing sustainably. We’re not building buildings to last, even good quality developers like Plaza Corp who want to build great product, can’t make the investments. So, it took up until a couple years ago for LED lighting to make sense in a new build, and I’m on the board of Canada’s largest LED retrofitting company. We’ve done 3000 condos coast to coast. But it only makes sense in the year after when the condo board gets control of the building. It didn’t make sense for developers when they’re operating the lights for the last year and a half construction and there was a 6- or 7-year payback, and the purchaser wasn’t going to get you to price per square foot increase because you had LED lights. It just doesn’t work that way.

Mike McAra – Beyond the Box Host: Totally.

Rob Richards – Co-founder and CEO of Key: So, we need to find a way to align the interests of developers and the owner/operators of the structure to make the right choices in materials and technology and process to create more sustainable infrastructure, was problem number one. Problem number two is the industry is fundamentally inefficient in that 35,000 developers in North America build one building at a time and they finance that because it’s not an asset class that the *** and gambler(9:08) can write a 100-million dollar cheque into every time you’re building a condo, the equity you need is around 5 to 30 million dollars, so it’s too small for institutional investors, it’s just not organized effectively for that. And so, we raised money from hard at work families, you make 4000 phone calls, you get a couple hundred families to write $150,000 cheques and that’s the way you raise your 30 million bucks. It’s expensive time, it’s time consuming, it’s a pain in the ass. Between that and the finance charges from retail sell through programs, now you’re paying brokers, and all that stuff and everybody then has to go get individual mortgages, and then you take that package to the bank and unlock construction financing. And we’ve calculated that, and they were up to 12% of the cost of a condo is just non-marginable waste. Right? So, instead of selling condos that are $1000 a foot, we should be selling them in the $880 or something like that. And when you think about a 700-foot condo that’s a massive impact on the end buyer. So, those two problems were bugging me. And then along comes this affordability crisis, I mean, 2008 created a generation of renters. The mortgage industry itself went completely upside down because of the financial sector manipulation of these products for credit default swaps and all this crazy shit that wall street was doing. And it just got everybody out to water, and since then, we have a whole generation of our young people and our immigrants that are locked out of the property ladder on which their grandparents and their parents built their generational wealth. They’re locked out, they’re stuck on this rental hamster wheel, going around and around, and prices are rising faster than wages. Their rents are going up and they can’t save for a down-payment. In Vancouver, it’s been nearly three decades now before the average person can save for a down payment. In Toronto, it’s 21 years. We asked a couple of millennials at SoftBank and in the valley, and one of them drew an infinity sign, another threw her hands up in disgust because they had no idea when they would ever get on the property ladder. And they’re desponded about it. Home ownership is still a culturally ingrained value and we want that low-risk investment. We want to be able to invest in where we live. Owners think differently than renters. They’re more located to their property. They feel the pride, and the comfort and security than tenancy that goes with ownership, and they want that. It’s a top three goal for millennials with education and marriage. But we just shut them out of that opportunity, so the ironic thing is, the capital from our wealthy families and other investors is keeping our young people locked out of ownership so it just increasing the wealth they buy. It’s like this never-ending problem that keeps spiraling. So, how do we cut through all of that, in a way that we right side the industry. We need a new economic model, in order to do that. A new economic model of home ownership, and we call it ownership on demand. We’ve filed two patents so far, with a third, a fourth and a fifth in preparation. And so, this system of ownership on demand just digitizes the homeownership experience. Right now, and you know we’ve taken the CHMC checklist and other information and we got a lot of realtors on our team and so we know, we understand deeply what the condo buying process is, having been in it for about 38 years with Plaza. And there are 42 steps to buying a condo. 42 steps…

Mike McAra – Beyond the Box Host: Only 42?

Rob Richards – Co-founder and CEO of Key: Only 42, it’s the meaning of the universe, if you’re a Doctor Who fan probably reaching too far back for a millennial like you!

Mike McAra – Beyond the Box Host: Hey, hey, I’ve got some archives that I can dust off once in a while!

Rob Richards – Co-founder and CEO of Key: Cool, cool! So, a measly 42 steps. Things you have to research, people you have to talk to, processes you have to go through, documents you have to review, things you have to sign. All of that. There are 16 costs to buy a home. It’s not just about the list price of the condo. It’s everything else in and around that, including land transfer tax and all kinds of other little things that nibble away at your pocketbook. There are 9 recurring costs in being an owner. You know, condo fees, taxes, repairs, all the things that you have to worry about. Your capital costs. And there are 8 major unknowns, or 8 major financial risks associated with being an owner. And people just don’t have the knowledge or the time to fully understand what they’re getting into. And you’re seeing stories of condos in Calgary where repairs, you know, 5,6,7 years down the road that nobody anticipated. You know, garage falling apart, or bricks falling off the building. And $25,000 to $30,000 capital costs to people who just can’t afford it; what do you do?

Mike McAra – Beyond the Box Host: Well, even further to that, purposely lowering condo fees on new builds as you say. Issue one, the lack of alignment between the developer and the end user, right?

Rob Richards – Co-founder and CEO of Key: Yep.

Mike McAra – Beyond the Box Host: And obviously those things manifest over time too so, yeah. Those are prime examples.

Rob Richards – Co-founder and CEO of Key: Well, where I live in city place in Toronto, we’re heading into a billion dollar plus issue as we’re realizing the windows aren’t made to last and we’ve got other issues with this infrastructure. Who’s going to pay? We have no idea. We’re heading into a massive problem. So, we can’t continue to build that way. And we’re seeing massive insurance rates in Vancouver starting to double, triple. Putting these condo associations under water, and it’s because the infrastructure isn’t up to snuff. So, we’ve got to tackle all of that. So, with first digitizing that journey and the development process, we can take non-marginable cost out, we can make the whole process so much more efficient. We can take more than 10% of the cost out of the real estate itself and take a ton of costs and middleman out of the buying, owning and selling journeys to make them far more efficient and effective. And so, the fundamental prop with Key, is to provide the true benefits of owning, which are: One, you have an equity investment that’s growing in value with the underlying real estate in a nice stable way, it’s not a public stock with all of its volatility. Like a REIT, REIT’s are like, 27% under nav right now because of public markets. We can’t have that when it comes to home ownership. So, a nice stable value tied to the underlying real estate which always goes up in the end, and I’ll talk more about that. That’s number one. Number two is you’ve got security of occupancy. There’s no dreaded, “knock on the door” where your landlord is renovating you or where their daughter is going to University of Alberta and you’re out. And that happens thousands of times a year in downtown Toronto. People are renting condos who get that knock on the door and there’s nothing they can do about it. So, security of occupancy is Keys model, and it’s your place for life if you want it, nobody can kick you out. And the third thing is, you can get the pride and the comfort, and the security of ownership and you think like an owner. You have that investment; you have that security and you can customize your home. You’re going to take better care of the place where you live if you own it. And it’s proven time and time again. And then, in our communities, everyone’s an owner. So, unlike condos now which are isolated, and fractured environments where you don’t know who your neighbours are month to month. And in many cases, now you’re living in a community of owners, and everybody cares. And we’re going to layer on technology for a better social fabric, more connectedness and interest groups, and community support, and what happens in a pandemic and are there resources that can help you if you can’t leave the Toronto of your unit. And crazy story, we have an underlying medical condition in the family, so we’ve been locked in here for the last 8 weeks. I think I’ve been outside twice in eight weeks, and it’s just to start the car to make sure it runs if we need it. But you know there’s something down in the lobby, one of the two times I did go out, a sign that says there are people here to support you. And there’s the phone number of somebody you can call, and they’ll help you with recycling and garbage and grocery delivery and what have you. But I had to go down to the lobby to find this thing. Where it should be that you don’t have to go down to the lobby, call us instead. I mean… just crazy stuff where you kind of give your head a shake. So, we can do so much better from the way we design our buildings, the way we build in more resiliency, the way we build in more social fabric and connectedness in the community.

Mike McAra – Beyond the Box Host: So, tell me more about the Key process then. So, you are full start, start to finish. Are you the developer and builder as well as the owner vehicle as well? Or, how does that pull…

Rob Richards – Co-founder and CEO of Key: We partner with developers. So, our value prop to them is, “Do what you love to do. Assemble the land, do your demographics, do your architectural concept, and then build the buildings and deliver quality products, and we’ll help you build even higher quality products, because we’ll get further investment in the technology and materials to make better buildings.” And we’ll take care of everything else. Here the sell is one signature now. You don’t have to go through the whole retail sell process, you don’t have to worry about construction financing; we take care of that! So, if you’re a developer, my absolute profit margin is maintained, but I can take 10 months out of the process, and I take all of this hassle out of the process, so my rate of return goes up. So, developers look at us as an engine of growth for their business. They can do more, faster, better. Getting rid of all the bullshit.

Mike McAra – Beyond the Box Host: Well, if you think about that, you said there were 42 steps to buying a condo, right? And say you build a 200-unit complex. And you’ve got your sales team that has to go through all 42 of those steps for all 200 of those units and it’s obvious some are easier than others, but as you pointed out, that complexity and all those issues are now replaced with a single signature with Key taking off.

Rob Richards – Co-founder and CEO of Key: Yeah.

Mike McAra – Beyond the Box Host: I feel like that’s a tough sell, I’m sure nobody likes that.

Rob Richards – Co-founder and CEO of Key: So, yes, we hope to grow rapidly because developers recognize that this is really an engine for their business and they’re going to be able to make better product and they’ll be able to have their brand affiliated with something that has a positive economic and social impact and environmental impact.

Mike McAra – Beyond the Box Host: So, I’m a consumer. And I want to get into a Key arrangement, I want to work with Key, or I want to buy a Key equity state or something like that in a building. How does that work from the consumer side?

Rob Richards – Co-founder and CEO of Key: So, the consumer, what they’re buying is shares in a real estate holding company.

Mike McAra – Beyond the Box Host: Okay.

Rob Richards – Co-founder and CEO of Key: So, Key is structured as a dual company model. A prop-co, and an op-co. The prop-co is the real estate holding company, and the op-co is the technology company and the management company that manages the real estate. So, you’re buying shares in the prop-co. So, you have a pro-rata share of the underlying real estate, right alongside the world’s best institutional investors on the same terms as they have it. And so, we fund all of the infrastructure with sort of half institutional equity and half commercial debt. And we let owner residents buy in for just $25,000. Full stop. For $25,000 you buy a Key and that gives you full rights of ownership to the unit that you then select. And we take you through a discovery process, and a move-in process, and then you’re an owner in Key. But you own shares in the pool. So, your investment goes up or down with the pool of real estate. And we sort of ring fenced that to regions. So, we have a whole co for Vancouver, we have a whole one for Calgary, we have one for Toronto, one for Boston, one for Shanghai. So, you’re inventing in how you think that city is going to do.

Mike McAra – Beyond the Box Host: Gotcha.

Rob Richards – Co-founder and CEO of Key: Right? But it’s transferrable, but we’ll talk about that. So, you buy in for that $25,000. What does it get you? Well, it gets you the shares, you’ve got equity that is going to compound with the growth of the real estate. What it also buys you is the reduction of the monthly rent. So, you’re going to go into paying a market rent, and we’ve priced that according to what’s happening in the city, and that kind of unit in that part of the city and what happening on a monthly basis. Market rent, but then you get a deduction. So, say your suite is worth $500,000, and you put in $25,000. So, that’s 5%. So, you get a 5% reduction on the variable rent. You still have that baseline that you pay that covers condo fees and taxes, but everything on top of that; just say you have a mortgage on that balance, right? So, you’ll owe $475,000 to BMO for your mortgage, and you start paying that mortgage off and the amount of cash flow you have lessens every month.

Mike McAra – Beyond the Box Host: So, with each payment, it does deduct against what your position is.

Rob Richards – Co-founder and CEO of Key: Yeah, we would add a little bit into a savings plan, and that’s something you can set in the app.

Mike McAra – Beyond the Box Host: Okay, perfect yeah, so it’s very customizable then.

Rob Richards – Co-founder and CEO of Key: Very customizable on how much extra you want to put in to buy equity and buy down next month’s rent. So, you get to the point where you’ve invested $500,000 or your investment is worth $500,000, you’re not paying any variable rent.

Mike McAra – Beyond the Box Host: I could see a guy like myself playing around with that and going like, “Okay, so if I put this much, it’s this much.” And playing with that app, right? You know, actually we’re going to do this, and actually we’re not going to go to Mexico this year. Right? We’re going to do this, and it does this, and we can go to Mexico twice next year, or something like that.

Rob Richards – Co-founder and CEO of Key: But at least now you have the information and you can make an informed choice. Information is power. Information is power.

Mike McAra – Beyond the Box Host: And the big thing too is that barrier to entry has essentially been removed. You know, 21 years to get a down payment. Versus $25,000, which is a large chunk of money for a lot of people, but it’s also very achievable for a lot of people. Whereas, let’s say Vancouver or Toronto where your average home price is in the millions or at least it was a couple months ago. Okay, you know, 10%, $100,000. Okay, 5%, $50,000. See you’re cutting that in half, right? Even right there, so that’s really exciting. So, right now, you’re in Toronto?

Rob Richards – Co-founder and CEO of Key: We’re starting in Toronto. We have 2.8 billion of real estate identified. We have LOI’s for the first billion, billion and a half of that. And so, we’re building some new condo projects from the ground up and we’re buying blocks of suites as well, so we can get going with current product. Our long-term model is almost everything we do is going to be build our way from the ground up, and our buildings will be unlike anything you’ve ever seen. We don’t need 3-acres of parking garage with 6 foot-6 ceilings. Who needs that? We need to be growing vegetables in our underground. We need to be having makers studios and we need to be having weather protectant and hailing and scooters and Tesla’s on demand. That’s the kind of stuff we need in our buildings, not a huge parking garage. And we want to have fresh food and co-working, and pop-up retail and telemedicine in our lobbies. You know, pet grooming stations, and all kinds of things that are more suitable to our lifestyle. So, our buildings are going to have innovations in them all the way from the ground up to the social fabric of connecting and owning a residence to community around our buildings. So, very, very special. But getting going, we’re starting with some existing with some condominium suites where the real value proposition there is, “let me be an owner.” It’s the Fin-Tech focus. How can I own, and every month the really great thing about real estate on demand is that every month you can buy your equity up, or you can sell it down! So, if you want to take ten grands out to fund your wedding, or your trip to Fiji, you can do that. So, we’ll have a monthly redemption capability at a monthly share price that is set for the use of Big Data and through certified appraisals. So, every month we know what our net asset value or our portfolio is worth in the city where you’re worth and that defines the price per share. And that’ the price at which we will redeem your equity.

Mike McAra – Beyond the Box Host: Got it.

Rob Richards – Co-founder and CEO of Key: So, now you’ve got 45k, and you want to take 10k out, you can do that.

Mike McAra – Beyond the Box Host: So, you’ve got that access to liquidity as well, which is a huge one, especially when you’ve got something that happens in life where, let’s say you have a traditional ownership model. Well, now I have to sell my house. And the advantage of ibuying, at least in the states, there’s some level of liquidity, at least there was, but what is that market rate, what are you getting, and that’s what the real estate community would always throw back is “you’re giving it away. It’s a fire sale” and there’s data to support that in a lot of cases, but the point is it was a liquidity issue. And now you’ve spoken about three issues there. There’s a fourth one to throw on your list, and it’s the liquidity on the exit side.

Rob Richards – Co-founder and CEO of Key: It is, and now if you want to get equity out of your home, you have to get a home equity line of credit, or a reverse mortgage. And you’re paying fees and these middlemen, contracts…

Mike McAra – Beyond the Box Host: How many steps is that process?

Rob Richards – Co-founder and CEO of Key: Well, too many, I’ll tell you that much! And it costs too much. And everybody’s got your hand in your pocket every step of the process. So, now we have a frictionless month-to-month, you know you’re paying 50 basis points for a share transaction.

Mike McAra – Beyond the Box Host: It makes you kind of wonder what’s the catch, Rob. It seems like this utopian world of ownership, property ownership. Why hasn’t this been done before?

Rob Richards – Co-founder and CEO of Key: Well, it hasn’t been done before because like every great idea, you think of, 20 people have thought about it before you, and that’s generally true. We come across a lot of people who have been thinking of something very similar. So, I can’t tell you how many investor calls or partner calls, calls from people in the ecosystem like, “Yeah, I’ve been thinking about this. I’m glad to see someone finally doing it.” So, usually with something like this, someone just finally has to do it. You know, we do have our unique take on it, and we do have patents applied for, so there’s been some original thought. But not anything that other people haven’t been thinking; certainly, about the need for!

Mike McAra – Beyond the Box Host: I think it’s about connecting the dots too, right? Like, one thing that jumps out to my mind is a conversation that I’ve been having, or have had with a lot of people over the last several years, is “How do I invest in real estate in a select market, from a diversified portfolio approach, without having the capital to do it.” So, can I get a regional specific reach is the best example. For a city, but not in a REIT format. And by doing your holdcos, regionally specific you’re satiating, your checking that box, but you’re also checking all the other boxes. And this is something that you can probably speak to from the venture side, is a lot of people have these really great moonshot ideas, that are like, if you could do x, y, and z, this would be an amazing way to change the world. But where the disconnect is, is what is the strategic path that solves pain points all along the way to get to that end vision. And what you guys have been able to do with your path here, is you’ve started with those really granular, actionable things, where there’s a real “hair on fire” problem, obviously with the disconnect between the developers and the owner. The inefficiency of the buildings, the affordability problem. And then drilling it down to your original thought and connecting those dots, and then layering on all of those things that people have been thinking about this, and thinking about this, but they didn’t have that action able step to go forward. And I’m sure you’ve thought about that, and I’m sure you see that a lot in venture, is that. So maybe you could speak to that.

Rob Richards – Co-founder and CEO of Key: Yeah, and you know the thing there is, do you control the underlying asset? Do you have the scope to think about it, influence all of these things? Like, how does a passive investor get in for 500 bucks? Why should a teenager with 500 to invest be able to make an investment in regionally focused real estate where not only do they have an investment that is going to grow with real estate, but there is a path to home ownership at the end of that. It’s not just buying shares in a REIT, because you can’t turn that into home ownership in the same way. We’ll talk about our economic flywheel because it’s really important for the past investor and the resioner. And then, if you control the asset, you can really look at every point in the journey and you can impact it. If you don’t control the asset, you can bring your point solution, and a lot of them are great, like an ibuyer. And you can impact one part of the journey, but you can’t impact the whole journey. And we’ve seen businesses that don’t control their underlying assets and those that do, you can compare eBay and Amazon. eBay has no impact on the distribution structure or any of that. Whereas amazon does. And so, they have more control of the end to end experience. And look which business model is more effective. Airbnb has done an amazing job of becoming a brand for a short-term rental, but without control for the underlying assets, they’re extremely vulnerable.

Mike McAra – Beyond the Box Host: Well, and that’s that whole ecosystem play, and Apple is an easy example for most people with the Appstore. Okay, you’ve got your asset, the phone and the iOS, right. But then, because you can control that component, you can build all these insuleray thing upon it because you control that entire user journey from start to finish. So, now you can build those brand modes or those protective barriers to entry for the competition, but it also allows you to innovate on all of those different pieces along the way.

Rob Richards – Co-founder and CEO of Key: It really does. It really does, so for the passive investor we innovate and say, “you can now buy into a pool of the best multi-family real estate that you can get your hands on. It’s prime real estate.” You just couldn’t get access to that before. There’s no way. You had to be a high-network family willing to write a $200,000 cheque. So, now you’re a teenager with $500 to invest, you can get access to that real estate, that amazing investment right alongside the Harvard endowment, or the Canada pension. And then, we can innovate in terms of the owner-resident experience, and what we call “activation” of the real estate. So, why should real estate just be brick and mortar and just sit there and develop value in terms of what people think the brick and mortars were? Can we not activate that real estate in some meaningful way? I’ll give you two examples. One is, why couldn’t we for all the things that residents consume on a regular basis, why can’t we do marketplace deals where the supplier of broadband or the supplier of furniture or the plant watering or the dog walking services, or the deliver of food. The grocery company down the block. Why wouldn’t these people be interested in having preferred access to all of this demand? And then, why wouldn’t they give me the ability to convert loyalty points into equity? And that’s where our next patent is on, is how do we actually transform regular purchasing power into equity through the conversion of loyalty. So, now, when you spend $100 bucks at Safeway, if Safeway would let us convert the loyalty points associated with that purchase so we could increase equity, the person who spent $100 bucks now they’ve got another $1.50 worth of shares!

Mike McAra – Beyond the Box Host: So, now I don’t have to get a toaster with my credit card points, I can get equity in my property.

Rob Richards – Co-founder and CEO of Key: You can get equity in your property. And it compounds! So, the more equity that you generate, it’s also delivering a higher price per share because our rev share catered to all of that is shared back with the real estate holding co’s. So, it lifts everybody’s boat when the higher price per share. And then the third thing that happens is, you’re paying less next month in rent. So, it’s like this triple whammy every time you spend, you get more shares, you get a higher price per share, and you get a lower cash outflow next month.

Mike McAra – Beyond the Box Host: I would have loved to have been a fly on the wall during that whiteboard session when you guys were articulating those details and seeing a lot of the dots come together. I can just feel the passion coming out of it!

Rob Richards – Co-founder and CEO of Key: Yeah, well, the lightbulbs that have gone off has been like, holy cow. This is so powerful. And then the other things is, is let’s talk further about Airbnb and short-term rentals. What we see now, is we’ve exposed all of the systemic risk in that industry with one month of Covid. Airbnb urban business is just wiped out. It went from wherever it was, growing like a weed, to zero, overnight. Their vacation business and they’ve got other models that they’re responding to and developing really good revenues in other sectors, but their core urban condo rental business just vanished. And it was going to be hit anyway because they were facing regulatory headwinds, where cities like Toronto and Vancouver and others have said, “No, you have to be a principle resident. We don’t want ghost hotels anymore. We don’t want people leasing 20 condos and then putting them on Airbnb and running them as a kind of a hotel without any real service.” And so, ghost hotels were gutted overnight, and maybe rightly so. It out a lot of economic shock into the system, so now a lot of these condos are under water. If you were a guy that was leasing your condo to one of these hotel operators, they’re gone; they’ve all defaulted. And now you’re putting your condo up in the long-term rental pool, which probably is a good thing. But a lot of people are in trouble now because they don’t have that income and there are an estimated over 7,000 condos in Toronto that have gone into shock because of that.

Mike McAra – Beyond the Box Host: Well, the Wall Street Journal is calling it the “Magic Money”, was their big headline. The “Magic Money is gone now!”

Rob Richards – Co-founder and CEO of Key: The “Magic Money” is gone, exactly. And it wasn’t underpinned on anything real to begin with. A lot of entrepreneurs took advantage, made a lot of money for a period of time, but then any kind of stress, any kind of recessionary headwind, and boom; you’re upside down. So, how do we take Airbnb back to its roots and what it was meant to do, which is true home-sharing. It adds a lot of value to cities that are stressed with hotel inventory, gives a lot of elasticity in handing tourism and things, when people can share their own homes, and it’s good micro-tourism because it puts money in the hands of residents and it brings money into the local economies. You know, where people are staying at a condo downtown, they’re not going to be shopping at the Gap and Home Depot. They’re going to be going to local restaurants and they’re going to be going to boutiques to get unique items and souvenirs to take home. So, it really puts money into hyper-local economies and it’s how it was meant to be from the start. So, with Key, we have this incredibly unfair advantage in that every resident in our buildings is an owner-resident, principle resident. So, we’re on side with the legislation. And the second thing is, we are the condo board. So, we say, “No, no, no, we’re not outlawing short-term, because short-term was done so poorly. We’re implementing it in a way that guarantees the highest quality experiences. Minimum 2-night stays.” 90% plus of the problems on Airbnb, chairgroul, murders in Fort York, they’re 1-night party rentals. People go and create accounts to rent out condos to throw a party. That’s where all the issues come from. Breakage, and everything else. So, now we have 2-night minimum stays, only the highest rated guests in the system. So quality curation; verify government id. And then we welcome the guests into the community. So, we say, “No, you’re a welcome guest. You don’t have to get delivery of a fob in a dark alley at 10 o’clock at night.”

Mike McAra – Beyond the Box Host: It’s not at a key box around the corner at a 7/11.

Rob Richards – Co-founder and CEO of Key: Yeah, exactly.

Mike McAra – Beyond the Box Host: You get your bags; you’re knocking over the Twinkies.

Rob Richards – Co-founder and CEO of Key: Yeah, exactly. So, we’ve all been through that. So, now they’re welcomed into these communities with open arms, connected to interest groups, invited to social functions, lots of opportunity for experience and guides to take them through that neighbourhood. Really make it a wonderful thing the way it was meant to be from the start. And we have the support of the founders of Airbnb. My co-founder, Daniel McDougal came from Airbnb. He was running Canada, East of the Rockies and a chunk of the north east. He was running Toronto!

Mike McAra – Beyond the Box Host: He probably knows a lot about that!

Rob Richards – Co-founder and CEO of Key: Yeah, he knows it well. So, now if you’re going to stay with your girlfriend for a couple days, your visiting your parents, you’re taking that trip out to the Rockies. Now you just say, with one tap in the app, here are the dates that I’m gone, take care of it for me. And Key automatically arranges to rent out the suite, safe storage of your personal valuables, arrange for the cleaners, at the start and at the end. Just make the whole process completely seamless to you, and then all of a sudden, you’ve got $1,000 bucks that shows up in your account. And you can choose what you want to do with that. Do you want to buy more equity with all of it or a chunk of it? Do you want to save it for cash flow for next month’s rent? What do you want to do ?

Mike McAra – Beyond the Box Host: And it’s just that whole, forced savings plan; that money that you don’t see coming into your hand is so much easier to invest, or save, than money that is just easier to spend. But by putting those systems in place, you’re almost just building, in essence, better habits in a way. Perhaps, you are helping people in building better habits, or even positioning society in a much stronger financial position even. So, yeah, wow. There’s so many things to jump in on this and I think you and I could probably talk for months on this, but I’ve already used the double of the amount of time that I was anticipating, and I feel like we could keep going! But, in the interest of your time, and I just want to be respectful of that. So, just to wrap this up, on the Key side, you’re in Toronto right now. For people who are interested and want to learn more about Key. How do they find out more about Key?

Rob Richards – Co-founder and CEO of Key: The easiest thing is to go to KeyLiving.com and sign up and what you’ll get is newsletters every once in a while, and you’ll get invitations to webinars and that’s really the best next step, is just come and attend one of our online calls. We take you through the model in more detail, and we get such good questions. Our Q and A board is just lit up every time we’ve run one of these webinars. And we’re there to answer the questions and really fill in the details on. “How does this compare economically to a mortgage?” And, “What do you mean I don’t have any personal debt?” or, “What if I wanted more leverage to make more money out of real estate, how does that compare?” So, all of these questions are answered in great detail and it just develops comfort and shows you the path forward. Key is not for everybody, it’s not solving all of society’s ills, it’s not fixing the entire housing market, but it’s a big chunk. It’ll appeal to probably 70%. We deal with the real estate agents a lot, and they love it because we talk about that 70% of their missing middle of their CRM. These are people that they just can’t help right now. So, in real estate, is your stance is, “I’m not selling you something, I’m helping you achieve something.” And so, if they can go to that missing middle and say, “I can help you get onto the property ladder. And you’ll build equity, as long as you want to live downtown that’s great, but what if you get to a point where you want to have children, or you want the yard and the white picket fence.” Well, I’m there with that relationship to then sell you your first home outside of Key. So, they view it as a real advantage. So, we’re not for everybody, but we are for a big chunk of people who can’t get on the property ladder.

Mike McAra – Beyond the Box Host: I love it. I love it. When people talk about innovation, this is exactly the poster child of what it is. You’re addressing a numerous amount of problems with creative ideas. New ideas that you’re bringing together but you also have that actionable plan to connect those dots from taking that overarching, big, hairy audacious goal, but actually having that executed path to get there which is super exciting. I can’t thank you enough for coming om the show here, and telling our viewers a little bit more about Key and I think we’re definitely going to want to have you on and drill more deep on some of these things because there are so many great things to talk about. So, thank you so much for your time Rob, and I look forward to chatting more in the future.

Rob Richards – Co-founder and CEO of Key: My pleasure, I look forward to it!

— End of Podcast —

Beyond the Box: Conversations with real estate executives, venture capital partners and technologists on what lays ahead for the real estate industry in a world after COVID-19.

Beyond the Box Podcast Hosts

Beyond the Box – Season 1 – Episode 7 – Bill Andrews – Regional Sales Director at Black Knight Financial Services

Tue, 07 Jul 2020 19:28:00 GMT

Beyond the Box – Season 1 – Episode 7 – Featuring Bill Andrews – Regional Sales Director at Black Knight Financial Services.

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This week we have the extremely intelligent and seasoned tech expert Bill Andrews. Lynette Keyowski sits with him to discuss the history of technology in the real estate space and what the future may hold.

“And it occurred to me, I thought that it was illegal, I said “why are they allowed to do their own stuff?” and they said, “there’s nothing stopping them. You have to go compete and go for it.” And I realized okay, so that’s a game-changer. There’s never going to be a time where you rest on your laurels, and it’s going to be changing forever more and that’s exactly how it’s been and what happened.”

Full Transcript of the Show

Lynette Keyowski – Beyond the Box Host: I’m so happy to be
back for another episode of Beyond the Box, where we are really interested in
talking about the intersection between real estate technology and capital. And
I couldn’t think of a better person who has touched all of those points over a
very colourful and pretty successful career in the real estate sector, Mr. Bill
Andrews. So, thank you for joining us today, Bill, so happy to have you with
us.

Bill Andrews, Regional Sales Director, Black Knight: Thank
you for the invite. I am most happy to speak with you and we have known each
other for a long time. And it’s an amazing business and I’m constantly
reinventing myself.

Lynette Keyowski – Beyond the Box Host: I love that
you positioned it that way because it’s exactly why I wanted to invite you
going to the podcast, because this is one of those industries where it does
evolve, depending on where you are. Sometimes it feels like it’s not moving at
all and in some ways it’s moving at warp speed and I think you know we’re at a
period in time where we’re going to see you know some shifts happening, and
what I love is, is you know you have gone through some shifts in the
past. You’ve had to reinvent yourself based on some of these things and
we just love to have some of your perspective on what that has looked like and
maybe what this current situation might look like for you going forward. So,
first of all just weave out a little bit of your origin story and what your
trajectory has been through this crazy industry over the last 20 ish years?

Bill Andrews, Regional Sales Director, Black Knight: Yeah,
20 ish years, or something like that. So, yeah, it all happened by mistake. I
was working in the cell phone industry early. I had no idea what I was doing
and it was magnificent, we made all kinds of money. Back then we used to make
money on the usage and Pactel cellular had not spun off yet, it was still
Pactel running a mobile division. And we had those bag phones, do you remember
those bag phones? And that was my first foray into what I would call
technology. And I was also part of the first sales force in the United States,
maybe even in the world, that was outfitted with an IBM laptop, a Motorola flip
phone and all of the components to do business from my car on the road. So,
that was normal for me back in 1990… I would say ‘94. I would be on my
laptop, and I hate to say this but I’d be driving and I’d be typing.

Lynette Keyowski – Beyond the Box Host: It was okay then
Bill, it was all okay then.

Bill Andrews, Regional Sales Director, Black Knight: It was
natural back then, it was what you did. But, what I would be doing is I would
be getting mobile numbers back, running credit on people, and then we would
have phones in our trunk and we’d program them. And so that was really
the beginning of my foray into technology. And the first instance I had a
really realizing that there’s a never-ending search to, to use it is we were
all the top reps, probably in the country coming out of my office there in
Woodland Hills California; It was the business division. And we were always,
when I go look at the list, I was always somewhere in every month in the top 5
reps somewhere in California and the country, top 10. And then one crazy month
I looked up there and I saw out of the top 10 there were about six names that I
didn’t even recognize. So, we’ve just done hiring and it was all these young
people in the office, young guys and gals. And what happened was they came with
their own laptops, while all of the veterans were waiting for all our material
to be printed and for the person that does that to put our name on the
flyers. And these people have done their own, and they hit the market
early and they got all the low-hanging fruit. And it occurred to me, I thought
that it was illegal, I said “why are they allowed to do their own stuff?” and
they said, “there’s nothing stopping them. You have to go compete and go for
it.” And I realized okay, so that’s a game-changer. There’s never going
to be a time where you rest on your laurels, and it’s going to be changing
forever more and that’s exactly how it’s been and what happened. And then from
there, I left that career, because I could see that the money and the ability
for me to really structure and corner my own market was leaving and it was,
well, the way I put it, was you were going to be able to get a free cell phone
if you bought a big gulp at 7-Eleven. And I said, that’s probably a bad sign, I
should probably be leaving by now, and I did. I went to work for iPicks
and iPicks was the first virtual tour company that we actually were selling the
cameras and the software and then the broker, or the agent would have to take
the pictures, two 180’s and then stitch it to a 360. That’s how I got
into this business, and I thought that was amazing. And I thought that’s how
some people were going to buy homes, because they told me that Will Smith did
it, so I figured everybody else would.

Lynette Keyowski – Beyond the Box Host: If Will does it,
everybody will do it.

Bill Andrews, Regional Sales Director, Black Knight: It was
a great tease to get you; it became… and here’s the funny thing. That
technology never really worked for people to, to use the virtual tour to buy a
home, but what we figured out, was that we would put a virtual tour on a floppy
disk with an agent’s name on it and then they would use the floppy disk to do a
listing presentation and because the technology would wow the listing, the
customers, they would choose them for that listing. And they’d say, “wow you’re
doing something no one else has,” and that lasted for a long time so the
wrestler by the wayside.

Lynette Keyowski – Beyond the Box Host: So, virtual
tours. That description of a virtual tour I think does not at all align with
what the industry thinks of as a virtual tour today, right. Because at the time
that we’re recording this, you know we’re what, four or six weeks into the
Covid experience. And one of the things we’ve seen really take off is the
increased use of virtual tours, but also platforms in tech companies evolving
in a much different way to facilitate what you tried to accomplish back then.
Back then, it was more of a marketing scheme, a marketing tool.

Bill Andrews, Regional Sales Director, Black Knight: Yeah,
it always boils down to this. My job was to sell virtual tours. And I found out
when I’d go do presentations at broker’s offices, the virtual tour was great
and you’re supposed to use it to let people view the home. But because I was
selling virtual tours, my job was, how do I get them to buy virtual tours.
Well, by putting their name on a floppy disk and saying if you buy these today,
we’ll take care of this for you and even if you don’t know the technology you
take this into your listing presentation, and there you go. And so, of course
the tour took off, and it grew legs of their own, but that’s how I sold it.
That’s how I figured out how to move this forward? Otherwise, without that, I
want to say greed factor or the factor of making an agent understand, how does
this work for me, how do I get business from this? That’s what my job was. So,
virtual tours worked, but unless we move this forward, you know it’s going to
do nothing.

Lynette Keyowski – Beyond the Box Host: So, I love that. I
love that you wouve out sort of that baseline of how you entered the space that
you had. I mean you and I have known each other in a very different capacity. I
mean you’ve moved through a couple of different organizations since you and
I’ve known one another. So, from there, what was the next trajectory to where
you are now? And I’ve purposely kind of left that for you to weave out. I
don’t want to be a spoiler here, because you’ve made another relatively recent
move.

Bill Andrews, Regional Sales Director, Black Knight: Yeah.
You know, I’ve always been… I realized that some people look at me but I
don’t want to settle in and get bored. I want to be making decisions and
I want to be in the front end of things that are exciting. And I’m deciding how
those things move forward and how my life does. From there, I went to a company
called Crescenda. It stood for customers receiving and sending data. I was
unintentionally, I had the first MLS. I was responsible for… I had a Palm Pilot
with a modem. And it was ridiculous, because they each had a charger and I
think the modem took 6 hours to charge and the Palm Pilot took 2 hours to
charge. And you put the two together and it was in black and white with a
little stylus pen. But, I convinced Rappitoni to put their MLS on that. So,
I sold the very first device, that held the MLS on a device that was cellular,
and handheld and it was two pieces. And that was what launched me into
Rappitoni, because when they didn’t get the rest of the funding, the idea was
there, the seed was planted that it could be done, and that you could get an
MLS on a device, which had not been done and no one was willing to do it on the
other MLS’s. It all of a sudden became natural, and Rappitoni actually called
me and said I want you to start selling my internet based MLS, it’s brand new
come on over here and let’s move.

Lynette Keyowski – Beyond the Box Host: Very cool. So,
you’ve been at the bleeding edge of what I would say the real estate sector, in
terms of the realtors on the ground, known as the MLS system. You were at the
Forefront of marketing those systems, from an internet based way into the hands
of the market.

Bill Andrews, Regional
Sales Director, Black Knight: Unintentionally, but I was lucky because
I saw how things played out and how people had the wrong idea. I had a call one
day when this was all playing out and it was all the major carriers: AT&T,
T-Mobile, all of those and they were all talking amongst each other about how
much they were going to charge us, and how much we had to pay them, and I said,
“You guys have completely missed the point. We won’t pay you a dime. This is
going to happen whether you like it or not, because it’s going to happen over
the internet and this is just a device that people can use to access the
internet.”

Lynette Keyowski – Beyond the Box Host: Right, right.

Bill Andrews, Regional Sales Director, Black Knight: “ So,
good luck with all of this,” and they really didn’t understand. They weren’t
seeing the big picture because they were looking at it from their small corner
of the world, when in fact it was a game-changer and it was going to be a
game-changer.

Lynette Keyowski – Beyond the Box Host: Cool, so that
took you to Rapattoni, and then just really quickly, you’ve had a few other
stops that you’ve had along the way. Just let us know kind of what those stops
are, what kind of product you were selling, because it’s always been in tech,
right?

Bill Andrews, Regional Sales Director, Black Knight: Yes.

Lynette Keyowski – Beyond the Box Host: You know, kind of
where you’re at now. And then I’d love to pivot to some of the experiences that
you have had for your trajectory.

Bill Andrews, Regional Sales Director, Black Knight: Sure,
so the main points were rapattoni and I was there for eight or nine years. And
we really stormed the market, and we took a really big market share and we were
doing incredibly well with the internet based MLS. Then I met my favourite guys
in the business, Brian Shepard and Sean. And I’ll tell you, it was the best
time, and maybe the most fun time because they have the spirit of having fun
and technology and being kind of bold and brazen and just having a lot of fun
in the process. And I love that and I went there and we won some major, major
accounts and it was wonderful because our support team in our group was another
piece that moved the MLS forward. It was incredibly fast, lightning fast,
and then without any knowledge, all of a sudden we were purchased, well, those
guys did, but we were purchased by CoreLogic. And then there was another foray
into it because I was really the only guy that knew matrix, so a lot of my
positions were going and doing all the demos for us. And some of the
interesting times there, some of the things that I said and did to win
business, but I’ve always been honest and transparent and so that didn’t work
for somebody, you know, fine, you can show me the door or I’ll hit the door on
my own. And then, I got a little bit bored there after a while. I was taking
care of most of the major accounts, CRMLS and MLS Listings, and some great
people that I’ve gone over the years, and I decided to take the position with
Zillow because they wanted me for the API. I thought that, that would be the
next level of technology that was going to help vendors getting to the market.
And allow for data to move faster and safer. And I did that, and I had a
lot of fun. And then, they pivoted to more of Bridge67 which was some of the
listing input. And at that point, I decided that I’ve done a lot of
vendors and I was excited about that technology and that’s where I met
the guys at Remine, Limedesk, Rate My Agent. A bunch of really good
vendors, with good products. And I did that as a consultant, and then, of
course I took a position with Remine, who wanted me to spend more time with
them just in a directional position of the MLS and the business and in
understanding that. And then most recently, as you know, again I pivoted and I
went over the Black Knight with some great folks that I’ve known for many years
and respected. And I just thought with everything I’ve done, and everything
I’ve been involved in, the MLS has always been my knowledge center, my
cornerstone, my comfort zone, and so I decided to be with Black Knight that was
most recently to do it again. And I’ve never cared about what anyone says. I
always say, jokingly that I just can’t hold a job, but the truth is, sometimes
I don’t want to hold a job. I know when my time is ready, when it’s time to
move on because I don’t want to be a guy that hangs on and looks for a safe
spot. That’s just no way for me to go through life.

Lynette Keyowski – Beyond the Box Host: I so appreciate
that about you Bill, and one of the things that I absolutely love, and for
those that are either watching this or will be listening to this; I’ve come to
know you as probably the most genuine person. End stop. And then I can also add
in the real estate sector, but you, it’s your approach I think that has just
provided… I love when you say, you know, I’ve never wanted to hold a job
because that’s the ethos that you kind of give out. This isn’t a job for me, I
do this because I love it. And the other piece that I will say, is just how
deep your relationships are in this industry. And it’s really been about, you
know, I’m hoping that a good number of people that are listening to this
podcast have had the opportunity to experience a Bill Andrews curated dinner
because it is an experience second to none. I mean, it’s always at a great
place, so yes the drink and the food is excellent, but it’s more than that.
It’s the people that you bring together. You know, I’ve had the privilege of
being invited to a few of those, and what I’ve always appreciated is, you know,
I don’t even know the people that are at the table with me, you have simply
just curated an opportunity for people to get one know one another, that
really whether or not it serves your business objectives, is not the root of
the invitation and neither is it the nature of the conversation. And you know,
there is nobody that I have come across in this industry, who has nothing but
the highest level of appreciation and admiration for you as a human being. And
I think that’s the piece that I’d like to get some of your thoughts around in
terms of, you said something a bit earlier, and I jotted a note, and it was,
“you know, my job was always to figure out how to get it there.” And you know,
I can’t help but believe that “the figuring it out” was exactly through that
channel and you know the relationships that you built, and how you built those.
So, I’d love to hear a little bit about that, you know the intersection between
real estate and technology and even capital, to a certain degree, has another
element in there that is none of those, and it’s the unique piece that you
bring to the equation.

Bill Andrews, Regional Sales Director, Black Knight: Well,
first thing, thank you so much for saying that. Those are some really kind
words.

Lynette Keyowski – Beyond the Box Host: All very
genuine.

Bill Andrews, Regional Sales Director, Black Knight: But
that is one of the pleasures that we all have in this business, is taking the
time to be with each other and not selling there, just getting to know people.
And I think the most important thing that anybody in our business can know is
to be a problem solver. There’s lots of problems. And in order to be a
problem solver, you have to be a good listener. But there’s a time and a place
for that. And at dinner, I’m really just trying to break bread and have
fun, creating an environment where someone wants to talk to you, wants to tell
you what issues are and that it’s an honest conversation. Sometimes you
can’t solve their problems, and sometimes you don’t have the right product, and
you have to be ready to accept that, because otherwise you will chill any
goodwill that you have, because relationships are everything in this business.
If they weren’t then I couldn’t go from company to company and be able to still
pick up the phone and call someone because, I think they know when I call them
that I’m not trying to sell them something. I’m just trying to tell them, “I’m
here now, here’s what I’m doing. Here’s what we have, if you find something in
this product line that works for you, give me a call. I’ll be honest with
you.” That’s the way I want it. And so I’ve done this, and as I’ve gone
through this, it’s the relationships that have always carried me through and
always allowed me to do business with people. So much so, and I love it
so much, you know I brought my three sons into this business. I said, “Listen,
I can’t teach you much, but I can teach you if you’re interested in this
business, how it works and I love the people in it, and I love what we do.” And
I love the fact that such a technology based business now but it is still human
to human, and it’s still all about contacts. So, you have to find a way
to make any new and emerging technology. You have to know your audience, and
you have to figure out how this is going to help somebody. How is this going to
solve a problem for somebody. And that’s fun!

Lynette Keyowski – Beyond the Box Host: Yeah, and I love
that you just wove that thread all the way through because I think a lot of
people often ask, or one of the questions that I hear often is well, things are
changing. Things are going to change and evolve and that’s just a truism of
life, right? The only thing that doesn’t change is that everything
changes, right? And so, one of the questions I was going to ask you, is in your
experience how things have changed and I’d be interested to hear it. But I
think your last answer almost kind of says, “it doesn’t matter because what you
know, the one constant thread is those relationships.” And just really being
willing to understand people’s issues so that you can create a path to a
solution, even if you don’t have the solution. But I would love to hear you
know your perspectives on how this space has changed and how do you think it
might change further?

Bill Andrews, Regional Sales Director, Black Knight: That’s
really an interesting question and here’s where it really changed. When I first
got into the business, and I started asking, I would go to a top broker, or a
top agent. And one of the questions I would ask her in the process was, “May I
get your email so that I can get something for you.” And they would often say,
“Well, one second, let me get my assistant. Hey Betty, what is my email again?”
In the early days, they were still using, if they were a Coldwell Banker agent,
they were using their Coldwell Banker, whatever they were. But they quickly
learned that hey, I want to have my own email, so I realized number one, they
don’t know their own email. So the changes are they’re not reading their email,
so that’s probably not a good idea. And then secondly, I think the biggest
swing in the business, and this shows you how things can change so dramatically
but still be the same. In the old days, and I’m talking old days probably
2000. That was still when people, public did not have access to listings, it
wasn’t available. An agent, quite frankly could be playing golf or be lazy or
doing nothing, and still hold someone hostage because they were waiting for
what homes can we go look at. And so they had no ability to challenge you
to find something without you. And like all of us, I mean those things sharpen
your blade; the fact that you know someone might find something before you. And
at first because they weren’t accepting change, they were angry about the data
being out there. So, the Zillow’s and the Realtor.com’s and all of the sites
that could start showing data made people mad. Instead of embracing that,
“Okay, well now, I can actually figure out who’s my real interested buyers,
because if we’re talking, and they’re doing a lot of searching I’ve got a real
hot prospect.” But, that’s the positive view. The negative view is, “this
sucks. I don’t have control anymore. And I want control.” But, those who
embrace the fact that, okay, the horses out of the barn. What’s the next thing?
Maybe I should be a horse wrangler! Because the barn’s not doing me any good
anymore, when the horse is out of it. And so, it really was the first
change, but bottom line is, even today with people searching on their own and
having all the technology, and all the capabilities, they still need someone
that can have some of the hard conversations regarding the property, that can
advise of them legally or that can advise them in terms of pricing in the
market and what’s happened in the neighbourhood. And that’s the relationship
builder, the searching part never was. You know, that was just an easy way to
knock down the sale. So, now if I am an agent, I understand one thing. And I’ve
known this throughout business, but when you have an easy process with
something, you have little chance of building relationships. When there are
instances where there are some difficulties or some challenging things, when
you work through that with someone, whether that’s buying a house, or selling a
house, it does build a relationship and it builds trust, because you are
working through the issue, you’re not ducking it. You’re asking the hard
questions, and you’re doing the hard things and that’s the true gold in it.
That’s where you become and that’s where you find your value, because your
knowledge and your confidence grows every time you do that. You learn not to
run away from something. And I’ve got a really, really interesting story. Just
a few days ago, I’ll say that it’s a person I know that’s very close to me,
called me and presented me with a problem. Their company wanted something, the
customer wasn’t going to allow something else and there seemed to be a big
divide and my first question was, “Have you called that person in charge, that
CEO and have you presented him with this issue?” and he said, “No, I
think it’s going to be an issue.” And I said, “No, nothing is going to get
solved unless you go to the source, and say, “We have an issue and I need to
talk with you, and I need some options, and we need to talk about some options
so I can serve you.” And within 10 minutes of him making a call, everything got
solved. And they said, “It’s okay, I understand, we;re going to make an
exception in this case and move forward. Because we put a lot of effort into
this and I think you’re right, we can do this.” But the initial answer was, “No
way, not going to happen.” But that’s how you work through those things.

Lynette Keyowski – Beyond the Box Host: You know, there’s
so much to unpack of what you just said Bill, and it’s really the Crux of what
I was, you know, the genesis of this conversation and what I was hoping we
could tackle, but you know just a couple of nuggets that I want to pull
out of that, and you just shred with us. First and foremost technology, if it
makes it easier it, doesn’t make it better, because you’ve eliminated that
opportunity to really understand where the friction is. So, I love your point
around, “if there are bumps in the road, you’re not growing and learning, but
you may not also be serving your client, or whoever your ultimate customer is
very well either” because they haven’t really understood what their needs are
right? So, I love that. I love that, you know, it’s a piece of the
psychology in the industry, and you said it earlier, like, “I want to control
change” so it’s been like, well I don’t want to accept any change,
because then I’m out of that control, right? But here’s the thing, if you
accept the fact that things will change, but also understand that the
relationship and the interaction is still the most important component, then
the change isn’t scary. Because you have just evolved to meet that need, right
and I think it just elevates the degree to which you’re needed in that
transaction. So, I love that piece and then your story is amazing because it
does highlight sometimes, it’s eating that frog, just do it. You kinda just
have to do it.

Bill Andrews, Regional Sales Director, Black Knight: Yes, haha.
That’s well said!

Lynette Keyowski – Beyond the Box Host: You just have to
pick up the phone! BUt it’s a hard thing to do, and so, I guess one of
the things that I’d love to hear from you is, over your career, given all of
those as the basic foundations, what have you found, because you mostly you
have sold into MLS’s but although, you’ve had a lot of interface with brokers
and agents. Because it helps MLS’s in terms of transition to new technology.
What have been some of the most timeless strategies that you have employed that
you found regardless of who you were working with, what technology you were
representing. What are those kinds of tools in the toolbox that you find most
important?

Bill Andrews, Regional Sales Director, Black Knight: Well,
I think you know, you have to number one, you have to know your audience. And
you have to understand their business. And in our business, in most cases data
is crucial. Data is king. So you have to understand, where is the data, who
controls it, how do I get it. What are the factors in becoming a vendor
that has access to the data. So, my product is animated, it’s alive. And that’s
what data does for software. It’s dead until the data’s in there, then it’s
alive!

Lynette Keyowski – Beyond the Box Host: I love that, great
analogy.

Bill Andrews, Regional Sales Director, Black Knight: And
it’s what changes business. And it’s how every person looks at a piece of software
and they assess how they can use it. It’s one piece, but because people are
individuals, and because people are creative, they find the means that work for
them. So, I would say, for a vendor coming into this market, we’ll start there.
Look at your products, figure out who’s going to be using it. And when I say
know your audience, it is known that a great number of agents are not looking
to do a lot of business. There are some that are retired, they used to maybe be
a school teacher, or a fireman, or a policeman. And they’ve got a pension and
so they’ve got some source of income, but nobody wants to sit around the house.
They want a life and they want the ability to still generate money and have a
social life and that propels a lot of people into real estate, because you work
for yourself, there’s really not a lot of pressure unless you put it on
yourself. And in many cases, and some cases there are. And so, you have to
assess how much does this person want to spend and what are their goals, as opposed
to. So, you have to understand if this product is driven for brokers, what are
broker challenges? Those have changed over the years, you know, they used to
get a desk fee. And so they would want to have a lot of people sitting there so
they could charge for a phone, and these things. ANd then people started
working out of their home. And so, there’s that shift again and you just have
to know your audience, data is always going to be key whenever you’re there.
And it’s really having an honest appraisal and assessment of “how do I move it
onto the market, and who’s going to get.” And sometimes the way that
happens is… there’s a company that I was working with, and you know them. And
when they called me, they had no idea I had been working in the United States
for I think three or four years, and buying data from sources that didn’t work.
And I said, “Well let’s just go jump on the road, let’s go talk to some MLS’s I
can hook you up with, and let’s ask them what they think of your product. Let’s
ask them if they think this is scary for brokers. Let’s really get their
opinion.” And for the most part, we got pretty positive feedback although
some felt that it might compete with brokers, but that’s always going to be
there. So, you can’t let that dissuade you. You have to go and do your research
and do some honest appraisal and go right to the source, you know, don’t be
afraid. Just like I said when there was an issue, just call the person that can
make a change for you, and explain why this has to be done to be successful.
And find a work around. And I think it’s the same trying to get into the market
with a product, you just have to do some homework and know your audience.

Lynette Keyowski – Beyond the Box Host: I love that. It’s
amazing advice Bill, because I think that’s what we see so many times and you
and I have both seen a lot of tech, come and go right. Which means that’s a lot
of companies and a lot of people that have kind of come and gone. Some have
tried to recycle a few times right? And I think in the absence of figuring that
equation out, ultimately it doesn’t matter how great your solution is. If
you don’t figure out what you’ve built, who your audience is, you need
something to make that product come to life right? And I would agree with you,
it’s generally data. And then, really understanding, understanding ,
what the needs are. You can have the greatest piece of tech, but if nobody buys
it, it’s just a piece of tech, right.

Bill Andrews, Regional Sales Director, Black Knight: In the
end, you have to find where the value is in it. It’s different in all products,
and I want to say this, I think you know, the one problem I see with our
industry is a lot of people want to pick and choose winners and losers. And I
think there needs to be more timestamps because, you know, it wasn’t so much
so, when I first got in the business, there was no one allowed from the
outside, it was very closed. And so, a vendor would really go through hell to
try and get in the door, but now people are more accepting of meeting vendors
in technology. But there’s not enough time set aside to evaluate it and to, to
give opportunities and to really look at it. And I think that’s because
everyone’s a little bit rushed and judgemental. But the other thing I’ve tried
to do all my life is to not have an opinion when I see a piece of software or a
business model. When I used to work at Rapattoni, we would talk to a lot of
vendors. And I made sure that I kept one day a week open to just listen,
because you might hear 50 pitches, and then you might find an absolute gem.
Something that you see a visions for and you can say, “I think this is going to
make it,” immediately and this is the approach I’d take and you know, “how can
we help you,” because this is going to be great for us to offer our users and
for you to, to flourish in this market.

Lynette Keyowski – Beyond the Box Host: And I think you’re
absolutely right, it’s so much of what we have seen, isn’t it, over the last
few years is just how companies… how the space I guess is maybe a bit more
collaborative, rather than as competitive. So, much more open and welcoming for
new solutions and new companies to come forward, but also more collaborative. I
would even say with the incumbents in terms of working with and integrating
with some of this new tech. So, I’m hopeful that this is a sign for a lot of
additional innovation in the space. So, I’m just conscious of time here and
know we need to wrap up, but again we’re recording this a little bit during
this period of time, where there’s a lot of turmoil. I think a lot of vendors
are probably wondering how this piece of time is going to impact them. Probably
a lot of you know requests for deferral of payments, and maybe some renewals
that aren’t happening. Given everything we’ve talked about over the last 30
minutes or so, in terms of the approach of really selling technology into this
space, I want to start here. Where do you see the opportunity in this period of
time for the real estate sector, especially with technology?

Bill Andrews, Regional Sales Director, Black Knight: Well,
I think what’s going to happen here is that we’ve seen everything kind of come
to a halt. Now, I’m a believer that human nature over the, whether you
want to believe, the hundreds of thousands or thousands or millions of years,
you can’t just change it over one virus. It’s going to somehow be back to
people are going to travel, people are going to eat out, people are going to…
you know I always like this too, you know, painful times where you say this
will never happen again. But, the further you move away from the pain, the less
you remember it. And so when we moved away from this, I do think there’s a gem
in here. This kind of leveled the playing field. So you have agents that are
top agents, agents who don’t do much business, and they all found themselves in
the same place. And this is a good time to reinvent yourself, because when you
hit a point where you’re all in the same boat, and the same thing is happening
across the board. And it’s affecting people buying homes or selling homes, you
have a chance to see, okay here’s the time to reset. What is my goal, what do I
want to do, what do I need to do to reach that. Let me go look at some
technology and there’s some really good stuff out there. To me, anything that
you can use that, number one, promotes you, keeps you connected; I think the
biggest issue I’ve seen over the years is once an agent sells a home for
someone or helps someone buy a home, there’s been a lack of the ability to stay
close to that person. So, you’ve built this relationship but they may not
need you for another 8 or 9 years. So, you have to figure out for another
8 or 9 years, what can I bring to this person that’s ov value. And that
can be, constant monitoring of the value of their home, of their neighbourhood,
of things that you can do to help them. You know, you have to say in front of
them. They need to remember what you did, and that you’re there, and that you
become someone who is familiar to them through the whole process. So, anything
that helps you to do that, and then anything that helps you to be able to use
technology and gather it in one place. So, if you pick three or four or five
products, you want the ability to integrate those products, so look for
software like that. Things that will help you more efficiently. You can’t log
in or log out of 8 or 10 systems a day, you have to have the ability to
log into something and find your scope of what’s important to do over the next
hour, as opposed to what’s important to do in your next 8 hours or a
week.

Lynette Keyowski – Beyond the Box Host: Right. I love that,
that’s such a great insight Bill, and I think again, in terms of the companies
and the technology that we see as part of the REACH program and evaluating
companies that are already in the market. Those are the ones that are starting
to percolate to the top, right. Those are the ones that are enhancing the
relationship almost as opposed to disintermediating the process, right. I think
that’s definitely something that I’ve heard loud and clear through our
conversation is that’s an important component in this industry. But because of
the nature of real estate, real estate is a very personal purchase, it’s a very
infrequent purchase and therefore the relationship is a very important
component. I love that. So, just to wrap it up, I have two last questions for
you. First one, and I suspect it’s not the one on the back or on the wall
behind you, but when’s the last time you were on your surfboard?

Bill Andrews, Regional Sales Director, Black Knight: Oh,
about 2 weeks ago!

Lynette Keyowski – Beyond the Box Host: Oh, did you get
out?

Bill Andrews, Regional Sales Director, Black Knight: Yeah,
but they closed most of the beaches, it’s hard to get access and it’s also been
red tide out here, which is a condition that in this case has been so severe,
that the water is brown, and at night you can see of course, the glow on the
water but during the day it’s brown. So, it’s been a little bit stinky and
brown and beaches are pretty weird because lifeguards are on bullhorns telling
you to keep moving. It’s been a couple of weeks, so I’m just waiting for
things to get back to normal.

Lynette Keyowski – Beyond the Box Host: Cool! That’s cool.
Well, I still am looking forward to the day when I get to come down and get a
surf lesson from Bill Andrews, so that’s still on my bucket list. But here’s
the last questions I have for you. What’s the next event you think that
you and I are going to be able to enjoy dinner together?

Bill Andrews, Regional Sales Director, Black Knight: I’m
thinking… I’m hopeful, I think we might be able to see November NAR. I think
there’s a good chance that we’ll all be at that. I can see some of the
travel coming back a little bit. Very limited, but I think by then we’ll have
something figured out if they have some of the fixes in place. For example,
like a vaccine or things that they found that are… I think people will be
more confident about travelling and not having severity and weigh the risks of,
“how long do I stay here, and how long do I stay holed up” as opposed to. Our
industry is very reliant on relationships and seeing each other,
eyeball-to-eyeball with most things. And I look forward to it, because I
think this will be an especially sweet one, because I think people will be very
happy to see each other and to all be back and so I think I’ll see you in
November and we’ll see what happens!

Lynette Keyowski – Beyond the Box Host: Well, I certainly
hope so, and whether it’s November or whether it’s sometime in 2021, I
definitely look forward to the next time you and I get to hang out because it’s
always such a pleasure. And I really appreciate you agreeing to do this today,
it was so great to see you. So great to chat with you and I wish you all the
best with your new gig!

Bill Andrews, Regional Sales Director, Black Knight: Well,
thanks. I’m honored and I wish you the best as well, I know your background and
your level of dollars in the business is going to help all those vendors out
there in Canada. And I hope they’re listening, because this is an opportunity
for them to glean something off what you’re doing, and I wish you the best of
luck in that.

Lynette Keyowski – Beyond the Box Host: Thank you so much.
Really appreciate you, my friend.

Bill Andrews, Regional Sales Director, Black Knight: Thanks,
Lynette!

Lynette Keyowski – Beyond the Box Host: I look forward to
the next time we chat. Take care!

Bill Andrews, Regional Sales Director, Black Knight: Bye-bye!

— End of Podcast —

Beyond the Box: Conversations with real estate executives, venture capital partners and technologists on what lays ahead for the real estate industry in a world after COVID-19.

Beyond the Box Podcast Hosts

REACH Cohort Overview: Highlighting Key Innovators In Real Estate

Tue, 30 Jun 2020 23:08:00 GMT

In the wake of COVID-19, the real estate sector is being presented with more challenges than ever before. Innovative problem solving is required to make the most of this new normal. At its core, the goal of Second Century Ventures is to help transform the promising technology firms of tomorrow into the top real estate solutions of today. We are enabling this transformation through our REACH global initiatives. Let’s take some time to recognize the promising upside of the 16 visionary organizations we’ve backed in the US this year.

REACH 2020

CartoFront

CartoFront is a software-as-a-service (SaaS) company specializing in digital solutions that make it easier for insurance providers to explain, market, and sell flood insurance to homeowners. As the frequency of large-scale flood events continues to increase, proper insurance coverage will become increasingly important. CartoFront bridges the gap between demand from homeowners and supply from reputable flood insurance providers, all while working to deliver industry-leading customer service.

To this end, CartoFront is committed to delivering a gold-standard customer experience, complete with bilingual communication, training and education programs, and personal connections with local insurance agencies. The benefits of immediate access to flood information and accurate insurance quotes are a win-win for all parties, as they prevent time, money, and energy from being wasted by homebuyers and insurance brokers.

Earnnest

Earnnest is transforming how money moves in real estate, empowering buyers to securely deposit electronic funds directly to an escrow holder. As young homebuyers look to make their first real estate transaction, many of them are unwilling or unable to write paper checks. While wire transfers have filled this gap in the past, many consumers view them as expensive and redundant in the age of Venmo.

Even if a buyer is willing to write a check, this outdated payment method introduces unnecessary friction for agents and escrow holders. To solve these problems, the team at Earnnest has developed a secure, fully digital solution for requesting and remitting earnest money deposits (EMDs). Thanks to its low cost, Earnnest is a promising alternative for paper checks, enabling frictionless transitions for buyers, agents, brokers, and escrow holders alike.

Kangaroo

Kangaroo is a market leader in affordable and user-friendly security solutions. Perfect for smart home enthusiasts and small businesses, their technology provides an all-in-one security product that can be monitored from your smartphone. Associated service plans include 24/7 Professional Monitoring and cost just $10 per month, which is four-to-six times cheaper than competitors.

When compared to other home security providers, Kangaroo differentiates themselves through their dedication to customers who have been underserved in the past. An attractive cost structure combines with an easy-to-use product to make their security system versatile in a crowded market segment. These unique advantages recently propelled the company to a major insurance partnership, where the carrier offers new customers branded Kangaroo security kits.

Modus

Modus is an innovative tech company working to build the operational backbone for the real estate transactions of tomorrow. Despite the development of digital technologies, the basic real estate transaction has remained heavily reliant on physical paperwork.

Recognizing this issue, Modus has developed a vertically integrated platform that consolidates disparate real estate transactions into a single workflow. Starting with title and escrow, this solution saves real estate agencies significant time and assists them in maximizing their income through an optimized closing process.

PunchList

PunchList is an up-and-coming service that helps real estate agents manage the complex task of getting home inspection repair estimates and completing necessary repairs before closing. Before PunchList, agents lacked a reliable resource for quickly pricing home inspection deficiencies or connecting with dependable contractors for repairs.

This service addresses both of these pain points, granting agents access to fast quotes and a network of reputable contracting professionals. PunchList manages the repair process from start-to-finish, providing fast and accurate estimates and helping agents find the perfect contractor for the job. Punch List is leading the way with comprehensive repair estimates from home inspections delivered in 24 hours or less.

RealX

RealX is the first and largest online property rights exchange in the United States. This innovative platform is revolutionizing how property rights are purchased, sold, and leased. The platform focuses on connecting buyers with landowners to secure leases for solar, wind, timber, and more. For example, when a developer is looking to lease land for a cell tower, they have traditionally had to send out mailers, follow up with cold-calling, and even knock on doors to connect with landowners. This process is tedious and frustrating for all parties involved.

The RealX platform transforms this historically complicated process into a quick and easy transaction. Landowners list their offerings on RealX through registered real estate professionals. Developers can search the platform for land offerings that align with their intended use cases, thus enabling deals to be struck in days instead of months.

Transactly

Transactly is a platform where agents, teams, and brokerages can connect with technology-enabled transaction coordinators. While most clients initially use the platform to access on-demand transaction coordinators, Transactly is much more than just a service.

In active markets, real estate agents can quickly reach peak capacity, which puts stress on brokerages as they work to provide increased transaction assistance. This proprietary system enables automation, transparency, and collaboration, which in turn streamlines real estate transactions.

Ylopo

Ylopo (pronounced “why-lo-po”) is a next-generation digital marketing company providing cross-platform marketing solutions for real estate. Sporting end-to-end support, this platform has been engineered to help agents, teams, and brokerages generate increased businesses while building their unique brand. While the world of digital marketing is notoriously competitive, Ylopo outpaces its competition by consistently offering groundbreaking, first-to-market technology advancements.

When their clients wanted to use Facebook’s dynamic ads for remarketing to consumers who had previously expressed interest in purchasing real estate, the Ylopo team developed engaging video slideshows. After remarketing to the client’s database, this innovative approach yielded click-through rates four times higher than single-image dynamic advertisements, resulting in a 36x return on the initial ad-spend investment. The results speak for themselves.

REACH Commercial 2020

Dealius

Dealius is the leading brokerage management platform for commercial real estate firms. They provide owners and brokers with the ability to manage every facet of their business workflow in one integrated, web-based solution.

As the only platform that integrates transaction management, accounting, and reporting data in one centralized system, the Dealius platform is an innovation in brokerage management. It is the perfect solution for brokerages seeking to improve efficiency and productivity when managing their transactional data, accounting, and reporting.

Dealius Capital

Dealius Capital provides working capital to commercial real estate brokerages by leveraging its commission receivables to offer working capital for immediate business needs. Brokerage owners benefit from immediate capital to manage their short-term expenses without having to go through the traditionally lengthy bank loan process.

Through a quick and easy process, firms can obtain working capital within 48 hours, which can then be immediately applied to short-term business requirements. Dealius Capital is the only provider of working capital specifically engineered to meet the needs of commercial real estate brokerage firms.

Energy Producing Retail Realty

Energy Producing Retail Realty (EPR2) owns and operates solar and other on-site energy solutions on behalf of building owners and tenants. Clients enjoy the benefits of affordable clean energy without the obligations of ownership, enabling them to focus on their core business while remaining eco-friendly.

Offering the only solar program that works for multi-tenant commercial properties, EPR2 doesn’t require a guarantee, subordination of existing loans, or additional financial burden on the existing investors. Clients enjoy a new roof, upgraded landscaping, and decreased electric costs.

Leasera

Leasera offers a holistic platform and marketplace of on-demand tools and services which enable the automation and access of necessary data within today’s dynamic rental ecosystem. Their solution bridges the gap between property management companies (PMCs), owners, renters, and service groups to improve the way leasing is approached throughout the real estate market.

Today’s marketplace is more dynamic than ever before, yet variable duration offerings and on-demand services for PMCs and renters alike are increasingly disorganized. Leasera’s technology delivers a holistic solution, with benefits that include increased retention, net operating income, and consumer satisfaction.

Obie

Obie is an insurance and portfolio management platform for real estate investors. This promising platform combines free insurance and portfolio management tools with a full-service, technology-enabled insurance brokerage to offer competitive rates to real estate investors.

Obie users enjoy several advantages, including near-instant insurance quotes with competitive rates, user-friendly portfolio management, and reliable customer support. Consider a real estate investor with multiple rental properties. Assuming that they’re overpaying for premiums, they use Orbie to get a new insurance quote in less than 10 minutes. In an instant, they’ve saved tens of thousands of dollars on insurance and substantially increased the value of their rental portfolio.

Occupier

Occupier has developed a unique customer relationship management (CRM) platform that provides tenant representation brokers with a smarter way to track client relationships. Occupier’s Broker CRM manages transactions, tracks client portfolio details, and facilitates communication between teams and clients.

Their modern and easy-to-use software centralizes pertinent information, empowering users to know where they stand on each deal, which sites are under evaluation, and how negotiations are developing. Centralization of these essential details helps brokers to foster proactive relationships with tenants, allowing for clear communication of critical dates, lease clauses, and rent escalations.

Pear Chef

Pear Chef provides private chef and culinary services for the multi-family market. They work directly with residential buildings to provide made-to-order lunch and dinner offerings for residents daily, all through a technology-enabled platform.

The experience provided by Pear Chef is truly unique. Residents enjoy quick and delicious meals delivered to their door, while management teams enjoy consistently high occupancy rates. Engaging residential experiences such as catered events or cooking classes are also available, all staffed by top-quality professional chefs.

Real Time Risk Solutions

Real Time Risk Solutions (RTRS) has developed a mobile risk management platform that leverages advanced analytics to measure, analyze, and mitigate risk across any industry in real-time. Built on a single unified code base, their best-in-class platform provides users the ability to deploy custom apps to a wide range of distribution partners, thus reducing sales cycles.

This solution can be especially impactful for large real estate or construction firms managing multiple projects at once. Organizations like these rely on numerous paper forms for reporting and compliance. With RTRS, these paper-based forms can be digitized across the entire enterprise in a matter of days. In return, clients often enjoy increased productivity and a rapid return on their initial investment.

Beyond the Box – Season 1 – Episode 6 – David Steckel – Co-founder and CEO at Setter

Tue, 30 Jun 2020 12:30:00 GMT

Beyond the Box – Season 1 – Episode 6 – Featuring Co-founder and CEO at Setter, David Steckel.

Subscribe on Apple Podcasts

Watch on YouTube

In the sixth Beyond the Box episode, Mike McAra has the pleasure of talking with Co-founder David Steckel about the ride to get venture-backed by some of the biggest names in the valley, only to have COVID come and significant impact his business all while closing their Series A round.

Watch/listen here to get the scoop on Setter and how David and his team are re-imagining the post-transaction customer experience.

“I was a homebuilder. So, people just wouldn’t let me go away; I was always continuing to do work for them after the fact. And so, it got to the point where I was also doing work for the Brookfield’s of the world, and I was introduced to the facilities maintenance, so I was doing it for army’s and hospitals. And I sort of thought, “Okay, I need to take facilities maintenance and bring it to the residential market.”

Full Transcript of the Show

Mike McAra – Beyond the Box Host: Perfect, so we are rolling. So, we have David Steckel with Setter. Really excited to have you on the show, thanks for coming on!

David Steckel – CEO, Setter: Thanks for having me.

Mike McAra – Beyond the Box Host: Awesome, awesome. So obviously, we’re in a new world with Covid going on, and clearly that’s changing businesses and it’s impacting people right now. We can get to that a little bit later, but before we get to that, what I would love to do is just sort of have you give people an overview for people of what is Setter. So, what is Setter David?

David Steckel – CEO, Setter: Sure! So, Setter is a virtual property management and concierge platform, to help people take care of their homes so they don’t have to.

Mike McAra – Beyond the Box Host: Okay. So…

David Steckel – CEO, Setter: What does that mean, right? So, imagine you’re in a condo, or imagine you’re in a first class building downtown. They actually have companies that take care of everything for them. From the window cleaning, to the management of capital… CAPEX expenditure, to snow plowing, gardening, etcetera. I’ve always found that homeowners could find value in a service like that. Because truthfully, owning a home is like owning a bunch of complex assets that need to be maintained and then on top of that, there’s always upgrades and sometimes things go wrong. So, is there a trusted source for homeowners to go to? No. There’s a lot of marketplaces where they can go to and negotiate with the pros themselves, but the idea is, is that homeowners are busy. And they have jobs, they have families. Sometimes owning a home can feel like another job. And so, Setter has always been here to help our homeowners. We’re very much a “do it for me” company, rather than a “DIY” company. And that’s also part of how we differentiate.

Mike McAra – Beyond the Box Host: Love it. Okay, so just to kind of give me an example of that. So, this weekend, I was doing some gardening and I needed to take care of some landscape maintenance first sort of thing. And I’m like, who do I call to go on this sort of whatever it is, Kijiji or Craigslist or pick your favourite online listing. Instead, with Setter, I could just go onto my Setter account, and say, “Hey I need this taken care of” or I could just talk to my person.

David Steckel – CEO, Setter: Well, ideally, you know, it’s April. We would have been messaging you since March to say, “Hey, it’s time to start thinking about these things…” These are in your geography; these are the things you should take care of. This is why you need to pick up the leaves, actually you would have done them up in October.

Mike McAra – Beyond the Box Host: Whoops, ha-ha.

David Steckel – CEO, Setter: So, if you’re going to consider sodding and having good grass for the summer, you need to act now. So, we’re all about education and we believe that an ounce of prevention is worth a pound of care. So, everything about Setter is like, how can we help our homeowners understand the issues around their home, and why they’re issues. And what do you have to do and then we help them come up with an actionable game plan to tackle the issues. And then the third, ideally, we’re here to help them tackle them as well, but the truth is we find much more value in being your resource to your homeowners and a partner, than actually having…. We don’t have to do every job with our homeowners.

Mike McAra – Beyond the Box Host: Gotcha. So, so this is everything. So, we’re talking fixing repairs in say, my eavestrough to my furnace to plumbing. This is every component in maintenance.

David Steckel – CEO, Setter: Yeah, so we break it down into a couple areas. So, there’s safety. So, if you don’t clean your fireplace, and you’ve had 50 or 60 fires this winter, the truth is, there’s a creosotes buildup in your chimney that might actually explode. I know that sounds absurd, but it could.

Mike McAra – Beyond the Box Host: Fair.

David Steckel – CEO, Setter: Yeah, but I mean, these things happen. And then, you know, that’s why you have insurance, and that’s actually how insurance providers come up with your risk premium. It’s based on what are the items that you have, and then they assign a dollar figure to you every year, saying, “Okay, 1 in 30 people are going to have a chimney explosion this year.” That’s literally how they do it. The insurance companies buy risk from people, and Setter tries to make homes a little bit safer. And then there’s the quality of life aspect, you know, like cleaning your windows. You don’t need to do it, but it’s nicer. And then there’s ultimately, you know, before I started Setter, there was Christmas Eve. We had two calls from previous customers. One, they were away at their cottage and the sump pump alarm is going off, and we had to go over there, and it had frozen. And the other person, again, it’s Christmas Eve, their door wouldn’t lock. And so, what do you do? They wanted to go to their parents’ house. And their beautiful home, they can’t leave for Christmas. So, it’s like, people need someone to call that they can trust that can help them.

Mike McAra – Beyond the Box Host: Love it. I literally just wrote down, that I need to get my fireplace sweeped. Swept?

David Steckel – CEO, Setter: Ha-ha!

Mike McAra – Beyond the Box Host: Don’t want to be the 1 in 30 that has a chimney explosion, but it would be so much nicer to have someone take care of that for me. So, I totally get it from the homeowners’ point of view. So, you’re active in two markets now; is it Toronto and the Bay Area?

David Steckel – CEO, Setter: Yeah, well we’re going to start talking to post-Covid world soon, but up until today we’ve been marketed in the whole GTA, as well as San Francisco and the full bay area; east bay, north bay, south bay, all the way up to Contra Costa. And we’re going to be considering opening up another California city. Actually, last month, but plans did change.

Mike McAra – Beyond the Box Host: Okay. Okay, so we’ll get to that, so, you know, starting out you clearly got some serious traction under you. I think what really jumps out to me, and we were chatting about this before in our pre-interview call….

David Steckel – CEO, Setter: In the green room!

Mike McAra – Beyond the Box Host: That’s right, in the green room. So, you’ve kind of gone down this path that, you know if I’m wearing my former founder hat on, that I think a lot of people sort of view as the ideal path. You know, that is going through that 500 start up approach, getting that key-stone investment in your seed round from somebody like Sequoia, and then you go down that path and transition that to that you’ve recently announced your Series A round here. So, you’ve gone down that path that some people look at and say, “That’s the path that I want” because it’s the same path that, say pick your favourite unicorn that’s gone down. So, maybe from… I’ve always been curious, personally, what that looks like. So maybe if you could talk about how that all worked? It might be really cool to hear for our listeners.

David Steckel – CEO, Setter: Yeah. Um, I was probably older than your typical founder when Setter came about. Setter was an offshoot of my previous business. I was a homebuilder. So, people just wouldn’t let me go away; I was always continuing to do work for them after the fact. And so, it got to the point where I was also doing work for the Brookfield’s of the world, and I was introduced to the facilities maintenance, so I was doing it for army’s and hospitals. And I sort of thought, “Okay, I need to take facilities maintenance and bring it to the residential market. This needs to be a net-new company, and I need to have existing technology for me to leverage. So, I need to build something to allow me to do it.” And I failed miserably my first kick at the can. It was just like… just an egregious waste of money. I spent a fortune and I did exactly what homeowners do, they’re like, “I’m just going to interview three general contractors and choose the middle price.” So, I interviewed three amazing tech dev shops, and I chose the highest price, because their scope of work looks the best. And I got exactly what I asked for, and it was not even close to what I needed. So, it was my… there was a little bit of [inaudible 7:37].

Mike McAra – Beyond the Box Host: I think everybody has a bit of those scars; I think.

David Steckel – CEO, Setter: And so, what ended up happening, I was like, what went wrong here was that I’m not a subject matter expert in this. I can build a house, I can do the sales part, I can run the business, but clearly, I have no abilities to manage the product creation. So, I went out and found myself a co-founder. And you know, back in… this was like 2015. The term founder didn’t really mean anything to me at the time, and so I found somebody who was exactly what I wanted. So, I literally wrote a job description of all the things I screwed up and what I want this person to be, and I found Guillaume. And I was able to fund us for almost another year and then we were running out of money. Cause you know, fixing people’s toilets is only worth $30 bucks. So, you need to get some money! I was actually against venture in the beginning. I was against it, and I was like, “We’re going to bring in people to own 25% of my company, what are they going to do? What value are they going to add?” I wanted to go franchise; I wanted to do the, “1-800 got junk model,” Brina Scudamore is a genius, ode to brand. It’s incredible what they’ve done. And that’s sort of what I wanted to do. And then, we actually ran out of money. So, we did a small friends and family round, and it’s called an Angel Round for a reason; it’s just these people who love you.

Mike McAra – Beyond the Box Host: Exactly.

David Steckel – CEO, Setter: They’re angels! And during that round, Guillaume approached me with the company called 500 start-ups. And I was like, “Okay this is interesting.” And I looked at the deal, and I was like, “This deal is horrible! I’m going to give away this much, for this amount of money? I mean what is this, it’s a horrible deal.” And then he sold me and I’m very happy he did. You have to understand that they’re providing you value. The reasons that you go with the company like 500-startups or **whycobinator. They’re accelerator programs. And what does accelerator mean? It accelerators you to the next step you need to be at, so you can hit that next round of financing, or you can hit that next milestone. And so, we went to 500-start-ups and obviously there’s how to incorporate a company in the States, etcetera. But really, the most valuable thing was, and I’d recommend anybody to consider an accelerator, because their job is to help you craft your story. Their job is to help you craft your deck, and their job is to beat the shit out of you until you provide a 3-minute pitch that is correct. And that is going to get you some sort of traction. And they’re ruthless! And they’re all ex-founders, they understand the game. It was such a valuable experience and on top of that, our point of contact was Eric Bahn who now has a fund called the Hustle Fund, and Elizabeth Yen, they’re fantastic. I’ll never forget the day… these people were spending hours of their time with you; we’re whiteboarding. And then he started to realize the potential LTV per user and sort of the scale of how big Setter could be, like the true [inaudible -10:49]. And his like… you saw his brain explode! And then, he became our number one champion and started to spend more time with us. So, my advice to anyone who considers accelerators; you’re giving away a huge chunk of your company for not very much money, but you’re giving it away for the opportunity to find someone to be your champion. And if that person is going to then work with you to help you get to the next stage of your business, so that you can achieve the escape velocity that you need to, to get ahead of your competition. So, 500 start-ups, we worked on our deck, we actually used Demo Day. The strategy was to use Demo Day. Not for your pitching, but for closing your pitching. So, we had been pitching the full month before. It’s easier to say the same thing.

Mike McAra – Beyond the Box Host: Yeah, yeah, it’s exactly the thought process that’s when you want to have the ink getting ready on those cheques.

David Steckel – CEO, Setter: Yeah, so I mean, Sequoia was luck for us, truthfully. Eric who was close with Sequoia and really believe in our company introduced us to sequoia. Sequoia is a big fan of companies that have the potential to be category creators. Sequoia has been making bets on the home space. The home space is one of the last few trillion-dollar opportunities that there is no category leader, and so they had an investment in [inaudible 12:20] and actively vested houses and Setter sort of fit the bill of a company that wasn’t a lead aggregation marketplace. It was more of a… I think they saw the “do it for me” and “management” marketplace before everyone else. That’s probably why they work with us and also our LTV per user was significant.

Mike McAra – Beyond the Box Host: Which, yeah, as everyone knows is what you’re looking for right?

David Steckel – CEO, Setter: Yeah.

Mike McAra – Beyond the Box Host: Awesome. Okay, so, that was such a great start, because I think for most part, as soon as you get the name 500-statups, it’s like, “Oh yeah, the doors open.” But the reality is, is that you’ve got ground down, hours upon hours, days upon days, to get your story, your craft, and your deck just right, to build those relationships that you could position yourself for success.

David Steckel – CEO, Setter: It’s… you hit the nail on the head. When you go to an accelerator, there’s tech start ups, there’s founder start-ups, there’s [inaudible 13:17]. I’m assuming they’re all the same. It’s not about the content, it’s about the relationships that you build that allow you to then leverage them. You want someone to give you candid feedback. You know, “Is this deck shit?” “Yes. No one’s going to answer your phone call.” Their objective is to help you get to the next stage, so if you’re not going to go to one of these accelerators, and put everything in, there’s no point of you going. It’s just a waste of your time.

Mike McAra – Beyond the Box Host: Well, and I think the other thing too, is when you’re evaluating the opportunity of these accelerator programs, it’s not just that dollar for equity that you have to consider, because there’s so many intangible values, that are intangible components that come into that equation, that perhaps you just don’t see at the initial level until you’ve actually gone through. I think it’s interesting to see your story, because not only did you go through, but now you’ve gone full circle. Now you’ve gone from seed and now you’ve gone to A round. Now, just to close this loop. You’ve closed seed round; you now have, I’m assuming you’ve got some KPI’s that you have to hit, because now you’re on the VC train. You’ve closed the seed round, now they need to see that growth. It’ll be really interesting to hear what did that look like; what you’re told, what’s written in books. Because you know, you’ve got 18 months to triple the value of your company.

David Steckel – CEO, Setter: So, yeah, we call it the treadmill.

Mike McAra – Beyond the Box Host: I didn’t want to say that, but…

David Steckel – CEO, Setter: You know the world is drastically changed even pre-Covid, but I’ll get to that in a minute. So, between… you basically get an MBA going through angel, seed, accelerator seed; you’re learning all these new terms, burn, runway, KPI’s, you know, how do you make these all ladder up into company mission and vision. It’s all essential. So, yeah, once you’ve taken venture, you are on that treadmill and you have to take venture because the reason you take venture… Actually, let me reset a little bit. Start-ups to me equals exponential growth. My previous business is a great business, we’re growing 20% year over year, and you know, that business is now ten or twelve years old. That’s significant. But a start-up, exponential growth is 20% month over month. And when you’re doing that, you’re going to be hitting 5x a year. That’s a start-up. So, between seed and series A we did do just that. We 5x’d and then that’s what they’re paying for. They’re investing in you to remove all barriers so you can hire engineers, you can hire product people. My only regret is not hiring… not understanding that I can spend this money sooner and hire the best people sooner. I also didn’t understand what the best was.

Mike McAra – Beyond the Box Host: Fair.

David Steckel – CEO, Setter: That’s what the money there is for. It’s to accelerate your growth and allowing you the opportunity to hire the best people. That’s one thing no one taught us. And for series A was not hiring a recruiter as my very first thing after series A.

Mike McAra – Beyond the Box Host: Well, you know you have these conversations and especially in the category creation class. If you think about this, these venture capital companies are going to bet on one horse in the race. So, let’s say there’s a few horses in this new category that they may or may not be seeing. And so, they’re picking that company whomever it is, maybe they’re going to pick a couple to hedge their bets. Their goals is to give that horse as much, whatever it needs, to race the fastest. So, if you’re one of those companies that get bet on, that’s at least what the outside perspective is. So, it’s interesting to hear it from the inside that it’s exactly how it was, you know, “Spend that money now,” because we do want to grow, we do want to hit that milestone. Because then it’s just layers on top of that.

David Steckel – CEO, Setter: But you know it took a while to understand that you can do it.

Mike McAra – Beyond the Box Host: Right.

David Steckel – CEO, Setter: And it also took a long while that you should be leveraging your investors. They’re here to help you. Leverage them. Ask them to do stuff for you. They want to do stuff for you. All they want to is for you to succeed. So, make asks of them all the time.

Mike McAra – Beyond the Box Host: Love it.

David Steckel – CEO, Setter: You know, if I could rewind, I would be much more aggressive doing that. But yeah, for the series A, we grew 5x year over year and then we were lucky enough to have NFX come on board as another investor during our series A.

Mike McAra – Beyond the Box Host: Love it.

David Steckel – CEO, Setter: And you know he was the founder of trulia? Who basically started real estate from… He knows about real estate more than any of us know.

Mike McAra – Beyond the Box Host: Well you know that’s sort of a beautiful saga because you know, the story is super cool for any tech founder, anybody who wants to do the start-up path, because it truly does give that founder’s perspective of what that means. But obviously for our purposes here, being in the real estate industry, obviously there was life before Covid. And now there’s certainly life after Covid. One of the things I’d love to get your take on is how you’re seeing the current market with respect to real estate in general and what changes you’re already seeing, or what you may. Be seeing down the pipe. And also, how that sort of will impact Setter or how you will position for opportunity.

David Steckel – CEO, Setter: Yeah, so I’ll start by saying, you know, pre-Covid, 2019 was a crazy year for venture backed companies. We saw sort of the collapse of Softbank, and their companies which were operations intense businesses, were mostly the companies that didn’t do well last year. Setter is incredibly operational business, so you know, hitting 6x year over year growth, which is what we did, was not good enough. Our unit economics is what became the… it was weird. It was like, between Q2 and Q3, there was a switch that went from “growth at all costs” to “unit economics and profits.” Just overnight, the entire world changed and luckily, we started working on that, we hit contribution positive. In August 2019 everything became less about growth at all costs, and more about sustainable growth. So, that was the first pivot of Setter. Then Covid happened and this thing, remember what I do. I send human beings into other human beings’ homes after they’ve been at other human beings’ homes. My entire business is saying, “Hey, can you do this for somebody I know physically in their home.” My sales went down like 97-98% instantly. And it’s totally understandable. You don’t want strangers in your home. Very little of the work that Setter does is emergency. You know, there’s only like two or three emergencies, like fire or water and you call the fire department.

Mike McAra – Beyond the Box Host: Yeah.

David Steckel – CEO, Setter: So, yeah. People are not having us come in to do two-week paint jobs right now. So, it was a bit of a catastrophe to tell you the truth. You know, we had some great calls with Sequoia. They sent out the black swan letter. NFX sent out some more letters, we also have Dag*** as an investor and they worked very closely with them. And I couldn’t be happier that I have these people who have seen 2008, 2000, 19** , they’ve seen all these things happen. And the best advice was you have two options: you can lean into this or you can just sit back and watch it happen. So, full disclosure, Setter has fully eliminated services because the truth is, most of my customers are the middle class, they have families, and safety is important. They’re not going to be allowing someone into their home for the next 12 months. It’s just not going to happen. In the interest of saving cash, and making sure that I have 18 months of runway so that we can go through survival and then ramp up and then hopefully capitalize… We’ve had to tell ourselves an honest truth and that is that home services that are non-essential are not happening for the next year. And so, we’ve leaned into it and we’ve been creating virtual experiences. And the truth is, it’s allowed us to focus more on our tech, rather than chasing the revenue which is what we’ve been doing for the last two years.

Mike McAra – Beyond the Box Host: Interesting. And well, that’s the thing, you know obviously no one wants to go through this, but once you’re in it, it’s okay. How do we adapt, how do we lean into it, and what can we make this become a net positive in some way or fashion? We always talked about it at our company was like, you always have some sort of debt. You have technical debt, you have capital debt, you have people debt.

David Steckel – CEO, Setter: Operational debt.

Mike McAra – Beyond the Box Host: Operational debt. Now, when you take off operations, capital as well, you’ve got extra runway. So now you’re dealing with tech debt. So maybe let’s focus on our tech debt instead and see what we can deal with at this point. And then how do you move that forward? The other thing that I sort of take comfort in is the fact that everybody in the home services industry is going through the exact same thing. So, you’re not alone and you just have to flip through Inman, and you can see that Open-door is a great example, because it’s so public and so promoted. But Open-door shut down, they went to zero revenue. They stopped doing everything, and literally when you get zero revenue, what do you do?

David Steckel – CEO, Setter: What do you do? Remember cash flow is king, right? It’s like there’s a difference between cash flow and cash on the hand, and for us, none of it is our money. It’s all about this burn. LTV. But there’s no LTV right now. So, it’s cost of acquisitions right now, but what’s the point of acquiring.

Mike McAra – Beyond the Box Host: Well, and that’s just it. But you look to see how things are changing and so I guess given now that you’ve made this transition, what have you seen or heard from your consumers thus far? Is it that we’re basically shutting it down for the next 12 months, or have you seen people be not as drastic in their behaviours as you initially thought?

David Steckel – CEO, Setter: So, it’s sort of like we’re back to a seed stage company, truthfully. With our behaviour here, we’re going after product-market fit again.

Mike McAra – Beyond the Box Host: Interesting.

David Steckel – CEO, Setter: Basically, the way we’re approaching it is, our mission has always been “Homeownership that doesn’t suck.” We believe that owning a home is complicated and it’s a pain in the butt and people just need help. So, we took our mission and you know, we took what we’re good at, and we’re like, “Well, how can we still go after that?” And then we went through the category creation exercise, after reading the playbook Play Bigger , which everyone should read.

Mike McAra – Beyond the Box Host: Say that again so everyone can hear that?

David Steckel – CEO, Setter: It’s a book called Play Bigger and it changed my outlook. Everyone should read that.

Mike McAra – Beyond the Box Host: Play Bigger , do you know who it’s by?

David Steckel – CEO, Setter: Yeah, it’s by three guys…. Let me look it up.

Mike McAra – Beyond the Box Host: That’s okay, we’ll include the link here so our listeners can look it up. [Link:

David Steckel – CEO, Setter: Yeah, we’ll add it later. It’s amazing. They actually have consulting services as well. It’s really about category creation. They spend time in category design, so the first bit of the book talks about how product design didn’t exist until a few years ago, and neither did category design.

Mike McAra – Beyond the Box Host: Gotcha.

David Steckel – CEO, Setter: When going through the exercises I came up with the category. Now remember, there’s no clear category leader, and it’s like, “What’s our category?” for me, it wasn’t home management, it wasn’t homeownership, but I liked home management, but it wasn’t just getting the vendors in the home. There’s so much more that goes into the home; there’s the financial complexity, the operational complexity, and the products that go into the home. So, for me, the category became home ecosystem management. And when ecosystem was interspersed in there, it sort of allowed me to be free from being stuck to physical services and what some people call a marketplace. As we’ve been looking at this small pivot for Setter, it’s like, how can we help people manage the ecosystem around their home? And we’ve created a home-hub, where people can log in, we’re doing a virtual consultation where we walk people through their home. And we’re still focusing on the same three things: Safety, Maintenance, and Quality of Life. And now we’re helping them, but because we’ve had a chance to work on our tech debt, the output for this report is so significantly better than it was before, and we’re enabling them through way less friction than before, to mitigate any of the safety concerns, to get better pricing and to create that action plan for homeownership a little bit better. And the truth is, one interesting thing that’s happened is more B2B rather than B2C. We’ve recently starting working with some of the top 10 US insurance companies and what Setter’s always been able to do, the thing that we were the best at is creating relationships with our users that we’re helping them to be partners in their home. We used IQ to build EQ and then people were trusting our recommendations and you know, we were in their home and we figured out a way to turn that into a virtual experience.

Mike McAra – Beyond the Box Host: I love it. I was just going to ask, because my mind immediately goes to when you have all of that information and you can better understand the asset class: you know, you can understand the home from the insurance perspective, from the lenders perspective. These are all of those things that they were essentially guessing on, where they would underwrite different premiums for property insurance, or for different risk profiles for lending, like a home equity or a line of credit, something in that sort of nature. You have that ability to sort of collect it from the consumer in a way that it’s sort of vetted in a way with a nice report. Clearly the B2B opportunities are there, and if I’m a real estate professional, my whole goal is keeping that client around for the next sale. And so, what better way to deliver value between the point of sale, than utilizing a service like Setter, or partnering with Setter. So, my consumer, who I built a really great relationships over a long period of time, that’s my client, then I can then enhance my value proposition by working in the service space. So, I can see that as being a really cool opportunity that I’m sure you’re already exploring but there’s just a great example.

David Steckel – CEO, Setter: It’s a good push and thanks for bring it up. So, we’ve been working with agents and brokers and the franchisors. 83% of repeat transactions go to a second team. That’s a NAR statistic, and it’s my favourite statistic. When you’re thinking about that, all of the work you’ve done is gone. People are moving every 7 years and they’re going with the second team. And they’re going with the second team is because the way you communicate is broken. So, Setter has figured out a way to have an annual… it’s not a gift at Christmas time… everyone loves a gift basket at Christmas, but nobody really cares. [Inaudible 28:43]

Mike McAra – Beyond the Box Host: [inaudible 28:45] marketing.

David Steckel – CEO, Setter: But it’s also relevant to the asset that they helped them purchase. That’s the difference. It’s like, “Hey mike. I just wanted to reach out to you. It’s been a year since you worked with me, thank you so much for allowing me to be a part of this journey with you. I just want to make sure you’re safe, and so here’s Setter to come and do this for you. And by the way, I’m going to pick up the filters.” Obviously, Setter is going to do it. And you know we even do a handwritten note.

Mike McAra – Beyond the Box Host: I love it, I think that’s where things are trending and just the layer onto that NAR stat, depending on which year you pick, it’s between 80 to 90% saying that buyers would definitely or most likely use the agent in the next transaction. But then you contrast it with the fact that 83% actually use somebody else. So, they want to use you, but in 7 years they don’t because…. As you said, the communications broken, and they can deliver the baskets and you know 18 touches and your drips and such but it’s about specific value to the consumer in between the points of sales. And when that long of a transaction cycle, 7 years right on average, some are longer, some are shorter, how do you deliver that value. And again, I think that Setter is about that.

David Steckel – CEO, Setter: I also think that stopping transactional. There’s like, you know, the future of real estate is not individual agents. So, if you’re going to continue being transactional, you’re just going to be expediting that process. Think about the LTV of the user, not the transaction.

Mike McAra – Beyond the Box Host: So just so people are clear, LTV, lifetime value… So, explain what that means.

David Steckel – CEO, Setter: Yeah, so LTV means Lifetime Value, CACLT is the cost of acquiring a user is for a real estate agent is like, how many homes did you have to drive them to. How much marketing did you have to spend, gas, how many months did it take you to find them a perfect home? That’s thousands of dollars, truthfully. And you’re going to make a good amount of money on that sale, you’re going to make 2.5% of the transaction price, like that’s fantastic. But the truth is, you’re going to be an agent for over 20 years. You’re probably going to be an agent for 30 years, and that means that you can go through four of those transactions on that single cost of acquiring a user. So, what’s happening, now let’s say that it costs you 1000 bucks. You’re going to go through four transactions at 2.5% but what’s happening is, because a lot of agents truthfully are transaction focused, they’re going, “Okay, agreement of purchase and sales has been signed, we’re going to move them in and move onto the next new user.” They never get to reap the benefit of having a second sale with no cost of acquiring.

Mike McAra – Beyond the Box Host: So, just to play it out as an example then. So, say I spend $2000 to acquire my first client. And let’s say that for easy math I make $10,000 on them. So, I’ve made 5 times my money on them. So that’s great, but let’s say I do four more sales with that person over the course of their real estate life, and each one is $10,000 so that’s $40,000 onto, versus $10,000 onto. So, I think that’s where the mindset needs to be shifting, and I think that’s where your kind of getting at.

David Steckel – CEO, Setter: And the other thing is, we’re all in sales here. And the moment you’ve transacted with someone multiple times; you know for us our 6 ^th transaction hit this magical 80% conversion rate. Can you imagine if you didn’t have to show them and they were like, “Okay, Mike said to me to buy this place,” and if I was looking for an investment property, I don’t need to see them anymore. “Mike, what do I want to buy? Done.” So, it’s a soft number, and there isn’t a way to prove this number for 30 years, but the cost to serve the repeat user is significantly less as well.

Mike McAra – Beyond the Box Host: Well, and then there’s the other thing, a relationship based real estate agent is focused on which is the referral network. So even if you’re not transacting in a given year, you’re providing that additional value added service, they might be like, “Hey, you know what,” say I’m a realtor, “You know what Mike did for me, he found me my dream home, but also through Setter, is delivering this on-going value. You know who needs this? My parents, because they’re getting older, they don’t have time to manage their property.” Well, then they start using that maintenance process, and guess who gets to do that transaction when the house, let’s say the kids have moved on and they need to downsize. That quality of referrals, that referral from a best friend, and that could have just been a lost opportunity. You know there’s so many more ways to grow into that sustainable business model, which I think you and I are in agreement on with where that’s heading in the future.

David Steckel – CEO, Setter: Yeah, partnerships are the future for PWC and Deliotte and McKenzie are releasing reports on how partnerships and financial institutions are the future. Partnerships in all of our businesses are the future. Yes, Setter has given many homes to the real estate agents we work with to sell, so it’s been great, it’s a win-win. But if you think about it, the price of homes is drastically going up, especially in areas like Toronto and San Francisco. You know, MLS is open everywhere. There are sites like [Bongo*-33:50] that you can get all previous history data very easily. The value that’s provided from a technical aspect has actually been reduced significantly, yet the percentage has remained the same. So, what is the additional value that we’re offering our customers? And I think giving people partnerships, value-added services, giving them a team for their home; it’s going to include their insurance providers, it’s going to include their lenders, it’s going to include their warranty and Setter. That’s really the future, if the individual agent is going to succeed.

Mike McAra – Beyond the Box Host : Totally. I couldn’t agree more, and you know we’ve gone a little bit longer than [inaudible 34:35] but that’s fine because it’s such an amazing topic, I just love it so much. So, let’s wrap this up. One final thing, so I’m asking everyone this, and I need you to look into your crystal ball. So, it’s 2021, November 2021, so we’re talking like 18 months from now. So hopefully you’ve been able to find a way to extend the runway and you’ve got something going on. But you’re the keynote speaker, you’ve been brought into a real estate conference. I need to know what that topic is; what are you talking about?

David Steckel – CEO, Setter: Oh… I would break it down into two. One, I really do think Zillow is going to take the majority of load amid dollar listings. Probably by 2018 in Ontario there’s 70,000 agents. The vast majority aren’t doing anything. I think Zillow is going to be a major figure or someone like Zillow is going to be doing a majority of the transactions. Or, I could talk about every year more and more journeyman are retiring from the service industry and they’re being replaced by less and less apprentices and the output of the journeyman is like, 5 to 6x that of an apprentice. So, in the next couple of years, you are never going to be able to find a carpenter to hang your shelf. So, are we going to change the way we are building homes, are homes going to actually start coming with pre-built maintenance plans? I would probably go either one, that’s sort of the future of real estate is Zillow or at the top 10% or what’s happening with the service industry. I think… I don’t know.

Mike McAra – Beyond the Box Host: I love it. I love it. If you look at these hands, these are typing hands, not working hands, so if it’s the number two, I’m screwed! So, if that’s it, either way, I’m going to come to that talk. I can’t wait to meet you in person, you know obviously the times being what they are, we’re all kind of stuck behind a screen, but this has been fantastic. So, last question for you David. How do people that want to use Setter, how do they get in touch, how do they find you?

David – CEO, Setter : Sure, just Setter.com and if you wanted to reach out to me personally about something, you can find me on LinkedIn or david@setter.com .

Mike McAra – Beyond the Box Host: You’re the man, awesome!

David Steckel – CEO, Setter: Awesome, thanks Mike!

— End of Podcast —

Beyond the Box: Conversations with real estate executives, venture capital partners and technologists on what lays ahead for the real estate industry in a world after COVID-19.

Beyond the Box Podcast Hosts

REACH Canada Opens Applications for Inaugural Class

Thu, 25 Jun 2020 20:35:00 GMT

CALGARY, TORONTO (June 23, 2020) – The newly established Canadian arm of the REACH real estate technology accelerator is now accepting applications for its inaugural program. The award-winning initiative was created by Second Century Ventures, the strategic investment arm of the National Association of Realtors®.

REACH offers education, mentorship and exposure for technology companies aiming to launch into the real estate industry, accelerate their businesses and expand into adjacent markets such as insurance, mortgage and financial services. REACH provides a unique opportunity for technology companies to earn sizable exposure within a $1 trillion industry made up of more than 100,000 small- and medium-sized businesses and generating over $12.5 billion in annual advertising spend in the U.S. alone. As part of REACH’s recent global expansion, REACH Canada will offer a select group of entrepreneurs access to a worldwide network of peers, mentors and investors in conjunction with its sister programs in the U.S., Australia and the U.K.

“This past year has highlighted how organizations of every size will need to innovate, evolve and adapt in order to succeed in the markets of the future. We’ve also been reminded of how small our world can be, and how critical global partnerships are in our search for solutions to the problems we face every day,” said Bob Goldberg(link is external) , CEO of the National Association of Realtors® and President of Second Century Ventures. “We are excited to officially open applications for REACH Canada, the second REACH program opened outside the United States, and we have immense faith in the REACH Canada team’s ability to source the top proptech innovators who will propel real estate in North America and beyond.”

REACH has attracted technology startups developing solutions for multiple aspects of the real estate industry, including marketing automation, pay at close renovation, agent safety, leasing, lending, transaction management and tokenization, among others. Participating companies show impressive results both during and after program completion. Specifically, REACH companies have in aggregate raised more than $350 million of follow-on financing and have secured key partnerships with DocuSign, Google, Facebook, Coldwell Banker, RE/MAX and Berkshire Hathaway HomeServices. Graduating REACH companies have also seen revenue, customer and/or user growth rates increase between 50 and 2,000%.

“The COVID era is accelerating the adoption of technology in real estate along with many trends that had already been evolving, as consumers demand further innovation to support their ability to transact real estate in a post-COVID world. Building on the expertise and proven track record of the REACH program in the U.S. and now Australia, REACH portfolio companies have an unprecedented opportunity to accelerate their growth and capitalize on the rapid revolution of the global proptech landscape, in close conjunction with the Realtor® community,” said Lynette Keyowski, REACH Canada Managing Partner.

Participants in the REACH accelerator receive numerous benefits, including:

Applications for REACH Canada will be accepted through July 31, 2020, at www.narreach.ca(link is external) . The 8-month virtual and event-based program will kick off in October and run through May 2021.

For more information about REACH Canada, or to submit an application, visit www.narreach.ca(link is external) .

Beyond the Box – Season 1 – Episode 5 – Morgan Carey – Founder and CEO at Real Estate Webmasters

Mon, 22 Jun 2020 22:01:00 GMT

Beyond the Box – Season 1 – Episode 5 – Featuring Founder and CEO at Real Estate Webmasters, Morgan Carey.

Subscribe on Apple Podcasts

Watch on YouTube

Our fifth Beyond the Box episode is out TODAY and it could not have been with a more inspirational person. Mike McAra had the pleasure of sitting down with the fun and intelligent Morgan Carey, CEO of Real Estate Webmasters and renowned public event speaker.

Watch/listen here to get the scoop on what Morgan is up to and what he thinks about the current real estate climate.

“There will be adoption. It’s forcing us to work outside of our comfort zone and to start looking at some of the things. It’s interesting, I was reading a Harvard Business Review article the other day and they were talking about how the fact that in recession, people actually do tend to invest more often in technology because there isn’t the opportunity cost.”

Full Transcript of the Show

Mike McAra – Beyond the Box Host: Alright, so we’re on
here. So, thanks so much Morgan for coming on the show. Really appreciate your
time.

Morgan Carey – CEO, Real Estate Webmasters: No
problem.

Mike McAra – Beyond the Box Host: So, uh, so I guess we can
start by chatting around, you know, current events and the elephant in the
room. So, being the CEO of you know, the Real Estate Webmasters, how have you
been able to manage the transition from working on campus to having a lot of
your people working remote, you know, in the new reality here. How are things
kind of moving for you guys in your transition?

Morgan Carey – CEO, Real Estate Webmasters: Yeah, you know
it’s interesting obviously the dynamics are different from region to region and
to country to country. I feel like in Canada, we’ve been very fortunate for a
lot of reasons. We’ve got, you know, a really good support of Government,
healthcare, and a lot of space in between people, so we’re not as condensed of
a population. So, you know, first of all the other people not in Canada
listening, it’s a different paradigm for us, but we still obviously want to
support the Global social distancing effort you know, sheltering at home when
you can. Myself, personally as we talked about, we were on a work trip when all
of this stuff went down, so I was quarantined for the last 14 days. I just got
out of quarantine which is great. Um, but no it’s been an interesting and
really stressful and challenging exercise in, in, urgency. Right?

Mike McAra – Beyond the Box Host: Mhm.

Morgan Carey – CEO, Real Estate Webmasters: We all realized
very quickly not only is there serious health uh, impact if you don’t move
quickly, but there is also serious economic impact. So, we spent our first week
in just absolutely ensuring our staff were safe. You know we obviously have had
sidebar conversations about, you know, what is next and how to take care of our
clients and all that sort of stuff, but we moved from over 100 people on
campus, you know between our Vancouver and Nanaimo offices to zero people on
our Vancouver campus and we actually shut our Vancouver campus down.

Mike McAra – Beyond the Box Host: Wow.

Morgan Carey – CEO, Real Estate Webmasters: Everyone went
home and ah uh, we’re about 75% on Nanaimo campus has gone home as well. And,
for us, because we, we’re not what some people think of as a tech company, in
the sense that we don’t work remote we actually we have a “work on campus
policy” and that’s to encourage collaboration, product quality, culture, and so
it’s a real hit for us to not see our friends and our family every day and the
people we work with, we really do think of as family. And so, there’s, there’s
a morale hit, there’s a process and you know, we’re just trying to all figure
out how to… how to work with each other collaboratively in the same way that
we’re used to but not being able to talk face to face. Umm. And there’s
logistical challenges too, like, um, we didn’t have take-home laptops for
everyone. Right?

Mike McAra – Beyond the Box Host: Right.

Morgan Carey – CEO, Real Estate Webmasters: And in our
world, security is massively important, and so we don’t allow people to work
from private machines. They have to work from company machines so that they
have the proper securities software, and VPN, and all this sort of stuff. We
had probably 40 take home laptops in our company for travel and whatever,
right? So, trying to find 60 extra laptops in a crisis is actually pretty
difficult.

Mike McAra – Beyond the Box Host: Well especially when
Apple goes and shuts down all their stores.

Morgan Carey – CEO, Real Estate Webmasters: Exactly right,
exactly right. So, there was a lot of adjustment. There was you know,
retrofitting people’s spaces at home and doing you know, analysis of where they
could work. They’re bringing their actual, physical, PC’s home, or their
physical Mac, you know, Mac pro’s and stuff like that. So, you know, it was…we
move very fast and um, but it was really challenging. Really stressful for our
leaders and for our staff, so um. We’re up and running, we are at a reduced
staff level though, that was the next piece is that

Mike McAra – Beyond the Box Host: Yeah.

Morgan Carey – CEO, Real Estate Webmasters: We recognized
that demand was pretty significantly impacted as well. Where obviously we’re in
the software business, but we have a large agency and uh, our overall staff
levels were reduced by 40%.

Mike McAra – Beyond the Box Host: Oh wow. Wow.

Morgan Carey – CEO, Real Estate Webmasters: –Pretty
significant from that perspective. But there is government programs that help
offset those costs, and so again, being Canadian, we’re very fortunate that the
net, net of the people who either have been laid off, or have staff reductions
in this country you know, can often times and end up keeping them relatively
close to their standard of living, so I think we’re very fortunate to live
here.

Mike McAra – Beyond the Box Host: Oh, absolutely. And I
think that you know, that this just continues an overarching story for your
story of you know, how real estate webmasters has become a household name in
you know, the real estate technology market. Because you constantly have to
pivot and reiterate and change things on going and so you know, obviously this
being a black swan event and being extremely truly terrible, really, this has
been in your core DNA being able to adapt. So, maybe it’d be really helpful or
really exciting to sort of talk through how your path to kind of get here and
how you were able to take an idea and a concept back in when, what was it, 2004?
When you launched this and how you were able to build it out to today.

Morgan Carey – CEO, Real Estate Webmasters: Yeah, yeah, so
umm…. I, you know, historically, I come from the search engine space. That was
the first SEO guy. I owned a SEOguy.com I was one of the founders, I was one of
the founders of SEO Chats. So back in the late 90s and early 2000s that was my
origin story. And I um, became really successful in education, actually, real
estate was not my first vertical. And um, so successful in fact that the
company I worked for who ended up being the University of Phoenix decided that
they’re paying me too much money and wanted to buy me out.

And so, I did my first sort of, buy out deal, and um, did very well but it
also came with a non-compete in education. And so, I said, “Wow…vertical
marketing is something I’m really good at. I should pick my next vertical.”
Right? And so, it was actually about 2002 I think, when we got into real estate
because I had a few clients in, you know SEO clients from my SEO consultancy
and obviously I just got a bunch of money, so I bought a bunch of real estate
and I’m an entrepreneur so you do your research in real estate becomes a big
component of you know, empire building and stuff.

Mike McAra – Beyond the Box Host: Yep.

Morgan Carey – CEO, Real Estate Webmasters: And um, the um,
the crux of it was you know I needed to pick another vertical because it just,
I knew exactly what I wanted to do and at the time we actually opened a company
called RealEstateOptimization.com. So…

Mike McAra – Beyond the Box Host: Hmm… Good.

Morgan Carey – CEO, Real Estate Webmasters: So REW wasn’t
REW yet, right? Cause…

Mike McAra – Beyond the Box Host: It was Steven King before
it was Stephen King.

Morgan Carey – CEO, Real Estate Webmasters: So yeah, we did
only uh, SEO services, but what we found very quickly was that there wasn’t
very many good vendors. Actually, there were no good vendors quite frankly in
this space. I was used to working with Adobe, eBay, digital river, big
companies who —

Mike McAra – Beyond the Box Host: –You know, some
household names.

Morgan Carey – CEO, Real Estate Webmasters: Right? And you
know, when you start working for a successful realtor or brokerage, in 2002,
they didn’t have tech companies or in-house design, or anything web related.
And so, we found it very frustrating to try to do the job we needed to do on
sub-par products.

Mike McAra – Beyond the Box Host: Right.

Morgan Carey – CEO, Real Estate Webmasters: So, we started
bringing in top level design talent, top level programming talent, and needing
to custom build the platforms from the ground up. And, uh, so we realized
pretty quickly that um, our name didn’t really match our services. Because we
were doing design, we were doing branding, we were doing programming, we were
doing writing. Not just SEO. So yeah, April 9 ^th of 2004, we re-branded
and um…

Mike McAra – Beyond the Box Host: Okay, got cha.

Morgan Carey – CEO, Real Estate Webmasters: –So that’s
where Real Estate Webmasters comes from, is sort real estate optimization is
what we were doing, but then we realized that we were actually fully rounded
real estate webmasters. And so, um, that’s where, that’s the origin story for
REW!

Mike McAra – Beyond the Box Host: Gotcha. You know, it’s
uh, it’s so interesting if you think about it, 2002. So, we’re talking about
pre-Facebook, pre-iPhone. I mean, Blackberry is just becoming a name at that
point, and you’ve been able to see the spectrum from, call it, you know, web
1.01 and a half point 0, and now we’re talking about things like i-buyers
subject to the all pausing last week, and this week, but you know, and you’ve
got all sorts of these industry changes. And one of the key conversations If
find myself having all the time is you know, what is next? How have we kind of
gotten to where we’re getting? And less from sort of the association industry
level, but really, what are the realtors saying? And how are their businesses
changing over it. It’d be really interesting to get your take on how you see
um, you know, the business model for the agent change over the course of, you
know say, 2000 until now, and how you see it going forward. Um, both with the
impact of say, of say, with COVID [CoVID-19] being now part of this, but also
kind of the technology constant advancement and you’ve got Compass and you’ve
got Softbank, all this capital inflows. There’s a lot of things going on there
so.

Morgan Carey – CEO, Real Estate Webmasters: It’s a… it’s a
different question now, isn’t it?

Mike McAra – Beyond the Box Host: Yeah.

Morgan Carey – CEO, Real Estate Webmasters: So, here’s the
thing. Fundamentally, I don’t actually believe the value
proposition or the job of being a relator has changed since 2004.

Mike McAra – Beyond the Box Host: Okay.

Morgan Carey – CEO, Real Estate Webmasters: And, I think
their pitch has changed, and maybe their understanding of what they do and
provide as a service is maybe evolved and they’ve become more particular around
it, but I always believe and have always believed, and will continue to believe
that the relators deem the emotional heart of the transaction. I don’t think
that real estate is the same as travel. I don’t think that a lot of the
parallels are the same because this is, as everyone talks about, the largest
financial transaction in anyone’s lives. And it is complex, because you are
dealing with multiple parties; you’re dealing with buyers, sellers., sometimes
multiple parties on each side of those things. Financial institutions, titles,
mortgage, everything. Um, and people don’t seem to understand that while you
can remove the complexity in some of those transactional pieces, there is still
a human on each side of the transaction. And dealing with humans is something
that algorithms do that well. Right? And dealing with the emotional components
even in the best of times, is still a difficult thing and I believe that people
will always want to work with people when it comes to transacting homes. So, I
don’t actually think that the role of the realtor has changed, I think um, that
the realtors that have suffered are the ones who are actually trying not to be
realtors.

Mike McAra – Beyond the Box Host: Interesting.

Morgan Carey – CEO, Real Estate Webmasters: Right? So, if
you think about what people are accusing Zillow of trying to
do, and if you think bout what people are saying about I-buyers, realtors
themselves were looking for more efficiency to do more transactions etcetera.
They were actually trying to take themselves out of the transaction. Those
people can’t compete with Zillow, because their value proposition compared to
Zillow is not the same, right? They don’t have the same capital, they don’t
have the same technology, etcetera.

Mike McAra – Beyond the Box Host: Yeah.

Morgan Carey – CEO, Real Estate Webmasters: Right? But any
relationship-based realtor which is what I think is every realtor should be,
has the same job and will always have the same job is how I feel.

Um, now, with respect to COVID [CoVID-19]; it’s funny, I was on a call with
some of my B.C friends earlier today, and this is a whole different ball game
now. The “recovery” from, from Co-VID will be a few months. The economic
recovery will be a few years.

Mike McAra – Beyond the Box Host: Yeah.

Morgan Carey – CEO, Real Estate Webmasters: If there’s one
thing we know is that when people feel apprehensive and when people are scared,
they are going to flock to safety. And safety is going to be the expertise of
the realtor. And so, I actually think that all of those people: Zillow, you
know, any I-buyer program, etcetera. If they overinvested, I think they’re
screwed.

Mike McAra – Beyond the Box Host: Interesting.

Morgan Carey – CEO, Real Estate Webmasters: I think their
model relied on predictability. Right? Their model relied on the fact that you
can put money in now, because we can clearly see a path of safety for the next
couple of years in order to throw these billions of dollars in. Take losses,
grow market share, etcetera. Um, but it… the game has changed. Its consumer
sentiment has changed. In an instant.

Mike McAra – Beyond the Box Host: Do —

Morgan Carey – CEO, Real Estate Webmasters: And we will not
be unafraid in two months.

Mike McAra – Beyond the Box Host: So, do you… And I can
completely understand those points. Do you think that from the realtor’s point
of view, though, with their technology, that this is going to help spur
innovation on, or adoption from the Agent’s side? To, let’s say, streamline um,
more, call it, remote again video chat, kind of like what we’re doing here to
help forward the transaction to help spur innovation, do you think there would
be a spur in that type of innovation?

Morgan Carey – CEO, Real Estate Webmasters: Um, well, not
in innovation. The innovation exists. I do think that…

Mike McAra – Beyond the Box Host: Adoption, sorry.
Adoption. Yeah, that’s a better word.

Morgan Carey – CEO, Real Estate Webmasters: There will be
adoption. It’s forcing us to work outside of our comfort zone and to start
looking at some of the things. It’s interesting, I was reading a Harvard
Business Review article the other day and they were talking about how the fact
that in recession, people actually do tend to invest more often in technology
because there isn’t the opportunity cost.

Mike McAra – Beyond the Box Host: Right. Right!

Morgan Carey – CEO, Real Estate Webmasters: The important
point they make, and that is, when times are really good, you’re way too busy
closing deals to do anything else. And you want to! You want to make hay while
the sunshine, or whatever.

Mike McAra – Beyond the Box Host: Oh yeah.

Morgan Carey – CEO, Real Estate Webmasters: But right now,
we actually have the time, and the resources. We can’t get rid of our
resources. We need them. Because this is a short-term thing. This is three or
four months. So, we have to put them to use, and to good use, on projects that
will benefit us on the upswing. And so, absolutely, any technologies or
infrastructure, any project that will actually allow people to capture market
share as we start going back up, I think the smart companies will be investing
in.

Mike McAra – Beyond the Box Host: Well, I’d imagine that’s
probably a conversation that you’re having a lot with your clients as well,
right? Its, it doesn’t take a day to build a website, right?

Morgan Carey – CEO, Real Estate Webmasters: Right.

Mike McAra – Beyond the Box Host: And it doesn’t take a day
to invest in good SEO either, right? So, now is a good opportunity, assuming
that, you know, the world will continue to turn, I’m going to make that
assumption. I think you’re going to make that assumption. Right? And I think I
was reading a report from Mike Pelfrey, that he referenced the recovery from
SARS in Hong Kong in 2003, I think it was.

Morgan Carey – CEO, Real Estate Webmasters: Yep.

Mike McAra – Beyond the Box Host: And you know, the
transactions dropped by 80 to 90%, but within two to three months it snapped
right back. You know there wasn’t… it didn’t make up the loss, but it brought
back to typical levels. So, you know again, depending on where you are in the world,
it’s you know, it’s now that time to invest in those tools.

Morgan Carey – CEO, Real Estate Webmasters: Yeah, yeah.
What I talked to my teams about, is there’s really three kinds, or three groups
of people right now in this pandemic. There are the people who are absolutely
crushed by it; both emotionally and financially. So, they don’t have the choice
to invest.

Mike McAra – Beyond the Box Host: Right.

Morgan Carey – CEO, Real Estate Webmasters: They might not
be able to anyway, because they aren’t handling the world. There are the people
who are the “wait and sees” where they probably could, if they wanted to take a
risk, but they’re kind of waiting and seeing. And then there are the people who
see this as an opportunity and have the resources to take advantage of it. But
the way I break it out for my team, is I tell my team that at least 50% of the
people live in that world where they can’t do anything right now. They have to
do what it takes to survive.

Mike McAra – Beyond the Box Host: Mhm.

Morgan Carey – CEO, Real Estate Webmasters: And absolutely
they should do so. 40% of the rest of the people; 40% of the people are the
“wait and sees.” That takes 90% of our opportunity off the table for the next
couple of months. So, as entrepreneurs, we understand the massive impact.
Imagine 90% of the business, like you said for SARS, goes away. And in real
estate, it’s no different for vendors, right? So, we have to figure out what’s
going to happen with the 10% and that’s the group that we’re talking to.
Because right now, you know, sensitivity aside, like we are sensitive to
this.

Mike McAra – Beyond the Box Host: Yeah.

Morgan Carey – CEO, Real Estate Webmasters: Of course, as a
company, we took care of our people first, and made sure that everyone was safe
and healthy. But then, we actually have a responsibility to the global economy,
to try and flatten the curve when it comes to recession. And that means, where
we can encourage people to invest, we should.

Mike McAra – Beyond the Box Host: So, for your perspective,
being… having gone through a financial crisis, how does that compare to what
you’re experiencing now?

Morgan Carey – CEO, Real Estate Webmasters: So, uh, it’s
totally different, here’s why. The financial crisis is actually the best growth
time in the history of my company.

Mike McAra – Beyond the Box Host: Interesting.

Morgan Carey – CEO, Real Estate Webmasters: And the reason
for that, if you think pre-financial crisis, people just didn’t care. They were
closing deal left, right and centre. They were spending money on TV
commercials, and all this stuff. They had no idea where the money was coming in
from. But they were happy to spend it because there was lots coming in.

Mike McAra – Beyond the Box Host: Right.

Morgan Carey – CEO, Real Estate Webmasters: As soon as the
financial crisis hit, people realized they needed to tighten their purse
strings, and what again they would do is flock to safety. The internet is
completely trackable, right? We can put dollars in, you can track where those
dollars went, what leads became out of those dollars, and what deals came out
of that. If you’re going to choose between an expensive TV commercial and
billboard, versus guaranteed ROI, you’re going to pick the guaranteed ROI. And
so, we actually got a lot of business and growth during the financial crisis.
But it was not as…it was not as much of a “black swan” to your point event, it
was a little bit more…not predictable…I think it was actually.

Mike McAra – Beyond the Box Host: Well, I mean, some people
called it!

Morgan Carey – CEO, Real Estate Webmasters: So, it’s not
just that, its impact took time to truly take effect.

Mike McAra – Beyond the Box Host: Right.

Morgan Carey – CEO, Real Estate Webmasters: It wasn’t
instantaneous. And it was prolonged, but then the recover was similar. But here
there was no time to plan. Here, there was no conversations like… it was last
week we were talking somebody about doing a new project and
they had all the money in the world and now this week they’re broke and they’re
asking for a discount.

Mike McAra – Beyond the Box Host: Right. Yeah.

Morgan Carey – CEO, Real Estate Webmasters: Because panic,
the fear, the media…is so strong right now. And it’s totally understandable.
But I think in two weeks people are actually going to be going, “you know what?
I’m glad we over-reacted. If we over-reacted, but now we recognize that this is
the new normal and let’s get on with the course of business so we can save the
economy.”

Mike McAra – Beyond the Box Host: Well, and it truly is a
paradox in the sense that, if you don’t react, then the worst happens. But if
you react then it never occurs; so, the question is “should have I reacted so
strongly” right? And so, it’s such an interesting. It’s like those thought
experiments that they have, you know. Pick your favourite university or
something and now it’s a reality. But I guess in saying that, you know, and
just to kind of to get towards the end and to wrap it up. Obviously, there is a
lot of change going on and there are lots of challenges happening. In your
opinion, how do you see the next year, we’ll put a time limit on here. What are
the biggest challenges to realtors and tech companies over the next year? And
then, what are the biggest opportunities for both tech companies and realtors
over the next year?

Morgan Carey – CEO, Real Estate Webmasters: So, the
challenges to realtors are… I think very predictable. Surviving the next 90
days from a financial, you know, because again historically, they don’t have a
lot of savings, they don’t plan… nobody plans for these things. Surviving the
next 90 days is challenge number one. Challenge number two is actually taking
advantage of the opportunity that is going to happen on the upswing. They need
to be prepared for that, right? Because, you’re right. Just like with SARS,
they might not recover to the exact same levels as it was, but you also have to
recognize that a lot of people are going to go out of business. There are going
to be a ton of opportunities for realtors, 90 days from now that they need to
start preparing for today. So as long as you’re at home and you’re safe, the
challenge is financially making sure you make it through and all that sort of stuff,
but if you’ve got that covered, people really should be thinking about how to
service the market adequately and take advantage of the market share that is
going to happen on the upswing, right? Because, we’re going to hit a bottom in
about a month and then it’ll start going up.

Mike McAra – Beyond the Box Host: Yeah.

Morgan Carey – CEO, Real Estate Webmasters: So that’s a
realtor challenge. Tech companies… um… you know, again, everyone has to
survive. There are small, medium, and large tech companies. A lot will not
survive. I think that there will be adjustments to people’s expectations when
it comes to M&A. M&A will be wiped out, I think. From a high, high
multiple, high valuation perspective.

Mike McAra – Beyond the Box Host: Right.

Morgan Carey – CEO, Real Estate Webmasters: It will still
be done, but companies are going to go on sale. We know
this.

Mike McAra – Beyond the Box Host: 10 to 20x revenue
numbers, won’t be the norm?

Morgan Carey – CEO, Real Estate Webmasters: Well, that’s
not the norm in our space anyways, but somewhere between 2 and 5x is. The tech
companies. The 2 to 5x is going to become 1 to 3x.

Mike McAra – Beyond the Box Host: Right.

Morgan Carey – CEO, Real Estate Webmasters: People don’t
adjust their expectations; they won’t be able to sell their companies. And
there will be less people wanting to buy companies unless they’re on sale. And
a lot of the companies who could have sold 6 months ago, and should have, quite
frankly, will just actually go out of business. Because they won’t be able to
adjust. So, short term, it’s going to be all kinds of um… chaos, in that sort
of space. Longer term though, very similar to the realtors. We all have the
opportunity to take market share. Everyone is going to go on online, because
everyone is going to realize, “Holy shit, during this time, I did not have a
good CRM and I wasn’t able to be organized. I wasn’t able to reach out to my
past clients. I wasn’t able to continue to do my business if I wasn’t able to
do open houses or door knocking, or whatever.” So, I think those of us that are
in the platform, CRM, lead gen space, it’s going to be a massive, massive,
bounty. It’s going to be there… everyone will get off the fence. Everyone
recognizes the value of online collaborative tools. And so, I don’t want to
look forward to anything per say, because of how shitty this situation is
currently.

Mike McAra – Beyond the Box Host: Yeah.

Morgan Carey – CEO, Real Estate Webmasters: But if you need
to look for a silver lining, I think the opportunity for the good tech
companies is actually quite high.

Mike McAra – Beyond the Box Host: Love it. Love it. So
then, just last question so, hypothetically, it’s 2021. Inman Connect, New York
City, you’re the keynote speaker. What are you talking about?

Morgan Carey – CEO, Real Estate Webmasters: [ laughs ]
Inman 2021 in New York, I’m the Key Notes Speaker…

Mike McAra – Beyond the Box Host: Yeah.

Morgan Carey – CEO, Real Estate Webmasters: I’m probably
talking about the resurgence of the realtor. I probably am, to be honest. It,
it’s… um… this concept that their value becomes greater in adversity, I think
is an important concept. And I think reminding them of that, right? Reminding
them that your true value is the fact that you are the heart and the soul of
the transaction. You know, we say it a lot, but people still get distracted by
trying to be a tech company, or trying to be a lead gen company, or trying to
be something you’re not. Right? I believe that the resurgence of the realtor,
or I… in a crazy way, and I hate to say this, I feel like Covid in some ways
will save realtors.

Mike McAra – Beyond the Box Host: Interesting.

Morgan Carey – CEO, Real Estate Webmasters: Yeah.

Mike McAra – Beyond the Box Host: Hmm.

Morgan Carey – CEO, Real Estate Webmasters: Yeah, it’s a
concept I’ve been thinking about, right? Is that, it will have re-emphasized
their value in the transaction.

Mike McAra – Beyond the Box Host: Well, if anything I think
what it’s proved is that we crave social interaction, and you know, as we said
in the beginning here, relationship are so essential when you’re brokering the
single largest transaction for most people. So, you know, I think that time
will always tell, but yeah, it’s definitely plausible.

Morgan Carey – CEO, Real Estate Webmasters: So yeah, we’ll
see. Maybe you can ask me in New York!

Mike McAra – Beyond the Box Host: Yeah, I hope so! I hope
to start seeing people in person again.

Morgan Carey – CEO, Real Estate Webmasters: Yeah, that
would be good.

Mike McAra – Beyond the Box Host: Anyways, thanks. Thank
you so much for doing this again, Morgan. I really appreciate your time.

Morgan Carey – CEO, Real Estate Webmasters: No problem.
Thanks Mike.

— End of Podcast —

Beyond the Box: Conversations with real estate executives, venture capital partners and technologists on what lays ahead for the real estate industry in a world after COVID-19.

Beyond the Box Podcast Hosts

Beyond the Box – Season 1 – Episode 4 – Rob Hahn – Managing Partner at 7DS Associates

Tue, 16 Jun 2020 03:05:00 GMT

Beyond the Box – Season 1 – Episode 4 – Featuring Managing Partner at 7DS Associates, Rob Hahn.

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On this week’s Beyond the Box episode, we present to you the brilliant mind of Robert Hahn (author of the popular Notorious R.O.B. real estate blog and Managing Partner of 7DS Associates).

“It’s not enough to just resist disruption, to resist change, and then say we’re going to say the same. What we actually want to do is embrace this change. This shock, this disruption lets us get better and helps us to improve in whatever way that is. However you think of it, it improves. So, the old way was pretty great, but it could have used improvement, right??”

Rob shares with Lynette Keyowski his perspectives on how COVID has affected the real estate industry, shares his thoughts on what the future may look like and what the industry needs to strive for personally and professionally in the time to come.

Full Transcript of the Show

Lynette Keyowski – Beyond the Box Host: Today I have with
us, the esteemed pleasure to welcome to our podcast Mr. Rob Hahn, the notorious
Rob. So, Rob is a “no-holds-barred-pull-any-punch” type of figure in the real
estate sector. I’m really privileged to have gotten to know Rob over the last
few years and consider him a friend and a colleague in the real estate sector
and highly respect your views and your opinions, because they are just that;
they are well-educated, well-researched, well thought through pieces. And so,
you say what you think, but you’re also not afraid to back track and say,
“Well, I have new information and so what I thought yesterday, doesn’t really
apply today, but this is why.” I would really love to welcome you to the
podcast. Thank you for doing this.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: Oh,
thank you for inviting me. And by the way, the feeling is entirely mutual
because Lynette Keyowski, is pretty damn amazing and speaks her mind as well!
Although, you do have a few more political restrictions, I think…

Lynette Keyowski – Beyond the Box Host: Well, that’s why I
hang around with you, I’m hoping I can learn how to relax those a little.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: It’s
real easy, just get really comfortable with unemployment. Especially since I’m
a consultant, I wake up every day.

Lynette Keyowski – Beyond the Box Host: Awesome, so Rob,
just to kick us off, again, your relatively well-known South of the boarder. In
a lot of different sectors, primarily in the real estate space, and all
different verticals of that it includes, but maybe lesser known in Canada. But
I think the other piece we’re hoping that our podcast really fills a bit of a
void on the commentary and the intersection of real estate, technology, and
capital in Canada.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: Absolutely.

Lynette Keyowski – Beyond the Box Host: So, we’ll likely
hit a wider target than just the real estate sector up here as well, so we’d
just love for you to share a little bit of your origin story, what your
background is.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: Oh,
boy. You know, we could take the whole podcast for that, so let’s give you the
readers digest version.

Lynette Keyowski – Beyond the Box Host: Sounds good.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: I’m a
lawyer by training, who decided I didn’t like money, so I took a job as a
magazine investor, but I knew the internet before there was internet, so I
started a company which I then sold to USA Networks. Went to work for Sci Fi,
left there, went to work for a start-up, then 9/11 happened and the start-up
went down. But then went into real estate industry starting in the commercial
state so it gives me a bit of an interesting perspective. Worked in realty for
four years, then went to a small data company and then went out on my own. And
I’ve been doing strategy consulting since 2009.

Lynette Keyowski – Beyond the Box Host: Awesome.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: So,
I’ve been unemployed since 2009.

Lynette Keyowski – Beyond the Box Host: Officially
unemployed.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: The
other word for consultant is we are “con man.” Con-sultant…

Lynette Keyowski – Beyond the Box Host: You know, I always
seem to see you with a high-end cocktail and a good meal, so [inaudible 3:01].

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: Yeah,
it’s been good. It’s been fun and you know, I stay in the real estate industry
mostly, but obliviously I’ve crossed sections over into technology. Been doing
more and more stuff with the finance world as I’ve started to… and we’ve talked
about this before, I’ve talked about it at presentations. I think we’re
entering the age of capital. Covid, I think is a bit of a curveball, so I’m
thinking through a lot of those things as well. And yeah, like you mentioned,
for whatever reason I’ve been fortunate where I can just speak my mind.

Lynette Keyowski – Beyond the Box Host: Right.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: And
that’s good, because I don’t know how to do anything else. I find it very
difficult to…you know…say things I don’t believe in.

Lynette Keyowski – Beyond the Box Host: Yeah, and first of
all, I wish more people would take that approach. But again, what I’ve always
appreciated about your approach is that you do think through things, and you
inform yourself. You rely heavily on research and thought, and really your
connections. This is where I love to kind of start honing in, and you mention a
couple of things. You mentioned your current thinking on the age of capital,
and I would love to circle back on that and tie that into the whole
conversation around Covid, and how that’s shifted. But what I’d love to lean
into the conversation is really around your focus on connecting yourself with
the people, to learn their perspectives. So, your research isn’t just “go and
research papers, and write papers, and see what others are saying,” it’s
literally connecting with the people on the ground, getting perspectives,
connecting those dots. And it’s what I’ve appreciated about your approach is
it’s a very practical approach. So, I’d love to hear from your perspective, and
obviously the whole world has shifted over the last few weeks, and it’s
impacted people across the board. I think more so, maybe than any other time in
history. It’s categorically impacted the world.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: Yeah.

Lynette Keyowski – Beyond the Box Host: So, I’d love to
know from your point of view from these conversations you’ve been having, what
is the vibe out there? I’d hate to say it’s all dismal, but is it categorically
dismal, or are there pockets of bright light?

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: First
of all, I appreciate your praise; I’ll take it! But yeah, a lot of it comes
from the fact that…. I know people think I’m an expert, right? I think I’m an
expert in some ways, but the more you get to know something, I feel like the
more you realise you really don’t know anything. So, I’ve never been a realtor,
I’ve never sold real estate, my wife has. But I know things about business, I
know things about business cycles, or corporate finance. I know a lot of
different things. I try to be as humble as possible, if you will, because what
you said is true. I have strongly held opinions, but they’re based on
information and facts. If those change, then I’m going to change opinions,
because then I’m wrong. I’m happy to be wrong, but what I’m not happy about is
people just kind of do the PR, and the spin. Like, stop. Let’s just start with
the facts, if we disagree, we disagree and that’s totally fine. So, from that
standpoint, when this thing popped, I know I’ve had a certain perspective and
how things would happen and how things would be, but I’m not on the ground. I’m
not a broker, I’m not an agent, I’m not seeing that. So, the only way to
correct that, is to try and get that. Data helps, so I try to look at the
showing time data, I try to look at MLS data, I try to look at all the data,
but I felt like early on, the thing to do was to talk to agents. Talk to people
on the ground, now. I took a very particular slant to this. By the way, I’ve
been interviewing 16 of the top agents and brokers that I could round up in a
very short period of time. This was probably the second week in March, right
after these lockdowns were sort of coming. And I just sort of got their
perspective on it. And I wrote a report based on that, and I’m modifying that
report so it can be sent to the industry, because I wrote the report for the
finance world.

Lynette Keyowski – Beyond the Box Host: Ah, okay.

Rob: Yeah, for the investors. They appreciated it, but now
I’m going to modify it and do it for industry folks. So, the things I’ll say is
because I chose to speak to top producing agents, and top brokers, the
perspective I got was rather different. It’s not dismal at all.

Lynette Keyowski – Beyond the Box Host: Interesting.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: I
think it’s actually a lot more positive and optimistic. So, that’s helped me
think about what I think is going to happen based on their feedback. Now, if I
had spoken to a wide cross-section of real estate professionals, I might have a
very different perspective on it. So, I just want to caution that. Everything
is based on folks who are really at the top 1%. We’re talking about really big
agent team leaders; we’re talking about dominantly local brokerages; people who
are really smart and who really know what they’re doing. So that changes things
a bit.

Lynette Keyowski – Beyond the Box Host: So, let me poke on
that a little bit. It’s does come back to one of the theses that you long held,
and that is “who really makes up the practitioner population.” So, correct me
if I’m wrong, there are 1.4 million realtors in the US.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: Roughly,
around 1.4 million.

Lynette Keyowski – Beyond the Box Host: Roughly, 130,000,
140,000 in Canada. And you and I have had multiple conversations on this, and
on what makes a realtor, which has a real brand behind it, and needs to
demonstrate some quality behind that, to retain that trademark. And the
different between real estate agents, or people that hold a real estate
license.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: Right.

Lynette Keyowski – Beyond the Box Host: So, I just want to
qualify that that’s the conversation that we’ve had, so it’s interesting to me
that you’ve talked to the top 1% of agents, teams, brokers. Tell me why you
took that tactic instead of a cross-section.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: So,
my reasoning was, and this came out of the fact that I was starting to see some
of the real early survey results and pulses and so on. And seeing people be
like, “this is a disaster, we’re all going to go out of business” and all of
that. And I kind of felt like, what’s the point of talking to an agent that
does three deals a year? Because if they lose one, that one third, their income
is gone.

Lynette Keyowski – Beyond the Box Host: Right.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: So,
you know, it was sort of like that. And again, you and I have talked about this
many, many times. I’m fairly convinced that somewhere between ten and fifteen percent
of the agent population does 85% of the business. I’m fairly convinced of that.
Now, it’s interesting to me that we don’t have any actual data behind this. I
think it’s driven by politics, because MLS’s don’t want that information
getting out, but it’s out there. We all know it, right? If you’re in the
industry, you know it, so it’s like, why aren’t we talking about this? So,
given that, if I want to know what’s really happening on the ground, I need to
talk to the people who are doing the transactions.

Lynette Keyowski – Beyond the Box Host: Fair, yeah.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: You
know, people who are doing four to five hundred transactions a year, not four.
Right? So, when the four to five hundred people say, we’re going to lose 10%,
40 transactions. That’s something.

Lynette Keyowski – Beyond the Box Host: Right. So, then tell
me about this. So, thank you for clarifying that, because I think that’s an
important distinction as to why that’s your sort of test population. I think
that’s really helpful. So then, tell me a little bit about what you’ve learned
from those conversations.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: So,
what I’m learning is essentially, the top producing agents, the top producing
brokers, they are… I mean they’re worried, they’re concerned. But they are far
more optimistic than they are pessimistic. They all think they’re going to gain
enormous market share through this.

Lynette Keyowski – Beyond the Box Host: But why? Why do
they think that?

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: Because
they’re better run; they have cash. So that’s the other part of this right, and
maybe that connects the whole agent capital thing. Every single person I’ve
spoken to, well, not every single person, but just about every single one I’ve
spoken to has been like, we are just fine. We have more than enough cash, we’ve
got lines of credit we can tap if we have to. They’re not laying off staff,
they’re cutting the “nice to haves” everyone is doing that. But these people
are saying, “listen,” and now I’m just giving an example. I spoke to a broker
in Atlanta, who straight up said, “If you’re cutting staff, if you’re laying
off staff, because of this, I’m going to eat you.” I mean, that’s basically
what they said. “I’m going to buy you out and if you don’t want to sell to me,
I’m going to take your market share.” And his reason made perfect sense to me.
Now this is a gentleman who had been through the last bubble, so 2008. So, he
remembers what happened, but what he says is, and this is so… this is the kind
of stuff that I feel like you can only get by talking to actual practitioners
on the ground. What he said essentially is, “the hardest thing that you do, as
a real estate broker or team leader, is hiring people.” Because you hire the
right person, then you have to train them up, get them in the culture, get them
productive. He’s like, that’s the hardest thing to do.

Lynette Keyowski – Beyond the Box Host: It’s a huge
investment.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: Right.
The easiest thing you do is write checks. So, his thing was, is I’m just not
writing checks. I’m going to keep my staff, because when we come out of this,
and we will come out of this. Because that’s the other point that people have
said, is that this was not a real estate problem, this wasn’t a general “the
economy is turning sour” problem. The economy is booming! I think we had the
best first quarter, potentially in history, up until this hit.

Lynette Keyowski – Beyond the Box Host: Absolutely,
absolutely.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: So,
yeah, this wasn’t a real estate problem, this wasn’t a demand problem, this
wasn’t an economy problem. This was a pandemic and then the government reacted
to the pandemic, and that’s caused this cascade. So, we’re going to come out of
this, and what all of these guys are saying is, “When we come out of this, I’m
going to have all of my staff, I’ll be able to hit the ground running while my
competitors have to go and think about trying to rehire those people, who have
now been out of work for three months. Oh, and those people that you laid off,
they resent the hell out of you.”

Lynette Keyowski – Beyond the Box Host: So, I actually
don’t want to go down this rabbit hole, because this could be another hole we
get into. So, what I’m going to do is, at the end of our recording, I’ll get
you to tell people how to find you. But you’ve just wrote a great piece around
open-door, and their decision to have to let people go. [inaudible 13:56] and
what those implications might mean. So, I’m going to encourage people to check
out that piece because you’ve nicely articulated what’s kind of this point
around hiring people. But, you’re absolutely right, this does provide a nice
little Segway into the conversation into the age of capital and what this
means. Because, I think two points out of what you just articulated really hit
on my radar. One, is that 2008 wasn’t that long ago in memory for a lot of the
people that are in this space.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: That’s
right.

Lynette Keyowski – Beyond the Box Host: I think the
difference though, that you also highlighted, is that this isn’t the economy
going sour. So, this is literally just a “shut the lights off.” The economy is
going to have to almost stop, almost essentially, and I know I’m over
emphasizing that. But it is again, categorical. So, I’m curious, sorry, one
more thing I want to weave in there. In 2008 we also didn’t have this mass
injection of capital in the real estate technology sector that we had
experienced over the past, 18 to 24 months. Talk to me about that and how that
could be differential, and how that could maybe benefit the sector coming out
of this space? How capital is going to react to this, and does it help or
hinder?

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: Yeah.
That’s such a good question, because… alright. I’ll try and answer it this way.
So, I actually think that real estate technology is in deep trouble. With a few
exceptions.

Lynette Keyowski – Beyond the Box Host: Okay.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: So,
let me talk about all this capital that went into real estate tech. I mean,
most of it is venture capital. And the problem with venture capital, and just
by its very nature, venture capital’s invest in unproven companies. Otherwise,
they don’t need venture capital, right? I mean, they’re proven, what do you
need venture capital for.

Lynette Keyowski – Beyond the Box Host: True, yet, they
made a big play in that regard.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: That’s
true.

Lynette Keyowski – Beyond the Box Host: There’s a lot of
foolishness around unproven technology.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: That’s
true, that’s true. So, what I think’s going to end up happening, let me try to
answer the question first, and then I’ll talk about it. I think it’s going to
help. No question about it because we are moving into this new world, and
it’s…who the hell knows what’s going to happen. But right now, it’s looking
like we’re moving into a world where society is finally leveraging a lot of
these technology tools that we’ve had for a while. Like, Zoom’s not new.

Lynette Keyowski – Beyond the Box Host: Yep.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: Internet
telephony is not new. Slack is not brand new. It’s just because of this crisis,
we’re having to utilize it.

Lynette Keyowski – Beyond the Box Host: And they’re there
and they’re available, and they’re widely enough known that they can easily
proliferate.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: Correct.
So, I do think that’s going to help in that sense. But, on the other side of
things, there are a lot of companies that have started in the last four or five
years, I’d say. They’re venture backed, and they have a great idea, and they
need to prove it. I don’t know that those guys will have the runway to prove
it. And I’m basing that, based on those interviews with those 16 people. Cause
again, those are real optimistic, aggressive, “I’m going to take market share”
type of people. Event they’re saying I’ve cut every sort of speculative
technology product. That doesn’t have a clear ROI, even those people are saying
that. So, they’re keeping it if it has a clear ROI, in their mind they can look
at this piece of technology and say, “This is generating 3x what I’m spending
on it.” They’re keeping those, but “Hey, I wanted to try this new, whatever, AI
big data thing to see if it’s going to work.” All of that is getting cut. And
I’ve heard from some of my friends and colleagues who are in the technology
vendor space in residential real estate, who are telling me that all new orders
are dropping off.

Lynette Keyowski – Beyond the Box Host: Interesting.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: No
more new orders. And all of their existing customers are asking for deferments
or asking to renegotiate. So, we’re not hearing that right now, too much,
because let’s face it, real estate tech is like, this big. And you know, no
entrepreneur is going to come out and say, “Yeah, so our revenues are down 82%”
I mean, nobody is going to do that, but it’s stuff that I’m hearing. On the
flip side, there’s a flip side. The bigger tech companies that have substantial
capital.

Lynette Keyowski – Beyond the Box Host: CoreLogic, Zillow,
[inaudible 18:22].

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: Redfin…
I used to count Open-Door in that mix, but….

Lynette Keyowski – Beyond the Box Host: [inaudible 18:32]

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: But
with new information, I have to revise my opinion. This is the example, of “Hey
I was wrong, I didn’t have the information.” Maybe a company like Compass.
Those guys are going to be such big winners out of this, it’s hard to wrap our
heads around, and I think that’s kind of where the industry is right now. Like,
everyone wants to sort of say, “Well, look, Redfin laid people off, so clearly
it means they’re on the way out.” I’m like, Redfin has 400 million in cash. You
don’t. And they only laid off 7%. You’ve got to look at the details.

Lynette Keyowski – Beyond the Box Host: I totally get it,
but here’s the question that I have: If the proportion… so if I think of a
Zillow, or a CoreLogic, they’re not going to venture capital.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: No.

Lynette Keyowski – Beyond the Box Host: I mean, they’re
internally capitalized; great. And they’re going to do well because they have,
and they have the infrastructure, they have the market share, and they have the
runway, to your point. So, some of these…the companies that venture capital is
engaged with, may or may not.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: Correct.

Lynette Keyowski – Beyond the Box Host: So, how will this
massive direction of capital into this space help the sector? Not just through
and survive, but where do you think this sector goes after this? In some way,
and is technology a piece of it? Or is technology going to happen despite it?

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: I
think the way I think about that is, I don’t think it’s really all that
worthwhile to talk about technology, as some sort of a separate thing. And what
I mean by that is every company is a technology company now. Do you know what I
mean?

Lynette Keyowski – Beyond the Box Host: Yes, I totally
know!

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: Yeah,
so it’s talking about well, this technology is going to be… it’s almost like
saying, well our office space is going to… It’s just part of the deal. Like you
cannot be a company without technology.

Lynette Keyowski – Beyond the Box Host: Right, so really
then the question, and this was a bit leading, because I wanted you to
categorically say that, right?

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: Right.

Lynette Keyowski – Beyond the Box Host: Capital, you know,
all of this VC money, or whatever…

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: Or
private equity or public funds, yeah.

Lynette Keyowski – Beyond the Box Host: It doesn’t matter.
The fact that it’s important to the sector doesn’t necessarily mean it’s
driving technology. So, I’m curious, from your perspective, where is this
capital on the same trajectory or is it going to be rediverted? Drawn back?
What’s going to happen?

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: So…
nobody knows.

Lynette Keyowski – Beyond the Box Host: What? Rob Hahn,
could you even take wild guess?

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: See,
I’m going to give you a wild guess, I have opinions, I’m just putting out that
nobody knows. I don’t care who you are, if you’re Ray Dallio, if you’re doesn’t
matter to me. You could be the most successful venture capitalist in the world,
nobody knows, because we’re still in the midst of this government enforced
lockdown. So, keep that in mind, and the capital markets are in turmoil right
now. But my guess is this, when I think ahead, when I look say, two years out,
three years out, we’re past this, something happens. What I kind of envision
capital doing is I think we’re going to see a massive restructuring of the
industry, and a massive wave of consolidation.

Lynette Keyowski – Beyond the Box Host: So, go ahead and
talk about that.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: So,
right now, it’s so cheap to buy companies because they’re going bankrupt, it’s
fire sales. So, anyone that has capital right now, you’ve got to be going like,
“this is a buying opportunity like there is no tomorrow.” If you have capital,
and the issue is, do you have to have capital?

Lynette Keyowski – Beyond the Box Host: So, potentially,
this capital is a short-term opportunity that’s presented itself. Which you’d
have to have capital to redivert, at least in the short term.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: Yeah,
so I kind of think of it this way, remember when ’08 happened? Blackstone and
BlackRock all of these private equity funds start saying, “Hey, we can buy all
these single-family residents and turn them into rentals.” I could see some
smart fund managers going, “Hey, you know, real estate is super fragmented,”
because we know this, right? It’s hyper-fragmented. We think there’s going to
be a cleansing; we think a lot of these companies are selling for pennies on
the dollar because of their cash crunch. Why don’t we fund a really great
company, with really great management, give them a hundred million and see if
they could buy out 40% of their competitors. Because then the economics change
on the other side of that, right. So, I mean I can see something like that
happening. I could see tech companies just getting gobbled up. Venture capitals
could be like, “okay, we’ve valued this start up at 25 million, and gave them 2
million bucks.” They lost all of their customers.

Lynette Keyowski – Beyond the Box Host: [inaudible 23:22]

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: New orders
have dropped off the cliff. Old customers are saying, “we want to renegotiate.”
Zillow comes out and says. “Ahh, we’ll give you 2 million for that company.”
The investors are going to go sell. I mean, they’re like, “get me out of this
position.” They don’t care. So, I could see something like that happening. And
you know, to the extent that new technologies are… I guess we’ll call it
transformative. I could see that actually getting… so as an example,
Blockchain.

Lynette Keyowski – Beyond the Box Host: Yeah.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: Look,
I think Blockchain is ten years out, who the hell knows, right? Because there’s
all these other things around Blockchain. But is it a transformative
technology? Of course, it is. Could some capital, you know some well-managed
funds, look at that and say, “Hey, with all the turmoil going on in real
estate, let’s invest in Blockchain.” And throw 50 million at it, throw 100
million at it. The thing to keep in mind about this right, and I know your
audience is more than industry people, but I do have to make this point. We in
the real estate industry, really have very little idea of what big capital is
actually like.

Lynette Keyowski – Beyond the Box Host: Totally.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: We
think like, “Oh my god, so and so company raised 20 million. They’re like this
big new star now!” I’ve talked to fund managers where they’re like, “If the
investment is not like 500 million, we’re not interested, because it doesn’t do
anything for us.”

Lynette Keyowski – Beyond the Box Host: Yeah.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: So,
yeah, it’s crazy. So, you got to think bigger.

Lynette Keyowski – Beyond the Box Host: Totally, and you
and I have had this conversation, and we’re on that page. I think relatively
speaking though, when you look at this sector, it’s a baby in terms of capital
and investment, and where big money actually flows and the impacts where big
money can really have. Which frankly has always kind of blown me away, given
just the asset class that real estate is globally.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: Correct,
correct.

Lynette Keyowski – Beyond the Box Host: So, I think in
general this is where the sector was feeling pretty good coming into the
pandemic. Thinking, “Wow, the investment into our sector is finally starting to
pick up, you know, starting to evaluate the asset class that we represent.”
Then this kind of hit, so I think it’s going to be interesting to see here it
goes. One of the other notions that I know you have really been reporting over
the last number of months is the transformation of the industry and what that
really looks like. And are we on that trajectory, and what’s that going to look
like? I’ve read a couple of your pieces lately, and I’d love to hear you
articulate in your view what that’s going to do to some of that transformative
change that’s already going on.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: Sure,
so my theory on this is that what Covid does; what this pandemic does, is it
just accelerates all the trends that were visible before that. So, I’ll give
you an example. I think one of the biggest restructurings in the industry that
we will see, is agent teams will completely dominate residential real estate.
So, I’ll step back. A lot of folks in the industry in the last 10 years or so,
even today, are still talking about these big tech companies want to put real
estate agents out of business. So, it couldn’t be further from the truth. What
they’re going to do is empower select agents, and then have those agents put
everybody else out of business.

Lynette Keyowski – Beyond the Box Host: And we see that
with examples like Zillow, not their premium agent, but when they’re selecting
the agent teams to represent their I buy program.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: The
“Zillow Offers” for example. But here’s the thing, that’s on the tech company.
If you look at the ground level, at the local markets. What you’re seeing is
the agent teams are increasing their market share before any of this happened
by double digits ever year.

Lynette Keyowski – Beyond the Box Host: Yeah.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: Meanwhile,
the average realtor is doing like, seven transactions… So, I’m saying okay.

Lynette Keyowski – Beyond the Box Host: [inaudible 27:30]

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: So,
that trend is already in place. What Covid says, is “Do you have cash?” Agent
teams have cash. A lot of agents don’t. I mean, a lot of agents here in the US
are applying for unemployment insurance for the first time because of changes.
Like, okay you’re not going to come out of this investing and start you know,
it’s just not going to happen. So, what’s that going to do? I’m saying the
restruction comes, maybe we go from something 80/20, 90/10 to something like,
98/2? I mean, that doesn’t seem completely unrealistic to me. It could go in so
many different directions. But that fact to me, that’s the most important
disruption that’s come out of this. That’s the most important trend that’s
happened in the last 10 years in real estate. Everyone’s focused on technology
and CRM and the biggest fundamental transformation over the last 10 years is
the rise of the agent team.

Lynette Keyowski – Beyond the Box Host: And again, I know
you’ve talked about that a lot and really, what that has, to your point around
Covid accelerating some of those transformative changes, I think really what
I’m hearing is, across all sectors, cash is king. Whoever has cash, whoever has
capital at every level is going to be the winner in this. And it’s simply a
waiting game, it’s waiting this out, and who’s able to finance the down period
the best.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: That’s
right. That’s right. And everyone’s come to realize that, and that fact in turn
then has consequences because for 10 years we’ve had the hottest real estate,
non-stop expansion. And brokers and agents, a lot of them just have not
realized the importance of cash flow. Look, I do consulting for a living. I
work with brokers often, and I’ll get a broker call me and I’ll say, “So,
what’s your balance sheet” and they’ll be like, “I don’t know.”

Lynette Keyowski – Beyond the Box Host: “I don’t have one.”

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: “I
think my accountant knows.” And I’m like, really? So, then I look at their
balance sheet, and we’re talking about some pretty sizable brokerages, like
over 1000 agents. They have like two weeks of cash in the bank. I’m like, how
do you operate? You have two weeks of cash! “Oh, well look at our accounts
receivables.” Yeah, but you can’t pay the bank with accounts receivable. And
what we’re seeing is stuff like, deals that were under contract, fall out
because the buyer lost his job. Now what? Now that cash that you were expecting
is not going to show up, now what? So, it’s things like that.

Lynette Keyowski – Beyond the Box Host: So, do you think
this is, and I’m just watching the time and I’m wanting to be respective of
your time, so we’ll wrap this up, but I have one more question before we go. Do
you think this is just an opportunity and maybe a forced opportunity, for everybody
across the sector, to sharpen their pencil? Like, is this really about
sharpening the pencil and deciding what’s really important versus what we would
like to have? And maybe starting to, and again, this divide in my mind has
always been so massive. The value of the asset class in this sector, versus how
sophisticated the sector looks at their own investments at every level: At the
agent level, at the broker level, at the association level. There’s something
very colloquial and unique around this industry of likeminded people; almost
kind of like that family approach and the co-competition approach. Versus,
there is massive opportunity to be had with those that actually want to
get real. Do you think this is going to force the industry down this path?

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: I
think so, but here’s what is unknown right now. Because to me, one of two
things will happen. One, we are going to, because of changes in psychology,
changes in culture, changes in government, changes like in these big, big
picture stuff. All of these things that we consider fundamental in real estate,
will no longer apply.

Lynette Keyowski – Beyond the Box Host: Give me an example.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: So,
I’ve just given an example; the idea that relationships. Real estate has
existed for about 100 years, and it’s all about relationships. Relationship,
relationship, relationship. We don’t know if that’s going to be the case going
forward, because, right now, we’re all living through this, 24/7 messaging that
other people are bad for my health.

Lynette Keyowski – Beyond the Box Host: Being around other
people are bad for my health.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: Right.
Other people are bad for my health. Does this change how consumers react to
this notion of relationships? I don’t know, right? Nobody knows. Things like,
the best way to sell a house is the traditional route: you find the agent, they
go list it, then buyers have a buyer’s agent, then the buyer’s agent brings
those people… I don’t know how many sellers are going to want 50 strangers
walking through their home going forward. I don’t know, right? So, either
things are going to change fundamentally and we’re going to have to look at
restructuring the value proposition, the way things get done, etcetera,
etcetera. Or, they’re not going to change. Because human beings don’t like
change. So even consumers, once we’re out of this, this is going to be a
short-term little blip, and we’ll all forget about this year from now, and
things will kind of go back to the way we’ve always done things. I actually
don’t know the answer to that, nobody does. And anyone who claims to know, I’m
calling bullshit, because there’s no way to know. Having said that, my opinion
right now leans more towards the fundamental change side, because I think the
thing that’s changed is psychology. Like, yes, you’re spending trillions, yes,
all of this is horrible. To me, the bigger impact is psychology, and it really
reminds me of 9/11. That is was a one-day thing. We were attacked once, but the
reverberations of that, the psychological change, that’s raught in the American
people, and really, globally. It’s like Canadian’s are not affected by it. It’s
been fundamental. So, I kind of think we are going to see some real massive
changes.

Lynette Keyowski – Beyond the Box Host: Interesting.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: As
the trends that have been going accelerate, then these real massive changes
happen, the end result to me feels a whole lot like even more domination by the
agent teams, even more domination by the big, large, well-capitalized companies.
I mean, 10 years from now… because real estate is the kind of thing that
there’s no start-up capital required, you just have to hustle and have a
sphere.

Lynette Keyowski – Beyond the Box Host: Right, that’s
right.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: I
don’t know if that’s going to be the case 10 years from now, do you know what I
mean?

Lynette Keyowski – Beyond the Box Host: Well, I think we
actually already have seen that change, right?

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: Correct.
Trends!

Lynette Keyowski – Beyond the Box Host: The trends, right?
And to your point, does this accelerate some of those trends. I think that’s
what’s going to be interesting to see is, if it does, and then how it does.
That’ll be pretty cool. Okay, two last quick questions.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: And I
do what to leave this for the hopeful upbeat note by the way.

Lynette Keyowski – Beyond the Box Host: That’s okay, that’s
what I’m hoping! So, here’s my first question: Rob Hahn’s predictions for the
top three opportunities that come out of this?

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: Okay,
okay. Number one: Teams, that should be obvious. Expand like crazy. Number two:
I actually wrote a post about this, and it’s public so you don’t need to subscribe
or anything like that, so go check it out. I really believe what this is going
to do is the rise of the ex-urbs. Because again, we’ve gone from a situation
before Covid where you had to get in a car, and drive to work. Which meant that
you wanted to live within a certain distance of your office.

Lynette Keyowski – Beyond the Box Host: Yes!

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: There’s
going to be a lot of jobs where you don’t have to do that anymore.

Lynette Keyowski – Beyond the Box Host: We’re already in
that! Like, some people are now saying, “Why do I have to go to my
‘workplace?’”

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: Correct.
And it almost, more importantly, the bosses, the owners are saying, “Why am I
paying 2 million dollars a year for rent?” So, if you no longer have to drive
to work every day. Even if you have to go into the office once a week,
periodically. Now all of a sudden you can live three hours away. So, you take
major metropolitan areas like Vancouver, like Toronto, and you say, “Okay, now
I can live three hours away. What does that open up?” It opens up some amazing
properties.

Lynette Keyowski – Beyond the Box Host: Absolutely.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: An
acreage, with mountains, and streams!

Lynette Keyowski – Beyond the Box Host: It’s almost the
reverse urbanization.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: Correct.
But I think in my mind, they’ve skipped the suburbs.

Lynette Keyowski – Beyond the Box Host: That’s right.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: Like,
you go from city, to country.

Lynette Keyowski – Beyond the Box Host: Right, the ex-urbs.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: Because,
again, the way I think about it is I picture myself at thirty-two. Newly
married, have a young baby and a second one on the way, lived in the city. “Oh,
it’s so convenient; it’s awesome, close to dining, culture.” We need to move
somewhere. So, we moved to suburbs, because I have to be close to work. If I
could have just telecommuted, I’d be like, let’s move two and a half hours
away, where my backyard is a mountain, not 5000 square feet of whatever. I
think that’s an opportunity that people are kind of missing out on. So, what
should I do? If I’m an ex-urb in the city, I’d start marketing in cities like
crazy! If I’m an urban agent, I’m going to want to build some relationships
with some people out in the ex-urbs, and say, “Hey I might send you some
clients, can I get a referral?”

Lynette Keyowski – Beyond the Box Host: Yeah, I like that.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: So
that’s opportunity number two. Opportunity number three. Ahh, this is just real
speculative, and who the hell knows, but I think there’s going to be a major
opportunity around the MLS, because the MLS systems are really old, really
creaky, really ancient, and really bad.

Lynette Keyowski – Beyond the Box Host: So, are we talking
the MLS as the organization, or are we talking the MLS as the technology?

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: Well,
let’s put it this way. It’s kind of neither. What I’m saying is real estate
data. And if the organizations technology do not support what the overall
economy is going to need, and especially what these top tiered teams, these
institutions that will come to dominate real estate. What they’re going to need
for their own purposes, then they will get replaced. So, to me, the smart thing
to do is get ahead of that curve, think through what does someone like a Redfin
actually need in terms of real estate data? Are we providing that? If we’re not
providing that, you’re going to get replaced.

Lynette Keyowski – Beyond the Box Host: Well is this the
category of ex-urb real estate and how do we really support that?

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: Correct,
correct.

Lynette Keyowski – Beyond the Box Host: What do we put in
place to make certain that our agents are relevant.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: Right,
and so the problem with that and why I’m kind of hesitant about it is because,
I mean, you know this as well as anybody, we’re steeped in tradition. We’re
steeped in existing infrastructure; we’re steeped in this investment. Which is
emotional investment, that MLS and associates are talking about we exist for
the benefit of every single member. Really? I mean, you exist for the benefit
of the part-timer who does one deal every three years. I mean does that even
make sense? Like, those tough questions are going to have to get asked, and my
point is, if we’re moving to an environment in the industry where we’re going
to have fewer larger, more institutional, more professional companies; which I
include agent teams in, kind of dominating, and you’re not providing services
and data and whatever they need, at some point somebody is going to come in and
fill that gap. To me, like I tell my clients who are MLS associations, let’s get
ahead of that. Let’s start thinking now about what they’re going to need, and
what do we need to do, in our service for what they need. So, we’ll see what
happens. I think there’s massive opportunity there because if, let’s take
Canada for example, because you guys are a tenth of our size, and we’re
dominating by certain urban areas. If you could have a single real estate data
slash rules organization, what’s the value of that organization? It’s in the
billions.

Lynette Keyowski – Beyond the Box Host: It’s a lot bigger
than even the sum of the collective today.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: Correct.
It’s in the billions! Like, that becomes one of the most important data
companies in the world because, like you pointed out, the underlying asset
class is so valuable! And giant, multi-billion pension funds are making big
bets based on that asset value. If there’s a company that could say, “we know
everything there is to about this asset class,” that company is worth enormous
amounts of money.

Lynette Keyowski – Beyond the Box Host: I love it. So, you
know how I didn’t ask you what your predictions were, just for the [inaudible
41:20].

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: That’s
right. None of these are predictions because nobody knows!

Lynette Keyowski – Beyond the Box Host: [inaudible 41:26]
exactly, because the opportunity has to be followed up by the action, it has to
be executed on. And you know, I would agree with you that at least on your
number one and three, two I hadn’t considered, but it’s a great one. That there
are massive opportunities that this opens up, and frankly the period of time
that we have is also unprecedented, where we actually do have a moment to catch
our breath and really contemplate, where we’re not in the midst of the hustle,
right, and the cycle. And I think that’s a piece that people have either taken
for granted, or not recognized. You know, you don’t have to hold your breath
and wait, you can actually be productive in this time and there’s a lot of
productivity about envisioning and imagining and putting all of those pieces in
place for the eventual piece of time when we come out of this. You know, that’s
the one thing that I continue to support is, are we thinking about the world
and how we want it to look. How we want it to look, as opposed to just waiting
and seeing how it’s going to look.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: I
mean, I would agree with that, but I would just add one other thing. Because this
has been a consistent theme of most of my presentations, and a lot of my
writing. What I think a lot of folks in the industry want with the world that
they want, is the world that we had.

Lynette Keyowski – Beyond the Box Host: Yeah.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: In
other words, they want to defend this shock. Like, “Oh my god, this Covid thing
happened. Pandemic shut down. Let’s just survive it, let’s just defend against
it.”

Lynette Keyowski – Beyond the Box Host: Had it not
happened; we were already going to be so amazing over here.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: Correct,
so they just want to go back to what we had. And I think my point is, we’ll be
much better with that concept that I talked about with Toronto, for example,
anti-fragile. That team [inaudible 43:17] thing. It’s not enough to just resist
the disruption, to resist the change, and then say we’re going to say the same.
What we actually want to do is, this change, this shock, this disruption lets
us get better and helps us to improve in whatever way that is. However, you
think of it, improves. So, the old way was pretty great, but it could have used
improvement, right?

Lynette Keyowski – Beyond the Box Host: Always.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: So,
is there a way to get that? From whatever your perspective is. If you’re a
traditional 70/30 split broker, who I happen to think is in deep trouble, or do
you look at this and say, “Listen, does this opportunity, does this crisis,
give us ability to go to 50/50 split brokers somehow.” Explore that then! Just
whatever it is, think about how do we improve as we come out of this, not just
how do we get back to the good ‘old days of the way things were. That’ll be the
one thing I’ll say about.

Lynette Keyowski – Beyond the Box Host: Thank you for
making that point, because I 100% think that, that is the missing piece that a
lot of people are going to regret when looking back at this piece of time is
that. Did we think creatively enough about how to move out of this even if we
liked where we were? That gave us the moment to take a breath and really
consider is there an opportunity to do better, so I appreciate that. Okay, so
last question for you.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: Alright.

Lynette Keyowski – Beyond the Box Host: A year from today,
you are on Inman stage, or at Realtorquest in Toronto. You’re on any stage.
What are you talking about?

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: The
fact that I’m there, because it means that physical conferences are back.
Ha-ha!

Lynette Keyowski – Beyond the Box Host: Ha-ha! That’s a
good point. And are you missing those?

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: I
mean, look, I don’t miss the travel, but I do miss seeing friends. Like it was
such a pleasure to see you at the REA event. Such a pleasure. So, I mean that
part I do miss. A year from now, what am I talking about? You know, I hope I’m
talking about all the things we just kind of mentioned, and how we’re starting
to see it come true. How we are seeing a wave of consolidation. How we are
seeing that we went through an incredibly painful period and jobs were lost,
and things were restructured, not to mention the lives that were lost. It was a
real tragedy what this disease is doing to the world. But, having said that, I
hope I’m talking about looking at all the amazing opportunities that are coming
out from innovators and in people who are adapting. Real estate is filled with
those people. Like, I don’t want it to seem like real estate is all
conservative. No, it’s filled with innovators, it’s filled with people who are
always asking, “How can I make this better? How can I provide a better
experience? How can I do those things?” So, hopefully we’re talking about
that.

Lynette Keyowski – Beyond the Box Host: Love it. I love it.
Thank you so much my friend. I really appreciate it.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: You’re
so welcome! Thanks for having me.

Lynette Keyowski – Beyond the Box Host: Before we close
off, I’d love for you to let people know who are listening where to find you,
where to find your work. Rob has a ton of amazing commentary.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: The
best place is my blog, “The NotoriousROB.” You can google it, I’ve finally
have started ranking above this rap blogger who’s also named notorious Rob, so
now I’m ranking above him. But you can find me on Facebook, you can find me on
Twitter.

Lynette Keyowski – Beyond the Box Host: We’ll put all of
your handles and the link to your website in the show when we post it! Well, I
appreciate it so much, take care.

Rob Hahn – Author NotoriousROB, Managing Parnter 7DS: I
appreciate you, Lynette. Take care, stay healthy!

Lynette Keyowski – Beyond the Box Host: Yes, you too!

— End of Podcast —

Beyond the Box: Conversations with real estate executives, venture capital partners and technologists on what lays ahead for the real estate industry in a world after COVID-19.

Beyond the Box Podcast Hosts

Beyond the Box – Season 1 – Episode 3 – Laura Monroe – Global Head of Community at Inman News

Tue, 09 Jun 2020 17:57:00 GMT

Beyond the Box – Season 1 – Episode 3 – Featuring the Global Head of Community at Inman News, Laura Monroe.

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Watch on YouTube

Listen on Google Play:
**Will be coming to Google Play soon**

This week, Mike McAra has the pleasure of sitting down with Laura Monroe, Global Head of Community with Inman News to discuss the effects of COVID-19 on the #realestate industry and what the future may hold for it’s members.

“I think that first of all, one of the things about the real estate industry that I think we’ve always kind of known and definitely been able to witness is, you know, the adaptability of us as an industry.”

Full Transcript of the Show

Mike McAra – Beyond the Box Host: Alright, so. Laura
Monroe. Thank you so much for coming on the show today.

Laura Monroe – Global Head of Community, Inman News: Thanks
for having me! Appreciate it.

Mike McAra – Beyond the Box Host: Yeah, absolutely! I’m so
excited to chat with you.

Laura Monroe – Global Head of Community, Inman News: Me
too! This is so exciting.

Mike McAra – Beyond the Box Host: You know, it’s definitely
weird times out there right now, so you know the video conferences seem to be
the way we can connect, so it’s another opportunity for us to do that.

Laura Monroe – Global Head of Community, Inman News: Well I
have just, I don’t know if you saw my Facebook post. I have just dawned a new
name. I am now called the high priestess of Zoom.

Laura Monroe – Global Head of Community, Inman News: So,
here we are!

Mike McAra – Beyond the Box Host: I was wondering how long
it would take before people start putting that on LinkedIn, you know, as like a
skill, or….

Laura Monroe – Global Head of Community, Inman News:
Exactly. I’m a virtual event expert… guru.

Mike McAra – Beyond the Box Host: Was that who wrote that?
The virtual event expert?

Laura Monroe – Global Head of Community, Inman News: I did!
Yeah, I think that it’s going to be…yeah… it’s going to be huge.

Mike McAra – Beyond the Box Host: I saw that. So, okay, so
just so our audience gets a sense, you are the global head of community at
Inman right now.

Laura Monroe – Global Head of Community, Inman News: Yes!

Mike McAra – Beyond the Box Host: So, what does that
mean?

Laura Monroe – Global Head of Community, Inman News: Yeah,
exactly! Well, um, so… you know, Inman… Inman is a media publishing company.
We, but we also do events. We do live events, we do virtual events, but we also
do, we’re also know for our editorial industry news. So, think of us as the
Wall Street Journal of a real estate news and industry. Um, but our community
has had sort of a following. Both because once we meet each other in person at
our events…

Mike McAra – Beyond the Box Host: What’s that?!

Laura Monroe – Global Head of Community, Inman News: Which
is a … Right, exactly. What is that? I’ve forgotten what that’s like!

Mike McAra – Beyond the Box Host: Yeah.

Laura Monroe – Global Head of Community, Inman News: It
becomes a very big community. And a following. So, years ago, back when I was
at Inman before, we did a lot with ambassadors. We did a lot on the Facebook
groups and certainly social media played a big roll. But it shifted a bit with
this particular role, because Inman has never really had anybody in this
community driven role. So, it’s a leadership role. We’re pulling more people
together under the communication platforms that we use. The digital channels,
as well as our events. And it’s well into the thousands.

Mike McAra – Beyond the Box Host: Wow.

Laura Monroe – Global Head of Community, Inman News: So, it
just creates an audience that is both online and offline. And it helps us to
really keep our um… it just brings people together in a really innovative
ways.

Mike McAra – Beyond the Box Host: So, the thousands. Are
those realtors, brokers, like who are those thousands of people?

Laura Monroe – Global Head of Community, Inman News: Everything.
I mean, I think originally it was… we sort of used our segmentation as like
agents, brokers, um, CEO’s and founders, Technology CEO’s and founders,
entrepreneurs, vendors, providers, organized real estate leaders, associations,
state and local. I mean, anyone! The one amazing thing about Inman is that we
have a platform for conversation that is agnostic; meaning that it doesn’t
matter what brokerage you’re with, it doesn’t matter what association you’re
with, it doesn’t matter what leader you’re from, or which
company you’re with. We want to share that information out to everybody for the
benefit of all. So, we don’t get too caught up in brands and too much brand
loyalty.

Mike McAra – Beyond the Box Host: Which is interesting,
because your core background is a brand strategist, right?

Laura Monroe – Global Head of Community, Inman News: It is!
It’s really where I learned a lot of the tricks of the trade for brands,
yeah.

Mike McAra – Beyond the Box Host: It’s so, it’s so
interesting. I love the whole Inman concept. You know I’ve met Brad a couple
times.

Laura Monroe – Global Head of Community, Inman News: Yeah.

Mike McAra – Beyond the Box Host: But his whole philosophy
of essentially harmonizing, you know, innovation, real estate for the
betterment of the industry or the community. I always mix up exactly what it is
but it’s such an interesting philosophy, and clearly it’s resonating, so…

Laura Monroe – Global Head of Community, Inman News: Yes,
yes. So, I think there’s been times where we’re a small strappy… We run like a
start-up. We actually have less than 50 people on the Inman team, so we’re
constantly working on big projects, editorials, events. But, you know, the
community is really where… it’s who our audience is. So, it’s good to have
recognize it. It’s good to put value behind it, it’s good as an organization
to… especially, especially during these times, how important it is for us to
play a role in keeping people connected. Um, it’s been an… it’s been an in…
we’ve grown literally almost 200% on social media just in the past two weeks.

Mike McAra – Beyond the Box Host: I saw that post and I was
just blown away by it.

Laura Monroe – Global Head of Community, Inman News: Yeah,
incredible.

Mike McAra – Beyond the Box Host: I think if anything, it’s
interesting because, my understanding within the Inman company is that, you are
all working from home anyway, already.

Laura Monroe – Global Head of Community, Inman News: Yes.

Mike McAra – Beyond the Box Host: Like that was just, how
it is. So, you’ve been tasked with growing this community remotely, since the…
since the onset.

Laura Monroe – Global Head of Community, Inman News: Yep!

Mike McAra – Beyond the Box Host: And now you’ve got this,
this essentially, um, captive audience of people that are looking for that
social connection. You know, the real estate industry is a social industry,
let’s be honest.

Laura Monroe – Global Head of Community, Inman News: It
definitely is. And well now, we’ve got a lot of people that are having to stay
enclosed in their homes, and you know, make things work from home. But more
than anything, they need each other. They need… you know, the innovation that
is going to come from being in this moment in time; like, we have this
conversation at Inman. Like we are in a very special moment in time that once
we get past this pain, or get through the pain, I should say, not past it.
Because no one is getting past it. Um, it’s… we’re watching this in real time,
like, this is unfolding and innovating in such a rapid way, that it’s going to
be an incredible situation to look back on. Probably within a few short
months.

Mike McAra – Beyond the Box Host: You know, it’s going to
be written in the history books.

Laura Monroe – Global Head of Community, Inman News: It
will be.

Mike McAra – Beyond the Box Host: And you know this is
obviously a generational defining moment.

Laura Monroe – Global Head of Community, Inman News: Mhm.

Mike McAra – Beyond the Box Host: And you know, it’s
really… yeah, there’s that moment of self-reflection where…

Laura Monroe – Global Head of Community, Inman News: Exactly,
in everything!

Mike McAra – Beyond the Box Host: Yeah, so how do I take
what I’m doing, you know… First of all, how do I survive and stay healthy, right?

Laura Monroe – Global Head of Community, Inman News: Yeah.

Mike McAra – Beyond the Box Host: First and foremost.

Laura Monroe – Global Head of Community, Inman News: First
and foremost, yes.

Mike McAra – Beyond the Box Host: And then after that,
okay. What does this look like going forward? Will the world continue to spin?
I’m going to take the view that it will, right?

Laura Monroe – Global Head of Community, Inman News: Mhm.

Mike McAra – Beyond the Box Host: So how do you position
yourself to… to maintain what you’ve got going on, and how, how do you
grow…

Laura Monroe – Global Head of Community, Inman News: Grow
into it!

Mike McAra – Beyond the Box Host: And that new normal,
whatever it may be.

Laura Monroe – Global Head of Community, Inman News: I call
it…I read a really interesting book the other day. Well, I’ve actually had it on
my bookshelf, and I haven’t read it but all the way through yet…

Mike McAra – Beyond the Box Host: But you’ve got time now,
you’ve got the time!

Laura Monroe – Global Head of Community, Inman News: But
now I’ve got time! But you know what, I picked it up. It sits here on my
bookshelf in my office, directly right in front of me. It’s written by Sheryl
Sandberg and it’s called “Option B.”

Mike McAra – Beyond the Box Host: Okay.

Laura Monroe – Global Head of Community, Inman News: And
she wrote this book when her husband died suddenly of a heart attack, and it
was about how she navigated the sudden overwhelming grief of losing her spouse,
and then moving through that, and coming out of that on the other side
psychologically and emotionally. And I just thought, “I wonder if there’s any
of this that would pertain to this moment that we’re going through.” And
there’s a chapter in the book that’s actually called, “Bouncing forward.”

Mike McAra – Beyond the Box Host: Hmm…

Laura Monroe – Global
Head of Community, Inman News: And her therapist at the time told her,
“in any incredibly traumatic situation, there are people that fold under it,
there are people that are, um, that take a long time to heal, and then there
are the people that are resilient; that sort of seem to bounce back.” And they…
there is a thing that is called Post Traumatic Growth, where, it’s a mindset.
It’s a mental strength that is, “I’m going to get through this, and I’m going
to bounce forward.” And I brought it up last week in one of my videos, you
know, I just do a quick video, and I just said, “you know what if we can get to
this mindset of “I am where I am right now, but the resilience that I need is
going to bounce me forward into this next redone industry.”

Mike McAra – Beyond the Box Host: Very cool.

Laura Monroe – Global Head of Community, Inman News: I
think that, that was the really big chapter. It’s cool.

Mike McAra – Beyond the Box Host: Well, and I think that
kind of Segway’s into where I wanted to take this next, was that you’ve
obviously been in the industry for quite some time now . Right,
so–

Laura Monroe – Global Head of Community, Inman News: –Yeah,
almost 20 years, I think.

Mike McAra – Beyond the Box Host: Wow, 20 years, a year or
two, yep.

Laura Monroe – Global Head of Community, Inman News: Yeah!

Mike McAra – Beyond the Box Host: You’ve seen some things.
Um, and so, I guess one of the sort of interesting things that we’ve been
talking about now that I think of it, I would love to sort of chat a bit with
you about is, seeing that sort of that trend, and what’s emerged over those 20
years. And how that we’re at this point in time… kind of forward looking, what
does that look like, and more from a community perspective, more from what
you’re hearing from your conversations. So, if you could speak to that, you
know, how it’s sort of gone from say, the global financial crisis, where things
were really good and then they got really bad. And then it’s changed and now
we’re in this other part… I don’t know. Like, in your experience, what like,
how have you viewed that, and those sort of [flows]?

Laura Monroe – Global Head of Community, Inman News: Yeah,
I think that first of all, one of the things about the real estate industry
that I think we’ve always kind of known and definitely been able to witness is,
you know, the adaptability of us as an industry. No matter how many rules and
regulations and different things that we have to sort of maneuver and navigate,
whether you’re an agent or broker or technologist, there’s always the consumer.
Those don’t change. There’s always data, and there’s always, you know, the
technology that supports all of it. But the thing that amazes me is that, is
the industry’s ability to adapt to the moment in time. And you know, certainly
during this cycle on the crash of you know, the mid 2000’s and above. You know,
we saw agents having to dive into actually working belly to belly with short
sales and having to help buyers and sellers out of amazingly overwhelming
complicated financial situations. So, I see our industry still as being the one
that will help to host people, not only into new homes, but through financial
situations because of mortgages, and rent, and property and home and shelter.
We just had this conversation yesterday. You know, with everyone in lock down,
that big questions is, “is real estate essential?” and it actually, for most of
us, barring the immediate, um, civic duty to keep as everyone as healthy as
possible. There still is this case of millions of people in the middle of
transactions, in the middle of one home to another, in the middle of moving of
moving out of one home getting into another. And, the agents and brokers today
have to manage how to “land” those transactions safely. So, what I’ve seen is
the amazing ingenuity no matter where they are at in technology, that… that’s what
it’s really about, is just the ingenuity.

Mike McAra – Beyond the Box Host: It’s so interesting too,
because you are almost going to see, or perhaps you are already seeing it, that
agents have an enhanced value proposition. Beyond the tools you are using,
beyond the conversations you are having.

Laura Monroe – Global Head of Community, Inman News: Definitely.

Mike McAra – Beyond the Box Host: With you know, with a lot
of programs, a lot of different…

Laura Monroe – Global Head of Community, Inman News: Yeah.

Mike McAra – Beyond the Box Host: You know, there’s just so
many moving parts, that you know, algorithms are great. It’s going to
streamline more workflows, and I’m sure that there is more of this being done
via Zoom.

Laura Monroe – Global Head of Community, Inman News: Mhm.

Mike McAra – Beyond the Box Host: Or, you know, pick your
favourite web chat app, whatever that is.

Laura Monroe – Global Head of Community, Inman News: Yeah.

Mike McAra – Beyond the Box Host: But the reality is that,
there is still that really core role for, um, that advisory service. Right?

Laura Monroe – Global Head of Community, Inman News: Absolutely.
I mean, I wouldn’t be surprised if we start to see many more, um, concierge
type roles, advisor… you know, just services that sort of pop up out of this.
In fact, I was watching a Facebook Live from a team in California, southern
California, earlier today. And they are this psychologist, they’re the
therapist, they’re the hand holders, they’re the service providers still.
They’re still trying to figure out how to service people that are at home. You
know, virtual tours —

Mike McAra – Beyond the Box Host: Mhm.

Laura Monroe – Global Head of Community, Inman News: –You
know, to show property. Sending them meals via Door Dash, or delivery service
or something to sort of help them, you know, feel a little bit better or to
provide some help. So, you’re seeing agents that are really stepping up to work
their relationship side, but then you’re also seeing them incredibly dive into
the technology side, which is the videos and the you know, all of the different
ways that they can connect both with clients and colleagues. You know to get it
done and —

Mike McAra – Beyond the Box Host: Yeah.

Laura Monroe – Global Head of Community, Inman News: — to
connect in different ways.

Mike McAra – Beyond the Box Host: Yeah. It’s interesting
because the question we’ve had come in internally is that, you know, there’s
already adoption or you know, this growth of technology being part of the
process. I think we all see that, and then you take it that step further, and
you know, with the ibuyers coming in and doing a lot of things without agents to
an extent. And then you get an event like this. And you know, we’ve seen
ibuying just stop completely.

Laura Monroe – Global Head of Community, Inman News: Totally.
I completely agree.

Mike McAra – Beyond the Box Host: So that’s wild, number
one. And then number two is that, you know, the question is, does an event like
this empower agents to adopt technology more? Or, does it accelerate trends
that are existent, or does it create new ones? And then, and then with each of
those, what does that look like from the agent’s perspective, from the
opportunity and a challenge? And same for a tech company, from an opportunity
and challenge? You know, from a strategist and a brand and marketing background
as well as building community, I’d love to get your take on that.

Laura Monroe – Global Head of Community, Inman News: Yeah,
well… those are really big questions. And I think from… I mean we’re already
seeing agents talk about the technology that they need because the first thing
that happened out here in the States when some of the county’s started to close
down their services, their county services, it meant that a lot of these transactions
weren’t going to get the closing table, because they didn’t have the right
services. The legal services to get there. Um, mortgage and title wasn’t
necessarily considered an essential service. But very quickly, when the States
and the county’s realized that you know, real estate is still happening. There
are people that are misplaced without these closings, then they right away came
back in and said, “Okay, it’s an essential service. We know we’ve got to get
you, get you to be able to accomplish what you need to accomplish, to move
things in the direction they need to move then.” So that was like, the first
“Ah-ha” that all the States and counties went “Oh! I guess you do need to have
a county recorder’s office to close this deal.” And it didn’t happen
widespread, but from a technology standpoint, those companies that provide the
services: the notaries, the different things to be able to close these things
are the first technologies that are not working completely virtually the way
they need to.

Mike McAra – Beyond the Box Host: Hmm…

Laura Monroe – Global Head of Community, Inman News: So,
right now, if you’re paying attention and you’re someone that works in
technology. The first thing that you need to do is we need to figure out how to
get more e-notarized type of things. Like, we can’t just have notaries coming
around to people’s homes and walking them through the paperwork. Like we
literally have to get them on some kind of platform. So, it wouldn’t surprise
me if technology wise, we definitely see the all in one solution in terms of
getting from end to end in a transaction, without having to go into a million
different places. And they will have to connect to the right state and local
authorities to be able to get those things done. And I think we’ll see a push
for those, which it’s not going to be “real estate agent mandate” to have them,
it’s actually going to be a requirement.

Mike McAra – Beyond the Box Host: Well, it’s interesting
how, you know, what I hear a lot is that red tape, or there’s that Government
element that really stifles a bit of it.

Laura Monroe – Global Head of Community, Inman News: Yeah.

Mike McAra – Beyond the Box Host: And then you get an event
like this where it’s like, “Oh by the way, we need to do solute transactions
and so it is in fact, the service needs to be open.” And almost overnight, that
red tape is gone. And then now you’ve got “Okay, that’s there.” Now we have
this opportunity to build this company that we’ve always wanted to that, and
provide that service that agents wanted, consumers wanted. But for whatever
preconceived law, or what have you, it just wasn’t the case right?

Laura Monroe – Global Head of Community, Inman News: Right.
Well, and I think the NAR statistic that I heard, um, I think it was on one of
my virtual calls, was that there’s up to 60 small businesses or 60 businesses
that are attached to any transaction at any given time.

Mike McAra – Beyond the Box Host: Wow.

Laura Monroe – Global Head of Community, Inman News: So,
when you think about what an agent or a broker has to do carry in a transaction.
All of the puzzle pieces that they’re trying to put together. One agent… I did
something on Facebook where she said, “You know, we’re literally, not to
compare industries, but the analogy would be that, “Right now we’re the air
traffic controllers, and we have millions of flights in the air, and we’re just
trying to get them safely on the ground” in terms of what the transactions
are.” So, if you look at it like that, then it’s… the role of the agent is
incredibly important. Both for the technology driving side, as well as, you
know, getting the consumers what they need. They are the ones that are getting
the consumer what they need.

Mike McAra – Beyond the Box Host: Well the reality is, and
the last number I saw was something like 5 million transactions in the U.S.
right up here I think we’re at a tenth of that, I think it’s 500 thousand up
here in Canada. You know, so there’s that demand to move and I guess the
question would be if you remove that underlying economic cycle with the people
being able to work, right? And that what’s come with this event here, does that
change things and how does that all go forward? But I think ultimately what it
comes back to is, you know, two key things that you’ve already highlighted.
Number one on the agent’s side is that you need to be more of that advisor,
full service, sort of, you know, spoke curator of all things like the air
traffic controller. But then on the technology side, there’s these
opportunities to come in here and to plug in these holes that you know, you’ve
identified.

Laura Monroe – Global Head of Community, Inman News: Absolutely.
If the technology companies are listening, they’re going to get a wealth of
feedback.

Mike McAra – Beyond the Box Host: I hope they’re
listening!

Laura Monroe – Global Head of Community, Inman News: Yes,
yes! I, I think if I were … I would just be watching every Facebook live, I’d
be following what every agent is taking about because here’s what’s going to
happen. I think. Um, if we can get back to, you know, once we get past the
peak, it’s going to happen in different geographical areas. I mean, we’re
hoping that New York comes out of this first and reaches the peak and can get
back to some sense of opening things up a little bit. But we’re in California
and we’re already looking to see what’s going on in China and Italy and New
York.

Mike McAra – Beyond the Box Host: Yeah.

Laura Monroe – Global Head of Community, Inman News: Everyone
will be keeping their eye on how this unrolls, um. And, there’s going to be
some places that certainly reach business opportunities quicker than other
ones. And so, it’s going to be interesting to see but I think once we can
sort of all breath some sigh of relief on the other end of this, real
estate is going to make a fast, rubber band come back. Meaning, we’re going to
know how to do this virtually. Companies are going to be rearing to go to
provide more technology and services to make these things happen faster. People
based on their economic situations, based on their job situation, based on
where they need to be to be closer to loved ones or elderly; they’re going to
be making moves. They’re going to be making big moves. And our agent core,
regardless of what brand you’re with, are going to be the ones that are making
those… they’re going to be the ones that have those peoples lives literally in
their hands. So, they right now, are information sponges. From the governors,
in our states that are telling us when we can go out, when we can’t go out,
when we can have open houses, when we can’t. I mean, it’s been…

Mike McAra – Beyond the Box Host: There’s a lot going on.

Laura Monroe – Global Head of Community, Inman News: There’s
a lot going on. Yeah. Yeah.

Mike McAra – Beyond the Box Host: Yeah.

Laura Monroe – Global Head of Community, Inman News: But I
think it’s exciting when we can get past the pain. Yeah.

Mike McAra – Beyond the Box Host: Yeah, yeah, absolutely.
And again, I think that’s, that’s sort of that underlying core philosophy that
you have to have, is that things will continue to move after this is done. And…

Laura Monroe – Global Head of Community, Inman News: We can
survive. 90 days.

Mike McAra – Beyond the Box Host: Exactly. So, let’s
survive, first and foremost. Stay healthy, you know, do the socially
responsible thing. Take care of our families. And then kind of let’s see where
things can go moving forward from there.

Laura Monroe – Global Head of Community, Inman News: Yeah.

Mike McAra – Beyond the Box Host: And so, you know, just to
wrap things up here. So, let’s say it’s 2021. It’s Inman Connect in Las Vegas,
okay? You’re speaking and what are you telling… What is the talk about? And…

Laura Monroe – Global Head of Community, Inman News: Wow…

Mike McAra – Beyond the Box Host: Yeah. Let’s just leave it
there. What’s the talk about? And maybe just speak to that a bit.

Laura Monroe – Global Head of Community, Inman News: Okay,
so I’m going to take it a bit different, because here’s what I was
having…

Mike McAra – Beyond the Box Host: You’re cheating!

Laura Monroe – Global Head of Community, Inman News: Well,
okay here’s what I was having. Okay, here’s my topic and I’m going to take it
from a leadership standpoint, not necessarily from an agent standpoint.

Mike McAra – Beyond the Box Host: Okay!

Laura Monroe – Global Head of Community, Inman News: My
audience is the leaders of real estate.

Mike McAra – Beyond the Box Host: Okay.

Laura Monroe – Global Head of Community, Inman News: And,
my… my thing to them is… is that it doesn’t matter who you have working for you
in your company, or in your brand. They’ve been through a huge psychological
shift, both business and emotionally. And if you’re not right now considering
ways to redefine how people are working in your company, both from an
emotional, mental, technological standpoint you will not have the right
culture. If you continue on with the culture you had before this happened, and
you do it with this, you know, after this event, you’re not going to have the
same company. So, it doesn’t matter if you’re a CEO, or if you’re an
entrepreneur. If you cannot look at the emotional intelligence that you’re
going to need to pull people together, I think community is going to be a huge
thing. If you have leaders that are tone deaf, who don’t understand what their
agent/agents or brokers have been through, if they can’t communicate with an
understanding about it, they just expect to go back to normal, and have the
same kind of communication. Then I think we’re going to see… we’re not going to
see the healing that we need. We’re going to be even more tone deaf because
we’re not going to understand all of the changes that is required to be and
show up the way we need to in this industry. So, that would be my talk, which
is “How are you going to redefine how you’re doing business as a leader in this
industry.”

Mike McAra – Beyond the Box Host: I can’t wait to see it in
person!

Laura Monroe – Global Head of Community, Inman News: Yeah!

Mike McAra – Beyond the Box Host: So, I will see you…

Laura Monroe – Global Head of Community, Inman News: Well,
I’ll be putting my slide deck together!

Mike McAra – Beyond the Box Host: I hopefully see you
summer of 2021 at least.

Laura Monroe – Global Head of Community, Inman News: I
hope, I would hope so! You better be there! It’d be great to have you.

Mike McAra – Beyond the Box Host: On that note, thank you
so much for your time Laura.

Laura: Thank you so much, I appreciate you for having me.

Mike McAra – Beyond the Box Host: Stay safe, stay healthy.

Laura Monroe – Global Head of Community, Inman News: You
too! Please do.

Mike McAra – Beyond the Box Host: I look forward to meeting
you in person when we’re finally allowed to do that.

Laura Monroe – Global Head of Community, Inman News: Yes!
And I will email you what we were talking about earlier.

Mike McAra – Beyond the Box Host: Perfect, perfect.

— End of Podcast —

Beyond the Box: Conversations with real estate executives, venture capital partners and technologists on what lays ahead for the real estate industry in a world after COVID-19.

Beyond the Box Podcast Hosts

Beyond the Box – Season 1 – Episode 2 – Lynette Keyowski – Managing Director at REACH Canada

Tue, 02 Jun 2020 10:10:00 GMT

Beyond the Box – Season 1 – Episode 2 – Featuring the Managing Director of REACH Canada, Lynette Keyowski.

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Listen on Google Play:
**Will be coming to Google Play soon**

REACH Canada Director Mike McAra chats with Managing Partner Lynette Keyowski about the challenges faced by Associations, and new opportunities they have to pivot to better serve their membership.

“The box is now physically different and as a matter of fact, associations need to create a new box, right? And it may no longer be around demonstrating the value of a REALTOR®. It may no longer be around providing a great MLS system. It might not be around PR and professional standards…those types of things. It may now be around the competitive advantage as you noted. The competitive advantage of brokers has now been wiped away and everybody is now working from that same new plateau.“

Full Transcript of the Show

Mike McAra – Beyond the Box Host: Perfect! Alright, so we
are extremely lucky to have Lynette Keyowski. The Managing Director of REACH
Canada, and also the executive advisor to Second Century Ventures. So, thank
you for coming on, Lynette.

Lynette Keywoski – Managing Partner, REACH Canada/Second Century
Ventures: Well, thank you for having me, Mike.

Mike McAra – Beyond the Box Host: And for those who don’t
know this, Lynette is actually my boss. So hopefully this goes over quite well.
But you know, I guess I won’t have to ask any too hard of questions in this.
I’ll try to be easy on you.

Lynette Keywoski – Managing Partner, REACH Canada/Second Century
Ventures: Let’s use the term, “boss” in like the least possible sense.
Let’s be real, you drive the bus more than I do.

Mike McAra – Beyond the Box Host: Okay, okay, see the easy
question is done already. So obviously we have lots to dive into on this.
There’s clearly lots going on in the world. You know, one of the premises about
this podcast is, you know, thinking outside of the box in the way we used to do
things and how things are sort of transcending into this new reality, whatever
that may be. And we’ll get to that, but you have a very interesting story, and
I would love to hear it in your words. You know, how does a former CEO of a
real estate association, you know, the people all of us tech company people
want to sell to, become the managing director of REACH Canada? You know, the
scale-up program, one of the largest in the prop tech space, that’s now part of
this mass global network. How did all that come to be, Lynette?

Lynette Keywoski – Managing Partner, REACH Canada/Second Century
Ventures: Well, I’d like to say it’s just a great by-product of the
networking-effect and getting to know people really well in the bars, at what
used to be really amazing real estate events. So, I mean there’s some truth to
that.

Mike McAra – Beyond the Box Host: It’s a relationship
business.

Lynette Keywoski – Managing Partner, REACH Canada/Second Century
Ventures: It’s a relationship business. But the reality is, my view on
how well the industry has or maybe in some senses, hasn’t taken advantage of
technology is what really lead me to this place. So, I wouldn’t say it was a
direct path from being an association CEO. But certainly, it is all of those
relationships and it’s one of those examples of, kind of, you get what you
give, right? What you’re putting out there is what you get back in return. And
I’ve always been a firm believer that, you know, there’s a lot of value in the
real estate sector. There’s a lot of value in what real estate practitioner on
the ground does. As a real estate association CEO, I often found myself in a
bit of a challenge; often times, even in a conflicted place in terms of my
ability to really affect great technology to help the people that I was there
to help. And so, through an amazing number of relationships, the opportunity
was presented to me, and initially it was only presented to me as a concept.
Like, “Hey, we’re thinking of taking this REACH thing global. What do you think
about this? And would you be interested in participating?” And I was like,
“Yeah, sounds pretty cool, keep me posted.” So, yeah, I think it’s again, one
of those…. One of those situations where you take advantage of the opportunity
and lean in when it’s there. But you… when you have a vision and a view and,
you know, kind of a gut feel for what needs to happen, those opportunities make
themselves a lot more known. So, I feel really grateful to be here, but I think
that’s a bit of a trajectory. Relationships, a desire to do really great
things, understanding the opportunity for technology to fill that gap, and then
having the opportunity present itself.

Mike McAra – Beyond the Box Host: Well, I mean, really,
it’s been in my view, on the surface it could look a little bit “different.”
You know, you’ve got the association side, and you’ve got the venture side, but
the reality is, is you know, you actually have a similar opportunity here with
this role is enhancing member benefit, just through another way.

Lynette Keywoski – Managing Partner, REACH Canada/Second Century
Ventures: 100% Mike. You know, that’s the… what drives me and jacks me
about this opportunity is the fact that it is a… you know, it gives me more
tactile opportunity. It gives us more tactile opportunity to meet those needs
of those people. And, you know, not at all to disparage the structure of
organized real estate, it’s the backbone on all of why we have the practitioner
and the ability for the practitioner to get out there and deliver that value.
But it does create some challenge. And I think there’s, you know, I also think
it’s a timing thing, it’s evolution, right? The industry in its own way is
evolving. And technology doesn’t wait, right? It’s actually what I love about
the space is the internal optimism of entrepreneurs that really look at
challenging issues and problems. And they’re like, “Okay, we’re going to go and
solve that right now. It’s not tomorrow, it’s right now.” And that’s what’s so
cool, is we have this opportunity to bridge that kind of gap.

Mike McAra – Beyond the Box Host: Very cool. Very cool. Okay,
so going back to your life as an association CEO, because, as a former tech
founder the conversation we’ve had at the board room tables, if we can only
sell to the association. You know, if we can get in front of the association,
we can get there. That’s a company maker, that’s break even, we can go from
there. So, you’re an association CEO, former association CEO, I would love to
hear your, from your point of view, as tech companies would approach you with
their big, new ideas and how they can enhance the numbers. You know, just sort
of what that would look like, and how often the process and if you could speak
to that, and that sort of side.

Lynette Keywoski – Managing Partner, REACH Canada/Second Century
Ventures: Yeah, so I think it’s interesting Mike. Like, I’m learning
more about that process now in this role than I even knew about it then, right.
Because then I was really just on the receiving end of a lot of those calls and
I, you know, over the last decade or so that I’ve been in the industry or so,
I’ve had the opportunity to talk with a lot of real estate tech companies and
their approach to get their product to market, and it depends on the product,
first of all. So, there were two streams to that to say that we were generally
approached with. One was, can we utilize you as the association as the conduit
to get our product into the hands of real estate practitioners. So, basically,
can you just be our marketing channel, or part of our marketing arm. So, there
was that aspect, and the other piece was the association type of technology.
So, you’d back in CRM’s, MLS systems, lockbox systems. And then as that
evolved, add-ons or ancillary products that would enhance how we delivered
those products. And then, sort of more recently, there was a hybrid of the two:
Can we utilize your existing core technology as the associations, so again,
your backing CRM’s or MOS’s system to integrate our solution, to then better
get into it into the hands of your members. And so, that conversation evolved a
little bit. So how often? You know, that would depend. That would depend on your
market size. So, I was the CEO of an MLS [7:19]*** Association of about 1500
members, so we’d be on the smaller side, but likely in that bucket at the
largest number of associations from a population distribution size. So, the
biggest associations in Canada, there are only a few of them at the high end in
terms of a large number of members. Large number of associations kind of in the
middle and then you’ve got some of the smaller ones. So, we’d be approached
quasi-regularly. The Okanagan’s are a really great market opportunity, so
there’s a lot of value houses, really great exposure opportunity. So, what that
would look like is I’d often get an email, or a cold call from a founder or a
CEO of a tech firm and it’d be like, “Hey, we’d really love you to look at this
great solution. We think it’s going to be the next best thing for real estate
practitioners. Can we have a meeting with you?” So, you know, that would happen
maybe once a month, give or take at our association’s level. There was always a
bit of a lens that we look through. One is, are you looking to us to be a
conduit? Because a conduit at an association doesn’t necessarily mean there is
a guaranteed market opportunity there. We’d put you on our list of preferred
vendors, or we can give you access to the roster. We still have to do the work
and sell your product. On the other end, if it was about a piece of association
technology, it was, “okay, how do we justify the additional spend out of our
members money.” Because that was how it was always viewed, and we had a
responsibility to the members, but this is actually a value add to how we
deliver services to them. So, the lens we often look through was, does it allow
us to better serve the member, or does it add value to the members business?
Those were kind of the quasi-lenses and every association has their own process
to go through. Sometimes it’s very operational, sometimes it’s a very
long-sales cycle and you go through committees, and boards, and recommendations
and pilot periods. So, again, it depends on the organization, which is a piece
of advice which I have for tech firms – get to know your association, they’re
not homogenous. And the third piece around that was the dynamic between the
broker community and the association. And I think that’s a big piece that tech
firms don’t really understand, is that there is an internal dynamic between the
member brokers and the association that they need to understand so that they
are approaching the sales cycle in the best way. Because brokers don’t want the
association to deliver business tools to their members, that’s their job. It’s
their differentiating factor. So, there’s some unique political nuances that
tech companies would stand well to understand. In our association, it was an
evolution in the five years that I was there. It began as a very committee
driven, volunteer driven, evaluation process. And then we get really clear on
our core needs were, and what our strategies were, which made it a lot easier
for us to have those conversations when we got the call from the tech company.
Does this fit in terms of our direction, or not? And if it doesn’t right now,
how do we make sure we keep it on the radar for when it does. That was my
experience.

Mike McAra – Beyond the Box Host: Very cool. So, two key
questions jump out at me. Number one: Do cold calls and emails work?

Lynette Keywoski – Managing Partner, REACH Canada/Second Century
Ventures: No.

Mike McAra – Beyond the Box Host: And number two: What are
the three “do not do’s” when approaching an association? So, if you’re going to
go cold, what do you not make sure you do?

Lynette Keywoski – Managing Partner, REACH Canada/Second Century
Ventures: That’s a great question. So, I think the first thing, do
cold calls work? Often not. Often not, because association executives in
particular have a lot on their plate. There are a lot of competing factors
there and even if it’s not the CEO, even if you’re talking to a larger
association; the CTO – someone that is in charge of deploying technology. There
are a lot of competing needs. I think the important thing for tech companies to
understand is, if you’re approaching the association, which one of the two
buckets are you approaching on? Is it core technology, and if its association
based. If it’s core technology, I call that the technology that agents need to
do their business every day. Without it, they could not do business. And so, in
our world, that was the MLS system, it was the lockbox system and in some
instances, it was, again technology has evolved, but it was a mobile app
or some type of a data analytics piece, that now that enables them to be that
expert in the market. Those are kind of those areas that associations are safe
to play in, that don’t start to step over that line of delivering business
tools on behalf of the broker. If it’s about a marketing arm, then there needs
to be a value-add back to the association to say, if you help us, here’s how
it’ll benefit you in your ability to serve and support and boost your members
businesses. So, cold calls often didn’t work. At least not for me. And I felt
like I was a fairly savvy CEO when it came to the new tech that was on the
market, and really also savvy in terms of what tech is needed in this space,
right? Not just, nice to have, but it would be really great if we had tech that
could solve this pain-point on behalf of our members, on behalf of our
association. So, be really clear about the pain that you’re trying to solve, I
think that’s one thing. Build the relationship. The relationship is king. It is
in so many areas. So, if you’re going to cold call, take the opportunity to
either demonstrate to me that you already know me or my association or what our
needs are, or that you want to take the opportunity to learn what that is. I
think the important thing about that is associations want to know that if
they’re deploying tech, they can build a really great relationship with the
company that they’re partnering with. That’s often the decision-making process.
I’ve not only been part of processes, but I’ve heard of processes where we
selected that company because we loved their team. The tech, well, we could
give or take the tech. We could have taken the competing solution and it would
have given us the same result, but really, they bought you as the founder, they
bought you as the team, and so I think relationship is king. So, the “don’t
dos”: Don’t tell me you’re going to solve all my problems. If you can’t
demonstrate that you know what all of my problems are. Or my members problems.
I think the second thing is, really do, your homework. It’s no different than a
relationship and a dating process. You kind of want to know… you want to get to
know the association and what their rhythms are. Are they an association that
is driven by committee decisions? Does the CEO on the management team have some
autonomy to make decisions around certain things? So, get to know who they are!
And that does mean taking a bit of time to do your homework and building a
better relationship. And the third thing not to do, is expect that the
association is going to be an extension of your sales team. That is probably
the biggest misnomer I’ve had of companies is like, “We’ll rev share with you”
and the expectation is we’re going to “rev share with you” and therefore you’re
going to get out there and you’re going to really get out there and pitch our
product on our behalf, right? And the reality is an association doesn’t have
the depth of the knowledge of your product. And so, you probably don’t want
them out there. And so, every organization already has their plate full in
terms of the strategies that they’re deploying and it’s often not about
deploying tech.

Mike McAra – Beyond the Box Host: That’s so, so helpful and
so interesting because I think even for the most savvy tech companies, that
differentiation between core technologies for the association versus business
tools for the brokerage and the optics between delivering a solution as an
association to members that doesn’t step on the toes of the broker members who
are also your members. It’s such an interesting line to navigate. The reality
of this is, it’s just there. And so, you have to do, but at the same time as an
association, you have to continue to enhance the value proposition to your
members. So, what they see as core technology, from my experiences is a lot of
them take that for granted; that it’s an expectation. So, as an association,
you now have this place where you can’t offer certain things because it impedes
on the optics of a certain relationship, but you still have to prove and enhance
your innovation level. So, I guess, flip that question on its head 180, how do
associations enhance member benefit, especially considering how constrained
they are with what they’re already doing for their membership; what is the best
approach? Furthermore, how is that approach going to change in your opinion, in
a post-Covid world?

Lynette Keywoski – Managing Partner, REACH Canada/Second Century
Ventures: Yeah, I actually think Covid offers a massive opportunity to
the association world. I really do. And the reason I say that is you know;
partly what challenges associations is how they view technology. And I’m making
that statement very categorically and applying that blanket to the association
world and really, there are so many shades of grey. And that shade of grey
applies across every association. So, while those lines are there that you talk
about between core technology and business tools, there are massive shades of
grey depending on which association you’re talking to and talking with. They’re
there to a certain degree, in every organization, but that’s where it’s
important for tech companies to really understand what shade of grey they’re
dealing with when they’re dealing with an association. Now having said that, if
I do sort of just apply that blanket view, I think what Covid offers
associations is an opportunity to really step back and, and really, it’s the
sector, it’s the whole real estate industry, but especially associations on
what is core technology? Because, that one has also shifted over time. It’s not
just an MLS system anymore where this is the only place where you can get real
estate listings anymore is through an MLS system, right? MLS systems and the
data that they contain are now being leveraged to deliver other core pieces of
technology and tools to the real estate practitioners. So, things around data
analytics, data sciences, deeper intel into those hyperlocal neighbourhoods and
geographies. And you know, companies are also looking to leverage MLS data to
augment what they are in-turn providing as core business tools back to real
estate practitioners. So, I think what Covid offers, Mike, is an opportunity
for associations to say, “Okay. Our members can’t be belly to belly like they
used to be.” They can’t anymore. They’ve had to change how they do business.
And so, the way associations would view core technology, is “Are we enabling
our members to sit at the kitchen table with their client and give them the
knowledge they need and to demonstrate that they are the market expert and they
are the one that is going to help them through the transaction.” That’s really
the lens that associations sort of look through. That’s changed now. So, it’s
no longer sitting at the kitchen table, and it’s no longer just the information
that they’re disseminating. It’s now how can we enable our members to disseminate
that information, and how can we continue to keep them top of mind and at the
front of the end of that transaction. And really, that trusted advisor
throughout the length of the transaction. So, in my view, this provides
associations an opportunity to really think about core technology as enabling
the process of the transaction; not just the intel that backs that process any
longer. I think this could be a much-needed opportunity for that association
role to pivot its thinking around its role in delivering that technology, which
I think would be really, really cool and would elevate the value prop of those
associations back to their members.

Mike McAra – Beyond the Box Host: Well, it’s interesting
because let’s say six weeks ago, you could make the argument that inefficient
online process was a brokerages advantage. So, it was a business tool. Now, in
a post-Covid world, that’s not an advantage. It’s just now a way of doing
business because you physically can’t do it another way. So, you’ve removed
that as being competitive advantage from the brokerages point of view because
everyone is doing it. So then, at that point, as you sort of eluded to, the
association almost needs to pivot and say, “Well, now anything around that
process is actually a core business tool, or core process tool.” However, you
want to frame that. And so, but that said, they’re still saddled with all of
this additional workload. Now the associations have to have the opportunity
here to look at that in more value and but their encumbered with a ton of other
things still on their plate with obviously everything else that they’re doing.
So how do associations do that? What should they be looking for?

Lynette Keywoski – Managing Partner, REACH Canada/Second Century
Ventures: Yeah, and I think…. I’m so glad you raised this. I think
this is really the piece that is the foundational piece that the association
world is really presented an opportunity around is, what is our core value
proposition? What are our strategic, not just our priorities, but what are our
strategic advantages in being organized in this way, to be able to facilitate
that? What I love about how you just articulated that, is that you’ve
identified that it’s not thinking outside the box; the box is physically
different.

Mike McAra – Beyond the Box Host: Yeah, yeah.

Lynette Keywoski – Managing Partner, REACH Canada/Second Century
Ventures: The box is now physically different and as a matter of fact,
associations need to create a new box, right? And it may no longer be around
demonstrating the value of a relator. It may no longer be around providing a
great MLS system. It might not be around PR and those types of things, and
processional standards. It may now be around the competitive advantage as you
noted. The competitive advantage of our brokers has now been wiped away and
everybody is now working from that same new plateau. We now have to build a
foundation on top of that new same plateau where brokers are then going to have
to figure out where their competitive advantages are on top of that. So, that’s
the new dynamic that I think Covid is offering associations, is to think about
how to rebuild that foundation and then the box on top of it. I’m excited about
that, because I think it’s sort of that thing that the industry, the
association role has wrestled with. How do we move from a thinking around just
how to deliver, how to support that member to member cooperative selling
system? We used to use technology called catalogs. And now that technology is
now an online MLS information sharing system. And when we had catalogs, we took
that, and we had that information and we delivered print magazines. And now, we
take that information and we display it on real estate portals. So, we haven’t
really talked about a different process, we just shifted the technology that’s
allowed us to do the same things. I think the place we’re in now gives us and
the associations the opportunity to think about how to do things differently.

Mike McAra – Beyond the Box Host: Right.

Lynette Keywoski – Managing Partner, REACH Canada/Second Century
Ventures: So, it’s not about doing the same things in a different way,
it’s about how do we just completely dynamically shift what we do.

Mike McAra – Beyond the Box Host: Well, I think the
interesting thing is the industry has seen a version of this coming, I don’t
think anybody could have predicted that it would be a global pandemic that was
“the straw that broke the camel’s back.” I think if you look back, you create a
strategic alternative or strategic initiatives in 2013, you have the danger
report from NAR in ‘14 you have the danger report for [24:36***] in ‘15.
Saying all of these things are going to change where the box would be
re-created, but at that point, it was capital, it was outside tech companies,
it was all of these other threats to the industry. Arguably, if you think back,
I’m talking 6 or 7 years at fore looking change, and we have seen the change
occur. Then literally at the drop of a hat, you have eight years of change
completed in four weeks.

Lynette Keywoski – Managing Partner, REACH Canada/Second Century
Ventures: Totally.

Mike McAra – Beyond the Box Host: Almost overnight. So clearly
there’s huge opportunity in which, now I’m going to switch gears again. So, now
in your role at REACH, your laser focused, we’re laser focused on delivering an
immediate benefit to the members by helping tech companies scale and grow and
empowering them. Obviously, what we’re looking to do has to change too, and
that focus. So, from your lens as the managing director of REACH Canada, what
are you most excited about for those opportunities in those tech companies?
What gets you up in the morning when you’re talking with different tech players
out in the space?

Lynette Keywoski – Managing Partner, REACH Canada/Second Century
Ventures: You know, I love this question, because it’s been probably
the most refreshing piece of what you and I have been able to create, is how do
we bridge that gap? How do we bring great tech into the hands of the
practitioner? I want to be really clear, not at all identifying the association
world as a barrier, not at all. It’s about bringing an understanding of the
challenges and the parameters that they have to work with and allowing that to
become more of a conduit. But a conduit in a way that it meets the needs of
everybody along that pathway. So, it’s not about going around them. You know,
you and I have been very focused on engaging the association world into our
initiative because we recognize that there’s an opportunity to facilitate and
really bolster the association world in this regard in terms of helping their
members adopt technology. But what gets me excited about some of the tech that
I’m seeing is a couple of things. Technology now moves faster than it ever did
before. I mean, you don’t have, and this may be an [inadequate *** 26:59]
statement, but all of that backend infrastructure that’s been vested in years
and years and years ago that, frankly, the industry is still operating on the
back of. If I think about some of the more prominent tech out there, it was
built in the era where all that data had to be physically stored in physical
locations. That’s the technology that practitioner are relying on day to day.
First of all, I’m really excited about the new tech that is faster, nimbler,
more flexible in terms of its ability to adapt. So that’s the first thing. But
the second thing is, what I’m excited about, is seeing the amount of tech
that’s out there, ready to disrupt the process of how real estate is
transacted. So, it’s not a disruption of the real estate practitioner, and I
think all of those references that you pointed out in terms of [ 27:50
create*** strap plans], danger reports. They all pointed at these things as
threats. And threats to the practitioner, and threats to the industry. And the
reality is they’re not. They all present themselves as opportunity for the
industry and the practitioner to evolve the process to mitigate those factors,
and the factors aren’t threats, they’re just the reality in how the world is
evolving. And to your point, Covid has just put that evolution on steroids. But
what it’s also doing right in this moment, is it’s giving us a moment to pause.
We’ve hit the pause button on a lot of things, and so we know coming out of
Covid things are going to be different. But we’re also given this opportunity
to contemplate how we want them to be different. And so, what’s so exciting
about the place we’re at right now, prior to launching this program at REACH,
is we’re watching companies literally create that narrative, write that future
narrative. And they were like, “this is what our product was going to do in
that world, and here’s how it’s either going to help or facilitate the process
or shift things a little bit differently.” And they’re like, now just a second,
we’ve been given a massive opportunity right now, because we already saw where
this thing needed to go, and we’re there now. Covid has put the brakes on
everything and everybody has to work from home. So now all of our VR stuff and
AI stuff, it’s all super applicable in the moment, and we can’t scale fast
enough. There’s also that, okay, that was iteration three for us, because we
know the industry isn’t quite there, and the practitioner isn’t quite there.
But they’re going to get there a lot faster; we’re going to iterate a lot
faster. We’re going to skip steps two and three and we’re just going to get
right to the end point. So, I think technology is going to be right there,
ready and waiting for when things get back to normal, and that’s what is so
exciting, is conversations that you and I are having with these tech companies
three or six weeks ago have now shifted slightly to, “We’re not necessarily on
hold, we’re more excited than ever about what the future is because now we’ve
had this opportunity.” So, I think it’s going to be really interesting to see
where that intersection happens, and when the world is ready to get back into
whatever normal is, it’s going to be a very different normal. I think the
opportunity is there to take advantage of it for the practitioner and for the
tech firms to, in a never seen before way, to come together.

Mike McAra – Beyond the Box Host: What I love is you’ve got
the classic adaption curve. So, you’ve got your early adopters, you’ve got your
early majority or late majority, and you’ve got the laggards. And what you’ve
seen with those technologies that are now required for parts of our lives, is
that literally that entire curve has become adopted, almost like this. A great
example, and everyone sees it firsthand, we’re using it right now, is
Zoom. Everybody is using Zoom with their parents, their grandparents, if
they’re fortunate to have and their kids. And this is a technology that the
user experience hasn’t changed. It’s just as hard as it is to use three months
ago, yet somehow there’s 200 million daily active users on it, including every
single demographic. So just building on what you’re saying, I think one of the
exciting parts about this is that you can find that process solver. That’s
clearly got that impediment, there’s almost no limit to the growth
potential.

Lynette Keywoski – Managing Partner, REACH Canada/Second Century
Ventures: I think you and I had an experience last week talking with a
start-up that has really only been in market now for what, three months, I
think March they launched, so two months. Right before Covid kind of hit. As
they were testing, they really felt that they had a great solution for signing
mortgage documents. So, here’s the other piece that we can’t forgo, is that
it’s not just the process, it’s the things that have in the past, either
enabled or presented hurdles or barriers to process change. So, it’s not just
the association world. Just the decision of every government across this
country to all of a sudden, overnight, enable what signatures a mortgage
document. It put this tech company on steroids, who was legit out there just
trying to solve a massive pain point for every person that got themselves into
a real estate transaction, and just with a process change. Just allow us to
electronically sign our mortgage documents so that we don’t have to have the
massive amount of time and inefficiency of having to go to a legal office, sit
down. The reality is… overnight, I think within a week, every jurisdiction in
Canada swapped that legislation out, or at least permitted electronic
signatures on mortgage documents. So, you think about that, and you think about
the power of the ability to make these minute decisions. But how liberating
that is, and how massively transforming that will be for an entire industry.
And not just one industry, but the legal industry, we’re talking the banking
industry, we’re talking the real estate sector. So, I think that’s what we’re
going to see post-Covid is it’s not just… I think this is the piece people
forget is we’re not going back to how things were because things are forever
going to be different because of little changes like this. This time is going
to present additional opportunities that weren’t there before, prior to Covid.
And there are also going to be some additional challenges that we’ve never
foreseen because we didn’t have the ability to see them in a pre-Covid world. I
think that’s the exciting thing is there’s a whole host of opportunity on both
sides of this, of the coin. What I love, is working with these start-ups that
are savvy and quick on their feet to shift at a time, and in a place where the
infrastructure where they have to work in allows them to be quick and savvy. We
just need decision makers now to be able to keep up with that.

Mike McAra – Beyond the Box Host: So that’s [34:30
inaudible]. We want to wrap it up, but that does [sail?**] us into a
closing sentiment. A lot of people are getting a lot of noise out there for
what is the sentiment like, from the venture community as well as the tech
community. So, in the conversations that you’re having on both sides, even on
the association side, what is that general sentiment like? Obviously, no one
has a crystal ball, but what is that general sentiment right now and for those
people that are trying to sift through the noise, what are you hearing in your
conversations?

Lynette Keywoski – Managing Partner, REACH Canada/Second Century
Ventures: It’s so interesting because I have expected that there would
be a lot of doom and gloom, but one metric that always resonates with me has
been that there a 10x investment in prop tech over the last, what, three years.
So now, globally, there’s a 590 billion dollar capital injection into prop
tech. Early on there was “Oh, we’re going to see that completely evaporate” but
it’s like it’s the complete opposite. When I’m talking to venture, when we’re
talking to start-ups, we’re talking to major corporates who see technology and
investment in tech, tech infrastructure like REACH. That optimism is still
right there. I would describe it as kind of simmering under the surface now,
because nobody knows where it’s going to go, but it hasn’t gone away. I
often use this analogy that this pause button has been pushed. I’ve had a
conversation with somebody that’s really in-tune with tech investment in the US
a couple of weeks ago, and they articulated the same thing from their point of
view. Everybody still has their KPI’s, everybody still has their targets. That
money didn’t go away, it’s still there. People are just sort of waiting to see
where to direct it now. And so, we talk about all of the shifts and all of the
opportunity that this period of time has offered. I think it’s everybody is
still waiting to see where those best bets might be, but they’re still going to
spend the money. And the corporates still want to partner with great
initiatives that are going to allow tech and direct tech into those places and
to lean into those places where there’s the most need. That’s what I’m so
jacked about in terms of our position with REACH. We are just that conduit.
We’re not out there to necessarily pick the winners and the losers, we’re out there
to guide the great tech in the direction of where the biggest need is. We’re
the facilitators and the fun part is, is marrying and connecting all of those
dots. It’s an exciting time. It’s an exciting time for those to that choose it
to be an exciting time. At every level, whether you’re a tech founder, whether
you’re an association, whether you’re a venture capitalist. I think
opportunities are going to present themselves, just like they do in any crisis.

Mike McAra – Beyond the Box Host: So last question, you
know this one is coming. It’s not on the script though! It’s NAR 2021, so not
this one coming up, it’s 2021. You are doing a keynote speech at NAR. What is
the topic? What are you telling people?

Lynette Keywoski – Managing Partner, REACH Canada/Second Century
Ventures: So, yeah, 2021.

Mike McAra – Beyond the Box Host: Eighteen months!

Lynette Keywoski – Managing Partner, REACH Canada/Second Century
Ventures: Eighteen months… I think what we’re telling people is, it’s
never been a better time to invest in real estate technology. It’s never been a
better time to invest in your own ability to evolve. I think eighteen months
from now it’s going to take some time for people to come out of this. It’s
going to take some time, not just for people, but for our processes to come
back out of this. I think NAR 2020, people are still going to… if we’re in
person.

Mike McAra – Beyond the Box Host: Hopefully!

Lynette Keywoski – Managing Partner, REACH Canada/Second Century
Ventures: I think we’re still going to be jostling a bit around what
does this look like, but in 2021, I think we are going to have this opportunity
to talk to people about… I think people are going to be more open than ever
about how to evolve themselves and where to evolve. So in 2021, I think you and
I are going to have a massive opportunity to be sort of those, not just
leaders, but we’re going to be the ones that are going to have the opportunity
to champion and guide and advise people on the types of things that are out
there. I think you and I are going to have a opportunity to see some really new
cool things, and I’m really looking forward to be able to sort of champion what
those new cool things are and how they’re going to benefit this industry on a
go forward basis.

Mike McAra – Beyond the Box Host: Love it. Love it. Well,
thank you so much for that. You know, if I was watching this, with my former
hat on, I would have learned a ton. I really appreciate the insights Lynette.
So how can people reach REACH Canada, or yourself? How can people connect with
you if they wanted to?

Lynette Keywoski – Managing Partner, REACH Canada/Second Century Ventures:
Yeah, LinkedIn. We’re all over LinkedIn, REACH Canada, you are at
@mikekmcara, I’m @lynettekeyowski, our website is www.narreach.ca so you’ll find intel on us
there. If you’re a company, we’d love for you to sign up to our list so we can
invite you into the program when we launch it later this spring. If you’re a
mentor or somebody who just wants to connect with the sector and feels that
they can be of value to some of these start-ups, we would love you to connect
with us on the website as well, so that we can get you into our pipeline and
get you connected with what we’re doing.

Mike McAra – Beyond the Box Host: Awesome, awesome. Well
thanks so much, and I look forward to seeing you in person at NAR 2021, or
before, since you know, we work together.

Lynette Keywoski – Managing Partner, REACH Canada/Second Century
Ventures: Well, I don’t know, with the social distancing thing it’s
like, maybe that’s where we will see each other next!

— End of Podcast —

Beyond the Box: Conversations with real estate executives, venture capital partners and technologists on what lays ahead for the real estate industry in a world after COVID-19.

Beyond the Box Podcast Hosts

Beyond the Box – Season 1 – Episode 1 – Mark Birschbach – Senior Vice President of Strategic Business Innovation and Technology with National Association of REALTORS®

Tue, 26 May 2020 10:00:00 GMT

The Season Premiere of Beyond the Box is finally here featuring the Senior Vice President of Strategic Business Innovation and Technology with National Association of REALTORS®, Mark Birschbach!

Subscribe on Apple Podcasts: https://lnkd.in/gQdtKFF

Watch on YouTube: https://lnkd.in/gtNTt2M

Listen on Google Play:
**Will be coming to Google Play soon**

In our Season Premiere, Lynette Keyowski sits down with Mark to discuss the founding of REACH and what the NAR future has in store.

“That’s very much the goal is to have a proactive approach to innovation and how things will change over time, and ultimately where our member sits in the relationship with the consumer and to the transaction. Making sure that, as their role has to evolve over time, based on how consumer preferences are evolving over time, that they are positioned to be successful and that’s why we’re here and why we do what we do.”

Full Transcript of the Show

Lynette Keywoski – Beyond the Box Host: We are here today
with the senior vice president of strategic business innovation and technology.
Did I get that right?

Mark Birschbach – Senior Vice President, Strategic Business
Innovation and Technology, National Association of REALTORS®: Yes.

Lynette Keywoski – Beyond the Box Host: Awesome, with the
National Association of Realtors, Mr. Mark Birschbach. Welcome!

Mark Birschbach – Senior Vice President, Strategic Business
Innovation and Technology, National Association of REALTORS®: Thank
you.

Lynette Keywoski – Beyond the Box Host: It’s great to have
you Mark. I’m really excited to have you as our very, very first guest on the
Beyond the Box podcast. We wanted to put this podcast together for a couple of
reasons. Up here in Canada, there isn’t really a voice, a commentating voice of
the real estate industry, but especially the real estate technology and capital
at that intersection. I couldn’t think of anybody better to bring on as our
first guest than you, because you’ve really been championing exactly that down
in the US on behalf of the NAR and it’s venture arm on Second Century Ventures,
which I want to hear a bit more about in a second. So, thank you for joining us
and I’d love to start right there. We’re recording this during this weird
pandemic time, so of course we’re both at home and we’ll talk a little bit
about that. But before we get there, I’d love to hear just a little bit about
your origin story. Where you sort of came from in the industry and how you
landed in the spot you are in now.

Mark Birschbach – Senior Vice President, Strategic Business
Innovation and Technology, National Association of REALTORS®: Sure,
that’s a good place to start. I actually started my career on wall street. I
was an investment banker, doing mergers and acquisitions in New York City. I
joined wall street in the late 90’s which was really the first tech boom when
we were seeing the Nasdaq 5000. So, I really gravitated towards working on
technology transaction which is when I really started to get passionate about
innovation, technology, and things like that. But I was really looking at it
from an advisory perspective, or a financial perspective, as well as a strategic
perspective. What companies made sense to combine together, create synergies,
etcetera. So, I did that for almost a decade, and then I had moved to Chicago
in the meantime, and when the financial crisis hit, our firm was really
consolidating offices back into the New York area, and I wanted to stay in
Chicago, so I actually left banking and found myself in the start-up world. So,
I actually joined a technology start-up really early stage; we hadn’t really
raised much capital, but our main product was a web marketing platform that we
were selling to realtors. So, I got my indoctrination into real estate as well
as what it was like to be a start-up tech entrepreneur. What I realized about
real estate, the really hard way, was it’s incredibly complicated, and we spend
a lot of time, a lot of capital, trying to figure out who is our customer and
how should we be targeting them and what was the difference between the
association world, and the brokers world, and how did the MLS system all play
into that. And as a tech entrepreneur, it’s incredibly challenging to figure
all of that out and to navigate through that which that, combined with it being
around 2009-2010, one of the worst real estate markets in history given what
had happened. It was really challenging for us to get that business to work,
but it really opened the door which was an opportunity for me to join the NAR
in 2013 and help launch our REACH program. So, I had a really good financial
M&A background, I had, I’ll say, dabbled in the start-up world as a
start-up entrepreneur myself, and happened to be working in the real estate
industry from a tech entrepreneur perspective. And that experience made me the
perfect fit to come work for the NAR to use those resources to help companies
be successful in this place. So, I joined NAR in 2013 when we founded and
launched the first REACH class, the first REACH program.

Lynette Keywoski – Beyond the Box Host: Awesome, awesome.
So, tell us a little bit about REACH; it’s genesis, what the purpose was, and I
know there’s a bit of a step before REACH happened, so Second Century was to
that, which would have been before your time with NAR, but I’d love for you to
kind of weave those pieces together as well.

Mark Birschbach – Senior Vice President, Strategic Business
Innovation and Technology, National Association of REALTORS®: Yeah,
for a very large trade association to have a venture capital arm, is pretty interesting.
Pretty amazing, actually. The story of Second Century Ventures even goes a
little bit farther back when a guy by the name of Scott Fisher came to NAR in
the early 2000’s with an idea for a lockbox company. Which has now been very
successful; it’s a company wholly own called Centralock. But it was his idea to
approach the NAR and say, “I need capital to start this business. Your members
are getting price gauged by a competitor in the industry who sort of has a
monopoly in the industry.” And the NAR’s response back to him was, “Well, we’ll
promote your product, this is how much we’ll charge.” It was a marketing and
advertising relationship. And he sort of flipped it on its head and said,
“Well, no I’m looking for you to give me money to invest in my company.”
Thankfully Bob Goldberg and the senior management and leadership at the time;
this is a really interesting concept to get into at the time – to start getting
into backing companies that can help support our members. So, that was really
the first, call it, transaction that the NAR did. And what they realized
through that process was that with a lot of committees and a lot of red tape
and to get something like that through that entire system was really
challenging. And it took a really long time. If you want to be in the venture
capital business, you need to be able to move quickly. So, that was the idea
behind creating Second Century Ventures as a wholly owned subsidiary with a
separate board that could move really quickly when opportunities came to the
table. So, as part of NAR’s Second Century Initiatives in 2008 to launch the
entire association into its second century of existence, they created Second
Century Ventures which is really our venture capital arm where we take
investment dollars, or capital, and invest that into technology companies that
can help our members. So, that was launched in 2008, made its first investment
in 2009 into a company called DocuSign. Which not many people have heard of at
the time, but now many, many people are using it and have heard of it. So, that
has been a huge success story for the fund, but as it evolved over time, we
realized that we were missing out on some earlier stage companies that we could
help bring into the marketplace that could really help our members. So, when
Second Century Ventures was founded, the board had a pretty strict investment
criteria. We couldn’t invest in any company that didn’t have at least 2 million
dollars in revenue, or a significant customer base. It was a way they wanted to
manage risk associated with where they were investing their dollars. What we
realized that we were missing a lot of opportunities, so there were earlier
stage companies coming to the table and we had no vehicle to really partner
with those companies. So, we got the idea to start REACH, which is more of a
programmatic experience for typically an earlier stage company but the way it’s
evolved over the last decade now, is we actually get later stage companies, or
start-up companies with a lot of traction in other markets who really want that
programmatic experience to help launch themselves into real estate. So, it’s
really evolved over time with that very early centralack investment that
ultimately paved the way for Second Century Ventures to exist, and now REACH to
exist which, I mean we just launched our eighth core REACH class. We’ve
expanded that program significantly and it’s bringing a lot of value to the
table for our members.

Lynette Keywoski – Beyond the Box Host: I love that you
waved the story that way. I just learned now why it’s called Second Century
Ventures, so that’s a very cool little tidbit of information to have. I know
I’ve had a lot of people ask, “Why Second Century Ventures?” so now we know!

Mark Birschbach – Senior Vice President, Strategic Business
Innovation and Technology, National Association of REALTORS®: I know!

Lynette Keywoski – Beyond the Box Host: Launching realtors
into their second century, so that’s really awesome. So, the REACH program is
reaching its eighth cohort in the US, so obviously it has been an extremely
successful program. Can you give us just a few metrics around historically what
that portfolio looks like, how it’s performed, and how Second Century measures
the relative success of the program and why it continues to invest and expand?

Mark Birschbach – Senior Vice President, Strategic Business
Innovation and Technology, National Association of REALTORS®: Yes,
absolutely. I mean, we really look at two major criteria when we’re looking at
partnering with any company. First and foremost, what is the value that it can
bring to our members. So, what products, what service, what pain point is it
trying to solve, what does the marketplace look like, how will it help our
members be more successful. That’s first and foremost the number one criterion.
Secondly, and I think them really more as 1a and 1b because they’re both very
important, is we track and measure financial success, or ROI on that
investment. It could be the greatest product in the world, but if it’s not
going to get traction, or the company isn’t going to do well financially, then
it’s not something we would put our equity or dollars behind. So, we really
look at those two criteria. In 2013 we launched our first class with seven
companies. We typically have anywhere from between seven and nine companies in
the REACH program each year. And then we’ll do follow on and investing in a
handful of companies from each of those classes, depending on how successful
they are.

Lynette Keywoski – Beyond the Box Host: Awesome, so what is
the portfolio size of NAR, so seven to nine must be somewhere around, 70 to 80
companies that have gone through the reach program?

Mark Birschbach – Senior Vice President, Strategic Business
Innovation and Technology, National Association of REALTORS®: So, last
year, almost two years ago, we actually acquired a local accelerator which we
modified and turned that into our commercial program, which we just launched
our second cohort this year that our commercial technology real estate
solutions. So, if you include that portfolio that we acquired which includes
twenty-some companies, the total SCV and REACH portfolio is over 100 companies.

Lynette Keywoski – Beyond the Box Host: Amazing. So, really
expansive traction across the up and coming tech that is supporting the real
estate sector.

Mark Birschbach – Senior Vice President, Strategic Business
Innovation and Technology, National Association of REALTORS®: That’s
right.

Lynette Keywoski – Beyond the Box Host: So, the other piece
that I was hoping you could talk to us a little bit about is sort of the vision
for moving forward. So, the REACH commercial program I know was an initial
opportunity to expand the original concept, but there’s also been more move to
expand, not just REACH. So, I’d love you to talk to that point and sort of in
conjunction with that, how that fits into, and I want to weave back into your
particular role, in terms of strategic business, innovation and technology, and
maybe how the REACH program is helping to check some of those boxes from an NAR
perspective.

Mark Birschbach – Senior Vice President, Strategic Business
Innovation and Technology, National Association of REALTORS®: There’s
a lot in that. So, let me talk about REACH, first of all. So, we’ve expanded
REACH quite a bit. Significantly. We really looked at three different
strategies which are in various stages of being executed, so there’s a lot of
innovation happening around real estate and around real estate transaction and
places where we can help our members be more successful if we help innovate
those areas. So, the first strategy in which the commercial expansion really
fit into was what we call our “vertical strategy.” So, what our real estate
adjacent industries or areas which impact real estate transactions where we can
invest in, help innovate and make things easier and more productive for our
consumers as well as our members. So, think things like mortgage technology and
insurance technology and settlement services technology. And commercial real
estate technology which is actually quite a bit different from residential. So,
we include commercial as another vertical even though it is real estate
transaction focused. So, we’ve had companies who maybe were more focused on addressing
those specific verticals that have tried to, with varying degrees of success,
tried to come through the REACH core program, and we realized that we have an
opportunity too, as we expand and grow, to tailor something better for them so
that they’re getting a lot of value out of it, as well as our members are
getting a lot of value out of it. So, our first vertical is really our
commercial vertical, which we’re focused on trying to make successful. But we
are looking at other verticals for future expansion. The second major growth
area, which we’ve gotten a lot of traction in is our global expansion. So, this
really came about because we had international companies who were looking to
participate in REACH to open up their US markets. So, the very first company
that we had was a German based company which was a number one player in Europe,
that was looking to expand into the US. They opened their first office and
realized, “Wow this is a lot different than Europe. How do we figure out how to
trade the United States?” So, I was introduced into them and we had this great
opportunity to bring our first international company into the US using REACH.
Well, that sort of gave us the idea that innovation is happening everywhere,
not just in the United States, and how can we go and find international
companies that we can bring into the US that can help our US based members. And
so, what we started doing last year is we launched our REACH Global effort with
our first cohort in Australia. We had four Australian based companies come into
the US via REACH in 2017-18. So, there’s a lot of similarities to the United
States real estate market and Australia so it seemed like a natural place to
start. So, we’ve since announced that we’re going to do REACH Canada this year,
we’ll do REACH UK this year, and then obviously REACH US, with the idea that,
let’s go find innovation that’s happening everywhere and get involved in that
through these bi-lateral partnership agreements that we have with, let’s call
them sister organizations in real estate in those countries. We have a natural
connection there. And then we have significant connections in the international
technology and venture capital communities where we can go find the best and
brightest companies, run them through these, call them local programs, to those
countries and then when they’re ready to come into the US they’ve got some
traction in their own space, in their own location and we can help them do
really well in the US. And I think further down the road and now having this
portfolio of let’s call it, one hundred companies, as they saturate the US base
real estate market, maybe get into some of those additional verticals by
expanding their products and solutions across some of our vertical programs
that are looking to grow their businesses beyond the US and get into some of
these countries where we’ll already have a systematic way to launch them into
those companies like we did for them in the US. So, that was really the vision
around international expansion is, innovation is happening everywhere, and
let’s bring some of that to the table for our members.

Lynette Keywoski – Beyond the Box Host: That’s awesome. So,
you’ve mentioned three strategies – vertical specific, global expansion, is
there a third? Or was that woven into the last?

Mark Birschbach – Senior Vice President, Strategic Business
Innovation and Technology, National Association of REALTORS®: There is
a third, which we are still working on and have not disclosed yet, but there is
a third strategy that we’re looking at.

Lynette Keywoski – Beyond the Box Host: Cool. So, I hear a
second podcast coming up in the future.

Mark Birschbach – Senior Vice President, Strategic Business
Innovation and Technology, National Association of REALTORS®: Yes!

Lynette Keywoski – Beyond the Box Host: That’s awesome. I
love that. I love that one of the things that I’ve had the opportunity to see
is sort of this global interest in the REACH program which speaks really highly
to not just the quality and the caliber of the program, but the reach of the
program around the world; Pardon the pun, but already how successful some of
those companies have become because of their participation in REACH programs.
So, I love the wider vision to sort of behold technology without borders
approach. So that there’s an opportunity you expand that value around the
world. I love that.

Mark Birschbach – Senior Vice President, Strategic Business
Innovation and Technology, National Association of REALTORS®: And that
fits in really well with the overall strategy of the strategic business,
innovation and technology group of which Second Century Ventures are a key
piece of, but they really fit in the middle of what I call the value chain. So,
if you think just in their purest form, REACH as an early stage company, we’d
partner with them in their early stage, they grow and then maybe we invest in
them from Second Century Ventures as they grow and they start to fit into
that investment criteria. While we’ve been incredibly successful in that band
of companies, there was work to do around how about if we went up the value
chain to what we call our bay-tech initiatives. Which is what is our
conversation and relationship with some of these really large companies like
Google, Facebook, Amazon, Microsoft. You could go down the list, and how does
the NAR work with those companies to make sure that if they want to do
something in real estate, that they do it in a way that is beneficial to our members
as opposed to detrimental. So, we really started to open up a lot of dialogue
with those companies and we’ve had a number of different avenues within how we
go about creating relationships with them, whether that’s a straight up
marketing relationship. I also oversee the realtor benefits program which is a
program where we partner with as large as fortune 100 companies that are
looking to bring a valuable product or services to our members at a discount
for our members so they can take advantage of it. You know, so there’s
marketing and advertising relationships that we can have, there’s corporate
development, so let’s look at this 100 company portfolio of yours and look at
what you’re missing and what we can fit in with what we’re doing and maybe it gives
us a toe-hold into real estate and that’s an interesting conversation to have
at the corporate development level. Then I’ll go all the way down the value
chain to the really early stage raw, pure technology. So, think of things like
Artificial Intelligence, and Machine Learning, and VR and AR.

Lynette Keywoski – Beyond the Box Host: Blockchain.

Mark Birschbach – Senior Vice President, Strategic Business
Innovation and Technology, National Association of REALTORS®: I try to
not list that one, because it’s a little bit ahead of its time as far as having
practical applications that make sense, but we are certainly incredibly
involved in Blockchain and how it can and will potentially affect real estate.
But yes, perfect example. I have a team of emerging technologists whose sole
focus is identifying and researching those kinds of technologies and going out
and having those conversations with the people who are funding development of
that. And a lot of that funding and development is happening, yes in the
start-up world that we have a pulse on from a REACH and SCV perspective, but
there’s a lot of funding at again, big corporations or government institutions
or academic institutions that are doing a lot of research and development
around different technologies. Our goal is to be on the forefront of that, be
involved in where those conversations are happening, and thinking many steps
ahead of how this can and ultimately will affect real estate, consumers, our
members, and be early in those conversations. And a lot of those conversations
tend to really feed what we’re doing into REACH. So, you think about the
evolution of a company starts with an idea, maybe with an underlying
technology, it becomes a really early stage product that is going to evolve
over time, and maybe it gets some traction, it gets some traction in real
estate. It makes sense for that company to go through REACH, we invest in it
out of SCV, and the company is on its way. So, where I want to be is in really all
levels of the conversation from super early stage, raw technology, to all the
way to huge multibillion, even trillion-dollar big tech company. And this new
group gives us the ability to do that.

Lynette Keywoski – Beyond the Box Host: I think it’s
amazing Mark the way you’ve sort of woven out that picture of the value chain.
I think it’s really important to know that NAR as the largest, one of the very
largest trade associations, is really positioning itself strategically and
purposefully. But also, in a very meaningful way in every aspect of what I
would call, almost that virtuous circle that you’re creating, right. So, you
know, there’s the chain concept where you invest kind of in the middle stage
and hope you can extrapolate to the end piece of the value chain, but really
what you’re doing is feeding that system, you’re really creating the entire
ecosystem, and I think shaping that entire ecosystem for the future of the real
estate practitioner for certain, but by virtue, making certain that you are
impacting all aspects of that real estate ecosystem, not just the transaction
on the ground, not just with finance and mortgage. And so, I think it really
shifts the dialogue to the real estate industry driving more of what the sector
looks like, rather than sitting back and passively accepting what the sector
becomes and then reacting to it. I think that is an amazing path forward.

Mark Birschbach – Senior Vice President, Strategic Business
Innovation and Technology, National Association of REALTORS®: That’s
very much the goal is to have a proactive approach to innovation and how things
will change over time, and ultimately where our members sits in the
relationship with the consumer and to the transaction. Making sure that as
their role has to evolve over time, based on how consumer preferences are
evolving over time, that they are positioned to be successful and that’s why
we’re here and why we do what we do.

Lynette Keywoski – Beyond the Box Host: Love it. So, I want
to be conscious of your time, because I just want to note, that we’re actually
recording this in the middle of the unprecedented virtual mid-year meetings for
NAR, and I know that you have a lot of things to do, so I just have to more questions.
One more question, then a “let’s leave it at that” question. So, we are
recording this during legislative week, or make your legislative meetings week
for NAR, but also the Covid pandemic. So, we can’t not address that in the
context of this conversation. So, I’d love to hear a little bit from you or
more specifically how NAR is approaching this period of time in the context of
that innovation sort of agenda, and how you think that may shift the thinking,
where you think the shifts might happen, does it impact what Second Century is
investing in? Really, wide open field here for you to address that! I think
it’s anybody’s guess, but I’d love to know what your current thinking is.

Mark Birschbach – Senior Vice President, Strategic Business
Innovation and Technology, National Association of REALTORS®: Yeah, I
mean this is obviously been a pretty significant curve ball, in any industry.
Real estate for sure. I think what its really highlighted, really in any
industry, is how can you be productive and get things done when you’re not able
to meet face to face, or you can’t be in the same room, or if you’re in the same
room, you have to be a safe distance apart. You know, we’ve been fortunate and
working really hard to follow consumer preferences for digital transactions and
eliminating a lot of the potential face to face interaction, just from a
convenience perspective. While that idea has been super charged when people
can’t meet face to face. The companies that we have invested in, over the last
5 to 6 years that do anything to try to mimic a face to face relationship or
experience digitally or virtually are getting significant traction. All of the
digital transaction tools like esignature and remote notarization and things
like that are getting significant traction because people can’t physically get
together. So, luckily, we were on the forefront with a lot of those
technologies; we already had them in our portfolio, those companies were
getting a lot of traction already just due to consumer preference in
convenience. You know, not being able to be in a place. And we’ve seen through
this, I think some of the slower to adapt those technologies or prefer those
technologies now can’t get enough of them. Because they can’t do business
without them, so I think it remains to be seen as we come out of this; what is
the new normal? I think obviously these companies were very well positioned,
for lack of a better world, take advantage of a situation like this. But I
think this will impact how business gets done in the future and the more people
get comfortable with the tools that the technology tools that they can use that
were just a convenience from a convenience perspective, are now really being
looked at as a safety perspective were well positioned. NAR is doing a lot to
help our members navigate through this. There are business challenges. There
are safety challenges, there’s regulatory and legislative challenges and we
have been working around the clock to help address all of those things for our
members.

Lynette Keywoski – Beyond the Box Host: Awesome, very cool.
I’ve been watching it and I’ve been seeing it through all of the news channels,
how much NAR is doing to and it’s one piece we haven’t even touched on, but the
intersection of advocacy and technology and how well situated NAR is to
facilitated some of those changes that have prevented tech from evolving just
because of the regulatory barriers. Again, for another podcast! So, Mark, thank
you so much, I really, really appreciate you doing this. I think how you and
the team at NAR have set up the SCV and the REACH initiative are going to speak
volumes in the future. I am actually really excited about what this period of
time offers for those initiatives, but they will only be successful because of
the foundation that was set up. So, kudo to you and the team for doing that.
Best of luck with the rest of the legislative meetings and hopefully we see each
other face to face and in person before this time next year.

Mark Birschbach – Senior Vice President, Strategic Business
Innovation and Technology, National Association of REALTORS®: Hopefully,
I agree. Thank you very much for having me. Happy to do it!

— End of Podcast —

Beyond the Box: Conversations with real estate executives, venture capital partners and technologists on what lays ahead for the real estate industry in a world after COVID-19.

Beyond the Box Podcast Hosts

Second Century Ventures Announces 2020 REACH and REACH Commercial Companies

Tue, 19 May 2020 15:36:00 GMT

CHICAGO (May 18, 2020) – Second Century Ventures, the strategic investment arm of the National Association of Realtors®, announced Monday the selection of its 2020 REACH and REACH Commercial programs. Second Century Ventures is the most active global venture fund in real estate technology with more than 100 portfolio companies worldwide.

Second Century Ventures operates the global REACH accelerator with operations in five major markets. The award-winning REACH program helps launch and accelerate high growth potential companies in the real estate, financial services, banking, home services and insurance industries.

“NAR has spent decades exploring and investing in the technological innovations we believe will define the future of America’s real estate market – investments that appear even more critical in the face of the COVID-19 pandemic,” said Bob Goldberg, CEO of the National Association of Realtors® and President of Second Century Ventures.

“While we look at this crisis as an opportunity to grow and adapt to the markets of the future, we know it is also a time when NAR’s commitment to equipping Realtors® with the technology they need to survive in a rapidly-evolving market is more important than ever,” Goldberg continued. “The REACH program allows NAR to deliver radical and actionable innovation in all aspects of real estate, and we are thrilled to welcome 16 new companies representing a dynamic group of entrepreneurs who will work hand in hand with the Realtor® family to transform our industry.”

Companies selected for the 2020 REACH and REACH Commercial classes offer innovation in transaction management, insurance, home and small business security, digital marketing, multifamily housing amenity services, clean energy and more. Collectively, these two classes have raised over $50 million in capital, employ more than 340 people and represent a market capitalization of more than $400 million.

“The companies selected for the 2020 REACH program rose to the top of a tremendously impressive list of applicants,” said Dave Garland, Managing Partner of Second Century Ventures. “With the support and guidance of our vast global community of real estate industry professionals, strategic partners, investors and mentors, we are confident the 2020 class participants will be among the most instrumental companies to deliver positive and enduring transformation for real estate.”

The eight companies selected for the REACH Class of 2020 include:

The eight companies selected for the REACH Commercial Class of 2020 include:

“The rave success of the inaugural commercial program in 2019 more than illustrated the need for innovation that supports practitioners, owners, managers and investors alike,” said Tyler Thompson, Managing Partner, Second Century Ventures. “We are excited to debut the REACH Commercial Class of 2020, a remarkable lineup of solutions across the commercial real estate eco-system, and we’re eager to accelerate their growth through unrivaled access and exposure to the industry.”

REACH will offer its 2020 classes a robust curriculum including education, mentorship, a curated insight panel, exclusive networking opportunities and significant exposure to the global real estate marketplace. Learn more about the 2020 REACH and REACH Commercial classes and how you can get involved at narreach.com .

Second Century Ventures REACH Accelerator Program Expands Worldwide

Wed, 19 Jun 2019 05:01:00 GMT

WASHINGTON (June 19, 2019) – Second Century Ventures, the National Association of Realtors®’ strategic investment arm, will expand the REACH® Accelerator program to regions outside the United States.

Through global expansion with its proven model for success, the REACH program aims to recruit and accelerate the most promising new technologies in the real estate industry and nurture success across the world.

“Expanding the NAR REACH accelerator program outside the U.S. will further NAR’s vision of creating a dynamic, competitive real estate market that will help NAR advance our members-first mission and drive innovation in real estate technology around the world,” said Bob Goldberg , CEO of the National Association of Realtors®, and President of Second Century Ventures.

This announcement comes a month after NAR announced the signing of its 100th bilateral partner agreement in 85 countries across the world, expanding global partnerships to continue to render the global real estate markets accessible, profitable and ethical for Realtors® everywhere.

“By expanding globally, REACH will increase the depth of our exceptional network of real estate industry professionals, strategic partners, investors, mentors, and innovators responsible for shaping change,” said Dave Garland , Managing Director of Second Century Ventures. “With the success of current and alumni REACH companies with Australian born operations, Rate My Agent, BoxBrownie.com and ActivePipe, we are excited to begin our expansion efforts with REACH Australia.”

Program expansion in Australia will be led by Shelli Trung, expert Proptech VC investor and tech founder. Prior to joining Second Century Ventures, Shelli served as Expert in Residence and Investment Fund Manager at Queensland University of Technology Creative Enterprise Australia (QUTCEA), “It is an honor to join the Second Century Ventures team and lead the REACH Australia accelerator. Much like the U.S. marketplace, technology and capital are revolutionizing real estate at a rapid pace in Australia. REACH Australia is a unique opportunity to accelerate growth in emerging technology companies and entrepreneurs who will have the greatest impact on real estate now and in the future.”

Applications for REACH Australia will open July 15. For more information, visit www.narreach.com(link is external) .

REACH is a growth accelerator created by Second Century Ventures, an early-stage technology fund, backed by the National Association of Realtors ®, which leverages the association’s 1.3 million members and an unparalleled network of executives within real estate and adjacent industries. REACH has received ongoing recognition as a top accelerator by the Seed Accelerator Rankings Project.

The REACH program provides education, mentorship, market exposure, and access to a global network of real estate executives and strategic investors. For more on REACH, visit www.narreach.com .

The National Association of Realtors® is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.

NAR Signs 100th Bilateral Partner; Increases Global Network

Thu, 23 May 2019 04:47:00 GMT

WASHINGTON (May 23, 2019) – The National Association of Realtors® is pleased to announce a new bilateral agreement with the Syndicat National des Professionnels Immobiliers (SNPI) (Real Estate Professionals Trade Union), a French institution with over 8,000 members, expanding its network of business partnerships around the world

This signing is particularly important, marking a milestone for NAR Global and its partners as the 100th bilateral partnership in 85 countries. Bilateral agreements provide for the reciprocal exchange of education and training and a commitment to high standards of ethics and best practices.

“It is important for NAR to expand outreach across the world and continue to render the global real estate markets accessible, profitable and ethical for Realtors® everywhere. The announcement of the 100 th bilateral partnership symbolizes the success of NAR’s global programs and showcases how these alliances help Realtors® establish worldwide business partnerships and referral opportunities,” said NAR President John Smaby, a second-generation Realtor® from Edina, Minnesota and broker at Edina Realty.

NAR has maintained formal bilateral partnerships since the 1930s, with Canada, Mexico, Cuba and the Philippines as its original partners.

Between 1970 and 2015, NAR established 78 new partnerships throughout Europe, Latin America, Asia, the Middle East and Africa, creating the largest professional real estate network on earth. An additional 22 partnerships have been signed since 2015, thus maintaining the largest network for global bilateral partners and international Realtor® members.

Foreign investment in the U.S. continues to remain high, with $250B in assets accounting for close to 10% of the total U.S. market, helping NAR’s members become more successful in the lucrative global real estate markets.

Providing educational opportunities and best practices to NAR’s bilateral partners through individual membership opportunities raises the level of professionalism in the real estate field throughout the world. Helping implement leading practices and strategies into global markets, including basic advocacy, licensing standardization, MLS and property platforms, among other initiatives, enables real estate markets around the world become stronger and create more transparency for consumers.

Second Century Ventures Announces 2019 Accelerator Class

Fri, 26 Apr 2019 04:44:00 GMT

WASHINGTON, April 26, 2019 /PRNewswire/ — Second Century Ventures, the strategic investment arm of the National Association of Realtors ^® , announced its 2019 REach ^® Class today. REach ^® is a growth technology accelerator program helping launch companies into the real estate, financial services, banking, home services and insurance industries.

The REach ^® accelerator focuses on providing early-to mid-stage companies with access to NAR’s industry expertise, influence and key relationships as businesses launch into the trillion-dollar real estate space. The vertical focus within real estate industries and the growth stage at which most companies enter the program make Second Century Ventures unique compared to other accelerators.

“As the real estate industry continues to evolve at a rapid pace, Second Century Ventures has positioned NAR at the forefront of the emerging technology landscape. REach ^® continues to recruit and accelerate the most promising new technology companies through education, mentorship and market exposure efforts, driving industry innovation and our ability to deliver new technology to our members,” said Bob Goldberg, NAR’s CEO.

The companies chosen for the 2019 class are:

“The future of our industry is increasingly dependent on fast, seamless adoption of technology that benefits homebuyers, sellers and investors at every step of a real estate transaction. Companies accepted to the REach ^® program are positioned for rapid growth within the real estate, finance and home services spaces, which will help them expand into other verticals and benefit the overall real estate industry,” said Mark Birschbach, NAR’s Senior Vice President of Strategic Business, Innovation & Technology.

Hundreds of applications are received annually. Those chosen for the program have demonstrated solid business models, executable business plans and significant potential to influence our nation’s economy. Program participants can expect significant results, as past classes have, on average, doubled their customer base and collectively raised over $300 million in financing following acceptance.

REach ^® is a unique strategic accelerator created by Second Century Ventures, a strategic technology investment fund backed by the National Association of Realtors ^® , which leverages the association’s more than 1.3 million members and an unparalleled network of executives within real estate and adjacent industries. The REach ^® Accelerator program helps technology companies launch into the real estate vertical and its adjacent markets. The 9-month program provides education, mentorship and market exposure to one of the world’s largest industries. For more on REach ^® , visit www.narreach.com .

The National Association of Realtors ^® is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.

Information about NAR is available at www.nar.realtor . This and other news releases are posted in the newsroom in the “About NAR” tab.

SOURCE National Association of Realtors

Second Century Ventures Launches REach® Commercial Accelerator

Tue, 19 Feb 2019 04:45:00 GMT

WASHINGTON (February 19, 2019) — Second Century Ventures, the National Association of Realtors®’ strategic investment arm, has launched REach® Commercial, its first commercial real estate technology accelerator. Applications for the 2019 REach® Commercial class will be accepted through March 31, 2019, at narreach.com/apply(link is external) .

“Expanding the REach® accelerator program will further NAR’s vision outlined last summer at the iOi conference in San Francisco, creating a dynamic, competitive real estate market that will help NAR advance our members-first mission for years to come,” said Bob Goldberg, CEO of the National Association of Realtors®, and President of Second Century Ventures. “REach® Commercial will continue to leverage an exceptional network of real estate industry professionals, strategic partners, investors, and mentors to increase the depth of the commercial real estate field.”

With the foundation of the REach® Accelerator curriculum, which has graduated 48 companies that have collectively raised over $350M in financing during or after program acceptance, and the recent acquisition of select Elmspring accelerator assets, REach® Commercial will offer its 2019 class unparalleled access to the commercial real estate industry. Co-founded by Elmdale Partners’ Adam Freeman and Tom Bretz, the Elmspring accelerator was uniquely incepted to drive innovative concepts in housing, smart home automation, multifamily, hospitality, space arbitrage, smart office planning, construction and more.

“Venture capital is flowing into real estate technology at an exponential rate, driving innovation in every corner of the industry,” said Mark Birschbach, NAR’s Senior Vice President of Strategic Business, Innovation & Technology. “REach® Commercial enables us to invest in the entrepreneurs and companies that are revolutionizing the commercial real estate landscape while positioning Realtors® to be the first to embrace these changing technologies.”

REach® Commercial will offer its 2019 class a robust curriculum including:

Applications for the 2019 REach® Commercial class will be accepted through March 31, 2019, at www.narreach.com/apply(link is external) . Selected companies will be announced at the REALTORS® Legislative Meetings & Trade Expo, May 13-18, 2019, in Washington, D.C.

REach® is a unique real estate technology accelerator created by Second Century Ventures, a strategic technology investment fund backed by NAR to leverage the association’s more than 1.3 million members and its unparalleled network of executives within real estate and adjacent industries. The REach® Accelerator is a nine month program designed to help technology firms launch into the real estate vertical and its adjacent markets by providing education, mentorship and market exposure to one of the world’s largest industries. For more on REach®, visit www.narreach.com(link is external) .

IP Considerations for Growing Businesses: 5 Big Issues

Tue, 07 Apr 2015 17:52:00 GMT

Guest post written by Stacy J Grossman, lawyer, businesswoman, and REach Mentor. Stacy was formerly Vice President and Associate General Counsel at News Corporation, providing counsel to the New York Post, HarperCollins, Amplify Education, News America Marketing, The Daily, Sky Italia and other businesses.

NAR REACH

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MEXICO (November 08, 2024)- REACH Latam Graduation: On October 23, 2024, REACH Latam proudly celebrated the graduation of its Class of 2024. During the Tech Week event in Mexico City, companies had the opportunity to participate in a panel before showcasing their pitches to a distinguished VC jury.

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