Excerpt below from Forbes.com article, “How Stock Trading Inspired this Start-Ups Approach to Real Estate” written by Amy Dobson. View the full article here.
“We are remaking the entire process from end-to-end,” says Jack Ryan, cofounder of the real estate startup REX. This 3-year old company has made its foray in to the real estate disruption landscape by charging only 2% of the final sales price when listing a home and by not put their listings on the Multiple Listing Service. If a client buys a home outside of their network, such as one listed on the MLS, REX refunds 50% of the buyer agent’s commission two days before closing.
REX has already attracted $30 million in two funding rounds from investors such as Amit Singhal, former senior vice president of search, Google; Jack Greenberg, former chief executive officer, McDonalds; Dick Schulze, founder, Best Buy (and formerly #722 on Forbes billionaires list); Gordon Segal, founder, Crate and Barrel; and Scott McNealy, co-founder and former chief executive officer, Sun Microsystems.
McNealy has put up more than cash in to this investment. He has also backed the startup by listing his $96 million Palo Alto house—with hockey rink, full gym, poker room and safe room as just some of its features—on the REX platform.
“My decision to choose REX goes beyond my position as an investor in the company. I believe that the technology and data REX has at their disposal is far superior to that of traditional agents and ultimately allows them to sell homes more efficiently and at a lower cost to the consumer,” McNealy said in an email. “It’s a win-win on both sides of the transaction as the seller gets to save money and sell their home in a more intelligent manner, and the buyer shares in the savings because of the lower cost to sell.”
REX is currently in the middle of a Series C round and plans to use the new influx of capital to expand their footprint beyond the four states where they currently operate. Their first location, Los Angeles, opened up in 2015 and they slowly added a few more cities until this year when they tripled their number of locations to nine different cities.