Real estate, artificial intelligence, big data. We sense a very big deal coming down the pike, and so do a number of luminary private investors with pedigrees from McDonalds, Best Buy, Crate & Barrel and Sun Micro. In fact, we find it quite interesting that REX Real Estate Exchange has shied away from VC firms to focus on private investors to fund its rollout and expansion. We are very intrigued with the whole REtech space (my daddy, rest his soul, was a prominent realtor and developer in Illinois so I grew up in the industry), but this firm is particularly interesting because it removes the traditional realtor from the sales mix, and provides a greatly reduced commission structure of 2% vs the traditional 5-6%.
But what really intrigues us is the marriage of artificial intelligence and big data to drive the sale of the home. In fact according to the website, “REX lists and markets homes outside of the MLS, targeting buyers directly by using the latest techniques in Digital Marketing and Artificial Intelligence, so you sell faster, all with a licensed full service agent”.
Thus far, the firm has focused efforts in LA/Orange County, New York & San Diego, but has plans to expand into Austin, TX soon.
Also interesting to note is that the firm is squarely into cause-related marketing, committing on its website to building a new home in Cambodia for every 50 it sells. Now mind you, these are 12×12 structures on stilts, but still, an entirely worthy cause in partnership with World Housing and the Cambodian Children’s Fund. We’re excited for the future of this one.
WOODLAND HILLS, Calif., January 9, 2018 REX Real Estate Exchange, the first full-service real estate agency that does not use the MLS, today announced that it has secured $15 million in Series B funding. To date, the company has raised over $30 million, mostly from a string of existing private marquee investors including Scott McNealy, co-founder and former chief executive officer, Sun Microsystems; Dick Schulze, founder, Best Buy; Gordon Segal, founder, Crate and Barrel; Amit Singhal, former senior vice president of search, Google; Jack Greenberg, former chief executive officer, McDonalds; and advisory board members.
REX has created an innovative technology platform that replaces the conventional real estate model, effectively providing a digital alternative in the sale of a home. The company is a fully licensed brokerage and charges only a 2 percent flat fee—in contrast to the industry’s five to six percent fee—dramatically lowering the cost of home-selling by leveraging big data, AI, and machine learning. REX seeks to provide a better experience for buyers and sellers—all while avoiding costs associated with the MLS.
“Our all-star investors and world class management team are deeply committed to improving the real estate industry,” said Jack Ryan, co-founder and chief executive officer, REX Real Estate. “We are proud to have built a service that puts massive amounts of money back into the pockets of the consumer.”
Since inception in 2015, REX has beaten every goal communicated to investors, including listing its 500th home last month. In 2017, REX experienced 300 percent year over year growth rates in the company’s service areas of Southern California and New York, is on the path to list $1 billion in homes, and has rapid nationwide expansion plans for 2018.
“Jack and his team at REX are redefining how consumers are buying and selling homes,” said Jack Greenberg, investor and former chief executive officer, McDonalds. “We’re excited to back the company as they continue to transform the real estate industry.”
REX plans to use the financing to fund market roll-out data, accelerate platform automation, and continue nationwide expansion.
For more information, please visit rexchange.com.
About REX Real Estate Exchange
REX is the only real estate company transforming the real estate industry by applying big data analytics, AI, and machine learning to market homes directly to buyers instead of relying upon traditional agents. By leveraging advanced digital marketing technologies, REX can find the right buyers and sell homes faster than MLS-listed homes for a 2 percent fee instead of the industry standard of 5-6 percent. REX is also committed to helping families in need by building a home for every 50 homes sold.
For more information about REX Real Estate, visit rexchange.com and follow REX on Twitter @rex_change.