This Week's Industry Headlines with Kevin Kauffman & Fred WeaverIt's Quarter 3 Earnings Reports Season!
Redfin beats expectations, posts $239M in revenue for Q3 2019
The latest earnings report comes as the tech-oriented brokerage steadily expands programs such as RedfinNow and Redfin Direct, which could upend how consumers engage with real estate
Redfin continued a multi-quarter hot streak Wednesday, revealing that during the third quarter of this year it raked in $239 million in revenue.
The online brokerage’s revenue represented a jump of 70 percent year-over-year. Gross profit also jumped from $42.3 million a year ago to $53.4 million this quarter, an increase of 26 percent. And earnings per share ended up at $0.07.
All of those figures easily beat analyst expectations. Leading into Wednesday’s report, financial experts had expected to see the company bring in $230.14 million in revenue, an increase of merely 64.1 percent year-over-year. Analysts also expected earnings-per-share to remain unchanged from a year ago at $0.04.
Realogy posts a net loss of $70M in Q3 after $1.6B in revenue
The loss was driven primarily by a $180M impairment at NRT, Realogy's own-side brokerage
Realogy reported a net loss of $70 million in the third quarter of 2019, a major swing from the $103 million in profit it posted in the third quarter of 2018. The loss was driven primarily by a $180 million impairment at NRT, Realogy’s own-side brokerage, according to the company.
The company also posted an adjusted earnings per share of $0.65, missing the consensus estimate of $0.85 per share.
Realogy to Sell its Global Relocation Business to SIRVA Worldwide, Inc. in $400 Million Transaction
- Realogy will use a substantial majority of net proceeds to pay down corporate debt and will leverage Broker Network and Affinity business to serve a broader customer-base
Saddled with $3.5 billion in total debt, Realogy said Thursday that it will sell Cartus’ relocation business to SIRVA, a relocation company that owns Allied Van Lines. The deal does not include recent affiliations meant to drive business, such as partnerships with Amazon and AARP.
“This transaction is about simplifying and amplifying — simplifying Realogy’s business, and amplifying Realogy’s value,” the company said in a statement. The deal is expected to close during the first half of 2020.
EXp World Holdings posts major revenue gain, losses narrow
The parent company of eXp Realty beat the consensus estimate, posting a net loss of $0.03 per share and revenue of $282M
EXp World Holdings, the parent company of virtual cloud real estate brokerage eXp Realty, continued its precipitous growth in the third quarter of 2019, posting $282 million in revenue, a year-over-year growth of nearly 80 percent.
Overall losses for the company also narrowed, as eXp World Holdings posted a net loss of $1.8 million, compared to a net loss of $4.6 million in the third quarter of 2018.
“In addition to revenue growth of nearly 80 percent year-over-year this quarter, improvement in managing our allocation of capital enhanced our measures of profitability,” Jeff Whiteside, eXp World Holdings CFO and chief collaboration officer, said in a statement.
SoftBank posts $6.4B loss, CEO 'regrets' WeWork investment
The company also reported it lost $4.6B in its WeWork stock value after WeWork's failed initial public offering
SoftBank, the Japanese conglomerate with a heavy investment in U.S. tech startups, posted a net loss of slightly more than 700 billion Japanese yen – or approximately $6.4 billion – in the second quarter of the fiscal year ending March 31, 2020.
The company also reported after WeWork’s failed initial public offering and public valuation plummet that it lost approximately $4.6 billion in its WeWork stock value from that valuation decline.
Compass makes major changes to its stock option program
The company is shifting from offering equity stock options to restricted stock units that would vest in the event of an IPO
Compass is making big changes to its agent equity program, according to an internal memo obtained exclusively by Inman. The company is shifting from offering equity stock options — an option to buy stock in the future at a set price, or strike price — to restricted stock units that will vest under certain conditions.
“This is an exciting change that eliminates the need for you to pay a strike price to purchase your equity,” Compass’ CFO Kristen Ankerbrandt explained in the memo.
A source within Compass told Inman that the vesting schedule is much shorter with the new plan. The vesting schedule was previously four years, but with this new schedule, agents’ stock units will vest either in the event of an initial public offering (IPO), or when the board grants the restricted stock units in 2021.
HOW TO PLUG INTO REAL ESTATE MARKET EVOLUTIONS AND DISRUPTIONS. Interview: Joe Bell & Kevin KauffmanAbout the Episode
On this episode, I’m joined by real estate broker and owner, thought leader, and entrepreneur, Joe Bell. He is a master of being in tune with what’s happening in the market, being at the forefront of the iBuyer conversation, and setting real estate agents up for a financially comfortable and successful future. Joe has a natural desire for disrupting the status quo, primarily focusing on industry evolution through developing new categories of business. With a changing and shifting real estate market, the insight he brings is crucial in helping us not only navigate what’s happening in the market, but actually leverage the market to help us win now and in the future. “It’s not all negative, there are opportunities for us to insulate ourselves from the future.”
Joe is broker/owner at Notch Realty, Assistant CEO at Keller Williams Realty Alaska Group and owner of Fossil Fuel Healthy Donuts. He is a thought leader with a knack for creating outside the box opportunities. After a prolific sports career in College, Joe settled into Real Estate, as it was a natural accelerator of his talents. Joe has been highlighted as one of Alaska’s Top 40 under 40 for his work within the Real Estate Industry, including a run as CEO of a Billion Dollar Brokerage.
He is a founder in several startups, as one of Joe’s key strengths is motivating others to pursue their dreams. Joe has been coaching baseball and business in some capacity for the past 15 years; helping students navigate adversity and failure toward success is a big part of who Joe is.
For the first time in real estate we have a collision course of technology, consumer behavior driving it and changing expectations. This is shifting a lot of things for agents, including income, earnings and market share. The truth that many of us don’t want to hear is that there are going to be fewer deals that we can transact as agents. This doesn’t have to spell gloom and doom for us though, there is plenty of opportunity to go around for those who know how to leverage the market evolution. It’s all about deploying money for future success, and going beyond being the asset the holds the whole business. If we are able to stop going from deal to deal, and build systems of cash flow, we will be successful.
In Today’s Episode, We Talk About;
- Joe’s real estate journey and career.
- How the growing numbers of real estate agents are colliding with technology and changing consumer behavior.
- How we can capture opportunities in the shifting market.
- How to build systems of cash flow in our businesses.
- Whether real estate agents can compete against big brands in the media space.
- Steps to take to set yourself up for a better financial future.
- Top 3 pieces of advice for kicking ass in life.
Joe is the Assistant CEO at Keller Williams Realty Alaska Group, an entrepreneur, Broker, Owner at Notch Realty, and owner Fossil Fuel Healthy Donuts.
For more information, join the Legacy Beyond Listings group on Facebook
To get in touch, email [email protected]
ARE YOU UP FOR THE CHALLENGE? Business Tip: Put Down Your Phone!Hey you... yes you
The one with your phone in your hand...
I think it could be time for a break...
If you’re up for a challenge listen to this and join us in a short, fun, & energizing challenge...
Realtors can work with Opendoor with these 4 stepsIn this webinar Kevin and Nima cover the basics on how you can learn to use Opendoor as a resource for your real estate business.
Check out more about iBuyers from the Kevin & Fred Next Level Podcast:
What is an iBuyer? http://kevinandfred.libsyn.com/iminute-episode-01-what-is-an-ibuyer
What is the cost structure of iBuyers? http://kevinandfred.libsyn.com/iminute-episode-02-ibuyer-cost-structure
What is OfferPad Choice? http://kevinandfred.libsyn.com/iminute-episode-03-ibuyers-in-the-news-offerpad-choice
What is the history of iBuyers? http://kevinandfred.libsyn.com/iminute-episode-04-history-of-ibuyers
Make sure you subscribe on your favorite podcast app so you don't miss more iBuyer episodes!
This Week's Industry Headlines with Kevin Kauffman & Fred Weaver***Kevin Kauffman and Fred Weaver launch Referral Guarantee Program
Go to https://kevinandfred.com/guarantee
***National Association of Realtors mulls MLS pocket listing policy
The new policy is a response to limited-exposure and 'coming soon' marketing practices and would require agents to share exclusive listings with MLS members
The “Clear Cooperation Policy” was announced Friday and would require agents and brokers to share any listings that “are being publicly marketed” with other members of their MLS, according to a NAR statement. Every listing wouldn’t have to end up in any given MLS’s IDX feed. But the listings would at least have to be “available” somehow “so that other participant brokers have access to them and can bring potential buyers.”
“The center of the policy is Bright’s belief that the practice of marketing properties off the MLS, known as ‘pocket listings,’ puts brokers’ own interests before consumers while creating the appearance of (and enabling) fair housing law violations,” Donnellan argues in the letter.
***Realogy teams with AARP to launch reward platform for seniors
The new cash-back rewards platform is another way for the company to generate leads for its agents
Through the program, AARP members will earn either cash-back or a bonus at closing, when they buy or sell a home with an agent at one of the companies brands, including Better Homes and Gardens Real Estate, Century 21, Coldwell Banker, Corcoran, ERA, and Sotheby’s International Realty.
Americans over the age of 50 still represent a large portion of the home buying and selling population, according to Realogy, citing the National Association of Realtors’ (NAR) generational trends report, published in August 2019. Americans over the age of 50 made up nearly 40 percent of homebuyers and still represent the largest group of home sellers at 55 percent.
In certain states that don’t allow a cashback bonus, Realogy will offer either a gift card or a commission reduction.
***OfferPad Choice - check out iMinute episode 3
GOING BEYOND SALES & TAPPING INTO IMPACT. Interview: Grant Lopez & Kevin KauffmanAbout the Episode
On this episode, I’m joined by successful agent and Chairman of the Board of Directors at the San Antonio Board of Realtors (SABOR), Grant Lopez. His story is rare for many reasons, including the fact that he chose a career in real estate straight out the gate, not as a second career. He also joined SABOR because he prioritizes solving the lack of volunteer leadership we have in this industry. Very often real estate agents are only focused on sales, and we ignore making an impact and paying forward everything we have learned. “We’re really only as good as the leaders that step up.”
Grant has taken it upon himself to better our industry through volunteer coaching and teaching. On top of that he balances that with listing appointments, following up on leads, and builder clients. He credits his calendar for keeping everything on track. It has all paid off for Grant. Through building relationships with builders, his volume has gone from 150 to 650 and by being involved in local associations he has gained data, referrals and knowledge.
Very often real estate agents know the things they need to do to take their business to their next level, but they aren’t committed enough to doing them. Having a calendar is one thing, but if we want to improve at something, we have to be committed to the time we spend on that activity. If we don’t do this, that activity will always fall by the wayside and our businesses will never grow.
In Today’s Episode, We Talk About;
- How Grant chose real estate straight out the gate, which isn’t very common.
- Inevitable market adjustments and what it takes to thrive through them.
- Why we need to think beyond sales and numbers.
- Why Grant lives by his calendar, and why he’s so committed to it
- How to build relationships with new construction builders.
- Things we can do to be better.
Grant Lopez is a licensed REALTOR and third generation San Antonian. Grant is currently the Chairman of the Board of Directors at the San Antonio Board of Realtors (SABOR), which is the largest trade association in South Texas. At SABOR Grant has served on several committees, most recently as Chair of the MLS committee which has over 10,000 subscribers. Grant is also a proud member of the Greater San Antonio Builder’s Association (GSABA) and currently serves on the Sales & Marketing Council and the Young Professional Leadership Council.
Email: [email protected]/
Industry Headlines with Kevin and Fred
Who and What Gives You Energy?Have you ever considered why are you enjoy doing some activities and why you enjoy hanging out with certain people?
What and who gives you ￼energy?
What in your business is annoying you or weighing heavy on you?
Let’s go through a little exercise together to guarantee we start to get more :
✅ Joy in our work
✅ Output form our work activities
✅ Deeper relationships with those we enjoy being around.
This Week's Industry Headlines with Kevin Kauffman & Fred Weaver**Judge denies Keller Williams' motion to dismiss tech vendor suit**
Keller Williams filed an answer to the complaint, acknowledging it began a relationship with TPI Cloud Hosting in 2015 concerning software development
Keller Williams sought to dismiss the lawsuit under the state’s economic loss doctrine, which precludes claims of fraud in cases where the damages claimed are just the economic loss to the plaintiff of the contract itself.
“Plaintiff’s complaint includes allegations that fraudulent statements were made, identifies three of defendant’s agents who allegedly made the statements, identifies a date range when the statements were allegedly made, the location where the statements were allegedly made, and why the allegedly false statements were false,” Nowlin said in his decision not to dismiss the case.
**Zillow pulls Remine's Zestimate access after 'critical' statement**
Zillow has cut off Remine’s access to its Zestimate application programming interface (API), which will prevent Remine from including Zillow’s automated valuation model in the printed reports, property detail pages and comparative market analyses it provides real estate clients.
Remine Chief Operating Officer Jonathan Spinetto confirmed the move to Inman on Friday, citing recent statements Remine made as one of the reasons for the move.
“I do not know all the reasons why Zillow did this,” Spinetto told Inman. “However the reason we were provided is that they took exception to some of our recent statements, which they viewed as critical of Zillow.”
**Total Expert raises $52M, plans to beef up staff and tech**
The financial services company specializes in marketing technology and has so far raised a total of $86M across multiple funding rounds
Total Expert, a banking and lending marketing software company, announced Thursday that it has raised $52 million, which it plans to spend on new staffers and on beefing up its technology.
The new cash came as part of a Series C funding round and brings Total Expert’s overall haul to $86 million. The Minneapolis-based company currently employs 218 people, but now hopes to begin hiring new data scientists and technology other experts, as well as accelerate “the development of its APIs, machine learning and AI capabilities.”
Industry Headlines with Kevin and Fred
COMMON iBUYER MYTHS DEBUNKED. Interview: Nima KhanghahiAbout the Episode
On this episode, I’m joined by Open Door’s Agent Growth Manager, Nima Khanghahi. He has built his career around his passion for real estate, and bringing value to agents, who he believes should always be the center of the transaction, even with all the disruption in our industry. The purpose of his professional life has always been elevating others and this has also seeped into his goal to educate real estate agents about the iBuyer model, so that instead of seeing it as a competition against them, they can recognize the opportunities we have to integrate within it and actually create a better experience for customers. A lot of people still don’t know how to feel about iBuyers, and how to have conversations with clients about them. We’ve made real estate more confusing for the consumer, even though it’s supposed to be simpler, so Nima joins me to not only demystify iBuyers, but to also share why agents shouldn’t feel threatened, and why we are still very necessary in the process of buying and selling homes.
At Opendoor, Nima works with the REALTOR community to help inform them of iBuying trends and how best to capitalize on this emerging real estate technology. Prior to joining Opendoor, Nima spent nearly 15 years in the real estate industry as a coach, trainer and educator to REALTORS®. He is also host of the “Nima the Speaker” podcast, in which he interviews top agents from around the country on trends they’re seeing and how to deploy evolving best practices. As a keynote speaker and customer experience strategist, Nima’s passion comes from helping agents identify what motivates them, uncovering their goals and delivering a creative approach to achieving those goals.
If agents truly want to be the center of the transaction in 2019, iBuyers are part of that conversation, and our clients need us to simplify the options that are out there. We are the ones who can educate them, help them and add to the value we can bring to the table. Agents are an important part of the community, and we have a lot of influence in this space. iBuyers need us to be a part of the process, they are aware of how valuable we can be. In order for us to get in front of the opportunity, we have to be willing to educate ourselves. Not acknowledging and embracing them will do a disservice to our industry and the communities that we serve, and that’s the most important thing.
In Today’s Episode, We Talk About;
- Why a good team and crew is the key to long-term success in any industry.
- Nima’s life and work before Opendoor, and the power of elevating others.
- Nima’s role as an agent growth manager and how he helps to empower agents.
How does he win at his job within open door.
- The two challenges real estate agents have when it comes to iBuyers.
- A simple definition of iBuyers.
- Why we should see iBuyers as being complementary to our business not competition.
- How iBuyers provide convenience and certainty and why that’s so valuable.
Nima is an agent growth manager at Opendoor, he works with the REALTOR community to help inform them of iBuying trends and how best to capitalize on this emerging real estate technology. Prior to joining Opendoor, Nima spent nearly 15 years in the real estate industry as a coach, trainer and educator to REALTORS®. He is also host of the “Nima the Speaker” podcast, in which he interviews top agents from around the country on trends they’re seeing and how to deploy evolving best practices. Go to https://www.opendoor.com/agents for more information.
MICROCOMMITMENTS. Business Tip: Small Wins for Real Success🛑 STOP....
Back It Down... all that BIG chatter of anything HUGE you’re gonna do (Believe me it’s now imprinted in your unconscious)
✅ START... Be Attached To...
1. A Micro - Commitment
2. A deadline and someone to measure it
3. Keep that commitment.
4. Get a Victory.
5. Gain Confidence.
and leave all the Big Talkers in the dust while they are still planning and figuring out how they are going to do it perfectly and living their life...
Getting Ready To Get Ready....