Company Profile: REX

Description

This report on REX, one of the more interesting disruptors in residential real estate. was originally exclusive to our Investor Network subscribers. In writing the report we interviewed the company’s Chief Technology Officer, since we had interviewed REX’s CEO, Jack Ryan, previously, and also because technology is central to the company’s innovative business model. According to its website, REX was founded to “bring residential real estate in line with today’s expectations by using AI and big data to push past the outmoded practices of traditional real estate brokers to provide a superior outcome for both buyers and sellers at one-third the cost.”

This company charges a flat commission starting at 2% to list, market, and arrange viewings for a seller’s home; however, unlike other sizable brokerages in North America, it does not offer cooperation and compensation to buyer agents. Thus, the 2% fee that REX charges is “all-inclusive.” Nor is REX a member of the MLS, since every MLS requires the unilateral offer of cooperation and compensation. Like Redfin, all of its real estate agents are W2 employees rather than 1099 independent contractors. They are paid a salary plus a bonus based on company performance.

Currently operating in 23 cities across 17 states, and with over $140 million in venture funding, we believe that REX is fast becoming a formidable disrupter to the established economics of the housing industry.