Agents see a 25 percent increase in earnings during their first year, Compass has said. 2023 The Moguldom Nation. Some of the most talented and successful agents Ive met are those whove seen the industry through multiple housing downturns and can leverage that experience, Reffkin wrote. Robert Reffkin may soon be the youngest Black billionaire in the US after taking his real-estate startup Compass public on Thursday. Read more: Compass is gearing up for an ambitious $10 billion IPO. Theres a lot of pent-up demand.. Live market coverage co-anchored from Hong Kong and New York. It looks like youre already a Select Member! Real estate is the first career for just. Compass is gearing up for an ambitious $10 billion IPO. Compass wants 20 percent of market share in 20 major U.S. cities by 2020. To others, though,Compass looks more like a traditional realty broker, Bloomberg reported. This includes building new technology including real estate signage fueled by solar power, a targeted digital marketing tool and a customer relationship management (CRM) platform. Forgot your username? Today, the firm has franchises spread out across multiple U.S. regions. Robert Reffkin (1979- ) Online real estate entrepreneur Robert Reffkin was born June 7, 1979, in Berkeley, California. In total, Compass brought in $1.11 billion in revenue and suffered a net loss of $158 million during the fourth quarter of 2022. Prices are up in March over both February and January. Reffkin made the comments during his companys earnings call. Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more. You will be charged . By submitting your email address, you agree to receive marketing emails from Inman. To subscribe to exclusive newsletters, visit your email preferences in the account settings. The real vision is for Compass to be everywhere.. 11 tools for neophytes, 23 video content ideas real estate agents can't afford to miss, New-home sales soar to 1-year high in March as purchases leap 9.6%. Unique features from hacker profiles to portal watch and video interviews. Not so much, During his latest CNBC appearance, Compass CEO Robert Reffkin outlined the catch-22 of higher mortgage rates and why early pandemic boomtowns are facing a devastating bust, What you need to know to start your day with all the latest industry developments. Nine years after its founding, real estate brokerage Compass went public on Thursday, minting a huge windfall for the companys investors and employees. Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more. Meanwhile, others may be pushed back into the rental market for the time being. Smart Policies are as low as $30 a month, No Medical Exam Required Reffkin started his first business when he was just 15 years old, according to an article from Columbia College Today. In these times, double down on your skills, on your knowledge, on you. You will receive additional instructions via email. Hes the CEO of Compass, the multibillion-dollar real estate firm he cofounded, and a celebrated entrepreneur. CEO Robert Reffkin floated the idea of a franchise brand during an earnings call Tuesday, describing it as a more profitable method of growing the business. Sign up for Individual Select membership today. Wes Moore. It looks like youre already a Select Member! Those close to him have said he has talked about someday running for public office, such as mayor of New York City. During his Thursday appearance on CNBCs Squawk on the Street, Compass CEO Robert Reffkin gave a cautiously optimistic assessment of the real estate market as the industry continues to wade through inflation, rising mortgage rates, and the return to a more normal sales pace. Self-made millionaire and Compass CEO Robert Reffkin uses simple tests when making decisions about who to hire and who to let go during job interviews. As of Sign up for notifications from Insider! Even his running hobby is helping others. Reffkin grew up in Berkeley, Calif., as an only child. His mother, Ruth, emigrated from Israel with her family when she was 7, but became estranged from her parents in adulthood. Reffkins father was absent from his life, too, having passed away when Reffkin was 11. I didnt have a dad, grandparents or anyone other than my mom. Were just getting started, Compass executive chairmanOri Allonsaid in a statement. He then rose through the ranks at Goldman Sachs, eventually becoming the chief of staff for Gary Cohn, the former president and chief operating officer of Goldman. Governor, Maryland. Its 2020 by 2020 plan, shared at a companywide meeting in New York on Oct. 24, means expansion to Seattle, San Diego, Phoenix, Dallas, Austin, Houston, Atlanta, Charlotte, Philadelphia and Chicago. In a surprise twist, Compass CEO Robert Reffkin revealed Tuesday that his company is exploring the possibility of franchising as it works toward profitability. His "primary philanthropic undertaking" has been running a marathon in each of the 50 states in the US to raise $1 million for youth education and enrichment programs, he said in a bio on America Needs You. Breaking news as it happens. Overnight on Wall Street is daytime in Asia. Robert Reffkin and his mother Ruth Reffkin at a marathon in New Mexico. You will receive additional instructions via email. Simply enter the email address you used to create your account and click "Reset Password". He has said he hopes one day to run for office. But sources told Insider previously he didn't actually know much about the industry he was trying to disrupt, saying he had a rudimentary knowledge and didn't know the difference between a co-op and an apartment. We would not franchise within the same geographies of our own operations, he added. After covering the national trends, Reffkin acknowledged the impact of the markets greatest challenges is different from market to market, with pandemic boomtowns experiencing major busts in buyer demand and temporarily-abandoned urban markets experiencing stratospheric for-sale and rental price growth as employers reverse course on remote working. Are you prioritizing your cable entertainment bill over protecting and investing in your family? Reffkin is African American and Jewish and grew up in Berkeley, California. Compass has also faced increased competition lately from companies, such as Side which provide back-office support for agents who want to operate their own brands. During his latest CNBC appearance, Compass CEO Robert Reffkin outlined the catch-22 of higher mortgage rates and why early pandemic boomtowns are facing a devastating bust. Your subscription will automatically renew for on . Thank you for subscribing to Morning Headlines. With all that capital raised, all signs are pointing to that direction, said Ashkan Zandieh, founder of property data startup Falkon and research company RE:Tech., Vera Nelson,a California real-estate agentof 17 years, left Coldwell Banker for Compass in 2015. In This Article. The 41-year-old cofounder Then you have 72 percent of homeowners locked into mortgage rates at four percent and below. It lures the industrys top talent with lavish signing bonuses and specializesin high-margin, luxury homes in upscale, coastal markets. Robert Reffkin may soon be the youngest Black billionaire in the US after taking his real-estate startup Compass public on Thursday. Track your investments 24 hours a day, around the clock from around the world. At Compass' annual REtreat in Atlanta, CEO Robert Reffkin used his keynote to give an honest and intimate review of his company's post-IPO performance Join us Aug. 8-10 at Inman Connect Las Vegas to lean into the shift and learn from the best. Since its founding, Compass has managed to grow into the largest company of its kind even while maintaining a centralized ownership structure. We pored over its 261-page S-1 filing and came away with 5 key revelations. The sale was cut in half from the companys prior target as tech shares sank this week, and it priced at the low end of a reduced range with investor enthusiasm waning for high-flying startups that got a boost from Covid-related demand. His father,a San Francisco jazz musician with a drug problem, left the family when Reffkin was a toddler, according to a 2013Fast Companyreport. WebAbout the Instructor As the CEO and founder of Compass, Robert Reffkin has used modern technology to revolutionize the real estate industry in the U.S. Now hes demystifying the ins and outs of the American home-buying process and sharing tools that will help you buy or sell a home with confidence. 15 stories covering tech, special reports, video and opinion. (Courtesy In these times, double down on your skills, on your knowledge, on you. Thursday appearance on CNBCs Squawk on the Street,, market back in line with historical norms, havent been able to make that same mental shift, stratospheric for-sale and rental price growth, asking their employees to come back to work, Compass CEO Robert Reffkin calls home offices 'the killer of culture', Real estate leaders see signs of market thawing, NYC rent soars to all-time high and it's not done yet, analysts warn, The Great Reshuffling is more complex than we realized, Troubled real estate eyed as JP Morgan takes over First Republic, 'Trailblazer and icon': Real estate reacts to Sherry Chris' retirement, What agents need to know as the complex mortgage fee hike kicks in, Totally not tech-savvy? In a LinkedIn post Thursday after his company went public on the New York Stock Exchange, Reffkin said, "I started Compass because of my mom, Ruth, a single mom who embodies the entrepreneurial spirit.". Mr. Reffkin is a Vice President in the Principal Investment Area of Goldman Sachs & Company. Whatever happens at Compass, the news of possible franchise operations comes as the brokerage scrambles for profitability. Your subscription will automatically renew for on . Robert Reffkin grew up in Berkeley, CA, with his mom, who is now a Compass agent. At best, agents who wanted more control could form teams, but they couldnt actually own their own businesses in the same way a franchisee at another company might. Real estate is uniquely positioned to be a leader in diversity, Reffkin said in a recent Forbes guest post: Compasssaid the latest funding round will be used to expand to 10 new cities within two years and invest in new research and development. WebCompass was founded by entrepreneurs Ori Allon, Robert Reffkin and Avi Dorfman as Urban Compass in 2012. Please update your billing information to reactivate your membership. Assist Band or DJ in cueing important events (ie grand entrance, cake cutting, bouquet toss, dance, etc.) Don't miss the premier event for real estate pros. Compass recruited her with promises of transformative technology and generous commissions, Bloomberg reported. Reffkins roughly 6% stake in Compass was valued at $472 million at the IPO price. In a response to a question from a Wall Street analyst, he said that franchising is definitely a more profitable way to grow. Though he said the company is exploring the option, he provided few details on how it might work instead saying only that we would not do that in a way that would impair the experience for our existing agents in any way.. In 2005, he was a White House fellow under the George W. Bush administration, where he served as the special assistant to the Secretary of the Treasury,John Snow. During his latest CNBC appearance, Compass CEO Robert Reffkin outlined the catch-22 of higher mortgage rates and why early pandemic boomtowns are facing a devastating bust. Back in 2020, for instance, Chicago-based brokerage @properties launched its own franchise brand. Compass will have an international presence within 18 months, Reffkin said in June. Backed by babysitting and bar mitzvah money, the young founder started a DJ company called "Rude Boy Productions" that brought in a total of $100,000 by the time he graduated from high school, the article said. WebNov 09, 2017. Please contact the parent account holder or Inman customer service @ 1-800-775-4662 customerservice@inman.com. Immigrants are an important and growing client base. Compass, the tech-focused brokerage that Reffkin co-founded in 2012, raised $450 million in an initial public offering Wednesday. Now her son is the CEO of Compass, a New York real estate tech startup that just scored a $1.8 billion valuation. In addition to being the leader of User promo code onward25 during checkout to save 25% on your Inman Select Membership. Robert Reffkin grew up the child of a hardworking single mother. Compass has persuaded investors that it can reshape the home-buying process through technology. The technology was mostly marketing tools, she said. Investors seem bullish on real estate technology, spendingalmost $6 billionon it in the first three quarters of 2017, compared to $3.2 billion during the same period in 2016, according to RE:Tech data. The Silicon Valley Bank impact its been there, but much less than expected. By submitting your email address, you agree to receive marketing emails from Inman. Not so much. Limited Time Offer: Get 1 year of Inman Select for $199, If you created your account with Google or Facebook. A tireless entrepreneur, she spent most of her career as a real estate agent. Subscribe to Inman Select for Breaking News and Exclusive Industry Content. Top editors give you the stories you want delivered right to your inbox each weekday. Now her son is the CEO of Compass, a New York real estate tech startup that just scored a $1.8 billion valuation. On Bloomberg's Odd Lots podcast Joe Weisenthal and Tracy Alloway explore the most interesting topics in finance, markets, and economics. 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Compass CEO Robert Reffkin said Floridas residential market, especially along the west coast, has seen sustained buyer demand despite the Rents are actually flat year over year.. A champion of diversity, Reffkin helped found a charter school in the Bronx and launched a nonprofit,New York Needs You, which finds mentors for students who are the first in their families to go to college. Investors in the funding round included Fidelity Investments, IVP and Wellington Management, which led Compass Series D round. Sellers? Coalesce's Select Membership is no longer active. The new funding is a sign that Compass is headed for a public offering, The Real Deal reported. In later years, Reffkin founded two philanthropic educational groups prior to starting Compass. Please update your billing information to reactivate your membership. U.S. Federal Reserves Board of Governors. Reffkin left his banking career to start up Compass with the tech entrepreneur Ori Allon. Robert Reffkins mother was disowned by her parents when she had a mixed-race baby. Were the number one brokerage firm in the country, and we can see that buyers have accepted these mortgage rates as a new normal. From growing up in Berkeley, CA with a single mom, to becoming a White House fellow and rising through the ranks at Goldman Sachs before launching Compass, here are some things to know about the up-and-coming executive. Revenue was down year over year, but that loss was actually an improvement compared to the final months of 2021. Join us Aug. 8-10 at Inman Connect Las Vegas to lean into the shift and learn from the best. Doing things he's uncomfortable with is just part of his personality, though. WebNotable White House Fellows. The 41-year-old cofounder and CEO has risen to prominence quickly. If you have a three percent mortgage rate, you consider that a financial asset and you dont want to lose it.. There seems to be a problem with your Inman Select Membership. Robert Reffkin wants Compass to be the Amazon of real estate The Compass CEO shared insight into his company's approach to technology and why California-based luxury brokerage The Agency also runs a franchise business. Get your ticket now for the best price. Breaking news as it happens. Lael Brainard. Top headlines from around the real estate industry. All Rights Reserved. Learn more about Robert's entrepreneurial pursuits and insights into the Emigrating from Israel at age 7, his mother Ruth Reffkin, after having her son, was disowned by her family after learning that their grandson was of African American descent. Don't miss the premier event for real estate pros. As of early afternoon Eastern Time, cofounder and CEO Robert Reffkin was worth more than $500 million, Forbes estimates. Reffkin, 41, owns 2.3% of Compass normal Class A stock and 100% of its Class C stock, which has 20 times the voting power of normal shares. For more details on our payment terms and how to cancel, click here. The much-touted technology is, according to severalagents, not that different from what other brokers provide., Black Americans Have the Highest Mortality Rates But Lowest Levels of Life Insurance Redfin another venture-backed tech brokerage isnow worth $2.05 billion following its successful public offering. Please contact the parent account holder or Inman customer service @ 1-800-775-4662 customerservice@inman.com. However, would-be homesellers havent been able to make that same mental shift. The couple have three kids together. Inman has reached out to Compass for more details and will update this story with any information the company provides. Forgot your username? CEO Robert Reffkin floated the idea of a franchise brand during an earnings call Tuesday, describing it as a 'more profitable' method of growing the business. Reffkins mother raised him alone: He got a scholarship to a prestigious San Francisco prep school, graduated from Columbia University in two years, was hired as the youngest McKinsey analyst in the firms history, and eventually became chief of staff to Goldman Sachs COO Gary Cohn.. Founder & CEO Robert Reffkin started Compass in 2012 Compass In my continuing coverage of the countrys real estate market, I reached out to Compass Founder & CEO of Compass. Click Here to Get Smart on Protecting Your Family and Loves Ones, No Matter What Happens. In September, U.K.-based Purplebricks another investor-backed, low-fee brokerage launched a U.S. operation after raising $60 million from investors. If so please contact customer support at (510) 658-9252, Password Reset Instructions have been sent to. Today, Reffkin lives in New York City with his wife, Benis Reffkin, who is a business and life coach. He dubbed her the "most important person" in his life and an inspiration, in a LinkedIn post from Mother's Day 2019 that documented how she lived the American Dream. The couple have three kids together. As you mentioned, Boise, Idaho, Las Vegas [and] Phoenix, theyre getting hit the hardest.. By clicking Sign up, you agree to receive marketing emails from Insider WebMayor Michael R. Bloomberg today appointed Robert Reffkin to the Panel for Educational Policy, replacing Chairman David Chang who resigned from the Panel on Friday, November 5th, 2010. So in March, existing home sales were down 2 percent year over year, Reffkin said while noting the decline puts the market back in line with historical norms. If so please contact customer support at (510) 658-9252, Password Reset Instructions have been sent to. Robert Reffkins mother was disowned by her parents when she had a mixed-race baby. One person said he's lacked experience in almost everything he's ever done but that's part of what makes him an "extraordinary person. Markets never sleep, and neither does Bloomberg. Since his mother never married his biological father, his mother gave Reffki Inventory exiting Q1 was nine percent less than it was exiting Q4, he said.
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