All Rights Reserved. Live from New York and Hong Kong, bringing you the essential stories from the close of the U.S. markets to the open of trading across Asia. In September, U.K.-based Purplebricks another investor-backed, low-fee brokerage launched a U.S. operation after raising $60 million from investors. Not so much. Reffkin started his first business when he was just 15 years old, according to an article from Columbia College Today. 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. The real estate industry values a diverse skillset in its practitioners. Reffkins roughly 6% stake in Compass was valued at $472 million at the IPO price. Robert Reffkins mother was disowned by her parents when she had a mixed-race baby. Only 3 days left to register for Inman Connect Las Vegas before prices go up! Please contact the parent account holder or Inman customer service @ 1-800-775-4662 customerservice@inman.com. I think people have realized is not about productivity, its about connectivity, and leaders have an obligation to develop their people and its harder to develop people virtually than in person.. WebCompass was founded by entrepreneurs Ori Allon, Robert Reffkin and Avi Dorfman as Urban Compass in 2012. Compass has persuaded investors that it can reshape the home-buying process through technology. 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. 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.. Please contact the parent account holder or Inman customer service @ 1-800-775-4662 customerservice@inman.com. Subscribe to Inman Select for Breaking News and Exclusive Industry Content. To subscribe to exclusive newsletters, visit your email preferences in the account settings. 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.". Get the week's leading headlines delivered straight to your inbox. Last updated: Sep 27, 2022 5 min read Robert Reffkins story is about dreaming big, making an impact, and finding a place to call home. Please update your billing information to reactivate your membership. Now her son is the CEO of Compass, a New York real estate tech startup that just scored a $1.8 billion valuation. His mother was Israeli and his father was Inventory exiting Q1 was nine percent less than it was exiting Q4, he 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. In total, Compass brought in $1.11 billion in revenue and suffered a net loss of $158 million during the fourth quarter of 2022. Reffkin took Compass public Thursday, making him one of just 8 Black billionaires in the US. 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 As Robert and Greg mentioned, we intend to bring down our non-GAAP operating expenses after commissions and other expenses to $1.05 billion to $1.15 billion as we exit 2022. In these times, double down on your skills, on your knowledge, on you. 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. Track your investments 24 hours a day, around the clock from around the world. The 41-year-old cofounder and CEO has risen to prominence quickly. 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. The 5-year-old company reported $62.6 million in 2017 revenue. For more details on our payment terms and how to cancel, click here. It lures the industrys top talent with lavish signing bonuses and specializesin high-margin, luxury homes in upscale, coastal markets. Amy His father,a San Francisco jazz musician with a drug problem, left the family when Reffkin was a toddler, according to a 2013Fast Companyreport. Revenue was down year over year, but that loss was actually an improvement compared to the final months of 2021. In This Article. Please update your billing information to reactivate your membership. Inman has reached out to Compass for more details and will update this story with any information the company provides. 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. Robert Reffkin may soon be the youngest Black billionaire in the US after taking his real-estate startup Compass public on Thursday. But he left the storied Wall Street firm in 2012 to start his company. Now her son is the CEO of Compass, a New York real estate tech startup that just scored a $1.8 billion valuation. Access your favorite topics in a personalized feed while you're on the go. 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. Compass recruited her with promises of transformative technology and generous commissions, Bloomberg reported. Bloomberg Daybreak Asia. Overnight on Wall Street is daytime in Asia. Theres a lot of pent-up demand.. 2023 The Moguldom Nation. Fidelity bought in, making a rare bet on a private company. 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. Meanwhile, others may be pushed back into the rental market for the time being. Compass CEO Robert Reffkin said Floridas residential market, especially along the west coast, has seen sustained buyer demand despite the Get the week's leading headlines delivered straight to your inbox. Read more: Compass is gearing up for an ambitious $10 billion IPO. Compass is gearing up for an ambitious $10 billion IPO. In later years, Reffkin founded two philanthropic educational groups prior to starting Compass. (Courtesy 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. Reffkin graduated from Columbia University in just under two years, according to Fortune, which placed him on the 40 under 40 list in 2014. To subscribe to exclusive newsletters, visit your email preferences in the account settings. Learn more about Robert's entrepreneurial pursuits and insights into the In a surprise twist, Compass CEO Robert Reffkin revealed Tuesday that his company is exploring the possibility of franchising as it works toward profitability. U.S. Federal Reserves Board of Governors. Robert Reffkin. Wes Moore. 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 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. Breaking news as it happens. NYC-based firms raised close to $900 million during the same period, up from $300 million last year, The Real Deal reported: A few weeks after Redfins IPO, San Francisco-basedHomelight, which uses data to connect buyers with agents, raised $40 million in a Series B led by Menlo Ventures. Lael Brainard. Get your ticket now for the best price. California-based luxury brokerage The Agency also runs a franchise business. Real estate is the first career for just. The Silicon Valley Bank impact its been there, but much less than expected. Just last month, Oakland, Calif.-basedRoofstock, a platform for buying and selling rental properties, raised a $35 million Series C round.. 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. By clicking Sign up, you agree to receive marketing emails from Insider Nobody wants to give up their home in which they locked in [lower rates] years ago., The fundamental issue is that 30 percent of homeowners are locked in mortgage rates at three percent or below, he added. If so please contact customer support at (510) 658-9252, Password Reset Instructions have been sent to. 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. Compass will have an international presence within 18 months, Reffkin said in June. Founder & CEO Robert Reffkin started Compass in 2012 Compass In my continuing coverage of the countrys real estate market, I reached out to Compass Prices are up in March over both February and January. Compass has persuaded investors that it can reshape the home-buying process through technology. Though a Compass franchise business would be a major shift for the brokerage, such a move isnt without precedent in the broader industry landscape. The CEO said some buyers especially those who can offer all cash will be able to snatch up a home this spring. Reffkin said during Tuesdays earnings call that he expects to be free cash flow positive in the second quarter of 2023, and overall for the year, and that he is prepared to do more cost cutting if necessary. Top editors give you the stories you want delivered right to your inbox each weekday. By submitting your email address, you agree to receive marketing emails from Inman. Robert Reffkin may soon be the youngest Black billionaire in the US after taking his real-estate startup Compass public on Thursday. Even his running hobby is helping others. 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. Simply enter the email address you used to create your account and click "Reset Password". The real vision is for Compass to be everywhere.. In addition to being the leader of 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. Nelson left less than a year later and returned to Coldwell. However, would-be homesellers havent been able to make that same mental shift. 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 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. Reffkin had previously served as the chief of staff to the president of Goldman Sachs and worked in the White House. He was inspired to enter the world of real estate by his mother, Ruth, a longtime agent who now proudly works at Compass. 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. Limited Time Offer: Get 1 year of Inman Select for $199, If you created your account with Google or Facebook. Though he founded two philanthropic organizations, Reffkin's generosity doesn't end there. Agents see a 25 percent increase in earnings during their first year, Compass has said. 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. Breaking news as it happens. Sign up for notifications from Insider! ", His former boss, Cohn, said Reffkin just has an "aura of confidence.". Not everyone is convinced, but the firm said Wednesday that it isnow valued at $1.8 billion after its latest cash infusion a $100 million Series E round that will be spent on a geographic expansion. To others, though,Compass looks more like a traditional realty broker, Bloomberg reported. There seems to be a problem with your Inman Select Membership. Nine years after its founding, real estate brokerage Compass went public on Thursday, minting a huge windfall for the companys investors and employees. After graduating in two years from Columbia, he began his career on Wall Street. 62 percent of Realtors nationwide are female. Join us Aug. 8-10 at Inman Connect Las Vegas to lean into the shift and learn from the best. 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. The Journey Was the Exciting Part | Columbia College Today Leading commentary by award-winning journalists. After graduation, Reffkin was an analyst at McKinsey & Co. for two years, then returned to Columbia for an M.B.A. He worked for two years in finance at Lazard, one as a White House Fellow in the U.S. Department of the Treasury and then moved back to New York City to work at Goldman Sachs. It looks like youre already a Select Member! Back in 2020, for instance, Chicago-based brokerage @properties launched its own franchise brand. And thats not a surprise at Compass. Agents who speak different languages and can relate to diverse clientele will become increasingly important. Thank you for subscribing to Morning Headlines. But it was a real estate startup that vaulted him to the ranks of the ultrarich. Sign up for Individual Select membership today. Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more. 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. Reffkin grew up in Berkeley, CA, as an only child with a single mom, who is now a real estate agent for Compass. We would not franchise within the same geographies of our own operations, he added. Coalesce's Select Membership is no longer active. The technology was mostly marketing tools, she said. Prices for sales were down in March a little less than 1 percent year over year [and it was the] same in February; however, sequentially, prices are up. Forgot your username? Markets never sleep, and neither does Bloomberg. Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more. If you have a three percent mortgage rate, you consider that a financial asset and you dont want to lose it.. 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. Robert Reffkin at Inman Connect. 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. 15 stories covering tech, special reports, video and opinion. Attend Inman Connect Las Vegas to gain takeaways to achieve success in 2023. grow into the largest company of its kind, increased competition lately from companies, such as Side, Compass CEO Robert Reffkin calls home offices 'the killer of culture', Compass names Wendy Forsythe president of 3 western states, EXp cites 'volatile housing market' for double-digit sales decline in Q4, Compass revenue falls in Q4 but losses narrow despite 'difficult year', 'Trailblazer and icon': Real estate reacts to Sherry Chris' retirement, Inside the lavish world of luxury real estate and high-net-worth clients, Highlights from Sotheby's biggest brand networking event ever, Coldwell Banker Realty's new CEO: There's 'opportunity' in diversity, What to expect at Corcoran's conference in Nashville this week. 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. Attend Inman Connect Las Vegas to gain takeaways to achieve success in 2023. Stay up to date with what you want to know. It was sleek, but I cant say it was different from anything else out there.. You will be charged . Don't miss the premier event for real estate pros. Unique features from hacker profiles to portal watch and video interviews. 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. 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. Compass CEO: Buyers will deal with higher rates. Reffkin was ultimately upbeat about Compass prospects, but in his companys earnings report also described 2022 as one of the worst years for the real estate market.. Still, even with sparse details, the news is a major announcement. Get your ticket now for the best price. Since his mother never married his biological father, his mother gave Reffki Are you prioritizing your cable entertainment bill over protecting and investing in your family? Compass, the tech-focused brokerage that Reffkin co-founded in 2012, raised $450 million in an initial public offering Wednesday. Although existing-home sales and median home prices experienced single-digit declines in March, Reffkin said affordability continues to be an issue as homebuyers attempt to solve the age-old debate between buying and renting. As you mentioned, Boise, Idaho, Las Vegas [and] Phoenix, theyre getting hit the hardest.. I think part of whats hitting the pandemic boom markets is CEOs across the country asking their employees to come back to work, he said. 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. 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. He is running 50 marathons to raise $1 million for youth education nonprofits. His father was an African American man from Louisiana, who already had two children, and shortly after Reffkin was born abandoned him and his mother. Robert Reffkin grew up in Berkeley, CA, with his mom, who is now a Compass agent. The new funding is a sign that Compass is headed for a public offering, The Real Deal reported. Robert Reffkin is also Compass founder. Compass wants 20 percent of market share in 20 major U.S. cities by 2020. Mr. Reffkin is a Vice President in the Principal Investment Area of Goldman Sachs & Company. The second is a 501c3 non-profit called America Needs You, which according to its website, "fights for economic mobility for ambitious, first-generation college students.". It would also make Compass look more like its older rivals; firms, such as RE/MAX and brands under parent company Anywhere have long operated franchises. Click Here to Get Smart on Protecting Your Family and Loves Ones, No Matter What Happens. Hes the CEO of Compass, the multibillion-dollar real estate firm he cofounded, and a celebrated entrepreneur. The buying power of the LGBTQ community is growing. You will be charged . 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. 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 You will receive additional instructions via email. Reffkin said Compass website traffic increased 18 percent from the fourth quarter of 2022 to Q1 2023, and signals buyers growing commitment to navigating market challenges rather than waiting for a quote-unquote better time to buy. 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. We pored over its 261-page S-1 filing and came away with 5 key revelations. 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.
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