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. Reffkin took Compass public Thursday, making him one of just 8 Black billionaires in the US. 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? 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. 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. Attend Inman Connect Las Vegas to gain takeaways to achieve success in 2023. Real estate is the first career for just. Agents see a 25 percent increase in earnings during their first year, Compass has said. We pored over its 261-page S-1 filing and came away with 5 key revelations. Forgot your username? The markets that are being hit most in terms of price are the pandemic boom markets, he said. Track your investments 24 hours a day, around the clock from around the world. Its an industry that values longevity. WebNotable White House Fellows. Compass CEO: Buyers will deal with higher rates. Please contact the parent account holder or Inman customer service @ 1-800-775-4662 customerservice@inman.com. The 41-year-old cofounder and CEO has risen to prominence quickly. Smart Policies are as low as $30 a month, No Medical Exam Required Coalesce's Select Membership is no longer active. 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. Compass explores possibility of franchising, company says, 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, What you need to know to start your day with all the latest industry developments. The round brings Compass total funding to $325 million, according to The Real Deal. (Courtesy Since its founding, Compass has managed to grow into the largest company of its kind even while maintaining a centralized ownership structure. Reffkin graduated from Columbia University in just under two years, according to Fortune, which placed him on the 40 under 40 list in 2014. Were just getting started, Compass executive chairmanOri Allonsaid in a statement. Your subscription will automatically renew for on . We would not franchise within the same geographies of our own operations, he added. Only 3 days left to register for Inman Connect Las Vegas before prices go up! Simply enter the email address you used to create your account and click "Reset Password". 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. Nelson left less than a year later and returned to Coldwell. Compass recruited her with promises of transformative technology and generous commissions, Bloomberg reported. 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. 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. Coalesce's Select Membership is no longer active. 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 these times, double down on your skills, on your knowledge, on you. Unique features from hacker profiles to portal watch and video interviews. Live market coverage co-anchored from Hong Kong and New York. The Silicon Valley Bank impact its been there, but much less than expected. Robert Reffkin (1979- ) Online real estate entrepreneur Robert Reffkin was born June 7, 1979, in Berkeley, California. Reffkin started his first business when he was just 15 years old, according to an article from Columbia College Today. 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. By submitting your email address, you agree to receive marketing emails from Inman. Robert Reffkins mother was disowned by her parents when she had a mixed-race baby. 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. Subscribe to Inman Select for Breaking News and Exclusive Industry Content. 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.. 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. Affordability is a real issue on the sales side, and if you combine that with a lack of inventory, its driving people to the rental market, he said. 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. Please update your billing information to reactivate your membership. 62 percent of Realtors nationwide are female. 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.. 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. In these times, double down on your skills, on your knowledge, on you. Robert Reffkin is the founder and CEO of Compass, a real estate company, and an entrepreneur on a mission to help everyone find their place in the world. 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. After graduating in two years from Columbia, he began his career on Wall Street. Don't miss the premier event for real estate pros. Sign up for Individual Select membership today. His mother was Israeli and his father was As you mentioned, Boise, Idaho, Las Vegas [and] Phoenix, theyre getting hit the hardest.. Founder & CEO Robert Reffkin started Compass in 2012 Compass In my continuing coverage of the countrys real estate market, I reached out to Compass Revenue was down year over year, but that loss was actually an improvement compared to the final months of 2021. Rents are actually flat year over year.. Doing things he's uncomfortable with is just part of his personality, though. 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. 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. The Journey Was the Exciting Part | Columbia College Today Sign up for Individual Select membership today. But he left the storied Wall Street firm in 2012 to start his company. How Robert Reffkin went from being a C-average student to the He's always had big ambitions for his career, sources told Insider previously. 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.. 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. Subscribe to Inman Select for Breaking News and Exclusive Industry Content. He stands to receive another 14.9 million shares in coming years contingent on He has said he hopes one day to run for office. Sellers? You will receive additional instructions via email. Top headlines from around the real estate industry. WebNov 09, 2017. 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.". Join us Aug. 8-10 at Inman Connect Las Vegas to lean into the shift and learn from the best. In later years, Reffkin founded two philanthropic educational groups prior to starting Compass. To subscribe to exclusive newsletters, visit your email preferences in the account settings. 2023 The Moguldom Nation. Top headlines from around the real estate industry. Get the week's leading headlines delivered straight to your inbox. 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. A tireless entrepreneur, she spent most of her career as a real estate agent. The real estate industry values a diverse skillset in its practitioners. Amy We pored over its 261-page S-1 filing and came away with 5 key revelations. 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. Still, even with sparse details, the news is a major announcement. 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. Compass dashboard shows neighborhood real estate data and a Pinterest-like app for organizing home listings. To others, though,Compass looks more like a traditional realty broker, Bloomberg reported. User promo code onward25 during checkout to save 25% on your Inman Select Membership. For more details on our payment terms and how to cancel, click here. In total, Compass brought in $1.11 billion in revenue and suffered a net loss of $158 million during the fourth quarter of 2022. Join us Aug. 8-10 at Inman Connect Las Vegas to lean into the shift and learn from the best. Then you have 72 percent of homeowners locked into mortgage rates at four percent and below. 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. Compass CEO Robert Reffkin said Floridas residential market, especially along the west coast, has seen sustained buyer demand despite the Breaking news as it happens. 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. Allon was a Director of Engineering at Twitter, and previously founded companies acquired by Twitter and Google. To subscribe to exclusive newsletters, visit your email preferences in the account settings. Markets never sleep, and neither does Bloomberg. Whatever happens at Compass, the news of possible franchise operations comes as the brokerage scrambles for profitability. California-based luxury brokerage The Agency also runs a franchise business. Fidelity bought in, making a rare bet on a private company. Are you prioritizing your cable entertainment bill over protecting and investing in your family? It looks like youre already a Select Member! Unique features from hacker profiles to portal watch and video interviews. Robert Reffkin. Access your favorite topics in a personalized feed while you're on the go. Now her son is the CEO of Compass, a New York real estate tech startup that just scored a $1.8 billion valuation. Click Here to Get Smart on Protecting Your Family and Loves Ones, No Matter What Happens. 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. A Compass foray into franchising would upend the status quo, potentially allowing the company to expand its brand more quickly and nimbly. Only 3 days left to register for Inman Connect Las Vegas before prices go up! Robert Reffkin is also Compass founder. One is Success Academy Charter Schools, a school system for low-income Black and Hispanic students in New York City that helps diminish educational disparities. 15 stories covering tech, special reports, video and opinion. Compass co-founder and CEO Reffkinis the son of an Israeli immigrant who was disowned by her parents when she had a mixed-race baby. As of Robert Reffkin and his mother Ruth Reffkin at a marathon in New Mexico. Reffkin is African American and Jewish and grew up in Berkeley, California. Leading commentary by award-winning journalists. The technology was mostly marketing tools, she said. Compass will have an international presence within 18 months, Reffkin said in June. You will be charged . Investors in the funding round included Fidelity Investments, IVP and Wellington Management, which led Compass Series D round. ", His former boss, Cohn, said Reffkin just has an "aura of confidence.". 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. In September, U.K.-based Purplebricks another investor-backed, low-fee brokerage launched a U.S. operation after raising $60 million from investors. The couple have three kids together. Redfin another venture-backed tech brokerage isnow worth $2.05 billion following its successful public offering. Hes the CEO of Compass, the multibillion-dollar real estate firm he cofounded, and a celebrated entrepreneur. 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. Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more. 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. Reffkins stake valued at $472 million after share sale, Critics say real estate brokerage needs to justify valuation, Rivians Troubles Dont End at a 93% Wipeout, Buffett Will Beat theMarket asRecession Looms, Investors Say, First Republics Jumbo Mortgages Brought On Banks Failure, Asia Stocks Set for Mixed Start as Treasuries Drop: Markets Wrap. Today, Reffkin lives in New York City with his wife, Benis Reffkin, who is a business and life coach. 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. By clicking Sign up, you agree to receive marketing emails from Insider 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. Bloomberg Daybreak Asia. Wes Moore. Agents who speak different languages and can relate to diverse clientele will become increasingly important. All Rights Reserved. If so please contact customer support at (510) 658-9252, Password Reset Instructions have been sent to. Reffkin grew up in Berkeley, CA, as an only child with a single mom, who is now a real estate agent for Compass. Inventory exiting Q1 was nine percent less than it was exiting Q4, he said. Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more. Reffkin had previously served as the chief of staff to the president of Goldman Sachs and worked in the White House. Compass has persuaded investors that it can reshape the home-buying process through technology. Theres a lot of pent-up demand.. 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. Reffkin made the comments during his companys earnings call. In a surprise twist, Compass CEO Robert Reffkin revealed Tuesday that his company is exploring the possibility of franchising as it works toward profitability. Were the number one brokerage firm in the country, and we can see that buyers have accepted these mortgage rates as a new normal. If you have a three percent mortgage rate, you consider that a financial asset and you dont want to lose it.. Inman has reached out to Compass for more details and will update this story with any information the company provides. Forgot your username? Lael Brainard. Don't miss the premier event for real estate pros. Just last month, Oakland, Calif.-basedRoofstock, a platform for buying and selling rental properties, raised a $35 million Series C round.. Mr. Reffkin is a Vice President in the Principal Investment Area of Goldman Sachs & Company. as well as other partner offers and accept our. For more details on our payment terms and how to cancel, click here. Nine years after its founding, real estate brokerage Compass went public on Thursday, minting a huge windfall for the companys investors and employees. Compass has persuaded investors that it can reshape the home-buying process through technology. It employs more than 2,000 agents, who take a percentage of the selling price and gives 15 percentto 30 percentto Compass. 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. WebCompass was founded by entrepreneurs Ori Allon, Robert Reffkin and Avi Dorfman as Urban Compass in 2012. His father,a San Francisco jazz musician with a drug problem, left the family when Reffkin was a toddler, according to a 2013Fast Companyreport. Governor, Maryland. Not so much. It was sleek, but I cant say it was different from anything else out there.. There seems to be a problem with your Inman Select Membership. Thank you for subscribing to Morning Headlines. Robert Reffkin grew up in Berkeley, CA, with his mom, who is now a Compass agent. 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. Get your ticket now for the best price. Please update your billing information to reactivate your membership. Get your ticket now for the best price. 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.. You will be charged . Meanwhile, others may be pushed back into the rental market for the time being. He was inspired to enter the world of real estate by his mother, Ruth, a longtime agent who now proudly works at Compass. 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%. Robert Reffkin at Inman Connect. Breaking news as it happens. 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 also didnt say when Compass might begin franchising, or which markets could be the first to see such an option roll out. And thats not a surprise at Compass. However, would-be homesellers havent been able to make that same mental shift. Today, the firm has franchises spread out across multiple U.S. regions. Your subscription will automatically renew for on . 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. 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 Please contact the parent account holder or Inman customer service @ 1-800-775-4662 customerservice@inman.com. The buying power of the LGBTQ community is growing. Compass wants 20 percent of market share in 20 major U.S. cities by 2020. 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 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. Sign up for notifications from Insider! The 41-year-old cofounder It looks like youre already a Select Member! The company says the technology will makereal-estate agents more productive and more profitable. The real vision is for Compass to be everywhere.. 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.". Top editors give you the stories you want delivered right to your inbox each weekday. But it was a real estate startup that vaulted him to the ranks of the ultrarich. 15 stories covering tech, special reports, video and opinion. WebLine up and cue Bride, Groom and Wedding party for Grand Entrance. 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. The CEO said some buyers especially those who can offer all cash will be able to snatch up a home this spring. Even his running hobby is helping others. Since his mother never married his biological father, his mother gave Reffki Robert Reffkin grew up the child of a hardworking single mother. Assist Band or DJ in cueing important events (ie grand entrance, cake cutting, bouquet toss, dance, etc.) Immigrants are an important and growing client base. 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. 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. 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 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. 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. Though he founded two philanthropic organizations, Reffkin's generosity doesn't end there. Robert Reffkin may soon be the youngest Black billionaire in the US after taking his real-estate startup Compass public on Thursday. Get the week's leading headlines delivered straight to your inbox. Prices are up in March over both February and January. 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. 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 5-year-old company reported $62.6 million in 2017 revenue. 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Jean Carroll Testifies TrumpCritic Conway Encouraged Her Lawsuit, Trump Is Denied Mistrial Over Unfair Rulings in E. Jean Carroll Case, State Street CEO: Divestment Will Slow Clean Energy Transition, Brookfield Eyes Green Steel for Multibillion New Transition Fund, Germany Sets the New Standard for Cheap, National Mass Transit, Chinas Now Spurning Ugliest Buildings That Symbolized Its Meteoric Rise, Broke Chinese Gen Zs Turn Factory Town into Top Tourist Spot, Nigerias SEC Plans to Allow Asset-Backed Tokens But Not Crypto, Bitcoin Sags After its Longest Streak of Monthly Gains Since 2021, Bitcoin on Course for Longest Streak of Monthly Gains Since 2021. He then became the youngest business analyst ever hired at McKinsey & Company where he spent two years before returning to his alma mater to get his MBA and then going back to Wall Street as an associate at Lazard. In This Article. 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. Read more: Compass is gearing up for an ambitious $10 billion IPO.
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