Resi brokerage that wants to kill the broker raises $45M in Series C

LA-based REX has raised $70M since it launched in 2015

TRD NATIONAL /
Jan.January 22, 2019 06:00 AM

Jack Ryan, co-founder and CEO of REX (Credit: Rex via YouTube)

A startup that aims to cut out traditional residential real estate brokers has raised $45 million in its latest funding round.

REX, or Real Estate Exchange, announced the Series C funding round Tuesday, bringing its total funding to $75 million since it launched in 2015. The Los Angeles-based startup provides a platform, RexHomes, where customers can buy and sell residential property at a flat 2 percent brokerage fee, compared with broker fees on traditional multiple listing service (MLS) platforms, that can range from 4 to 6 percent.

The service cuts out brokers, and instead uses artificial intelligence and machine learning to market properties to buyers. Last year, the company listed properties collectively valued at $1 billion in Colorado, Texas, California, New Jersey and New York. In New York City, REX’s website shows nine exclusive listings, ranging from a $449,000 house in the Bronx to a $1.6 million multifamily property in Flushing.

The company’s latest funding round represents yet another threat to traditional brokerages, which for decades have reigned supreme. Their hold on the market has been threatened by paper-thin margins and rapid changes in technology and consumer behavior.

Jack Ryan, the company’s co-founder and CEO, said his firm’s service competes “with all the brokerages that depend on the MLS model that uses protectionist practices to maintain outrageously high fees.”

The new funding will be used to expand the firm’s platform nationwide; this month it will become available in Sacramento, California, and Portland, Oregon.

REX is backed by multiple private investors, including Gordon Segal, the founder of Crate and Barrel; Amit Singhal, the former senior vice president of search at Google; Jack Greenberg, the former CEO of McDonalds; and Dick Schulze, the founder of Best Buy.


Related Articles

arrow_forward_ios
Eric Gordon

Eric Gordon on the evolution of the residential data game — and how to stay competitive in the new world

Big Tech locations in NYC

MAP: Here’s a look at all the Big Tech locations in NYC

What will proptech look like in 2019 and beyond?

What will proptech look like in 2019 and beyond?

From left: the Ritz-Carlton, 32 East 1st Street, 560 West 24th Street, 301 East 80th Street and 32 West 85th Street

Five priciest homes new to market include 1897 townhouse

Ed Gilligan and 3 East 94th Street (Credit: Getty Images, Compass)

Don’t leave home without $21M: Amex exec’s widow sells townhouse

Fritz Wolff (Credit: Katerra)

SoftBank-backed Katerra co-founder leaves company’s board

Chris Kelly

Co-founder Chris Kelly to leave Convene

From left: Jed Wilder, Bess Freedman, Richard Grossman, Josh Sarnell and Adam Mahfouda (Credit: Emily Assiran) 

Agents to StreetEasy: The fee is too damn high

arrow_forward_ios