In This Article. It employs more than 2,000 agents, who take a percentage of the selling price and gives 15 percentto 30 percentto Compass. Now her son is the CEO of Compass, a New York real estate tech startup that just scored a $1.8 billion valuation. We pored over its 261-page S-1 filing and came away with 5 key revelations. He is running 50 marathons to raise $1 million for youth education nonprofits. 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. In these times, double down on your skills, on your knowledge, on you. CNBC Allon was a Director of Engineering at Twitter, and previously founded companies acquired by Twitter and Google. Please update your billing information to reactivate your membership. Real estate is the first career for just. 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. Robert Reffkin 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. 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 Overnight on Wall Street is daytime in Asia. 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. Don't miss the premier event for real estate pros. Since its founding, Compass has managed to grow into the largest company of its kind even while maintaining a centralized ownership structure. You will be charged . Not so much. Reffkin graduated from Columbia University in just under two years, according to Fortune, which placed him on the 40 under 40 list in 2014. Breaking news as it happens. 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 new funding is a sign that Compass is headed for a public offering, The Real Deal reported. Compass will have an international presence within 18 months, Reffkin said in June. (Courtesy Robert Reffkin (1979- ) - BlackPast.org Read more: Compass is gearing up for an ambitious $10 billion IPO. 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.". 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. 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. But he left the storied Wall Street firm in 2012 to start his company. Though he founded two philanthropic organizations, Reffkin's generosity doesn't end there. 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. Thank you for subscribing to Morning Headlines. Reffkin 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. Unique features from hacker profiles to portal watch and video interviews. Get the week's leading headlines delivered straight to your inbox. The 5-year-old company reported $62.6 million in 2017 revenue. Amy Compass, Inc 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. 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. To subscribe to exclusive newsletters, visit your email preferences in the account settings. Agents see a 25 percent increase in earnings during their first year, Compass has said. 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. 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. Rents are actually flat year over year.. The round brings Compass total funding to $325 million, according to The Real Deal. Markets never sleep, and neither does Bloomberg. Compass CEO Robert Reffkin Who Pivoted From Goldman to For more details on our payment terms and how to cancel, click here. Robert Reffkin may soon be the youngest Black billionaire in the US after taking his real-estate startup Compass public on Thursday. Open Houses: The More You Go Unique features from hacker profiles to portal watch and video interviews. There seems to be a problem with your Inman Select Membership. Still, even with sparse details, the news is a major announcement. Get the week's leading headlines delivered straight to your inbox. The Journey Was the Exciting Part | Columbia College Today Only 3 days left to register for Inman Connect Las Vegas before prices go up! Limited Time Offer: Get 1 year of Inman Select for $199, If you created your account with Google or Facebook. Assist Band or DJ in cueing important events (ie grand entrance, cake cutting, bouquet toss, dance, etc.) Reffkin grew up in Berkeley, CA, as an only child with a single mom, who is now a real estate agent for Compass. Compass, the tech-focused brokerage that Reffkin co-founded in 2012, raised $450 million in an initial public offering Wednesday. 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. Mr. Reffkin is a Vice President in the Principal Investment Area of Goldman Sachs & Company. He's always had big ambitions for his career, sources told Insider previously. The 41-year-old cofounder and CEO has risen to prominence quickly. You will receive additional instructions via email. 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. California-based luxury brokerage The Agency also runs a franchise business. 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. 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. All Rights Reserved. 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. 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. You will receive additional instructions via email. Inventory exiting Q1 was nine percent less than it was exiting Q4, he said. 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. How Robert Reffkin went from being a C-average student to the His mother was Israeli and his father was By clicking Sign up, you agree to receive marketing emails from Insider 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. 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. Hes the CEO of Compass, the multibillion-dollar real estate firm he cofounded, and a celebrated entrepreneur. Compass CEO Robert Reffkin said Floridas residential market, especially along the west coast, has seen sustained buyer demand despite the Immigrants are an important and growing client base. Coalesce's Select Membership is no longer active. Join us Aug. 8-10 at Inman Connect Las Vegas to lean into the shift and learn from the best. 15 stories covering tech, special reports, video and opinion. 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. To others, though,Compass looks more like a traditional realty broker, Bloomberg reported. Simply enter the email address you used to create your account and click "Reset Password". For more details on our payment terms and how to cancel, click here. Simply enter the email address you used to create your account and click "Reset Password". But it was a real estate startup that vaulted him to the ranks of the ultrarich. User promo code onward25 during checkout to save 25% on your Inman Select Membership. Inman has reached out to Compass for more details and will update this story with any information the company provides. 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 headlines from around the real estate industry. Robert Reffkin at Inman Connect. It looks like youre already a Select Member! 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 10 Things You Didn't Know About Robert Reffkin - Money Inc 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. The technology was mostly marketing tools, she said. Redfin another venture-backed tech brokerage isnow worth $2.05 billion following its successful public offering. and keeping a great relationship with Compass Founder & CEO Robert Reffkin Weighs In On Todays 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.. 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. Agents who speak different languages and can relate to diverse clientele will become increasingly important. Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more. 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.. Reffkin had previously served as the chief of staff to the president of Goldman Sachs and worked in the White House. Reffkins roughly 6% stake in Compass was valued at $472 million at the IPO price. Compass has persuaded investors that it can reshape the home-buying process through technology. Today, Reffkin lives in New York City with his wife, Benis Reffkin, who is a business and life coach. This is New York: Robert Reffkin, Embracing the Entrepreneurial You will be charged . Government of New York City 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. Those close to him have said he has talked about someday running for public office, such as mayor of New York City. Then you have 72 percent of homeowners locked into mortgage rates at four percent and below. Sign up for notifications from Insider! The real estate industry values a diverse skillset in its practitioners. Leading commentary by award-winning journalists. 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.". As you mentioned, Boise, Idaho, Las Vegas [and] Phoenix, theyre getting hit the hardest.. 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. Get your ticket now for the best price. Reffkin also didnt say when Compass might begin franchising, or which markets could be the first to see such an option roll out. Compass Inc. Chief Executive Officer Robert Reffkin started his career working in the inner sanctums of American power, from McKinsey & Co. to the White House to Goldman Sachs Group Inc. 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. It lures the industrys top talent with lavish signing bonuses and specializesin high-margin, luxury homes in upscale, coastal markets. Breaking news as it happens. 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. Your subscription will automatically renew for on . Don't miss the premier event for real estate pros. Whatever happens at Compass, the news of possible franchise operations comes as the brokerage scrambles for profitability. In total, Compass brought in $1.11 billion in revenue and suffered a net loss of $158 million during the fourth quarter of 2022. 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. Compass CEO: Buyers will deal with higher rates. A Compass foray into franchising would upend the status quo, potentially allowing the company to expand its brand more quickly and nimbly. And thats not a surprise at Compass. 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. Robert Reffkin may soon be the youngest Black billionaire in the US after taking his real-estate startup Compass public on Thursday. There seems to be a problem with your Inman Select Membership. He has said he hopes one day to run for office. Prices are up in March over both February and January. 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. 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. It was sleek, but I cant say it was different from anything else out there.. The Fellows - White House Fellows Foundation and Association Founder & CEO Robert Reffkin started Compass in 2012 Compass In my continuing coverage of the countrys real estate market, I reached out to Compass 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? Please contact the parent account holder or Inman customer service @ 1-800-775-4662 customerservice@inman.com. In a surprise twist, Compass CEO Robert Reffkin revealed Tuesday that his company is exploring the possibility of franchising as it works toward profitability. Meanwhile, others may be pushed back into the rental market for the time being. Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more. He was inspired to enter the world of real estate by his mother, Ruth, a longtime agent who now proudly works at Compass. Now her son is the CEO of Compass, a New York real estate tech startup that just scored a $1.8 billion valuation. He stands to receive another 14.9 million shares in coming years contingent on After graduating in two years from Columbia, he began his career on Wall Street. Coalesce's Select Membership is no longer active. Founder & CEO of Compass. Robert Reffkin - Wikipedia The Journey Was the Exciting Part | Columbia College Today 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. 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. Please update your billing information to reactivate your membership. We pored over its 261-page S-1 filing and came away with 5 key revelations. Winter Catalog 2023 by Graham-Faupel-Mendenhall Click Here to Get Smart on Protecting Your Family and Loves Ones, No Matter What Happens. Smart Policies are as low as $30 a month, No Medical Exam Required Compass dashboard shows neighborhood real estate data and a Pinterest-like app for organizing home listings. Wes Moore. ", His former boss, Cohn, said Reffkin just has an "aura of confidence.". In these times, double down on your skills, on your knowledge, on you. Even his running hobby is helping others. Nelson left less than a year later and returned to Coldwell. 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. Robert Reffkin is also Compass founder. 62 percent of Realtors nationwide are female. The company says the technology will makereal-estate agents more productive and more profitable. As of Robert Reffkin Its an industry that values longevity. A tireless entrepreneur, she spent most of her career as a real estate agent. Compass Cofounder Robert Reffkin Is Worth $500 Million Live market coverage co-anchored from Hong Kong and New York. Robert Reffkin wants Compass to be the Amazon of real estate The markets that are being hit most in terms of price are the pandemic boom markets, he said. Revenue was down year over year, but that loss was actually an improvement compared to the final months of 2021. 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. 2023 The Moguldom Nation. Bloomberg Daybreak Asia. 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. 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.. By submitting your email address, you agree to receive marketing emails from Inman. 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. Governor, Maryland. as well as other partner offers and accept our. In later years, Reffkin founded two philanthropic educational groups prior to starting Compass. 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. Reffkin then referenced a recent Redfin report about pandemic boomtowns and repeated the story of a Boise-based Redfin agent who noted a precipitous drop in homebuying demand after Silicon Valley Banks March failure. Robert Reffkin (1979- ) Online real estate entrepreneur Robert Reffkin was born June 7, 1979, in Berkeley, California. Back in 2020, for instance, Chicago-based brokerage @properties launched its own franchise brand. 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. 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. 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. If so please contact customer support at (510) 658-9252, Password Reset Instructions have been sent to. The buying power of the LGBTQ community is growing. Fidelity bought in, making a rare bet on a private company. Sellers? In addition to being the leader of 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. Were the number one brokerage firm in the country, and we can see that buyers have accepted these mortgage rates as a new normal. How Robert Reffkin went from being a C-average student to the 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. Are you prioritizing your cable entertainment bill over protecting and investing in your family? The 41-year-old cofounder Real Estate Tech Startup Compass Scores A Only 3 days left to register for Inman Connect Las Vegas before prices go up! To subscribe to exclusive newsletters, visit your email preferences in the account settings. WebNotable White House Fellows. The Tulip Coastal Occasions Robert Reffkin and his mother Ruth Reffkin at a marathon in New Mexico. Robert Reffkins mother was disowned by her parents when she had a mixed-race baby. Forgot your username? Reffkin is African American and Jewish and grew up in Berkeley, California. The real vision is for Compass to be everywhere.. Top editors give you the stories you want delivered right to your inbox each weekday.