Subscribe to Inman Select for Breaking News and Exclusive Industry Content. 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 father,a San Francisco jazz musician with a drug problem, left the family when Reffkin was a toddler, according to a 2013Fast Companyreport. Top headlines from around the real estate industry. User promo code onward25 during checkout to save 25% on your Inman Select Membership. Please contact the parent account holder or Inman customer service @ 1-800-775-4662 customerservice@inman.com. There seems to be a problem with your Inman Select Membership. 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%. 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. Stay up to date with what you want to know. 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 41-year-old cofounder and CEO has risen to prominence quickly. Access your favorite topics in a personalized feed while you're on the go. Robert Reffkin grew up the child of a hardworking single mother. You will receive additional instructions via email. A tireless entrepreneur, she spent most of her career as a real estate agent. The technology was mostly marketing tools, she said. Leading commentary by award-winning journalists. 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. Nine years after its founding, real estate brokerage Compass went public on Thursday, minting a huge windfall for the companys investors and employees. Sellers? If so please contact customer support at (510) 658-9252, Password Reset Instructions have been sent to. 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. 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. 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. Since his mother never married his biological father, his mother gave Reffki 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. Coalesce's Select Membership is no longer active. 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. 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. Reffkin also didnt say when Compass might begin franchising, or which markets could be the first to see such an option roll out. 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? Sign up for Individual Select membership today. It looks like youre already a Select Member! 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. Lael Brainard. 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. Robert Reffkin. The Silicon Valley Bank impact its been there, but much less than expected. In total, Compass brought in $1.11 billion in revenue and suffered a net loss of $158 million during the fourth quarter of 2022. Though he founded two philanthropic organizations, Reffkin's generosity doesn't end there. Since its founding, Compass has managed to grow into the largest company of its kind even while maintaining a centralized ownership structure. Breaking news as it happens. The real estate industry values a diverse skillset in its practitioners. 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. Meanwhile, others may be pushed back into the rental market for the time being. Read more: Compass is gearing up for an ambitious $10 billion IPO. Amy Limited Time Offer: Get 1 year of Inman Select for $199, If you created your account with Google or Facebook. 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. Join us Aug. 8-10 at Inman Connect Las Vegas to lean into the shift and learn from the best. 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. There seems to be a problem with your Inman Select Membership. You will be charged . Subscribe to Inman Select for Breaking News and Exclusive Industry Content. Hes the CEO of Compass, the multibillion-dollar real estate firm he cofounded, and a celebrated entrepreneur. The real vision is for Compass to be everywhere.. 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. But it was a real estate startup that vaulted him to the ranks of the ultrarich. However, would-be homesellers havent been able to make that same mental shift. If you have a three percent mortgage rate, you consider that a financial asset and you dont want to lose it.. Robert Reffkin may soon be the youngest Black billionaire in the US after taking his real-estate startup Compass public on Thursday. 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. User promo code onward25 during checkout to save 25% on your Inman Select Membership. Get the week's leading headlines delivered straight to your inbox. Fidelity bought in, making a rare bet on a private company. Forgot your username? To others, though,Compass looks more like a traditional realty broker, Bloomberg reported. 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. How Robert Reffkin went from being a C-average student to the You will receive additional instructions via email. Breaking news as it happens. As you mentioned, Boise, Idaho, Las Vegas [and] Phoenix, theyre getting hit the hardest.. Robert Reffkin (1979- ) Online real estate entrepreneur Robert Reffkin was born June 7, 1979, in Berkeley, California. Reffkin grew up in Berkeley, CA, as an only child with a single mom, who is now a real estate agent for Compass. Agents who speak different languages and can relate to diverse clientele will become increasingly important. 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. Leading commentary by award-winning journalists. 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 has persuaded investors that it can reshape the home-buying process through technology. It lures the industrys top talent with lavish signing bonuses and specializesin high-margin, luxury homes in upscale, coastal markets. He has said he hopes one day to run for office. Robert Reffkin and his mother Ruth Reffkin at a marathon in New Mexico. Unique features from hacker profiles to portal watch and video interviews. It was sleek, but I cant say it was different from anything else out there.. 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. Unique features from hacker profiles to portal watch and video interviews. By submitting your email address, you agree to receive marketing emails from Inman. WebNov 09, 2017. Reffkin started his first business when he was just 15 years old, according to an article from Columbia College Today. Governor, Maryland. It looks like youre already a Select Member! 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Doing things he's uncomfortable with is just part of his personality, though. Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more. In these times, double down on your skills, on your knowledge, on you. 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. And thats not a surprise at Compass. Then you have 72 percent of homeowners locked into mortgage rates at four percent and below. Top headlines from around the real estate industry. 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. But he left the storied Wall Street firm in 2012 to start his company. Reffkin took Compass public Thursday, making him one of just 8 Black billionaires in the US. Reffkin graduated from Columbia University in just under two years, according to Fortune, which placed him on the 40 under 40 list in 2014. The round brings Compass total funding to $325 million, according to The Real Deal. He stands to receive another 14.9 million shares in coming years contingent on Don't miss the premier event for real estate pros. 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 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. 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. Thank you for subscribing to Morning Headlines. 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. The buying power of the LGBTQ community is growing. Wes Moore. 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. 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. Get the week's leading headlines delivered straight to your inbox. Robert Reffkins mother was disowned by her parents when she had a mixed-race baby. The new funding is a sign that Compass is headed for a public offering, The Real Deal reported. Revenue was down year over year, but that loss was actually an improvement compared to the final months of 2021. 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. It employs more than 2,000 agents, who take a percentage of the selling price and gives 15 percentto 30 percentto Compass. Get your ticket now for the best price. Mr. Reffkin is a Vice President in the Principal Investment Area of Goldman Sachs & Company. 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 WebLine up and cue Bride, Groom and Wedding party for Grand Entrance. as well as other partner offers and accept our. 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. Robert Reffkin is also Compass founder. 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. (Courtesy The 5-year-old company reported $62.6 million in 2017 revenue. Thank you for subscribing to Morning Headlines. 15 stories covering tech, special reports, video and opinion. Compass will have an international presence within 18 months, Reffkin said in June. We pored over its 261-page S-1 filing and came away with 5 key revelations. Please update your billing information to reactivate your membership. By clicking Sign up, you agree to receive marketing emails from Insider If so please contact customer support at (510) 658-9252, Password Reset Instructions have been sent to. 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. Assist Band or DJ in cueing important events (ie grand entrance, cake cutting, bouquet toss, dance, etc.) Rents are actually flat year over year.. The markets that are being hit most in terms of price are the pandemic boom markets, he said. Founder & CEO of Compass. 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 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.. 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. 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. Even his running hobby is helping others. Now her son is the CEO of Compass, a New York real estate tech startup that just scored a $1.8 billion valuation. Robert Reffkin grew up in Berkeley, CA, with his mom, who is now a Compass agent. Your subscription will automatically renew for on . 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. Reffkin left his banking career to start up Compass with the tech entrepreneur Ori Allon. 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. Inventory exiting Q1 was nine percent less than it was exiting Q4, he said. All Rights Reserved. Compass recruited her with promises of transformative technology and generous commissions, Bloomberg reported. Compass has persuaded investors that it can reshape the home-buying process through technology. 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.. Robert Reffkins mother was disowned by her parents when she had a mixed-race baby. 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 The Journey Was the Exciting Part | Columbia College Today Allon was a Director of Engineering at Twitter, and previously founded companies acquired by Twitter and Google. 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. 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. Now her son is the CEO of Compass, a New York real estate tech startup that just scored a $1.8 billion valuation. Only 3 days left to register for Inman Connect Las Vegas before prices go up! His mother was Israeli and his father was 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. Smart Policies are as low as $30 a month, No Medical Exam Required We would not franchise within the same geographies of our own operations, he added. Compass, the tech-focused brokerage that Reffkin co-founded in 2012, raised $450 million in an initial public offering Wednesday. We pored over its 261-page S-1 filing and came away with 5 key revelations. Reffkins roughly 6% stake in Compass was valued at $472 million at the IPO price. 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. The CEO said some buyers especially those who can offer all cash will be able to snatch up a home this spring. Nelson left less than a year later and returned to Coldwell. Robert Reffkin at Inman Connect. In later years, Reffkin founded two philanthropic educational groups prior to starting Compass. 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. He is running 50 marathons to raise $1 million for youth education nonprofits. Simply enter the email address you used to create your account and click "Reset Password". Reffkin made the comments during his companys earnings call. Compass wants 20 percent of market share in 20 major U.S. cities by 2020. Compass CEO Robert Reffkin said Floridas residential market, especially along the west coast, has seen sustained buyer demand despite the Investors in the funding round included Fidelity Investments, IVP and Wellington Management, which led Compass Series D round. Immigrants are an important and growing client base. WebCompass was founded by entrepreneurs Ori Allon, Robert Reffkin and Avi Dorfman as Urban Compass in 2012. In September, U.K.-based Purplebricks another investor-backed, low-fee brokerage launched a U.S. operation after raising $60 million from investors. After graduating in two years from Columbia, he began his career on Wall Street. Click Here to Get Smart on Protecting Your Family and Loves Ones, No Matter What Happens. He's always had big ambitions for his career, sources told Insider previously. Theres a lot of pent-up demand.. U.S. Federal Reserves Board of Governors. The 41-year-old cofounder For more details on our payment terms and how to cancel, click here. Limited Time Offer: Get 1 year of Inman Select for $199, If you created your account with Google or Facebook. 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. To subscribe to exclusive newsletters, visit your email preferences in the account settings. Sign up for Individual Select membership today. In addition to being the leader of 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.

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