In 2012, entrepreneurs Ori Allon and Robert Reffkin came together to form Compass, a real estate company that takes advantage of modern technology to make the process of buying, selling and renting property easier than ever. Since its launch, Compass has grown to be the largest independent real estate agency in the US, employing about 20,000 agents and covering 22 other areas of the country. On April 1 of this year, it launched its IPO. After raising $ 450 million on the first day of trading, he now plans to use the cash injection to expand further. Learn more with these 20 Things You Didn’t Know About Compass.
1. It was founded in 2012
In 2012, entrepreneurs Ori Allon and Robert Reffkin founded Compass. Both men already had a history of developing successful companies. Allon, who at the time was working as an engineering director at Twitter, had previously founded several very successful companies that had eventually been acquired by Google and Twitter. Reffkin was no less successful, with a resume that included stints as chief of staff to the chairman of Goldman Sachs and as an M&A associate in the investment banking division of Lazard Frères & Co. LLC.
2. Raised $ 8 million in startup capital.
When Allon and Reffkin decided that moving into real estate was the logical next step in their careers, they had all the business knowledge and experience they needed to turn their ideas into reality. What they didn’t necessarily have was money. Fortunately, the lack of capital did not remain a problem for long. After taking their business plans to various investors, they ended up raising $ 8 million in seed funding from sources that included Founders Fund, Thrive Capital, and Goldman Sachs. The idea also captivated several private investors, with both American Express CEO Kenneth Chenault and ZocDoc CEO Cyrus Massoumi making important contributions.
3. Its launch was attended by the Mayor of New York.
By 2013, Allon and Reffkin had solidified their business model and acquired all the initial investment they needed to launch their business to the public. Rarely known for real estate agencies to be discreet and true to form, Compass’s public debut caused quite a stir. The event was even attended by then-New York City Mayor Michael Bloomberg.
4. It changed its business model in 2014
When Compass was first launched, its business model allowed users of its social network to find, secure, and pay for rental accommodation with the help of salaried brokers who worked full-time for Compass. Just one year after its public debut, Compass announced that it would change its original model by hiring independent real estate agents who would retain a portion of the property’s sale price and pay Compass a commission of 15 to 30 percent. Compass now works with about 20,000 independent agents nationwide.
5. Offers no-interest home improvement loans.
Selling a property that needs a coat of paint and a new look is not necessarily easy. For homeowners concerned that their chances of getting a good price on their home are compromised by peeling wallpaper and scuffed carpets, Compass offers a solution: Compass Concierge. In essence, the service is a loan. Homeowners work with a Compass agent to determine exactly what type of work will have the greatest impact on the property’s value. Compass then provides an interest-free loan to cover the cost of the job. Depending on your preference, homeowners can repay the loan when they sell their home or when they cancel the listing.
6. Offers bridge loan services
In recent years, Compass has introduced a wide selection of enhanced services to its customers. One of the most popular is Compass Bridge Loan Services. Described by the official Compass website as “a simple solution to bridge the gap between the home you have and the home you want,” Compass Bridge Loan Services is exactly what its name implies: a bridge loan that allows clients to have Up to six months of bridge loan payments are faced when you sell your home through Compass.
7. Use technology to get the most out of it
What sets Compass apart from almost every other real estate company in the world is its use of technology. While every self-respecting real estate broker has a website these days, Compass takes things much, much further. Just a few products that demonstrate the …