PIUS CEO tells Inman the company is operating ‘on a smaller scale,’ but a previous REX agent claims individuals operations no longer include managing serious estate transactions.
An coverage agency for REX Actual Estate claims that irrespective of experiences that the organization is shutting down, REX is continue to working and the company “remains confident in REX’s technology.”
In March, PIUS announced it experienced secured $10 million in funding for REX, bringing REX’s full funding to $141 million, according to PitchBook info. PIUS is an coverage agency that insures loans from institutional traders to superior-expansion tech corporations dependent on the tech firm’s mental assets and other belongings, according to the agency. The $10 million is a non-public placement bond underwritten by PIUS, the company added.
In e-mail to Inman, PIUS declined to say who had loaned REX the money, but pressured that PIUS is neither a loan provider nor an investor.
“Rather, PIUS presents growing engineering providers with non-dilutive debt by employing their intellectual residence as collateral,” Joe Agiato, PIUS’s CEO, told Inman by using electronic mail.
“PIUS performs an in-depth evaluation of a company’s technology and IP portfolio, and centered on this, PIUS insures the worth of the loan to offer larger quantities of cash at lessen rates.”
Agiato said REX “is continue to operating, albeit on a scaled-down scale. PIUS stays assured in REX’s technology, which is the foundation of our fiscal romance.”
Agiato declined to comment more and would not say no matter whether the $10 million transaction experienced shut or irrespective of whether REX had decided on to exercise the deal’s accordion aspect, which would have allowed REX to maximize its line of credit score with its loan provider to $45 million.
At the time PIUS introduced the funding, the company praised REX as “the national leader in true estate reform, with the aim of eradicating service fees, escalating the U.S. serious estate marketplace, and saving Us citizens billions of dollars” annually.
“REX Homes has crafted out an remarkable suite of tech products and solutions and providers, with its shopper-first product poised to disrupt the real estate market, using AI to find out immediately how to ideal provide its consumers,” Agiato reported in a assertion in March.
“Through its tech tools and a absolutely-integrated system, REX is bringing a absolutely new actual estate knowledge to today’s individuals, and PIUS is enthusiastic to guidance REX in furthering that mission.”
At the identical time, REX CEO Jack Ryan stated that the funding would “support REX’s ongoing company progress and current market growth, together with the two our technological innovation platform and dwelling consumer solutions, as we uphold our mission to produce a immediate-to-buyer serious estate resolution for folks across the country.”
That solution no more time seems to include things like the brokerage. REX reportedly cut loose all of its brokers a week ago. A former REX agent in Southern California — who questioned not to be named to keep away from professional repercussions — explained to Inman that REX, right after letting go staffers in other departments before in the week, experienced enable all of its brokers go via a companywide internal messaging program on Thursday.
“We were being knowledgeable as a group … that REX was no lengthier going to be doing actual estate transactions,” he claimed.
“We didn’t see it coming,” he added, of the brokerage’s downfall. “It all fell apart in 1 7 days.”
He had two pending listing contracts, and whilst brokers ended up informed they could acquire their contracts with them, he ended up canceling them mainly because he did not know wherever he would end up. He thinks he’ll be capable to get them back again now that he landed at eXp Realty more than the weekend.
He stated he had worked at REX for about two many years, had relished his time there, and the company had dealt with him nicely. He also felt the company’s business enterprise design, which gives reduce listing costs to sellers and rebates to buyers, was a very good in good shape for him.
“I like the thought,” he mentioned. “I believed they were being more apprehensive about offering the shopper much more regulate about the transaction and putting them 1st over the commission.”
He also favored that he could present prospective buyers and sellers “one-halt shopping” mainly because REX had in-property ancillary products and services these as mortgages and transferring providers.
“Being in a position to enable them from A to Z is what built REX different,” he claimed.
He stated that he from time to time received pushback from a handful of brokers about REX’s business enterprise design, complaining that he wasn’t charging enough. But he experienced no concerns with most brokers, he claimed, in particular all those “worried about aiding the customer.”
Consequently much, the only endeavor REX has stated undoubtedly it would keep on is its lawsuit in opposition to the Nationwide Affiliation of Realtors and Zillow. Last week, REX hired famed lawyer David Boies to symbolize the firm in court.
REX Typical Counsel Michael Toth did not respond to requests for comment.
Email Andrea V. Brambila.