REX Homes Secures New Round of Investment from Consumer Brand Investor Lion Capital
Real estate technology company pivoting on online sales strengths to accelerate consumer brand identity and strategy
|May 21, 2020|
(AUSTIN, TEXAS, Tuesday, May 19) – REX Homes, the real estate technology company delivering a full-service online platform for residential real estate buyers and sellers and the lowest transaction costs in the industry, today announced a significant minority investment from Lion Capital.
Lion Capital has built a reputation of investing in consumer-facing companies and helping grow them into globally-recognized and respected brands, including Jimmy Choo Ltd, All Saints, Paige, and Round Table Pizza.
“We believe the REX brand and service offerings are scalable to serve an expanded audience. REX Homes was made for this exact moment where families need safe and secure options, and demand greater value when selling their asset or buying their next home.” - Matthew Nordby, Partner at Lion Capital
The investment from Lion Capital comes on the heels of an exceptional year of growth for REX. In 2019, REX listings grew approximately 160% with revenue growing 180% in 2019 over 2018.
“We chose Lion Capital because of their proven track record in growing and strengthening consumer brands,” said Lynley Sides, Co-founder at REX Homes. “We built REX knowing consumers wanted a safe, convenient, more affordable real estate transaction. We are excited, and ready, to bring our value to new and wider audiences with Lion Capital as a partner. ”
With COVID-19 reshaping how Americans buy and sell real estate, REX is proving that consumers are seeking out technology that ensures safety, convenience, and value. Year-to-date, through April, REX has helped consumers move three times more homes into escrow this year than for the same period in 2019. For a quarter of the homes in escrow, the buyer only toured the home virtually.
Built on technology and market expertise, REX Homes is delivering on the digital push in real estate by moving the entire homebuying experience online. In early 2020, virtual tours at REX grew 1,000% between January and March as consumers looked for safe options to shop for homes during the COVID-19 pandemic and shelter in place rules. Once a buyer has found the home they would like to purchase, REX Homes’ fully automated back office can handle the entire transaction, including mortgage, escrow and insurance, without requiring any in-person meetings.
“I welcome Lion Capital to REX Homes’ growing list of investors,” said Scott McNealy, co-founder of Sun Microsystems, investor, and REX board member. “REX Homes has assembled a winning team focused on breaking down traditional barriers in real estate and giving consumers greater control and value over their buying and selling experience. With Lion Capital onboard, I am excited to see how REX Homes scales their offering to serve a broader base of consumers and achieve greater heights as a company.”
REX Homes matches buyers and sellers directly through the company’s online platform and charges a total fee as low as 2%, instead of the 5-6% fee lost to traditional brokers. Buyers who use a REX agent to purchase a house sold by REX Homes typically benefit because the seller isn’t forced to pay a buy-side commission. If the buyer purchases an MLS home through REX Homes, the company returns 50% of the fee to the buyer. This translates to tens of thousands of dollars saved for customers on both sides of a real estate transaction.
With market experts and attached services partnerships in place across the United States, REX Homes launched in 26 new markets in seven short months. In addition, REX has amassed over 90 state regulatory licenses and is successfully attaching high-margin services including mortgages, escrow and title, insurance, relocation packages, and others. As of April 2020, REX is operating in seventeen states nationwide, including Arizona, California, Colorado, Florida, Georgia, Illinois, Maryland, Massachusetts, Nevada, New York, New Jersey, North Carolina, Oregon, Pennsylvania, Texas, Virginia and Washington DC.
In an effort to address global housing security, REX Homes is working with World Housing to fund the construction of a new home for every 50 homes sold on the REX platform. REX Homes is currently contributing to a World Housing “Girls to Grannies” community in Cambodia by building a local school and 15 homes for needy families, with an additional 20 future homes slated to be built this year. In addition, CEO and Co-Founder Jack Ryan has dedicated his ownership in REX Homes to building homes and schools for children who have lost access to their parents.
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