The Stoler Report – New Innovations in Technology for Real Estate

The Stoler Report – New Innovations in Technology for Real Estate


♪ [THEME MUSIC] ♪>>CRYSTAL APPLE, TELL ME WHICH COMPANY IS GOING TO BE SUCCESSFUL IN THE FUTURE. YOU KNOW WHAT, IT IS REALLY TECHNOLOGY AND REAL ESTATE. THAT IS WHERE THE BUSINESS IS. THAT IS WHERE THE MONEY IS AND THAT IS WHERE WE SHOULD BE INVESTING, CRYSTAL APPLE. TODAY, WITH THE HELP OF MY EXECUTIVE PRODUCER, WE HAVE ASSEMBLED A GROUP OF DYNAMIC NEW TECH COMPANIES, TO PROVIDE WHAT THEY ARE DOING IN THE TECHNOLOGY FOR REAL ESTATE. MY GUESTS, MARSHALL COX, FOUNDER & CEO OF RADIATOR LABS, FRANCESCA LOFTUS, CO-FOUNDER & CEO OF hOM, AND VINCENT HARRIS, CO-FOUNDER & CEO OF HOOZIP. LAST BUT NOT LEAST, THE MAN WHO LITERALLY HELPED ME BRING THEM TOGETHER, THE PARTNER AT METAPROP, PHIL RUSSO. BEFORE I ASK EACH ONE OF THEM ABOUT THEIR BUSINESS, HOW DO YOU MAKE A DETERMINATION OF WHO YOU ARE GOING TO INVEST IN?>>ALL OF THESE SHINY APPLES WILL WIN IN OUR OPINION. BUT AT METAPROP WE ARE A VENTURE CAPITAL FIRM. WE SPECIALIZE IN MAKING INVESTMENTS IN EARLY STAGE PROPERTY TECH COMPANIES SUCH AS THE PEOPLE REPRESENTED HERE. AS ALWAYS, VENTURE CAPITAL IS A RISKY GAME. WE LOOK FOR GREAT PEOPLE, WITH A GREAT BUSINESS IDEA, AND IN OUR CASE, GREAT TECHNOLOGY. THOSE ARE THE DIFFERENTIATORS. TRYING TO DETERMINE WHO AND WHAT THAT WILL BE ACROSS THE WHOLE RANGE OF REAL ESTATE IS VERY TOUGH.>>YOU HAVE AN ACCELERATOR PROGRAM, RIGHT? TELL ME ABOUT THE ACCELERATOR, BECAUSE THESE ARE ALL ALUMNI.>>UNLIKE INCUBATORS WHERE PEOPLE WITH A BACK OF THE ENVELOPE IDEA, THE ACCELERATORS ARE FOR COMPANIES THAT ARE EARLY STAGE BUT DOING BUSINESS. WE HAVE THREE IN ASSOCIATION WITH COLUMBIA UNIVERSITY. THE GRADUATE SCHOOL OF REAL ESTATE AND ARCHITECTURE. WE HAVE A PRE-ACCELERATOR WE DID STARTING WITH THEM LAST YEAR. WE HAVE THE ACCELERATOR PROGRAM. WE ARE ON THE FOURTH ONE. WE JUST BEGAN OUR INTERNATIONAL –>>WHAT DO YOU MEAN BY ACCELERATOR PROGRAM?>>A 22 WEEK BOOT CAMP FOR GROWTH FOR YOUNG COMPANIES. WE BRING IN MENTORS, SPEAKERS, RESOURCES FROM COLUMBIA GRADUATES AND TRY TO PUT THEM IN THE BEST SITUATION TO ACCELERATE AND SPEED THEIR GROWTH. WE SAY WE WILL MAKE YOU WIN FAST OR FAIL FAST.>>SO, WINNER NUMBER ONE. TELL MY VIEWERS WHAT RADIATOR LABS IS AND HOW DID YOU CREATE IT?>>I GOT MY PHD AT COLUMBIA UNIVERSITY IN 2013 AND WHILE I WAS THERE, IT HAD NOTHING TO DO WITH RADIATORS. I LIVED IN A HORRIBLE STEAM-HEATED APARTMENT AND COMPLAINED INCESSANTLY TO MY ADVISOR WHO HERDED ME INTO DEVELOPING A SOLUTION. I DID THAT AND IT WORKED SUPER WELL.>>PEOPLE WOULD NOT BE AWARE THAT SO MANY APARTMENTS IN NEW YORK CITY HAVE RADIATORS. AND THE HISS, AND THEY WASTE ENERGY.>>IN MANY WAYS, IT IS A UNIQUELY NEW YORK PROBLEM. ANY BIGGER, OLDER CITY HAS STEAM HEAT. ANY BUILDING BUILT BEFORE WORLD WAR II. BEFORE THE WAR, WE DID NOT HAVE RELIABLE WATER PUMPS OR FANS. THE ONLY WAY TO HEAT LARGE SPACES LIKE BIG BUILDINGS WAS TO BOIL WATER AND LET THE ENERGY CONVECT UP. MOST OF OUR BUILDINGS WERE BUILT BEFORE THAT TIME. STEAM HEAT WAS DESIGNED TO LAST. MOST STILL HAVE THAT TECHNOLOGY. MANY PEOPLE CONSIDER STEAM TO BE A BAD TECHNOLOGY. IT IS NOT. IT IS GREAT. THE BUILDINGS ARE STILL THERE. THE PROBLEM IS THE BALANCE IN THE BUILDINGS HAS BEEN LOST OVER TIME. THERE HAVE BEEN MANY CHANGES, THINK OF BUILDINGS BEING BUILT NEXT TO A BUILDING. THE BIGGEST DIFFERENCE IS THAT WE INVENTED DOUBLE PANE GLASS WHICH CHANGED THE AMOUNT OF ENERGY EACH ROOM NEEDS. WE HAVE THE SAME PIPES AND RADIATORS. THE PROBLEM NOW IS HOW DO YOU CONTROL WHERE STEAM GOES IN THE BUILDING? IT IS HARD TO DO THAT. TODAY, YOU OPEN YOUR WINDOW AND LET THE EXCESS HEAT OUT. IT IS ENORMOUSLY WASTEFUL. WE HAVE DEVELOPED A SOLUTION FOR THAT WHICH IS SIMPLE AND ABLE TO COMPLETELY EMANATE THAT.>>WHAT IS THE SOLUTION?>>A THERMODYNAMICALLY CONTROLLED ENCLOSURE. IT’S A NORMAL RADIATOR COVER. WE HAVE A FAN. WHEN THE ROOM IS COLD WE PUSH HEAT OUT. WHEN THE ROOM –>>WITHIN THE NEW RADIATOR BOX THERE IS A FAN?>>A FAN, A BRAIN, WIRELESS RADIO. ESSENTIALLY, WE PUSH HEAT OUT INTO THE ROOM BASED ON WHETHER IT NEEDS IT OR NOT. IT IS COMMUNICATED BACK TO OUR SERVERS WHICH WE USE THE INFORMATION TO FIGURE OUT HOW THE BUILDING HEATS UP, AND COOLS DOWN. ON THE RADIATOR COVER SIDE, WE ARE ABLE TO, SEND STEAM TO THE ROOMS THAT NEEDED AND NOT TO THE ROOMS THAT DON’T NEED IT. THEN WE ARE ABLE TO TELL THE BOILER TO TURN ON WHEN IT NEEDS TO. WE KNOW MORE ABOUT HOW MUCH HEAT THE BUILDING NEEDS THAN ANYBODY HAS IN HISTORY.>>HOW DOES AN OWNER WHO IS UNSOPHISTICATED, WHO HAS A BOILER, BE AN OIL BOILER, WHICH THEY ARE CONVERTING TO GAS, HOW DO THEY LEARN ABOUT YOU AND HOW DO THEY GAIN EFFICIENCY AND SAVE MONEY? BECAUSE THAT IS THE END GOAL.>>TODAY THEY CAN ONLY LEARN ABOUT US THROUGH NEWS ARTICLES AND WORD-OF-MOUTH. THAT WILL CHANGE AS WE START INVESTING IN MARKETING AND ADVERTISING. ESSENTIALLY, THEY KNOW HOW MUCH THEY ARE SPENDING ON FUEL. THEY WALK BY THEIR BUILDINGS EVERYDAY AND SEE OPEN WINDOWS. THEY HAVE A SENSE OF HOW MUCH ENERGY THEY ARE WASTING. WE’RE ABLE TO LOOK AT ENERGY BILLS, DO ANALYSIS AND TELL THEM HOW MUCH THEY ARE CONSUMING PER UNIT AREA IN THEIR BUILDING. WE CAN SHOW THAT IN CONTRAST TO OTHER BUILDINGS. WE CAN SHOW THEM HOW MUCH WE HAVE SAVED IN BUILDINGS OF THEIR KIND. TYPICALLY, IT IS LESS THAN FIVE YEARS TO PAY THE INVESTMENT OFF.>>YOU SELL THE COMPONENT, THE BOX AND EQUIPMENT. IS THERE A MONTHLY MAINTENANCE FEE?>>YES. WE GO IN THE BUILDING AND SURVEY IT. WE BUILD EACH COVER SPECIFICALLY TO INSTALL IN ONE SPOT. THAT IS TO MOVE COMPLEXITY TO THE FACTORY. IT IS A UNIT COST PER ENCLOSURE. THAT IS OUR MAGIC PORTION PLUS THE MIDDLE COVER ITSELF. WE CHARGE A MONITORING SERVICE FEE WHICH IS $24 PER YEAR. THE PAYBACK INCLUDES ALL OF THOSE COSTS.>>DO YOU MAKE YOUR EQUIPMENT HERE OR IT IS THE ASSEMBLED HERE?>>IT IS PRODUCED PREDOMINANTLY IN THE U.S., THE ONLY THING AMERICA DOES NOT PRODUCE IS OUR FANS. WE BUY THOSE –>>MY QUESTION — IS THE PRODUCT ASSEMBLED IN THE USA?>>EVERYTHING BUT THE FANS IF MANUFACTURED AND ASSEMBLED IN THE USA. IT IS ASSEMBLED IN MAINE, WE HAVE COMPONENTS FROM FLORIDA, CALIFORNIA, SOME FROM NEW YORK. WE’RE ALWAYS LOOKING TO MOVE MORE THINGS INTO NEW YORK STATE.>>LET’S TALK ABOUT hOM. SMALL H, BIG OM.>>WE START AS PURELY A YOGA PROVIDER.>>WE HEARD THERE WAS A NEED. HE DIDN’T LIKE THE HISSING.>>SO, WE INITIALLY WANTED TO — WE HAD A FOUNDER WHOSE MOTHER PASSED AWAY FROM CANCER.>>WHAT WERE YOU DOING BEFORE?>>I WAS RUNNING AN OFF BROADWAY THEATER. I MOVED FROM RUNNING THAT WITH POP UP SHOWS IN IT, SO MANAGING MOBILE STAFF. FOR ABOUT A YEAR, I WAS THE EVENTS DIRECTOR FOR TECHMEETUPS.COM SO I GOT THERE INTERESTED IN TECH AND START UP LIFE THERE. THAT IS WHAT GOT ME OVER TO hOM.>>SO THERE WAS A COFOUNDER WHOSE MOTHER HAD PASSED ON FROM CANCER?>>SO, WE WANTED TO ADDRESS THE ISSUE OF YOGA AND MEDITATION FEELING NOT MAINSTREAM. WE TESTED A MEDITATION CONCEPT IN A BIG BUILDING IN BROOKLYN, CALLED THE EDGE, THROUGH AN AMENITY MANAGER –>>WHAT IS AMENITY MANAGER? I KNOW THE EDGE, BECAUSE JEFF HAS BEEN ON MY SHOW WHO BUILT THE EDGE.>>THE AMENITY MANAGER IS INVOLVED FROM THE POINT OF DESIGNING A SPACE, AN ENTIRE AMENITY FLOOR ALL THE WAY TO MANAGING IT. STAFFING IT, WITH A FRONT DESK AND MAINTENANCE STAFF. YOU PAY A FLAT MONTHLY FEE FOR THE AMENITY MANAGER AND THEN YOU PAY FOR ALL THE SERVICES ON TOP. IF YOU BRING IN A FITNESS INSTRUCTOR –>>SO WHAT DID YOU DO THERE?>>WE RAN A PILOT CLASS AND IT WAS INCREDIBLY SUCCESSFUL. WE SAW THAT IF WE WERE GOING TO ROLL OUT OUR SERVICES, THAT WE WEREN’T GOING TO BE ABLE TO ACCESS THE NUMBER OF PROPERTIES WE NEEDED. A LOT OF PROPERTIES ARE NOT WILLING TO COMMIT FUNDS AND SPACE TO BUILD AN ENTIRE AMENITY SPACE. THE AMENITY MANAGER IS NORMALLY INVOLVED IN LARGER SCALE PROJECTS. WE SAW THERE WAS AN EXISTING NEED TO PROGRAM SPACES TO MAKE REALLY STICKY EXPERIENCES. WE STARTED IN RESIDENTIAL BUILDINGS. PEOPLE GET TO KNOW THEIR NEIGHBORS AND THEY FEEL ATTACHED TO THE PROPERTY. BUT WE SAW THAT THERE WERE NOT A LOT OF SPACES WE COULD RUN THIS IN. WE THOUGHT ABOUT PROGRAMMING VACANT SPACES. LOBBIES, LOUNGES.>>PROGRAMMING THE PHYSICAL SPACE WITH PEOPLE OR JUST?>>ANYTHING. WE RUN FITNESS CLASSES THAT ARE WEEKLY RECURRING LIKE YOGA, MEDITATION, BUT WE ALSO RUN EVENTS. WE WILL RUN AN EVENT IN THE LOBBY OF A COMMERCIAL BUILDING. SMOOTHIE BIKES IN THE MORNING TO DEMONSTRATE THAT THE BUILDING CARES ABOUT ITS TENANTS AND CARES ABOUT COMPANIES COMMUNICATING ACROSS DIFFERENT FLOORS.>>HOW DO FIND PEOPLE TO WORK IN THIS ENVIRONMENT? HOW DO FIND PILATES EXPERTS AND YOGA INSTRUCTORS AND OTHER PEOPLE TO WORK IN THE FACILITY?>>WE’RE LUCKY TO HAVE ONE OF OUR — WE HAVE THREE FOUNDERS. ONE WITH A BACKGROUND IN REAL ESTATE, ONE WITH BACKGROUND IN FITNESS, AND MYSELF WITH THE BACKGROUND IN OPERATIONS. WE’RE LUCKY TO HAVE OUR THIRD FOUNDER WITH A CONNECTION TO THE FITNESS SPACE. WE OFFER FULL-TIME OPPORTUNITIES AND EMPLOYMENT FOR SERVICE PROVIDERS WHICH IS UNIQUE. IT’S NECESSARY FOR LARGE OFFICE BUILDINGS. THINK ABOUT SECURITY AND THE SPACE IS ALWAYS CHANGING, A VACANT FLOOR, LOBBY, ROOFTOP, DEPENDING ON THE SEASON. WE ARE ABLE TO ACCESS TOP TALENT.>>HOW DO YOU CHARGE A BUILDING? I UNDERSTAND, MARSHALL HAS X RADIATORS AND SO ON –>>WE ARE PURELY PER SERVICE. YOU GET THE TECHNOLOGY, THE MARKETING, THE FULL COMMUNITY MANAGEMENT PLATFORM, A COMMUNITY MANAGER AND DATA ANALYST JUST BY SIGNING UP FOR — SOME BUILDINGS ONLY HAVE ONE WEEKLY CLASS. WE CHARGE PER SERVICE.>>PER CLASS?>>PER CLASS, PER EVENT, AND THEN IT IS A MONTHLY FEE.>>IS IT A LONG-TERM CONTRACT?>>YES. STARTING AT A YEAR.>>I LIKE THE IDEA. IT SOUNDS OK. BUT I DON’T WANT TO SIGN A YEAR CONTRACT. YOU ARE CHARGING A SERVICE, BUT YOU PROVIDE A GOOD AMENITY. SO, NOT EVERYONE OF THE NEW YORK CITY OR NATIONWIDE LANDLORDS ARE WILLING TO SIGN UP FOR A CONTRACT. I NOTICE YOU HAVE QUITE A FEW.>>WE DEMONSTRATE ESPECIALLY IN RESIDENTIAL THROUGH THE NUMBER — WE SURVEY TO SEE HOW AFFECTED BY OUR SERVICES YOU WERE AT THE POINT OF RELEASING OR SIGNING UP FOR YOUR PROPERTY. IF WE CAN KEEP A TENANT IN A UNIT THREE UNITS A YEAR, IT PAYS FOR ITSELF. IT IS A LOW-COST COMMITMENT. WHEN YOU’RE THINKING ABOUT AT THE POINT OF LEASE SIGNING, PEOPLE HAVING AT THE FRONT OF THEIR MIND AS FAR AS TO — OF THE PROPERTY.>>YOUR PRODUCT COST WHAT PER RADIATOR?>>RULE OF THUMB IS ABOUT 500.>>AND YOURS?>>STARTS AT $700 A MONTH.>>FOR WHAT?>>FOR ONE WEEKLY CLASS.>>HOW LONG IS THE CLASS?>>THE CLASS IS ABOUT AN HOUR.>>AND LAST BUT NOT LEAST, VINCENT.>>I’LL GIVE YOU AN ORIGIN OF STORY. NOTICING A TREND. SO, HOOZIP WAS BORN OUT OF MY OWN NEED. I AM A RECOVERING FINANCE GUY. THAT’S MY BACKGROUND. IT MORGAN STANLEY AND — AFTER BUSINESS SCHOOL, I WORKED AT — IN THE CITY AND WE WERE INVESTING SENIOR AND PRIVATE EQUITY. I WAS BUYING REAL ESTATE ON THE SIDE. I STARTED BUYING 10 TO 11 YEARS AGO. NOTHING SERIOUS. I HAD SOME RENTALS AND THINGS LIKE THAT. I GOT MORE SERIOUS ABOUT IT. AS IT WAS GETTING MORE SERIOUS, I WAS NOTICING HOW DIFFICULT IT WAS TO FIND THE INFORMATION TO DO MY DILIGENCE. GIVEN MY BACKGROUND, AND USED TO HAVING A LOT OF DATA AT MY DISPOSAL. BETWEEN THE BLOOMBERG, THE IQ TERMINAL AND EVEN FOR PRIVATE COMPANIES I COULD GET REALLY DETAILED INFORMATION. FOR REAL ESTATE, RESIDENTIAL ANYWAY, THAT WAS NOT THE CASE. SO, IT WAS A TEDIOUS –>>SINGLE-FAMILY RESIDENTIAL?>>SINGLE-FAMILY IS MY BREAD AND BUTTER. WE ARE FOCUSED ON SINGLE-FAMILY UP TO SMALL, 10-20-30 UNIT APARTMENT BUILDINGS. I WOULD GO TO MY COFOUNDER, WHO IS A DEVELOPER, THE SMARTEST MAN I KNOW. THAT IS A GREAT BENEFIT WHEN YOU ARE STARTING A BUSINESS. I WOULD SAY, CAN YOU BUILD SOMETHING TO HELP ME FIND THIS PIECE OF DATA? CAN YOU WRITE A CRAWLER OR SCRAPE THIS OR BUILD AND INTEGRATION? AFTER FIVE OR SIX ITERATIONS OF THAT, HE SAID THERE’S PROBABLY A PRODUCT HERE. GUYS WHO ARE DOING THIS SERIOUSLY LIKE YOURSELF, PROBABLY HAVE THE SAME ISSUES. MAYBE THERE IS SOMETHING BIGGER. THAT IS HOW THE IDEA WAS BORN. THE FIRST THING WE ROLLED OUT TO OUR USERS WAS A DATA PRODUCT, TO HELP THEM GET INFORMATION ABOUT THE TYPES OF PROPERTIES THAT PEOPLE, PROFESSIONAL HOUSE FLIPPERS AND WHOLESALERS –>>A HOUSE FLIPPER, PEOPLE UNDERSTAND. YOU BUY A PROPERTY AND FLIP IT. WHOLESALE –>>WHOLESALING A PROPERTY IS FAIRLY ANALOGOUS TO WHAT PEOPLE THINK OF IN FINANCIAL SERVICES, BUYING AN OPTION. WHAT HAPPENS IS, FRANCESCA HAS A HOUSE SHE NEEDS TO SELL AND I MAY SAY I WILL BUY THAT HOUSE FOR $300,000, BUT I WILL GO TO PHIL AND SAY I WILL SELL YOU THIS PIECE OF PAPER FOR $315,000.>>AN ARBITRATOR.>>EXACTLY.>>DO YOU HAVE A LICENSE — POSSIBLE PROBLEM?>>YOU DON’T HAVE TO HAVE A LICENSE TO BE A WHOLESALER. A LOT OF LICENSE REALTORS DO WHOLESALE AND YOU SEE MORE AND MORE OF THAT. WE’RE SEEING MORE AND MORE LICENSE REALTORS GETTING TO WHOLESALING. THAT IS THE OTHER –>>HOW DO YOU BUILD A DATABASE AROUND THE WORLD?>>WE ARE NATIONWIDE. WE BUY A LOT OF DATA. SOME WE HAVE TO TRIANGULATE AND PUT TOGETHER BECAUSE WE HAVE DIFFERENT SOURCES WHO MAY HAVE — FOR A SINGLE DATA POINT WE MAY HAVE SEVERAL DATA POINTS. MY USER CAN STAND IN FRONT OF A VACANT, BLIGHTED, GRAFFITI RIDDEN HOUSE AND IN TWO TAPS I WILL TELL HIM WHO OWNS IT, AND WHERE THEY ARE CURRENTLY.>>SO I SEE THIS PROPERTY, IT COULD BE BLIGHTED OR OK, I FIND OUT IT IS OWNED BY MARSHALL. WHAT DO YOU DO NEXT?>>THAT’S THE OTHER PLACE WE SHINE. IF I CAN MAKE CONTACT WITH MARSHALL, WHEN HE CALLS BACK, I ALSO GIVE MY USERS — WE HAVE A CUSTOM-BUILT PHONE SYSTEM. WHEN MARSHALL CALLS BACK, BEFORE MY PHONE RINGS, I KNOW THAT IT IS MARSHALL CALLING, I KNOW HE OWNS 123 MAIN ST, I HAVE A FULL DOSSIER ON MARSHALL AND THE PROPERTY SO I HAVE A MUCH MORE INFORMED CONVERSATION. I HAVE PICTURES OF HIM, FOR BETTER OR WORSE, THAT STUFF IS OUT THERE. IT’S NO SECRET TO ANYONE. WE MAKE IT SO THAT MY USER — WE PROFESSIONALIZE HIS BUSINESS A LOT OF WAYS BUT IS SPECIFICALLY ON THIS LAST MILE, WE GIVE HIM A LOT OF INFORMATION TO ENGAGE WITH THAT SELLER SO HE CAN CLOSE THE DEAL.>>HOW DOES THE USER PAY YOU OR MARSHALL?>>A LOT OF WHAT WE OFFER IS FREE. A COMMUNITY WHERE THERE ARE FREE TOOLS, CALCULATORS, MARKETPLACE. THIS PARTICULAR TOOL IS A MONTHLY SERVICE. $29 TO $49 PER MONTH IF YOU ARE A CERTAIN VOLUME.>>WHAT IS THE VOLUME?>>IF YOU ARE DOING MORE THAN 30,000 CALLS PER MONTH.>>30,000? HOW MANY CUSTOMERS DO YOU HAVE?>>7000 REGISTERED USERS, MOST OF THEM ARE IN THE D.C., AND IN THE TRI-STATE.>>HOW DO YOU GET CUSTOMERS?>>LIKE MARSHALL, WE ARE ENTIRELY WORD-OF-MOUTH.>>HOW DO YOU RAISE MONEY, BESIDES PHIL, HOW DO YOU FIND INVESTORS? RIGHT NOW, YOU’RE AN ANGEL, BECAUSE OF THE FIRST STAGE. NOW, YOU WANT TO GO TO THE NEXT STAGE. HOW DO YOU SECURE FINANCING?>>BEFORE, METAPROP WE WERE BOOTSTRAPPED. WE PUT IN SIGNIFICANT CAPITAL. WE’RE WORKING WITH METAPROP TO TO A PROPER RAISE, WE WILL DO AN INSTITUTIONAL ROUND. THEY’VE BEEN HELPFUL IN THAT REGARD.>>WE HAVE ALSO BEEN BOOTSTRAPPED. ONLY A SINGLE SEED ROUND. ALL ANGEL AND WE ARE PROFITABLE. SO NO IMMEDIATE NEED FOR FUNDRAISING. WE ARE MOVING INTO ADDITIONAL MARKETS, SO IN ORDER TO MOVE IN WE SECURE A PARTNER THAT WILL PAY UP FRONT.>>VINCENT SAYS HE ISN’T NATIONWIDE, BUT IT IS WASHINGTON AND OTHER MARKETS. YOU ARE PHYSICALLY>>NEW YORK AND TORONTO. OUR NEXT EXPANSION CITY IS SEATTLE.>>HOW IS TORONTO AND NEW YORK?>>WE HAVE A GREAT PARTNERSHIP WITH BROOKFIELD, THEY ARE BASED IN TORONTO. ALSO, I AM CANADIAN. IT IS THE SECOND FASTEST GROWING MARKET FOR REAL ESTATE IN NORTH AMERICA. IT MADE SENSE. RIGHT NOW WE ARE SEEING A SHIFT IN TORONTO FROM PRIMARILY CO-OP INTO RENTAL. INTENTIONALLY, RENTAL PROPERTIES ARE BEING BUILT AND ENCOURAGED BY THE GOVERNMENT. IT’S A PERFECT MARKET FOR US.>>MARSHALL?>>THERE ARE A LOT OF NETWORKS AND INVESTORS. THEY WANT TO KNOW WHAT THEY INVEST IN. WE ARE A HARDWARE COMPANY. THAT SHRINKS OUR WORLD.>>HOW DID YOU FIND PHIL?>>HONESTLY, WORD-OF-MOUTH. PEOPLE ARE LOOKING FOR THINGS — NEWS SPREADS QUICKLY. I THINK I MET WITH ERIN FIRST.>>SOMEBODY COMES TO YOU WITH THREE DIFFERENT IDEAS, AND THE TRUE ANGEL TIME, HOW DO YOU MAKE THE DETERMINATION — WE HAVE THREE UNIQUE INDIVIDUALS WITH DIVERSE BACKGROUNDS. SOMEBODY WHO PLAYED, YOU WOULD NEVER SAY THIS IS WHAT HE’S INTO. SOMEONE WITH A PHD MIGHT SAY, THAT’S A LITTLE DIFFERENT OVER HERE. SOMEONE WHO CAME FROM WORLD OF THEATER — IT IS TOTALLY DIFFERENT. HOW DO YOU LOOK AT IT AND HOW DO YOU AND YOUR PARTNERS MAKE THIS DETERMINATION AND TELL ME ABOUT THIS MENTORSHIP?>>TO STEP BACK, THE THREE FOUNDING PARTNERS OF METAPROP ARE FROM THE REAL ESTATE WORLD. THEY’RE FROM DEVELOPMENT, ZACK AARON, WHO WAS LEADING ANGEL INVESTOR IN PROPERTY TECHNOLOGY IN THE WORLD. CLELIA PETERS, WHO IS THE PRESIDENT — BOSTON CONSULTING, AND AARON, WHO CAME OUT OF CUSHMAN AND WAKEFIELD MANY YEARS AGO AND HAS DONE ENTREPRENEURIAL WORK AND BECAME AN INVESTOR HIMSELF. ALONG WITH ZACH SCHWARTZMAN, WHO IS THE HEAD OF OUR FUND, WE HAVE A WIDE, ANALYTICAL GROUP WITH A LOT OF PEOPLE IN OUR NETWORK GLOBALLY THAT WE’VE BUILT UP OVER THE LAST THREE AND A HALF YEARS. THAT ENABLED US TO ANALYZE THESE COMPANIES. ONCE YOU START DOING A LOT OF THEM AND WE HAVE DONE A LOT, WE SURVEY 3500 A YEAR GLOBALLY, YOU START TO SEE THE TRIGGERS OF WHAT MAKES IT WORK. TIMING, PEOPLE, ARE THEY GOING AFTER THE RIGHT TARGET? AS YOU BEGIN INVESTING MORE, ARE THEY GOING AFTER A HIGHLY SCALABLE MARKET? IT’S A LOT OF FACTORS. LITTLE BIT OF MAGIC AND DEEP ANALYTICS, AND A LOT OF EXPERIENCE. LUCKILY, WE HAVE A GREAT DEAL OF EXPERIENCE.>>SITTING HERE WITH THE THREE OF YOU, I THINK YOU HAVE FOUND THREE GOOD LITTLE COMPANIES. IT WAS GOOD THAT YOU PUT THEM IN THE ACCELERATOR PROGRAM. I HAVE GAINED A LITTLE INSIGHT. I HEARD LITTLE ABOUT ALL OF THEM BEFORE, BUT SITTING WITH THE FOUNDERS OR COFOUNDERS, IT HAS MADE ME SO COMFORTABLE. AS A COMMITMENT THAT WE JUST SAID, JOL, HAS PUT $100 MILLION, MORE AND MORE OLDER PEOPLE IN THE REAL ESTATE BUSINESS ARE INVESTING IN TECH. I WOULD LIKE TO REALLY THANK PHIL FOR BRINGING THEM HERE. SEE YOU NEXT WEEK. ♪ [THEME MUSIC] ♪

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