REX Real Estate Exchange, a real estate brokerage that does not use the MLS, announced this week that it raised $15 million in its Series B funding.
The company said that it plans to use the money to expand nationwide.
Currently, REX is available in Los Angeles, Orange County, and San Diego, California; and New York. The company’s website states that it will soon expand to Austin, Texas.
According to the company, the $15 million raised in this funding round brings the company’s total capital raise to more than $30 million.
Investors include Scott McNealy, the co-founder and former CEO of Sun Microsystems; Dick Schulze, the founder of Best Buy; Gordon Segal the founder of Crate and Barrel; Amit Singhal, former senior vice president of search at Google; Jack Greenberg, the former CEO of McDonalds; and others.
What sets REX apart, according to the company, is that it provides homebuyers and sellers with an “innovative technology platform that replaces the conventional real estate model, effectively providing a digital alternative in the sale of a home.”
The company also does not list its properties on the MLS and uses “big data, AI, and machine learning” to aid in the selling process, which enables it to charge a 2% listing fee.
“Our all-star investors and world class management team are deeply committed to improving the real estate industry,” said Jack Ryan, co-founder and CEO, REX Real Estate. “We are proud to have built a service that puts massive amounts of money back into the pockets of the consumer.”
According to the company, it saw 300% year-over-year growth rates in the company’s service areas of Southern California and New York in 2017, and is on track to list $1 billion in homes.
The company said that it plans to use the new funding to “fund market roll-out data, accelerate platform automation,” and continue expanding nationwide.
“Jack and his team at REX are redefining how consumers are buying and selling homes,” Greenberg said. “We’re excited to back the company as they continue to transform the real estate industry.”