Lunch & Learn: The State of Housing

As housing supply dwindles, affordability concerns grow while competition heats up the market. This Lunch & Learn will examine the current state of housing, featuring experts who have an eye on the market.

HousingWire Annual Virtual Summit

Join us on October 25 for a chance to see a handpicked selection of sessions from HousingWire Annual along with technology demos from the most innovative tech companies! Register now for FREE to experience HW Annual just like you were there.

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Volly’s Grant Moon on challenges facing veterans

In this episode of HousingNews, we are joined by Grant Moon who discusses the difficulties veterans face during the home-buying process and misconceptions about VA loans.

Real Estate

White-label brokerage Side achieves unicorn status

Firm's motto is "Not all agents, only the best"

San Francisco-based real estate brokerage Side announced Monday that they raised $150 million, ushering in a new phase for the four-year-old company.

Coatue Management, a New York City-based investment manager, led the venture capital fundraising round. Prior to the $150 million raise, Side reported raising just $63 million from outside investors, the majority of which came from a funding round led by Sapphire Ventures, according to Crunchbase.

Side, which now claims a $1 billion-plus valuation, will use the cash to “support significant hiring” and “accelerate the company’s national expansion efforts beyond its three operating markets of California, Texas, and Florida.”

Side is a “white-label” business model that provides the tech, marketing, and administrative resources (but not office space) for top-producing agents to start teams that feature distinctive brands.

For example, top Beverly Hills luxury producer Ben Bacal started the brand “Revel Real Estate” under the Side brokerage. Bacal and his team members, like all Side agents, keep 90 % of each sales commission, with 10 % heading toward the brokerage.

How to Diversify Your Brokerage to Weather Economic Hardship

Diversification is one approach brokerages can adopt to help ensure stability in unavoidable times of uncertainty, work to protect their revenue and – ultimately – financially weatherproof their business.

Presented by: Motto Mortgage

All brokerages claim to feature quality agents, but Side goes a couple of steps further.

The company’s motto is “Not all agents, only the best.”

In an interview last year, Side CEO Guy Gal said many agents are “hucksters and charlatans” and, “Nine out of ten agents shouldn’t be licensed, let alone actually doing transactions.”

Gal also expressed regret at the time about his past business ventures (namely the video content producer Kingmaker) raising money too fast without a clear plan in mind. He said Side had “no rush to expand” to other high-end markets like New York.

Messages left with Gal on Monday were not immediately returned.

In a press release announcing the fund raise, Gal doubled down on Side’s “only the best” message, stating, “The incentives between brokerages and top agents are misaligned. Existing brokerages are designed to support average agents.”

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