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Airbnb to ban ‘party houses’ in wake of Halloween shooting that left 5 dead

Airbnb CEO Brian Chesky said Saturday the company will ban “party houses” and take other steps to safeguard hosts and guests after five people died at a Halloween party hosted at California home that was rented on the service.

Chesky made the announcement via a series of tweets Saturday. “What happened on Thursday night in Orinda, CA was horrible,” Chesky wrote. “I feel for the families and neighbors impacted by this tragedy — we are working to support them.”

Chesky then announced that party houses would be banned and that the company is “redoubling” efforts to combat unauthorized parties.

Starting today, we are banning “party houses” and we are redoubling our efforts to combat unauthorized parties and get rid of abusive host and guest conduct, including conduct that leads to the terrible events we saw in Orinda. Here is what we are doing:

Brian Chesky (@bchesky) November 2, 2019

Chesky announced several other measures to increase safety, including the expansion of manual screenings of high-risk reservations flagged by Airbnb’s risk detection technology and creating a dedicated “party house” rapid response team

Margaret Richardson, from Airbnb’s executive team, has been tasked to accelerate the review process to enact these new policies as soon as possible, he added.

I have directed Margaret Richardson from our Executive Team to oversee this new team and initiate a 10 day sprint to review and accelerate the development and implementation of these new safety initiatives.

— Brian Chesky (@bchesky) November 2, 2019

 

Contra Costa County Sheriff’s Office said the party had been advertised on social media as a mansion party, the San Francisco Chronicle reported. Police were headed to the home Oct. 31 over noise complaints when the gunfire began around 10:50 p.m. Several people died at the scene. The fifth victim died Friday night.

Los Angeles-based BuildOps, subcontracting software for real estate, raises $5.8 million

Software development companies tackling services for niche industries, like commercial real estate subcontracting, continue to find Los Angeles to be fertile ground for development.

The latest company to raise funding from a clutch of investors is BuildOps, which raised $5.8 million in seed financing from some big names in the Los Angeles tech ecosystem.

Led by Fika Ventures, with additional investments from MetaProp VC, Global Founders Capital, CrossCut Ventures, TenOneTen, IGSB, 1984 Ventures, L2 Ventures, GroundUp, NBA all-star Metta World Peace, Oberndorf Enterprises, Wolfson Group and scouts from Sequoia Capital, the new financing will be used to support the company’s continued growth.

BuildOps sells software that integrates scheduling, dispatching, inventory management, contracts, workflow and accounting into a single software package for commercial real estate contractors with staff ranging from a few dozen to several hundred employees.

Software for the service industry is nothing new for Los Angeles entrepreneurs. The unicorn ServiceTitan hails from the greater Los Angeles area and a number of other software as a service businesses are calling the greater Los Angeles area home.

It’s hard to argue with the size of the commercial construction market. Over the past three years, commercial construction spending grew from $626 billion to $807 billion, according to data provided by the company. And while most large vendors — architects, general contractors and property management companies — have some project management software, the fragmented group of subcontractors that provide services to those customers has remained resistant to adopting new technologies, the company said.

The firm was co-founded by former ServiceTitan developer Neeraj Mittal; Microsoft, Nextag, Swurv and Fundly former executive Steve Chew; and Alok Chanani, who previously founded a commercial real estate company and was a former commander of a transportation unit of the Army in Iraq.

“At BuildOps, we are on a mission to bring a true all-in-one solution on the latest technology to the people who keep America’s hospitals, power plants and commercial real estate running. We are privileged to be working closely with some of the country’s top commercial contractors,” said Chanani.

That sentiment is echoed by Liquid 2 Ventures managing partner and former National Football League superstar, Joe Montana .

“Liquid 2 Ventures has an investment thesis in supporting America’s working class and I just love the idea of making their lives far easier and better. You have one solution that does it all and talks seamlessly to every single part of their business from parts to ordering to inventory and more,” said Montana in a statement. “There are very few world-class technology solutions for commercial subcontractors like this and we believe in the founders.”

India’s NoBroker raises $50M to help people buy and rent without real estate brokers

An Indian startup that is attempting to improve the way how millions of people in the nation lease or buy an apartment — by not paying any brokerage — just raised a significant amount of capital to further expand its business.

NoBroker said on Wednesday it has raised $50 million in a new financing round. The Series D round for the Bangalore-based real estate property operator was led by Tiger Global Management and included participation from existing investor General Atlantic. The five-year-old startup, which closed its previous financing round in June, has raised $121 million to date. The new round valued NoBroker at about $325 million, a person familiar with the matter told TechCrunch.

NoBroker operates in six cities in India: Bengaluru, Chennai, Gurgaon, Mumbai, Hyderabad and Pune. The startup has established itself as one of the largest players in the local real estate business. It operates over 3 million properties on its website and serves about 7 million users. It is adding more than 280,000 new users each month, Amit Kumar, cofounder and CEO of NoBroker, told TechCrunch in an interview.

Real estate brokers in India, as is true in other markets, help people find properties. But they can charge up to 10 months worth of rent (leasing) — or a single-digit percent of the apartment’s worth if someone is buying the property — in urban cities as their commission. NoBroker allows the owner of a property to directly connect with potential tenants to remove brokerage charges from the equation.

The startup makes money in three ways. First, it lets non-paying users get in touch with only nine property owners. Those who wish to contact more property owners are required to pay a fee. Second, property owners can opt to pay NoBroker to have its representatives deal with prospective buyers — in a move that ironically makes the startup serve as a broker.

NoBroker also offers end-to-end services such as rent agreements, home loans, and movers and packers, for which it also charges a fee. The startup says it uses machine learning to speed up the transactions and make it service low-cost.

The startup processes about $14 million in rent each month, Kumar said. This is increasing by 25%-30% each month, he said. NoBroker’s business in Bangalore and Mumbai, two of its largest cities, are already profitable, Kumar said.

The startup will use the fresh capital to expand its business and build more products. It recently launched a community and digital management app to keep a digital log of all the entries — say a Flipkart delivery personnel comes to your house — occurring in a society, and maintain a dialogue with other people in a vicinity. The app also allows users to exchange goods with one another and pay their utility bills, startup’s executives said.

The new financing round is oddly smaller than $51 million NoBroker had raised in June this year. Saurabh Garg, chief business officer of NoBroker, told TechCrunch in an interview that the founding team did not want to dilute their stake in the startup, hence they opted for a smaller round.

NoBroker is competing with a number of players including Proptiger, 99Acres, and heavily backed NestAway, which counts Goldman Sachs and Tiger Global among its investors. NestAway operates in eight Indian cities and has raised north of $100 million to date. Budget hotel startup Oyo, which has already become one of the largest hotel businesses in the world, also operates in NoBroker’s territory with Oyo Living.

But NoBroker’s Kumar said he does not see Oyo and other startups as competition. Instead, “these other players are some of our largest clients,” he said. India’s real estate industry is estimated to grow to $1 trillion in worth by 2030.

The business model of NoBroker has also created new local challenges for the startup. Brokers are unsurprisingly not happy with startups such as NoBroker and have grown hostile in recent years. In recent years, they have attacked and harassed NoBroker employees. So much so that the startup had to delist its address from Google Maps. But Kumar said the mindset of people is changing.

RedDoorz raises $70M to expand its budget hotel network in Southeast Asia

Singapore-based budget hotel booking startup RedDoorz is tiny in comparison to fast-growing giant Oyo. But it is holding its ground and winning the trust of an ever growing number of investors.

On Monday, the four-year-old startup announced it has raised $70 million in Series C financing round, less than five months after it closed its $45 million Series B. The new round, which is ongoing, was led by Asia Partners and saw participation from new investors Rakuten Capital and Mirae Asset-Naver Asia Growth Fund.

The startup, which has raised $140 million to date, has been seeing “tremendous interest from investors, so it is decided to do a back-to-back rounds,” said Amit Saberwal, founder and CEO of RedDoorz, in an interview with TechCrunch.

Regardless, the new funds will help RedDoorz fight SoftBank-backed Oyo, which is already aggressively expanding to new markets. Oyo currently operates in more than 80 nations.

Saberwal isn’t necessarily threatened by Oyo, on the contrary, he sees Oyo’s success as a testament that there is room for more players to be in the space. He is confident that RedDoorz is “on the right track to create the next tech unicorn in Southeast Asia,” and trade in public exchange in the next two to three years.

RedDoorz operates a marketplace of “two-star, three-star and below” budget hotels, selling access to rooms to people. Currently it has 1,400 hotels on its network, said Saberwal. By the end of the year, the startup aims to grow this number to 2,000.

The startup operates in 80 cities across Indonesia, Singapore, the Philippines and Vietnam, and plans to use the new capital to expand its network in its existing markets, said Saberwal. At least for the next one year, RedDoorz has no plans to expand beyond the four markets where it currently operates, he said.

“Anything in the accommodation is our playground. We have all kinds of properties. We have three-star hotels, some hostels, so we will continue to go deeper and wider moving forward,” Saberwal, a former top executive at India’s travel giant MakeMyTrip, said.

It’s a great combination: Making the ubiquity of typically unorganized local guesthouse-style rooms with the more organized and efficient — but pricier — hotel option.

Some of the new capital will also go into broadening RedDoorz’s tech infrastructure, building a second engineering hub in Vietnam. (RedDoorz’s current regional tech hub is based in India.)

Real estate property manager and developer JLL launches a $100 million tech investment fund

The multi-billion dollar real estate developer and property manager JLL is getting into the tech investment game with the launch of a new $100 million fund run by corporate subsidiary JLL Spark.

Initially envisioned as a technology-focused business unit of the multinational real estate company, the firm eventually turned to the more traditional venture capital investment model as a way to get more exposure to all of the new technologies that are coming to market, according to JLL SPark’s co-chief executive Mihir Shah.

For Shah and his co-founder Yishai Lerner running the real estate company’s investment firm is the first foray by either executive into the world of real estate or property technology. But both men have been working in the startup world of the Bay Area for at over a decade.

In fact, the two serial entrepreneurs launched one of their first companies from the TechCrunch 50 conference way back in 2007 (it was a mobile app that mimicked Yelp).

The two eventually sold their mobile review business to GroupOn and began doing some angel investing. It was during that venture into the wild world of seed stage prospecting that Shah got bitten by the real estate bug while trying to buy some commercial real estate.

“I was looking at the process and was thinking ‘Wow! That is not a modern process,’” Shah said.

Unbeknownst to Shah, at the same time he was looking for commercial real estate, the commercial real estate industry was looking for someone like him.

JLL had put out feelers and hired head hunters to find someone who could take the lead at the firm’s burgeoning technology practice, Shah said.

“They had all sorts of internal initiatives bringing in new technology companies and services to their existing clients,” Shah said. “They understood that technology was going to transform all aspects of the industry.”

One of the first steps that JLL had taken was to acquire Stessa, which developed and sold asset management software for the real estate industry. But Shah and Lerner quickly realized that the buy and build strategy wouldn’t be robust enough for JLL’s needs.

“Over the last six months we saw how much innovation was happening in the proptech space and we thought it made more sense to launch a venture fund,” Shah said.

The firm will invest anywhere from a few hundred thousand dollars to a few million into seed stage or Series A companies with the option to dabble in later stage deals, according to Shah. The firm has made two investments so far — neither one of them in startups.

The commitments have been in one accelerator program, the New York-based Metaprop, which focuses on real estate tech investment, and Navitas Capital, which is billed as a later stage investor in the same space.

Both investments appear to be geared toward educating the firm’s two principals on the market and what’s already happening in the space.

The benefit that a corporate firm like JLL can provide to startups is the access to pilot projects where companies can deploy their technologies and, indeed, that’s the pitch that Shah makes to potential portfolio companies.

“Money is not enough,” he said. “There’s a lot of products out there, but they’re struggling with distribution.” JLL has designated a few buildings in top cities around the world to fast track new technologies and provide trial spaces for them to develop, Shah told me. “Our value as a strategic is to build that bridge and make that connection.”

“Creating this $100 million venture fund through JLL Spark allows us to continue to lead the real estate industry in bringing the best proptech ideas to reality,” said Christian Ulbrich, JLL’s Global chief executive. “It complements and expands our substantial ongoing investments in innovative, cutting-edge digital solutions, which is a core part of our Beyond strategic vision and commitment to achieve ambitions for our clients.”

 

Zillow surprises investors by buying up homes

Real estate platform Zillow changed up its business model this week, announcing that it plans to purchase and sell homes in Las Vegas and Phoenix.

Zillow will be working with Berkshire Hathaway and Coldwell Banker to make offers on homes before it finds a buyer. Zillow will pay commissions and also “make necessary repairs and updates and list the home as quickly as possible.”

Calling it “Instant Offers,” Zillow says,

“the program gives real estate agents the opportunity to acquire new listings by connecting them with motivated sellers who have taken a direct action to sell their home. Across all testing, Zillow found the vast majority of sellers who requested an Instant Offer ended up selling their home with an agent, making Instant Offers an excellent source of seller leads for Premier Agents and brokerage partners.”

Shares fell 7% on Friday, following the revelation.

This is a marked business change for the website, which is mainly a hub of information about real estate properties. Buying up homes will provide added costs and risks, so some investors didn’t like it.

Yet Zillow says it has been testing out this program for about a year and that it is optimistic about its future success.

In an interview with CNBC, CEO Spencer Rascoff said, “we’re ready to be an investor in our own marketplace.” He believes Zillow has “huge advantages because we have access to this huge audience of sellers and huge audience of buyers.”

Rascoff acknowledged that Zillow will be taking on debt to execute on its new mission.

This will also put it in competition with Opendoor. CEO Eric Wu provided us the following statement.

“We are genuinely excited, having invented this new category in 2014, and it’s invigorating to see a host of others in the industry recognize the importance of removing hassle and time from the transaction.  We are proud to have served over 15,000 customers, to be expanding to dozens of markets, and to be reaching market share numbers that demonstrate the significant demand and love for our experience and product.  We continue to be focused on building technology to remove friction from the transaction through a world-class pricing model, a suite of vertically integrated applications, All-Day Open Houses, our Buyer Guarantee, and a few new products we will be launching shortly.  Most importantly, we are here to service our customers, buyers and sellers who crave and deserve a best-in-class experience as they transition from one home to their next.”

Game on.

Cardlytics up 3% following IPO, raised $70 million

 Atlanta-based Cardlytics made its public debut on Friday, closing the day at $13.37, just a little above the IPO price of $13. The company sold 5.4 million shares, raising $70 million. Cardlytics works with financial institutions like Bank of America and 2,000 others to run cash back programs. It partners with brands across restaurant, retail, travel, grocery and home subscription categories… Read More

Funding for real estate challenger Spruce shows New York’s startup scene is thriving

 Spruce, a new startup looking to speed up the mortgage, has raised $4.5 million in its series A financing from Bessemer Venture Partners, Omidyar Network, and Third Prime Capital along with a slew of private angel investors. Founded by two former employees of the robo-advisory wealth management company Betterment, the new startup is notable for a few reasons. First, it’s yet another… Read More

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GoldenKey raises $1.75M as it works to unbundle the real estate industry

A miniature real estate agent figurine standing next to a FOR SALE sign GoldenKey, which was previously known as SoloPro, wants to change how real estate agents and their clients do business. Typically, as a buyer or seller, you work with one agent, who then gets a 3 percent commission once you buy or sell your home. GoldenKey puts a different spin on this. Instead of a commission, you pay an agent a flat fee for the services you need and get a 3 percent rebate… Read More

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Luxury nuclear bunkers in Kansas

Larry Hall is developing luxury nuclear bunkers underground at an old nuclear missile site in Kansas. Hall says the Survival Condos, starting at $1.5 million, are “nuclear-hardened bunkers that are engineered… to accommodate not just your physical protection but your mental wellbeing as well.” From BBC News:

Mr Hall says he has spent millions on providing the complex with every possible feature to keep residents safe both now and for an indefinite period, should a catastrophic event occur.

These include air and water filtration systems, a range of energy sources (including wind power), and the capacity to grow plants and breed fish for food supplies. Armed guards patrol the entrance.

There are many other features too, such as a cinema, swimming pool, surgery, golf range, and even a rock climbing wall. “It’s like a miniature cruise ship,” says Mr Hall.

He believes that luxury touches like these could help to explain a development that may seem a little surprising.

At first, he says, clients saw owning an apartment as “like life insurance”, just something to be used in case of an emergency. But now some purchasers have come to regard their apartments as second homes, making regular use of them for weekends or longer breaks.

“Everyone comments on how well they sleep here,” he adds.

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China's capital controls are working, and that's bursting the global real-estate bubble

More news on the Chinese crackdown on money-laundering and its impact on the global property bubble: the controls the Chinese government has put on “capital outflows” (taking money out of China) are actually working, and there’s been a mass exodus of Chinese property buyers from the market, with many abandoning six-figure down payments because they can’t smuggle enough money out of the country to make the installment payments.
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RadPad gets acquired by LandLord Station after nearly shutting down

apple_home_kit_still_002 Layoffs and an office auction sparked rumors that home rental startup Radpad was on its deathbed last year. After raising over $12 million in funding, hefty legal fees from a “data scraping” lawsuit with Craigslist had put the LA-based startup nearly out of business. But TechCrunch has learned that RadPad has found itself a new home. Dallas-based LandLord Station has purchased them… Read More

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