Not business as usual_ redefining the real estate industry


Speaking to me between meetings at Tedesco’s 100,000-square-foot campus in North Scottsdale, he tells me that the real estate industry is in the very early stages of a major shift that’ll leave it looking quite different than what it is today.

Tedesco is not your average CEO. Rose quotes The technology entrepreneur got his start at just 15 years old, founding a software company when most kids his age were playing video games or out getting into trouble. Aud to usd conversion rate Also the CEO and founding partner of True North Companies, Tedesco, now 42, has spent the last 20 years building the firm into a conglomerate that encompasses numerous healthcare, aerospace and entertainment brands.

300 us in canadian Tedesco was one of the early, pre-IPO investors in brands like GoPro and Tesla, so “business as usual” is clearly not his plan for the future.

After watching and researching the real estate franchise business for some time, Tedesco acquired Realty Executives International—the master franchisor of the Realty Executives brand—in April 2014.

David Tedesco: The real estate franchising industry in North America is terribly outdated. Usd graph Over 30 years ago, brokers controlled the market through access to the MLS, and they generated leads by aggregating dollars and investing in traditional advertising channels on behalf of their agents. 10 in binary code Today, almost every listing is available to the consumer via Zillow, Trulia and®. Euro to pound sterling exchange rate Leads are generated directly by agents using social media, SEM (Search Engine Marketing) and through the big listing aggregators. Aud usd exchange rate The power in residential real estate is with strong agents and, increasingly, with teams. Dollar exchange rate today From my point of view, everyone who isn’t rebuilding their model around teams and away from big franchisor GCI (Gross Commission Income) fees is a dinosaur.

DT: I see franchisors either having to move away from the GCI models or shrink, because there’s no compelling value proposition to buy into them anymore. 1 usd in inr In fact, if you look at the data for U.S. Dollar vs euro chart and Canadian brokerages, you’ll see that it’s already happening. Current exchange rate usd to cad When you unpack the data (which are available to anyone with the inclination to look, as many of the big franchisors are public companies), what you’ll see is growth coming from overseas markets and acquisitions, not domestic organic growth.

Interestingly, many of the new, venture capital-funded brands seem to be following the same model, spending huge sums to acquire brokerages or to sign high-profile agents. Usd today That makes little sense to us. Ringgit usd exchange rate We think that if you have to pay people to be your customer, and make no mistake, that’s exactly what’s occurring, then your value proposition is fundamentally flawed. Stock market meanings I can’t remember the last time Apple paid me to use an iPhone over an Android phone, or Google paid me to search via Google rather than Yahoo!.

DT: Change, yes, but go away? No. Kurs usd ke rupiah The reality is that most brokerages, or almost all teams, are relatively small businesses. Exchange rate us to canadian dollar The cost and time involved in building and establishing a recognizable brand is incredibly high. Samsung washing machine codes The challenge of selecting and managing a disparate group of disintegrated technology solutions is also high. Convert indonesian rupiah to usd There are serious economies of scale to be gained by working with a franchisor who offers a great brand, marketing, training and turnkey technology solutions—as long as they’re offered at a reasonable price and on flexible terms.

DT: We’ve spent the last two-and-a-half years rebuilding the company. Binary tools We’ve replaced 100 percent of senior management, developed all of our own proprietary technology, refined our brand, and become maniacal about customer service. Futures market cnn We’ve laid the foundation to support our vision for the next 20 years.

We acquired Realty Executives because we felt the brand was a great value and has always stood, strategically, for the same value proposition we believe will win going forward. Msn news usa However, prior to our acquisition, execution at the company was lacking. Nzd usd live chart Realty Executives was a major disruptor when it was first started over 50 years ago, but management at International lost sight of that. Dollar exchange rate in india However, the brand remained strong, mostly through the efforts of some pretty incredible franchisees and broker/owners. Usatoday com news So rather than start from scratch and spend hundreds of millions of dollars establishing a new brand, we decided to execute our brand strategy via an existing brand that was originally built around the same disruptive, entrepreneurial spirit necessary for success today.

We’re much more nimble and forward-thinking than we were in the past. Trading places stock market scene We’re flexible, inexpensive, and have technology equal to or better than anything out there. Convert aud to usd We’re continuously making investments in new tech and have built a system that’s focused on delivering tools that best support the most productive real estate agents in the country. Inc connector And as a part of the much larger True North Companies, we’re very strong financially and totally debt-free.

We’re in the 86th percentile for agent productivity, but at a third the cost of our direct competitors. Usd news Other brands talk about their advantages—tech, leads, branding, training—and these are all important elements of what a franchisor offers; however, I’ve learned over the years that while a good sales pitch is great, numbers always tell the real story.

To anyone considering renewing a franchise agreement, I have one question: What we deliver supports over 8,000 people across the U.S. Binary dictionary and Canada and domestically we average in the top 14 percent in terms of productivity; so why pay two to four times the fees to a company whose agent productivity is almost certainly lower? If you pay more, you ought to get more. Us stock market futures contract Where’s the value?

DT: There are two operative models in the market right now: the ultra-inexpensive, low brand equity model, which typically aggregates huge agent counts under very large brokerages, with very low per-agent productivity; and the old school brands running a fee-heavy model that costs two to three times as much.

Now, it’s worth saying, residential real estate is a truly massive market and there are going to be many different brands serving many different types of agents, both now and in the future. Funny quotes about life lessons The ultra-inexpensive models can make sense for part-timers who are fine with giving up the benefit of associating with a large, premium brand. Exchange rate mxn usd And many established agents and brokers will stay with ultra-inexpensive models simply to avoid the hassle and fear associated with a change.

We think the interesting space is premium brands willing to offer services on high-value terms—something the market has resisted. Dollar yen exchange rate That’s where we’re focused: We offer a dynamic set of proprietary tools and integrated technology. Market futures quotes Our flexible franchise agreement offers the freedom to operate your business the way you want to. Binary to hex Our customer service is No. Fraction to whole number calculator 1 in the industry. Kroner to usd Our turnaround time is a fraction of the industry average, and we provide features like live chat to ensure people can engage with us the way they want.

DT: Yes, but we have big expectations for Realty Executives because of the shifts occurring in this market. Love quotes tagalog We own our companies; we’re not subject to the short-term mentality of Wall Street, and we’re debt-free. Euronews online russian We’re playing the same long game that our franchisees and agents are.

DT: I get that question a lot. Usd myr chart We’re entrepreneurial and we try a lot of different things. Usd cad analysis We’re not a super-careful, risk-averse group. Troy isd We make mistakes; however, we have a diverse group of companies that are very profitable. Convert binary to decimal We often generate more cash than I can invest effectively. Crossword puzzle usa today As a result, we don’t buy businesses to sell them, but rather, to hold them long-term. The millionaire real estate agent pdf That’s the huge difference between us and most professional investment and private equity firms out there.

DT: It might seem funny to say it, but our brand actually makes sense. Gender identity disorder test In my opinion, most of the big brands in our industry mean nothing—they’re just the last names of people you don’t know and will never meet. Chf usd chart To me, that seems like a bizarre approach to brand development. Usps shipping cost Imagine if Uber had decided to call themselves Anderson. Usd gbp exchange rate They probably wouldn’t have received a single round of capital from a professional investor. Us dollar rate today in india So why build your brokerage or team around a meaningless name?

Realty Executives is self-referencing and self-explanatory. Usa today newspaper It actually means something relevant. Stock futures cnn money It’s positive and it’s premium. Gbp to usd We’ve been around for over 50 years and have huge brand equity throughout North America.

We look around and don’t see many of our competitors committing to major change, or really preparing for what’s coming next. World stock markets cnnmoney From my point of view, most of our competitors spend their resources wooing and buying high-end baby boomer agents in order to get a share of their GCI. 1 usd to zmk Great. Gbp usd exchange rate live Have fun! Hope that works out. Math smartboard games We think the future is a much leaner, value-focused model targeting the incoming millennial generation of REALTORS®, brokers and teams. Futures market hours today We bring an outsider’s view to this industry and we think that’s a major strength. Usa today sports odds We don’t see the future through the eyes of those who have been mired in the status quo.