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Propzy, Inc.
Location: 17155 Newhope Street, Suite N, Fountain Valley, California, United States United States
Stage: Revenue generating
Number of employees: 6-15
Funding history:
- Date: 02/2014, Seed: undisclosed amount (post valuation: undisclosed amount).
Investors: Donald Henig, Paul Knag Jr
Short URL: vator.co/propzy-inc
Followers (35)
Awards and mentions
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Open Web Awards is the only multilingual international online voting competition that covers major innovations in web technology. Through an online nominating and voting process, the Open Web Awards recognizes and honors the top achievements in 26 categories. John Le -- Artiklz cofounder
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Propzy, Inc.

Startup/business
Fountain Valley, California, United States United States
http://www.propzy.com
  • About
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Company description

Propzy has been called “the Uber of Real Estate”, because it developed a Real Estate marketplace for consumers and brokers to buy, sell, or rent their properties by uniquely tapping into their social graph.. It is a mobile-only application as Real Estate discovery is 90%+ performed on a mobile device.

Propzy is changing the real estate distribution paradigm by enabling consumers to engage their social graph to create supply or demand for their properties. Also, RE agents are able to sell or rent more properties by 'connecting' with consumers on Propzy -- significantly increasing their audience reach beyond traditional channels.

 

JUDGES: Please see the private section under the Document tab for the Company Pitch Deck.

 



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Team
  • john le
    john le | Founder
    Founder of several start-ups. Raised over US$30M venture capital. 2 exits. John splits his time between Southeast Asia and SoCal. He's an investor in several international tech enabled de novo business ventures. Spent early days as a banker.
  • Tom Nguyen
    Tom Nguyen | Team member
    BA in Real Estate Finance from CSU Fullerton. Tom worked at the OC Tax Collector and First American Title. Tom’s practical knowledge proved effective as VP at First American Title and AVP at Fidelity National Title. He found Integrity Escrow in 2003
  • David Lereah
    David Lereah | Advisor
    Author, speaker, investor on the U.S economy/real estate markets Currently President, Reecon Advisors: advising some of the largest financial services companies in the world on the US real estate markets. Former Chief Economist for MBA and NAR
  • Frank Grant
    Frank Grant | Advisor
Business model

The Social web is enabling direct communication between owners and buyers, landlords and renters.

Propzy enables consumers to buy, sell, or rent their properties through enabling technology and new distribution modes previously not available.Thereby, increasing reach while reducing the cost of transaction for consumers.

Propzy makes money by (1) taking a percentage of the Friender'sFee used to incentivize promotion activities, (2) Propzy Concierge - an a la carte menu of services to facilitate the buyer/seller experience, (3) financial services lead generation, and (4) data analytics for a new class of real estate behavior data.

 

"What’s remarkable about both sites is how little they’ve actually changed the selling and buying of homes...Change in the real estate business is inevitable. When buyers are finding homes on their phones, taking virtual tours, and securing loans online, brokers add less value to the transaction. Likewise, sellers can prep their houses and find buyers with a few clicks of a mouse and no longer need to lean as heavily on an agent." -- Brad Stone commenting on the recent Zillow/Trulia merger. BloombergBusinessWeek (7/28)

Competitive advantage

Zillow and Trulia are two of the larger players in the marketplace. However, both focus EXCLUSIVELY on search. There's NO ability for an owner to list without signing up with a broker.

Propzy focuses both on search AND the listing creation process. Distributing that information to the marketplace inherent within each user's extended social graph. Within 2 minutes or less your property is now on the marketplace and getting exposure to millions of prospective buyers or renters. Try getting that through Zillow or Trulia!

Consumers are empowered to list and distribute their property on Propzy. Agents are incentivized to connect with users (Propzy SocialAgents) that have robust social graphs to promote and syndicate their listing info. Approximately $60B in commission revenue was paid out in 2013 (TAM). Propzy stands to disrupt the distribution of that revenue stream by enabling a new paradigm for how Real Estate is listed (supply) and how it is discovered (demand). Propzy is Real Estate for the Facebook generation.

 

Some Q&A:_________________________________________________________

Q: So is the premise that people bypass brokers by listing to their social networks? Then a friend/colleague is incentivized to share because he/she may get a commission? 

 

Listing directly on Propzy and bypassing the broker is clearly an option (10% of today’s market is For Sale By Owner (FSBO)). Consumers that have committed with a broker to assist in the home selling process are not limited to just relying on the broker to market the property. As a matter of fact, consumers can list on Propzy and their broker can “Follow” that property to help with its broader marketing and reach. Everyone wins. The difference is with Propzy, consumers can monitor and measure the activity around their property’s marketing efforts vis-à-vis traffic, visits, shares, likes, comments, duration on property post, etc. Metrics that brokers often don’t have readily available for their clients.

Similar to Uber, there are many people looking to leverage both their idle time and social networks to earn extra income. Propzy has developed a platform to enable any individual to sign up and become a Propzy SocialAgent to engage in Real Estate promotion services. Uber has proven that the excess capacity model for the taxi/livery industry creates value within its market. Propzy believes it has an analogous platform for the 100X larger residential housing market. We have the platform. We are 4 months into our private roll out. And we now are acquiring the metrics to support our value proposition to our user base.

 

Q: How do you get that social network graph? Do people sign up with FB? 

Yes, Propzy requires sign up through Facebook. This ensures the robustness of the platform to unlock the real estate needs of your friends. Propzy enables anyone to be a SocialAgent for Real Estate.

 

Q: The nice thing about brokers is that they "show" the house for rent or for sale. That's why they get a commission. Propzy doesn't solve for this. Or does it? 

Actually, there are a couple of things to point out:

(1)    Brokers don’t really show houses from a sell-side standpoint (listing broker), they conduct Open Houses. These Open Houses are primarily to ‘catch’ prospective buyer leads. Maybe not for the house they are currently selling, but for future listings.

(2)    For the most part, listing brokers place a lockbox device that cost about $50 on your door. Interested parties with a buy-side broker in attendance can gain access to that property without the listing broker present. This happens 99% of the time.

 

So what is really needed? Buyers simply need a way to discover properties for rent or sale. Then they need a means to schedule access to that property. Today, they can do that directly with the owner (AKA:  Craigslist). Propzy Concierge service is being developed and tested to assist buyers/sellers on this coordination activity.

 

In addition, because Propzy is built to be social...reviews and comments posted on a particular property by friends or the community provide invaluable insight. Insight that no broker can possibly provide unless they themselves are "local" to that community, but even then are still limited from having comments such as:

==> "Mike's house is the place to be on a hot summer weekend. Taking in the views from the poolside deck is first class all the way!" or

==> "Man, the folks that hang out around the corner make this block look like a methadone clinic."

==> "Traffic in and out of that cul de sac is a $#@! between 6-8..."

 

Q: What lessons have you learned from Trulia and Zillow in building a marketplace?

Content is king. If you have quality content then you can address the demand side of the marketplace. If you have solid demand side economics, then the supply side will follow. This was also a similar dynamic to the mortgage marketplace that our Founder John Le launched in 1999. That marketplace went on to process over $10B in annual mortgage volume.

 

In addition, we've also observed that consumers demand more from their agents. Consumers also want to do more; if they are empowered. Zillow and Trulia opened the floodgates by enabling consumers to conduct Real Estate discovery on their own before engaging an agent. Propzy now takes that ball further down the field.

 

Q: What's the incentive for people to sign up? How will you get that initial flywheel going or how have you begun doing so?

The average individual has a couple hundred friends on their social networks. As social creatures, we often tap into those networks to ask for advice on where to rent or buy. We’re just doing it in an unstructured and non-scalable manner. Propzy makes this process easier, better and effortless.

In addition, Propzy enables consumers to earn supplemental income by leveraging their social graph as SocialAgents (promoters) on the platform. Consumers or brokers looking to gain access to a larger audience of prospective buyers/renters are able to syndicate their listing out the leaderboard of SocialAgents. As such, Propzy believes there exists a huge market for consumers who want to sign up with Propzy to offer their services as SocialAgents (think UberX for consumers and Uber for brokers).

 

Q: How many listings do you have?

Propzy quietly launched in May and is STILL covertly running its platform. We started with a few thousand listings and as of August are above 30k. We are forecasting listing inventory to exceed 60k by late October. But more importantly, we are forecasting an approximate savings of $5M in commissions for October alone! A savings equivalent to 250,000+ Uber rides across town.

 

Q: How long have you been up and running and what's the initial traction?

Propzy quietly launched in May in SoCal for two counties (LA/Orange). We are growing the user base at around 60% month-over-month without any media push. Potential commissions saved grew from $13k in May and hit $1.7m for August. A rounding error considering US$60B was paid out in 2013.

Investors
Donald Henig
I have built many companies in various industries from; mortgage, entertainment, publishing, technology and social media. In addition, I am currently writing a book geared toward Millennial's titled: Stop Looking For a Job - Create One!
Paul Knag Jr
I am the owner of a boutique advertising company focused on lead generation for lenders. I have been working in online lending since 1997 when I founded the online lender MortgageSelect.com
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John Valerio - Unconfirmed
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Toan Nguyen - Unconfirmed
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Richard Rose - Unconfirmed
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Eugene Rose - Unconfirmed