Publicly traded small-cap RESAAS Services Inc. (RSS:TSX.V; RSASF:OTCQB) is converting the way real property specialists do enterprise. Its award-prevailing cloud and blockchain generation platform enables real estate brokerages, franchises and MLSs to carry real-time communique, simplified transactions and valuable statistics to their retailers on a global basis. This lets in RESAAS subscribers to do greater commercial enterprise through greater connections.
Like different a hit networking platforms of their early stages, which include Facebook, LinkedIn, and so forth., RESAAS is aggregating valuable records and beginning to monetize various features that don’t exist elsewhere in the real-property world today, creating a couple of revenue streams.
RESAAS’ platform has been catching on fast. The international’s two biggest real estate corporations, RE/MAX and Keller Williams, have signed on to use RESAAS’ platform. About a dozen of the bigger real estate institutions inside the U.S. Additionally use RESAAS’ technology, such as the real property associations in San Francisco, San Diego, Oakland, Miami, the complete country of Rhode Island, Beverly Hills and the Greater Los Angeles Association of Realtors.
Real property experts had been flocking to the platform. The generation is now utilized by over 460,000 sellers globally, ninety% of whom are in North America.
Investor and publication author Nick Hodge informed Streetwise Reports that RESAAS’ platform is “connecting real property sellers, brokers, franchises and Multiple Listing Services, all the numerous components of the actual property enterprise. That has never definitely been carried out earlier than. RESAAS is disrupting the entire actual property industry by using growing a sort of Facebook for actual property dealers.”
“By already being able to sign on two of the most important real property firms inside the international, RE/MAX and Keller Williams, and already having over 400,000 customers, that creates important mass; it already has its clients on its platform and has their interest,” Hodge delivered.
And although the corporation continues to be young, RESAAS has a couple of revenue streams:
RESAAS’ era acts as a matchmaker to enable agent referrals. An agent in a single area can use the platform to refer a patron to an agent in another area.
The referral manner has been made less difficult with the release on the stop of October of a brand new system called RESAAS Pay to send and acquire referral fees, the first of its kind inside the actual estate enterprise.
“The old device of paying dealers referral fees become very clunky, sluggish and highly-priced. With RESAAS Pay, an agent will pay some other agent with a credit card; it’s elegant, relaxed and brief,” Tom Rossiter, CEO of RESAAS, instructed Streetwise Reports. “It additionally opens a new revenue movement for the corporation due to the fact we fee a transaction fee.”
Referrals have the potential to grow to be a primary revenue flow, Nick Hodge noted. “The sales on referrals has the capability to develop from about $1 million to in all likelihood $10–12 million, so a 10x jump simply on that enterprise,” he stated.
In addition, final summer RESAAS shriveled with Realty Universal, a company that offers agent-to-agent offerings, to develop a personal network on its platform for six,000 participants, specifically for conducting referrals in the U.S.
“In addition to sales from referrals, there are a variety of moving components and other sources of sales that we are able to call blue-sky that make this investment in RESAAS very thrilling, inclusive of premium subscriptions and facts collection,” Hodge relayed.
RESAAS is changing a number of its users to top class subscribers. For $30 a month, retailers benefit advantages no longer available inside the no-cost version.
“Currently about 1% of users have switched to the premium subscription, but approximately 10% are expected to accomplish that,” investor and newsletter writer Nick Hodge advised Streetwise Reports.
“If RESAAS can convert 10% of its individuals to top class popularity, that might create approximately $14 million in annual revenue,” Hodge calculated.
Many actual estate retailers sell houses inside the pre-market, in which the transaction exists between two marketers, and the sale will in no way be available on MLS, Zillow, Trulia or other public web sites. In addition to making the connections that make the non-public sale viable, RESAAS is able to seize the income statistics.
“That records is extremely valuable because it does now not exist anywhere else,” Tom Rossiter, CEO of RESAAS, informed Streetwise Reports.
“Companies like Zillow, Trulia and CoreLogic are interested by this kind of statistics for information analysis or figuring out developments in real estate markets on a nearby and neighborhood degree. All this transaction statistics could be very tons a large enterprise nowadays,” Hodge stated.
In addition, final July RESAAS signed a memorandum of understanding to shape a joint undertaking with San Francisco-primarily based Real Estate Consortia Inc. To track and seize household statistics, consisting of loans backing the residences and transaction history.
Collaboration with Canadian Real Estate Investment Firm
RESAAS has an global attain. The organisation has been operating with REIN, a Canadian actual property investment firm, because the spring. “REIN wanted to digitally join its membership of actual property traders with each other to proportion investment possibilities. Currently that is done in man or woman at activities,” Rossiter said.
Initially, RESAAS worked with REIN to look what modifications might want to be made to healthy REIN’s wishes. Once the spec became complete, “we then engaged with REIN’s determine organization, LEGACY, to virtually do the work our spec defined,” defined Rossiter. On January 10, RESAAS introduced an settlement with LEGACY to personalize its platform to fit REIN’s desires.
“We have had a first-rate response from our individuals approximately our plans to digitize a number of the very middle fundamentals we provide,” stated Jean-Guy Francouer, Chief Growth Officer at LEGACY Council of Canada. “Proptech (belongings technology) will push actual estate organizations to the following degree, through growth the use of real estate gear, synthetic intelligence, technology and apps.”
“The value we provide our participants may be exquisite, as the idea for the generation is constructed from RESAAS’ award-prevailing era platform that already has an agency cost of about $25 million. By extending it for our personal particular needs, we will have a exceptional-in-elegance answer for our individuals,” he introduced.
Analysis by Industry Observers
Siddharth Rajeev, an analyst with Fundamental Research Corp., wrote in a document on January 7, “RESAAS Services Inc. Has made full-size changes to its board of administrators and appointed a brand new chief financial officer; the corporation has also evolved RESAAS Pay, a referral price processing platform. It has also entered right into a joint project with a San Francisco-based totally blockchain enterprise, signed an settlement with a 6,000-agent community and multiplied usage of its RealTimeMLS platform substantially in 2018.”
“RESAAS will rate a transaction fee on every referral fee processed by the employer, beginning up a prime sales movement,” Rajeev noted. “With the organization reporting RealTimeMLS club growing over 50% at some point of 2017, it’s miles clean that the employer’s platform is gaining recognition amongst real estate retailers. As a actual estate B2B SAAS organization, growing subscribership is a defining boom metric for RESAAS, and we see their persisted boom as a bullish sign for the organization’s boom prospects,” he added.
Fundamental Research Corp. Has a Buy rating on RESAAS and estimates the fair price in line with proportion at US$zero.Sixty seven. With fifty three million shares incredible, that infers a value of US$35 million. Currently RESAAS shares are trading at around CA$zero.24 at the TSX Venture Exchange, giving it a market cap of CA$12.7 million or around US$9.6 million.
Nick Hodge told Streetwise Report, “As an investor, I like that RESAAS has a couple of sales streams. It has transaction fees, top class app revenue, expenses from facilitating transactions and information income. And then you definately have the blue sky of the blockchain should some of the big real property companies that it’s already partnered with pick out to host their transactions with RESAAS software program.”
“As RESAAS will increase conversions to the premium version of the app, and it starts offevolved facilitating real property transactions on the blockchain and taking a percent charge from actual property transactions, I assume we could see the organisation get to a $100 million valuation in 3 years,” Hodge calculated.
Technical analyst Clive Maund has additionally been looking RESAAS. He wrote on CliveMaund.Com on January 21, “I need to attract your attention to a inventory that looks like it’s far shaping up for a prime bull marketplace. It’s very reasonably-priced right here, having dropped from a excessive at C$five.00 early in 2014 to the modern 34 cents. A exceptional Double Bottom has fashioned over the last 6 months with a dramatic buildup in upside volume this is driving quantity signs strongly better and it’s miles regarded as a direct purchase here after its response back of the beyond week or so, with an consciousness that during adverse marketplace situations it could flow back some greater.”
On February 25, Maund wrote, “the huge upside extent kicking in overdue final week is a sign that it [RESAAS shares] about to interrupt higher again—and this is a inventory that tends to rally a lot faster than it drops. This is consequently a terrific point to feature to positions or make fresh purchases.”
Here is how one actual estate industry insider summed it up: “Disruption is on-going in the deeply entrenched RE industry. RESAAS is a companion to innovative MLSs who want to preserve their businesses thriving and innovating. RESAAS is a employer as a way to help an MLS build equipment to modernize and adapt. You would possibly call it ‘disruption from the interior,'” stated Jay Pepper-Marten, director of MLS and IT for the San Francisco Association of REALTORS.