When it comes to “proptech,” here’s why we target non-asset-intensive businesses in real estate. 🔽🔽🔽 Our CEO and Founder, Peter Rex, shares his insights on investing in tech applied to real estate: 'When I think about investing in tech that's applied to real estate, I intentionally try to avoid tech that is solving problems for asset-intensive businesses. This might sound contradictory because real estate itself is an asset-intensive business. So, how do we apply tech effectively? We focus on operational areas within real estate, where inefficiencies are prevalent. Many of the well-known issues in the real estate industry, especially on the private equity side, revolve around asset management. These areas are heavily saturated and don't add the most value to the asset as a whole. The real value comes from leadership in private equity—structuring deals, picking deals, and offloading deals efficiently. This requires good judgment from a few key people rather than a large team. When applying tech to real estate, we look for pockets within the industry where technology can create significant value in a capital-efficient way. For example, one of our products supplies insurance for workers to get on-site quickly and cost-effectively. This is crucial because no revenue can be generated until the asset, whether a hotel room or an apartment, is ready for use. Contractors need to be insured to perform their work, and our solution addresses this serious pain point efficiently.' At Rex, we aim to solve real estate challenges by targeting operational inefficiencies and providing capital-efficient tech solutions. This approach is embodied by our portfolio companies, like JobCall and GetDone. InsurePro JobCall, IDcore PayUp GetDone #PropTech #RealEstate #TechInvesting #Innovation #Rex
When it comes to “proptech”, here’s why we target non-asset-intensive businesses in real estate. #investing #realestate
