status update
Issue 131 - April 21st, 2023
Today’s post is a quick “status update” on our business at Pinnacle Realty Advisors. I am incredibly proud of our team and the company we are building, and I want to highlight some stats today about our company. I will also share a little bit about why we do what we do, and our passion for building a better platform for real estate agents in this industry.
As of this writing we are over 630+ agents in 4 states, and we continue to see great month over month growth in this turbulent market environment. We are excited for the rest of 2023! We were also recently named to the RealTrends 500 List - we were ranked #151 in the “Private Independents” Category which is defined by Real Trends in this manner: Privately held brokerage firms that are corporately owned and do not franchise. Brokerages are ranked by transaction sides in 2022.
At Pinnacle Realty Advisors, we are building the world’s first “brokerage as a service” (BaaS) platform for the real estate industry, and our mission is to “Make Real Estate Better For Everyone”.
Our goal with Pinnacle is to build an industry-changing platform on a nationwide scale, something the industry has never really seen...taking a low cost, subscription-based revenue approach, and focusing on “a la carte” agent services with a cloud-based operating model to keep our expenses super low.
We're backed by some of the best investors in the world who believe in our vision and are excited to support us as we keep growing and launching new markets, really dialing in the service and support side for our agents who we see as our customer.
A lot of people have been asking and wondering, “How does Pinnacle make money? It’s such a different model. You know, no commission splits, no big fees. How do they stay in business?”
We've built our brokerage differently from the ground up, so it's kind of hard to compare us to a traditional brokerage model. Our business model architecture looks nothing like a traditional brokerage. We don't think like a traditional brokerage, and we don't have traditional brokerage infrastructure. We don't have traditional brokerage overhead. We have a lean operating model that is entirely cloud-based with hardly any office footprint or expensive overhead to maintain.
We have a subscription-based revenue model that provides revenue to the company every month, while at the same time keeping the cost to our agents super low. We also provide “a la carte” services to our agents to purchase as they see fit for THEIR business; we believe agents are CEOs of their own business and everyone has different needs and ways of working - we try to find ways to support everyone on our platform and let our agents pick and choose tools and resources that make the most sense for them.
We also reinvest all of our dollars made back into the business. Where locally owned brokerage companies may have owners who have to take money off the top to support their lifestyles, we plow every single dollar back into the company to keep reinvesting into our staff for support and technology tools & resources for our agents.
We're turning real estate brokerage completely upside-down in favor of the agent. Every day we go to work and say, “How can we make things better for our customer?” In our eyes, the customer is the real estate agent. Everything we do is to make their lives better. And we won't stop until everyone knows who we are.
We invite everyone who thinks outside the box a little bit, who wants to learn more, to reach out, ask us any questions...We’re very transparent. There are no secrets with us. We’re a totally open book and we love the feedback. We look forward to hearing from you.
Newsworthy Links To Share
A brutal reckoning for real estate agents: Many won't survive the housing crunch (Business Insider)
Stephen Pugh, former president of Compass California’s Commercial Division from 2018 until 2022, is joining Berkshire Hathaway HomeServices Drysdale Properties as its new director of commercial real estate strategy. Before joining Compass, Pugh served as president at Alain Pinel, Paragon and Pacific Union International which was acquired by Compass California in 2018.
Opendoor cuts 22% of its employees
The industry’s leading iBuyer continues its struggle against housing industry headwinds, cutting about 560 employees, mostly in operations.
TikTok tries to sublease high-rise office space
Many kinds of technology companies are shedding excess space in downtown Austin.
Palo Alto House Two Doors From Zuckerberg Sells Fast
Mystery buyer pays $12.4M for Crescent Park home and closes sale in less than two weeks.
Redfin cuts more than 200 positions
The brokerage's real estate support division was the hardest hit in this third round of layoffs since June.
Looking to buy or sell a house in today’s strange U.S. market? (JP Morgan Private Bank)
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