Take Purplebricks seriously, proptech expert tells American realtors

One month after its launch into the American market, Purplebricks has 24 Local Real Estate Experts and 12 listings, nine of which are for sale and three of which are pending.

Of its 24 licensed agents, nine have one active listing each and 16 have none.

The figures come from proptech expert Mike Delprete, who emphasises that it is only one month in and that all businesses start small.

Delprete describes Purplebricks as having had “massive success while battering the incumbents in the UK market”.

In America, Purplebricks is currently active in Los Angeles before its planned roll-out.

It is recruiting its agents by offering them the chance to earn up to $100,000 in year one, and the opportunity to double their income every year from then on.

It is also pledging to spend nearly $2m per month on advertising.

Delprete, who believes that the next expansion in the US for Purplebricks will take in San Diego, Fresno and Sacramento, concludes: “It’s still very, very early days for Purplebricks in the US market.

“But take them seriously: Purplebricks is a large, serious, international player with plenty of momentum and experience, with deep pockets.

“It may not revolutionise the real estate market overnight, but it will have an impact.”

http://www.mikedp.com/articles/2017/10/18/purplebricks-usa-one-month-in

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41 Comments

  1. Hillofwad71

    There’s gold in them darn hills .Maybe Bricks are going to emulate   Bugsy Siegel when he opened the Flamingo in Vegas . Closed it down after a disastrous opening but it kicked off 3 months later and look at Vegas today -or maybe  not!

     

    They might have  deep pockets but it wont take  long to empty them

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    1. Property Paddy

      How long would the on line agents last if every high street agent simply offered a basic service for £700 ?

      Once the on liners fall by the way side then it’s business as usual.

      Obviously the high street agents might continue offering a basic cheap service, but only if they want to and if another player comes along with another attack on the high street agent they can simply dust it off and bring it back out again till that has disappeared.

      Sorry guys like you I have been complaining about RM & Z letting these on liners P155 on our parade but I have come to the conclusion.

      Either complain or do something.

      Launching the £700 this month, it pretty basic and easy to explain to clients. I say “it’s like PB but cheaper and you get a real local expert !!!!!!!”

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  2. ArthurHouse02

    I think “Battering the incumbents” is rather over stating things. Yes they have had an impact, but who wouldnt spending hundreds of millions of pounds, a national TV campaign and a cheap as chips fee. The Americans tend to be a touch more aggressive in the defence of their incomes so their response to PurpleUS maybe be more robust than the initial response here.

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  3. Andrew Overman

    Don’t the Americans like to really drill deep down into success rates? Love their realtor to be available 24/7 (and not some ill advised call centre with no real clue what’s going on, I mean truly available)? And finally, aren’t they service lead and driven?

    …I wonder where the two may not be totally compatible…

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  4. Robert May

    Who is Mike Delprete? I’ve been doing technology for agency since 1986 (properly since 1994) I haven’t come across him before.  All I can think is  someone spelled Griffiths wrong. Mike Griffiths is proptech expert, I can’t think of many others

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    1. dompritch134

      I’m sure Mike would never of heard of you Robert.

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      1. AgencyInsider

        Yaaayyy! Another episode of the Dom & Ducky Show begins. Such fun.

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        1. dompritch134

          Where is all the outrage on the high street conditional selling article?

          Strangely no one seems bothered.

           

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          1. Property Pundit

            conditional selling‘ your words Dom, absolutely nobody and I mean nobody else’s words.

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        2. cyberduck46

          As opposed to the Chris Wood, Robert May, PeeBee and a small number of other regular contributors show.

           

          Just popping in today though you’ll be sad to hear.

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      2. Robert May

        You finally typed something I can agree with, well done, though I suspect the name Robert May might well be on a list of dissenters that will rounded up and thrown in the chokey once the disruptors own the world

        The thing is I’m not an expert and I am not trying to  entice another tier of investors into a ponzi pyramid.

         

         

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        1. cyberduck46

          >ponzi pyramid

           

          Explain how the PurpleBricks LPE hierarchy works if you think you know.

           

          You like throwing the buzzwords around but do you actually even know the structure they use? What do you mean by ponzi? How does that fit in?

           

          Nice sounding buzzwords but what are you actually saying?

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          1. Property Pundit

            Just popping in today‘ True to your word as always.

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          2. Robert May

            If  Purplebricks had not floated on AIM  would its operational income  fund its  ongoing spend or is the income from share trading supporting the operation  longer than its operational losses would deem sensible given the lack of progress against its original projections of £24.9m profit bt YE 2016 with 10% of all transactions (90,000 completed sales)

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            1. cyberduck46

              Robert,

               

              I was looking for an answer to my question and you’ve ignored me and come back with another question. I can only presume like a lot of salesmen you can come out with the buzzwords and sales speak but don’t actually understand what you’re selling.

               

              Pyramid & ponzi sound very negative but are you sure this is actually the case? Doesn’t sound like it.

               

              In regard to your question which yet again demonstrates a complete lack of understanding of how companies raise finance.

               

              >If  Purplebricks had not floated on AIM  would its operational income  fund its  ongoing spend or is the income from share trading supporting the operation

               

              There is no income from share trading. Presumably you mean the capital raised from the issue of new shares.

               

              >original projections of £24.9m profit bt YE 2016 with 10% of all transactions (90,000 completed sales)

               

              Robert, I haven’t seen these projections. Please provide your source.

               

              I’ll pop back at 6pm to see your reply

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              1. Robert May

                Have you exhausted your superior abiliities with a  standard serach engine and can’t find the press releases where investors were promised  HUGE profits?

                advanced google search “sheep investors”, “bruce” “high profile investors”, “greed”

                Bu99er another question, you’ll have to forgive me I was trying to get a reply to you by 6pm

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                1. cyberduck46

                  OK Robert, I guess you can’t provide a source, so please stop wasting my time.

                   

                  You should do some research. Take a look at how many companies fail to meet estimates, especially ones made early on in their development. Usually when a company makes estimates they are accompanied by all sorts of disclaimers and potential risks that might cause an estimate to be missed. Just about everything possible is listed 🙂

                   

                  OK to prove my point I’ve looked up the original prospectus. I’ve never read it before because it’s old hat now. No use whatsoever. I still haven’t read it but here are some excerpts for you:

                   

                  “AIM is a market designed primarily for emerging or smaller companies to which a higher investment risk tends to be attached than to larger or more established companies. AIM securities are not admitted to the Official List of the United Kingdom Listing Authority. A prospective investor should be aware of the risks of investing in such companies and should make the decision to invest only after careful consideration and, if appropriate, consultation with an independent financial adviser.”

                   

                   

                  “Forward-looking statements may and often do differ materially from actual results. Any forward-looking

                  statements in this document are based on certain factors and assumptions, including the Directors’ current

                  view with respect to future events and are subject to risks relating to future events and other risks,

                  uncertainties and assumptions relating to the Company’s operations, results of operations, growth strategy

                  and liquidity. While the Directors consider these assumptions to be reasonable based upon information

                  currently available, they may prove to be incorrect. Prospective investors should therefore specifically

                  consider the risk factors contained in Part II of this document that could cause actual results to differ

                  before making an investment decision.”

                   

                  “The Company’s market share and business position may be adversely affected by economic, political

                  and market factors beyond the Company’s control”

                   

                  “The Company has a very limited historical financial track record and whilst it has achieved substantial

                  recent growth in revenues, there have been significant operating cash outflows and it has not yet achieved

                  a profit on its operations as described in detail in Part I (Information on the Company), Part III (Historical

                  Financial Information on the Company) and Part IV (Unaudited Interim Financial Information on the

                  Company). There can be no assurance that the Company will be able to achieve or sustain revenue growth and achieve or sustain profitability in the future. If the Company is unable to achieve or sustain

                  profitability, the business could be severely harmed. Further, the Company’s operating results may

                  fluctuate as a result of a number of factors, many of which are beyond its control. If the Company does

                  not achieve revenue growth and/or profitability, it may require additional financing, which may not

                  be available.”

                   

                  “The Company is at an early stage of development and a failure to implement the Company’s strategy

                  may have an adverse impact on its business, financial and other conditions, profitability and results

                  of operations”

                   

                  “Any reduction in sales transactions as a result of reductions in volumes in the residential housing market

                  could have a material adverse effect on the Company’s business, prospects, results of operations and

                  financial condition.”

                   

                  “The Company is subject to significant competition”

                   

                  “The Company is dependent on the strength of its brand and on its reputation and goodwill, all of which

                  may be affected by factors including litigation, employee misconduct, operational failures, regulatory

                  investigations, negative publicity and/or poor performance”

                   

                  “The Company is exposed to the risk of an increase in private sales and/or lettings of residential

                  property, including through the internet”

                   

                  “The Company is subject to laws and regulations with which it may be found to be non-compliant”

                   

                  “The Company may be adversely affected by mistakes and misconduct by its personnel and personnel

                  of its LPEs, including non-compliance with legal and regulatory requirements”

                   

                  “Litigation and other adversarial actions in the ordinary course of business could materially adversely

                  affect the Company”

                   

                  “The Company’s anticipated expansion strategy may place significant demands on its management,

                  administrative, operational, IT, financial and other resources”

                   

                  “The Company may require additional capital in the longer term, depending on factors such as

                  regulatory changes or the pursuit of its growth strategy. Such additional capital may not be available

                  or may only be available on unfavourable terms”

                   

                  These are just a few of the many disclaimers & warnings that are typical with any IPO.

                   

                  To answer your original question as to whether it’s worth continuing if you don’t meet estimates, then the answer depends on what current estimates are. The most recent estimates are the only ones worth considering. With investing, it’s all about the future, not the past.

                   

                  Surely that’s pretty obvious.

                   

                  That’s it from me. I won’t be coming back to this thread but feel free to email me if you have any questions.

                   

                   

                   

                   

                   

                   

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                  1. Property Pundit

                    Never has this forum had such an arrogant, self-aggrandising, petulant clown as you.

                    I won’t be coming back to this…….’ the word missing here is forum.

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            2. Property Pundit

              Robert please don’t dance to his tune. Ignore him and he’ll go away. There is a forum somewhere on caravans that is desperate for his participation. I’m sure that will be enough of a hint.

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              1. dompritch134

                Robert please don’t dance to his tune. Ignore him and he’ll go away.

                 

                Do you say this because everytime Robert tries his hardest but fails in his analysis of figures?

                He tends to be very out of his depth when discussing financials.

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                1. davehedgehog

                  Except he is losing £1000’s invested in PB shares

                   

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                2. Property Pundit

                  You haven’t been on here long have you Dom? It’s really telling when you come out with stuff like that. I’d stick to monitoring the Purplebricks share price if I was you.

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                  1. dompritch134

                    Ahh of course the ‘you haven’t been here long’ line.

                    I’m merely pointing out the facts.

                     

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                    1. Property Pundit

                      Which you would have a better understanding of if you weren’t a johnny-come-lately, here today gone tomorrow passive poster.

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                3. Robert May

                  It is a deliberate attempt to silence and discredit anyone or anything that challenges  their own money making scheme..

                  I’ll keep posting and using every opportunity to unpick the contradictory rubbish they come up with

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                  1. Property Pundit

                    Pretty sure this chap posts as ‘John Lawson’ on the other industry forum (the other pub as PeeBee calls it).

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                  2. cyberduck46

                    Robert,

                     

                    Your failure to back up your statements speaks volumes.

                     

                    As dompritch134 says, you are completely out of your depth and wouldn’t know one end of a profit & loss account or a balance sheet from the other. You repeatedly make false assumptions and your source seems to be PropertyIndustryEye which at best summarises what the source is stating and at times gets this wrong.

                     

                    In terms of technology, I’m not even sure you have the pedigree and this is why you hide behind buzzwords & sales speak. Correct me if I’m wrong but didn’t you used to be an Estate Agent?

                     

                    That really is my last post on this thread but as i say feel free to email me. You’ve got my email address.

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                    1. Robert May

                      When you mentioned to Peebee, “I have contacted Robert May but he didn’t seem interested” you were right.

                      I have an acute salesman’s nose and I know exactly when to make the tea leaving certain applicants to a colleague.

                      You have an agenda, same as  Delprete and all the other  folk schmoozing Woodford, the HPI Bruce  boasted about when he was being so candid about greedy sheep investors.

                      Eventually there will be a full audit of every single listing, every single invoice, every single completion, every single claim. There is a massive  mathematical contradiction in the numbers and sooner or later someone  will realise that the stupid bloke who doesn’t understand  anything might actually have a point.

                       

                       

                       

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    2. cyberduck46

      Just Googled him.
      “By age 30, Mike had boot-strapped and sold his own startup tech firm, Agora Games. Agora worked on epic games such as Guitar Hero and Call of Duty. Four years in with a reach of over 100 million gamers, Mike sold Agora to the eSports giant Major League Gaming.
      After Agora, Mike moved to New Zealand to work as a corporate strategist identifying investment opportunities at Trade Me — New Zealand’s largest marketplace and classifieds website — a $2 billion business.
      During his time at Trade Me, Mike analyzed hundreds of promising businesses for potential investment and acquisition with an eye focused on growth. He led several seven- and eight-digit investments.”
      I think I’ve seen another of his articles in which he explains the scaling effect of PurpleBricks’ business model.
      Hasn’t quite got the hang of those buzzwords though. Haven’t once seen him once mention nanosecond. Perhaps he’s more technical than a salesman.

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      1. dompritch134

        But does he have a rummmage search cyberduck ?

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        1. Property Pundit

          Finally they’re a double act bouncing off each other.

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        2. cyberduck46

          >But does he have a rummmage search cyberduck ?

           

          No and probably wouldn’t know what a “doppelganger” was if he fell over it.

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          1. Property Pundit

            Oh stop you two, my sides can’t take anymore.

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      2. Robert May

        Where is the proptech in that list of achievements?  Please come up with something he has contributed to making agency  more profitable or more efficient, something that has improved the home moving or renting process. Name one thing that he has influenced that has benefitted the property industry.

        He isn’t a proptech expert in the influential way a heap of people you have never heard of are.

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        1. cyberduck46

          Robert, can’t you use a search engine?

           

          “He is a former tech entrepreneur and head of strategy at a major real estate portal.”

           

          I think he’s more of a strategic advisor and global expert in real estate tech.

           

          I doubt the’s want t be likened with those responsible for the current state of the Estate Agent industry and their use of technology.

           

          Now how about answering my question about the LPE hierarchy and where ponsy applies? See above.

           

          Off to do other things now but I’ll check back for your answer later.

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  5. RealAgent

    I think everyone is being a little dismissive. They may only have 12 listings but I suspect  those listings have generated over 2,000 5 star reviews….

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  6. Trevor Mealham

    Speaking with Rob Larson CIO of CRMLS (the biggest MLS in the USA). Rob was the chief guy in charge of rolling out the Data Dictionary which now sets all USA Realtor data interoperability. As such id class Rob as the top proptech in the USA.

    PB launched in California and Rob says are unknown to most Americans, having no impact.

    The MLS is far bigger than a sand grain budget out there.

    Budget agencies have been in the USA ages and have very little impact

    The main impact in the UK is by VCs and some big traditional agencies stupid enough to back such models that typically need more VC funding to pay for the big call centres and TV ads.

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  7. smile please

    12 listings but how many positive reviews?

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    1. Property Pundit

      Apparently 16 listings according to cyberduck and he’s actually posted links to most of them on London South East Purplebricks Share Chat if you want to see.

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  8. FlyingSheep54

    9 plus 16 has always been 25 in my mind.

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  9. inthefield

    If you click the link about about PB “battering” its incumbents in the UK it shows a very technical graph comparing PB and Countrywide….. And its comparing the Share price. Ha, If you’re going to claim that you’re battering the proper UK agents why pick the weakest boy in the class. Also dont pretend that the comparison is about stock or sales (the usual barometer for a real estate agent). What they’re shouting from the rooftops here is that PB have managed to con their way into a massively over inflated share price versus countrywide.

    As usual the normal horse s**t  to try and fool the public.

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