Trulia Founder & NFX (www.nfx.com) Managing Partner Pete Flint uncovers what's really happening in PropTech and why you should care (hint: it will be a massive opportunity).

1. PropTech: The Future of Real Estate
By Pete Flint, Managing Partner, NFX & Founder, Trulia

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Market Context
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3. 3NFX 3
RE:THE LARGESTASSET CLASSIN THE US
$31.8 trillion
Total value of residential
real estate in the US
$80 billion
Annual US residential
real estate brokerage
commissions
$485 billion
Annual residential US
rental payments
$15 trillion
Estimated value of US
commercial real estate
Source: Zillow, NAR, Savills, Morgan Stanley, Real Trends

4. INSTITUTIONAL $ ENABLING NEW MODELS
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Large increase of institutional
real estate capital since 2008
has enabled innovative models.
2009 2017
$800BN
$400BN
Source: PREQIN

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HISTORICAL SUCCESSOF PROPTECH
~$8B Mkt Cap
Launched 2006
>$2B Valuation
Launched 2013
$3.5B Acquisition
Launched 2005
>$4B Valuation
Launched 2012
$1.5B Mkt Cap
Launched 2004
~$1B Mkt Cap
Launched 2007

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Investment Focus 1:
Alternative Consumer
Transaction Platforms
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7. CONSUMER CONTROL ENABLES STARTUPS
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Source: 2017 NAR Home Buyers Survey
8%
11%
15%
24% 24%
29%
32%
36% 37%
40% 42% 43% 43% 44%
51% 51%
2001
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
% Buyers That Found The Home They Purchased Online
As transactions are initiated
online, new consumer centric
transactional platforms
emerge
‘05-’15:InformationRevolution ’15:TransactionRevolution

8. CONSUMER EXPERIENCE IS TERRIBLE
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commission
+
titlecosts
+
originationfees
≈
Frustration with process:
Enormous costs
to transaction:
$20,000
4.3
months to buy
2.8
months to sell
Source: Zillow, NAR, Real Trends

9. Home SellingHome Buying
EXAMPLE ALT TRANSACTION COMPANIES
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NFXOctober2017

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InvestmentFocus 2:
Alt. Living
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11. CONSUMER HABITS HAVE CHANGED
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Median
age at first
marriage
Source:US Census

12. CONSUMER HABITS HAVE CHANGED
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Number of household members
Source: Zillow 2015 First Time Home Buyer Survey
1975
2.6
Medianyears renting
2015
6
1975
3
2015
2

13. HOUSING STOCK IS STATIC & AGING
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Median Age of
Owner-
Occupied
Housing
Source:2005-2016AmericanCommunitySurveyEstimates
Age (years)

14. Short Term RentalCo-Living
EXAMPLES OF ALT. LIVING STARTUPS
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Investment Focus 3:
Construction, Management
& Maintenance
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MANAGEMENT & MAINTENANCE IS ENORMOUS
$336 billion
HomeDepot+ Lowe’s
MktCap
$340 billion
Annual spendon
homeimprovement
$251 billion
HVAC market2023
>$1 trillion
Annual USconstructionspend
Source: Harvard2018 Study, USCensus, Markets &Markets

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Additional Opportunities

18. ADDITIONAL OPPORTUNITIES BEING EXPLORED
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Internationalmarkets –
Exportingconceptstofitlocal markets
Commercialreal estate –
Enormousmarket,complex industrydynamics
Blockchain–
Opportunitiestochangehowthisasset classis valuedandtransferred.
Transportation –
Automationandtransportationnetworkschangeourphysicalspace.
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