Techs Big (W)reckoning

The first time I felt the power of technology and its ability to influence my professional life was when I bought my first Palm Pilot. The UI was clunky, but its ability to scan a business card and organize my calendar and contacts changed my life and saved me hours of data entry. It also had a cool digital pen that converted the script to type copy. In concert with my beeper, it gave me immediate access to limited data.?

The next great discovery came from my Motorola Startac flip phone. It was indestructible, never dropped a call, could text (painstakingly), and the battery lasted forever. The best phone I ever owned - to this day. Again - life-changing.?

A few years later came the Research In Motion Blackberry. I was one of the first adopters of the Blackberry. At the time, the only people using the device were people in finance and me and my business partner, Steve. I kept the Blackberry for years and still contend that it was one of the best-invented devices.

Then came the iPhone. Game over.?

Nothing else has changed my business as fundamentally as these companies did. They all solved problems and made our businesses more efficient and effective. That’s what made the tech that these companies built valuable. They delivered value and improved our overall experience.?

The founders of these companies and innovators of all these devices strove to deliver something unique to the consumer, whether it was a device, a service, or an experience. Something we needed and something that improved our lives. They revolutionized our industry and the way we worked in it. They changed real estate for the better.?

Then there was a momentum shift. The mission changed.?

It no longer became about providing value to the consumer. It became about creating the next shiny penny. To become the next unicorn and, in the process, hope to get lucky. The basic principle of common sense was gone.?

It was no longer about innovation. It became about disruption and destruction.?

It was no longer about solving problems. It became about destroying the status quo.?

It was no longer about building value and profitability. It became about raising capital and spending other people’s money.?

This new philosophy turned our world on its ear. Fuck profitability and basic business fundamentals. And we lost the forest for the trees.?

What was the end game??

To create a perceived valuation so the founder could cash out. Probably by leaving a wake of destruction in their path or possibly getting lucky and making something of value - long-lasting.?

Most of the companies and products we see now have been built on this foundation by self-professed rockstars of innovation, often publicly comparing themselves to the likes of Steve Jobs and Bill Gates.?

Seriously!?

The real estate industry has seen more than its fair share of these companies and products. Apps and companies brag about tech and innovation - but at the end of the day, they are giving our industry and clients zero value.

And now, we get to witness the fallout. Those who were naive or dumb enough to have wagered on the ability of a charismatic founder with “vision” are finding themselves in the red. The companies that never make sense are being held accountable by the markets.?

Softbank, the most significant player in our space, reported its most considerable quarterly loss. A record $23B last quarter. The vision fund lost nearly $22B. It recently sold its entire stake in Opendoor. Another company that has seen its valuation plummet. Does anyone use it??

There will be innovation because the real estate industry is thirsty for it, and the industry has lagged far behind other industries. There is a need, and there is plenty of opportunity across all real estate platforms. It has to come, though, from people with the right motives. Those close to it will be driven to enrich the experience for the customer. This is how value is created. And it’s different when you write a check, not with other people's money.??

Side Bar: As the Metaverse gasps for air, Paris Hilton launched a virtual Malibu mansion on Sandbox - a “decentralized virtual world” where users can buy land, browse shops, and attend concerts — all virtually. Other celebrities are getting in on the trend as well. Snoop Dogg and DJ Steve Aoki, but this may be their last digital breath at the end of the gig. Metaverse real estate has crumbled, with virtual land prices down 80% in the past six months. Last quarter, The Sandbox’s virtual-land sales hit their lowest level in over a year.?

This reminds me a little of the desperate condo projects who enlisted non-real-estate celebrities to endorse their condo project, hoping this would give their offering more appeal. It didn’t work.?

What was tech’s biggest game changer for you??

Let's do this-

Shaun