Hi all! We hope everyone had a great summer, holidays for those who celebrated and are getting geared up for Halloween! (Boo!!).
We want to provide exciting updates and an overview of where Modwell is headed.
The recent rise in interest rates has had a significant effect on the housing market. Interest rates look like they could push as high as 8-10%. Also, according to a recent Realtor.com report (Oct 11, 2022), Inventory was 26.6% higher than a year ago in August, but that’s because homes were lingering on the market longer.
While no one is happy about these market conditions, it does bode well for Modwell. These market changes have caused many residential real estate pundits and industry coaches to shift strategies.
Over the past 18 months agents could easily convert a never-ending pipeline of buyer leads. Moving forward this will change. Agents instead will be heavily focused on LISTINGS. That is winning listings, marketing listings better than their competition and converting listings to sales.
Critically important moving forward will be the monetization of potential past buyer clients and maximizing relationships and referrals - 42% of sellers find their agents via referrals and 82% of real estate transactions come from referrals.
Modwell's 2.0 platform features specifically focus on these important market needs with our flagship Enhanced Listings, agent profiles that allow agents to upload and manage past buyer relationships and a host of sharing and collaborative features!
In this update we will outline our momentum and our strong marketplace adoption, making it clear that we are serving a large “white space” in the market. There is other exciting news including our patent submission…and an exciting upcoming appearance of Modwell on Million Dollar Listing LA!
Enjoy the below updates!
As you review this update, please keep in mind that we are currently raising another $250,000 on the same note to further accelerate our growth and targeting to close that raise by the end of November. We humbly ask you to introduce us to any potential investors you believe may be interested.
We see rapid expansion in 2023!
Thank you all for your continued support of our endeavors!
Expansion: Our expansion continues to multiple luxury markets across the country
Million Dollar Listing Appearance: Modwell scores a project with Josh Flagg and an appearance on the upcoming season. Get out the popcorn!
Platform 2.0 Release: Fully developed in React Native, the full product offering comes to life! Release scheduled for the week of 10/31
Preparedness for upcoming Scale: offshore production resources engaged; new hires onboarded to prepare for hard launch and our anticipated increase in sales
Marketing: 4Q/1Q launch: Influencer Marketing and broader email, SEO and social media campaigns in place
Patent Submission + Web 3.0 Plans: Submitted provisional patent application August 1 (available upon request)
Our expansion continues to multiple luxury markets across the country
During 1Q-3Q, we executed a soft launch while working with our tech teams to develop the Modwell 2.0 platform. Our objectives were to obtain projects in multiple markets to illustrate our ability to scale nationally, while scaling operations to accommodate anticipated growth . We also used our soft launch to gain client knowledge which we incorporated into the new platform.
We are proud to announce that we are now serving agents in multiple luxury markets:
The Hamptons/Long Island
We are also in discussions with agents in Malibu, Chicago and a variety of other markets.
Most of our agent clients created multiple Enhanced Listings. On average, agents spent $5,791, with our highest client today spending $10,384 over a seven-month period. With the average spend outlined above, we are on track to generate $500k-$1.0M per 100 agents onboarded. At scale we anticipate 6,000+ agents.
Below you'll see our breakout of revenues. We have a healthy mix of subscription revenues, plus pay-as-you-go revenues that promote both outdated properties and new development.
One of the most exciting and crucial factors we found while attending the two major industry conventions this August, was the lack of competition. After exploring the 40+ companies with booths, we found zero competitive products specifically focused on helping agents improve/enhance their listings or improve showings, using anything remotely similar to Modwell’s 3D design tech.
Based on what we saw, we are 100% confident that we will clean up at future industry conventions with a well-positioned booth!
Million Dollar Listing Appearance - Get out the Popcorn!
We recently were asked to help Million Dollar Listings celebrity agent, Josh Flagg, move a $20.0 Million listing in Beverly Hills. The producers of Million Dollar Listing were impressed by Modwell’s business and output, so much so that we became a major part of the storyline connected to this property.
On 10/4, Jonathan and I filmed the segment. The filming included a phone call from Josh asking us to help on the property “so that buyers could envision themselves in this outdated property”, followed by a 20 minute zoom call in which we took Josh through the 3D models, answering questions, etc.
This was obviously unexpected, potentially fantastic exposure! The segment is scheduled to air during the upcoming season on NBCU’s Bravo TV, which starts in December. We expect this to provide a significant spike in sales, beginning 1Q 2023!
Below is the link to Josh’s Agent Profile and Enhanced Listing on the new Modwell Platform
More important than the show appearance is the effect that this had on the sale of the property, once again illustrating the power of our offering.
268 Bel Air Road in Beverly Hills went on sale June 13 and after a short-lived period of activity was not selling.
The Modwell Enhanced Listing went live Sept 29. Prior to the Enhanced Listing the property had zero viewings for 4 weeks solid -- as of Oct 15, there were 23 viewings on the books and 2 offers.
Below you'll find a more in-depth rough cut sent to the producers prior to the shoot. The rough cut illustrates us going through the model in first person.
4Q 2022 Platform 2.0 Release -- (Modwell.io):
Developed in React Native, the newly developed full product offering comes to life!
The platform release is fully loaded and now includes:
An all-new updated front end and UI
Our Patent-Pending Enhanced Listing Bundles with 3D Model, 3D 360 tours, Video and Renderings in one bundled interface, with social sharing capabilities
Traditional MLS Search Capabilities in the “Buy” Section with Modwell’s unique capability to append designs to any MLS listing
Modwell's unique, Pinterest-styled MLS Listings in the “Explore” Section -- with collaborative agent-to-consumer tools including mood board creation and sharing
Agent Profiles that house each agents Enhanced Listings connected to social sharing platforms, mood boards, plus CRM capabilities and more
The Modwell Design Studio – ecommerce section for agents to purchase designs
Customer Profiles - with Home Vaults in which consumers can store their surveys, floor plans, 3D designs, etc., and use as a hub to collaborate with architects, designers, contractors, family and friends.
Preparedness for Upcoming Scale:
Offshore production resources engaged; new hires onboarded
As we move from a soft launch into 4Q, we have expanded our architectural production capabilities.
We have formulated a working relationship with a leading global architectural production company headquartered in Argentina. Voyansi with offices in Argentina, New York, California and London are used to efficiently expand BIM modeling and architectural production capabilities for companies such as WeWork, Rivian, etc,.
This relationship with Voyansi will allow us to expand and contract resources as needed as we experience ebbs and flows.
In October we also hired an expert 3D architectural designer to manage workflows between our U.S. and Argentinian resources. Not only is Paula very adept at the newest technologies and 3D design, she is also Argentinian which will help expedite work handled by the BIM/production team.
Marketing -- 4Q/1Q Launch:
Influencer Marketing plus broader email, SEO and media social campaigns
We recently have brought on a special senior advisor. Michelle Carlson, a real estate veteran with 20 years of experience, has been engaged to specifically target both celebrity agents (e.g., Josh Flagg) and top-producing influential agents in key markets.
Michelle Carlson is the person who introduced us to Josh Flagg and the producers of Million Dollar Listing and a big Modwell advocate. We have provided her with a performance-based contract, incenting her to leverage her connections to penetrate top-producing agents in major markets.
We have also developed a refined list of 10,000+ agents in the top 10 U.S. markets with the highest percentage of $1.0M+ homes. Our traditional marketing campaign, scheduled to being in November, will include email, SEO and retargeting across Linkedin, Facebook, Twitter and TikTok.
Here are few recent ads that have run in targeted paid social. These ads will be used for retarget marketing efforts.
Platform launch ad's
Patent Pending Status + Web 3.0 Plans:
Protection of our technology, processes and future vision
This past August, we submitted a detailed provisional patent. The provisional patent has 7 claims that protect our processes and technology. (the patent submission is available to our investors upon request).
The patent, well over 100 pages with visuals, lays out our creation of a new-age residential real estate ecosystem with unique, new ways to search, view and sell properties.
The provisional patent also supports our long-term vision – a future that seamlessly merges physical property and digital property (i.e., our Web3 strategy).
We would be happy to walk anyone through our updated investor deck that provides an overview of our Web3 strategy.
We are receiving incredibly positive response to our Web3 strategy from both real estate and metaverse experts.
A Hearty Thank You!
Thank you to all of our investors and close contacts for all the support you have given us. We are poised for growth and our vision for the future is very bright!
Gary and Jonathan