PropTech is the latest greatest sector poised to converge on real estate markets across North America, and Voxtur Analytics Corp (CVE:VXTR, OTCMKTS:ILATF) could be the stealthy technology leader that few have yet heard about.
While a range of competitors in the space are launching a service based on one segment of the real estate transactional ecosystem or another, Voxtur’s platform already has the complete range of ownership research, valuation, title search and insurance, mortgage origination, tax analysis, digital closing and title transfer built into its offering.
Core to Voxtur’s value proposition for investors, homeowners, lenders and insurers is the unparalleled depth of its management bench in terms of each service silo’s offering.
For example, an appraiser is typically limited to completing one appraisal per day due to the analogue nature of the information that needs to be gathered. On the Voxtur platform, a single appraiser can do upwards of 20 appraisals every single day.
Gary Yeoman, founder and Executive Chairman, was formerly in charge of the international real estate portfolio of Magna International (NYSE:MGA, TSE:MG), before founding Altus Group (TSE:AIF) and an early investor and board member for Real Matters (OTCMKTS:RLLMF, TSE:REAL), all significant players in their respective fields.
His expertise in valuation, appraisal and tax analysis is the perfect combination to take the company into its targeted role as PropTech platform of choice for the portfolio managers, lenders, analysts, government entities, and insurers who conduct the trillions of dollars in real estate transactions globally every day.
Jim Albertelli, president of Voxtur, is the company’s secret technology weapon.
After building and licensing the distressed asset technology behind Auction.com, he has committed to a 5-year term with Voxtur to integrate the culmination of 20 years as a lawyer and technologist specializing in real estate law and computer programming.
And Marty Haldane, who has been in the appraisal business his whole life, recently merged his company Appraisals Now at anow.com with Voxtur to complete the Voxtur ecosystem.
Voxtur vs Doma
But let’s compare Voxtur, currently valued at ~$400 million, to its rather more glamorous competitor, States Title, who is in the process of relaunching as Doma after merging with Capitol Investment Corp V (NYSE:CAP, CAP.UN) a $345 million SPAC put together by Mark Ein of L. Dyson Dryden.
Doma is the bright and shiny Rolls Royce among Proptech contenders; Larry Summers, former Treasury Secretary, is a board member. Lennar Corp., which builds new homes in 22 states in more than 77 popular real estate markets across the US, is an anchor client and significant shareholder.
JP Morgan Chase former COO Matt Zames, current president of Cerberus, is Chairman of the Board.
This transaction, along with the $300 million accompanying PIPE, values Doma at >$3 billion.
Top-tier investors anchoring the PIPE overall include funds and accounts managed by BlackRock, Fidelity Management & Research Company LLC, The Gores Group, Hedosophia, SB Management, a subsidiary of SoftBank Group Corp., and Wells Capital. Existing Doma shareholder, Lennar, has also committed to the PIPE, and Spencer Rascoff, co-founder and former CEO of Zillow Group, has committed a personal investment to the PIPE.
Despite the marquis investors and board, States Title/ Doma is planning to lose money for the next two years (at least).
Voxtur, on the other hand, is growing revenue substantially while increasing margin.
What’s the difference?
Doma is essentially a title insurance and escrow company that has decided to build out its platform to incorporate other elements of the PropTech ecosystem.
They plan to leverage their existing customer base to drive traction in their other in-development segments.
Voxtur is the Complete Package
But Voxtur, who is currently servicing 2200 municipalities in North America through their tax platform alone, has already aggregated appraisal and valuation, title insurance, conveyance, attorney opinion letters, and mortgage origination into a fully functional digital closing system, populated by a deep and detailed database of every lien, mortgage, sale and tax record of nearly every residential property in North America.
Voxtur has literally redefined real estate conveyance and transaction flow through a series of business combinations completed over the last twelve months.
On March 30, the company announced it had absorbed Appraisals Now, also known as ANow, a software platform that provides a suite of tools that automates the appraisal process in real estate valuation.
Anow and its Nexus platform now join Clarocity, Brightline, Apex Software, Municipal Tax Advisory Group, and Versite – a database of court decisions pertaining to bankruptcies, delinquent and defaulted loans – on the Voxtur Analytics platform to provide a total powerful suite of tools for lenders, investors, buyers and sellers of real estate across North America.
And more are on the way. According to CEO Gary Yeoman, Canada’s Bank of Montreal has committed an “unlimited” debt facility to fuel the company’s acquisition roadmap.
But this is not a case of an overly cashed-up corporation trying to gobble up all its competitors to whittle down the landscape—quite the opposite.
The Voxtur team has identified acquisition targets with surgical precision that will see the entire real estate transactional flow reduced by as much as 80 percent in terms of time and cost.
Imagine a house or commercial building transaction closing in one week instead of the standard 3 to 6 months?
Imagine being able to analyze the tax burden on any given property in real-time, online, instantly, and challenge assessments to confirm appropriate taxation.
Imagine zero-error digital closings that facilitate remote transaction conclusions with vendors, lenders and all the legal touchpoints incorporated.
This is Software as a Service on steroids, with customers from each business line becoming customers for the other segments by way of natural extension. Increasing sales revenue with no additional cost of sales.
The noteworthy aspect of Voxtur’s newly emerged combined business from an investment perspective is the sheer scope of its new combined product offering and the rapidly accelerating revenues being generated.
“Our gross margin is somewhere around 50 percent right now”, says Yeoman. “but we are aiming for above 75% profit margin.”
The proof, as usual, will be in the financial statements.
While Mr. Yeoman is evidently convinced he and his team have the winning combination, he expects the next two quarters to be modestly profitable before the real economies of scale kick in starting next year.
Until then, he says:
“We’re tending to a lot of irons in a lot of fires. I can’t talk about these transactions at this time for competitive reasons.”
James West, the author owns shares of Voxtur Analytics and is a shareholder of Trulytics Inc., a company who has been retained by Voxtur Analytics to provide editorial and content creation services to the company targeting the financial community. James West and Trulytics Inc are the beneficiaries of a consulting option agreement to purchase 1 million shares of Voxtur at any time for a period of 5 years at $1.15 per share. Therefore, James West and Trulytics will benefit from any increase in the share price of Voxtur Analytics.
James West also participated in the company’s most recent private placement and purchased 147,000 shares of the company at $0.70 per share, and is thus in a position to profit from the current share price.
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