James Dwiggins has always been something of a visionary, seeing opportunities where others didn’t. From his early 20s he’s pioneered various real estate ventures: virtual tours, website development, franchising, mortgage and tech startups. His family’s deep roots in the industry have given him a unique perspective, and his appetite for learning and analysis fueled his entrepreneurial drive.
Dwiggins, 45, co-founded the brokerage franchise firm NextHome with Tei Baishiki in 2015, and is now preparing for his popular Real Estate Insiders Unfiltered podcast, which he hosts with NextHome Co-CEO Keith Robinson, to take off to the next level.
He’s also shepherding the next stage of his recent startup, Rayse, a comprehensive suite of tools designed to bring transparency and value articulation to the homebuying and selling process. Born out of the shifting dynamics in the industry, Dwiggins says the company is poised to revolutionize the way agents interact with their clients.
“The reality is that this business is going to completely shift the way agents transact with their clients,” says Dwiggins. “The concept of doing transactions the way we do it today is gone. We’ve been partnering with MLSs across the U.S. They’re buying Rayse for a member benefit. We have seven now that are in contract, and we’re adding them every month.”
In the wake of the commission lawsuits, Rayse’s goal is to allow agents to quantify their “hidden efforts” on behalf of clients. Dwiggins has previously decried how clients often underestimate the amount of work their agent does on their behalf.
With a keen eye for partnerships, Dwiggins had secured investments in Rayse from key industry players: associations, MLSs, brokerages and agents themselves. The $9 million raised over three rounds would fuel Rayse’s rapid expansion as it rolled out its technology.
The core offering is a three-pronged approach. First, a detailed presentation that laid bare the extensive work agents performed to the true net compensation after expenses. Second, a real-time app that kept clients informed and engaged throughout the transaction. And third, a comprehensive closing report that documented every step of the journey, empowering agents to showcase their value.
“There’s no way in hell any buyer or seller is going to want to work with an agent who doesn’t provide transparency in the experience,” says Dwiggins. “That day is coming, and we’re pushing that day faster.”
Tracking the next disruption
Growing up with both his grandparents and parents in the real estate profession, Dwiggins knew that’s where he could be headed. But simply becoming an agent wasn’t in his DNA. Agent provocateur was more like it. He had his own ideas and entrepreneurial plans percolating. But he did work for a time in the family business. Did he actually make any sales?
“No,” he admits. “I worked for my mother, who did. Mom was the producer in the house. I worked at my parents’ company helping them sell real estate, but I’ve been in the tech and franchise space ever since.”
“I hated school,” he says. “I left college two years in and started a virtual tour company, then got into franchising and worked there for a while. I ended up buying that company, started a mortgage company and started a tech company. I’ve had my hands in all aspects of the industry for a long time now.”
“Most of the businesses I’ve done on my own. I have co-founders that I brought in, but from the idea perspective, it’s mostly been a lot of my input, just identifying a niche in the market and then tackling that niche. I always considered myself kind of a visionary person. I look ahead.”
With a constant eye on where the industry is headed next, Dwiggins shares that the biggest issue he’s currently focused on—and the biggest threat he sees to residential real estate—is fintech’s advancement into the residential space.
“I think Rocket’s acquisition of Mr. Cooper is probably one of the most interesting things I’ve seen in a while,” he says. “I don’t really care about their acquisition of Redfin. It’s interesting, but that’s not a real threat to the business. Acquiring a company that services one out of every six loans in the U.S. is interesting to me. Our industry is not very good about following up with past customers, and then you think about how roughly 80% of consumers said they work with the same agent again, but only 20% do.”
According to Dwiggins, Rocket has set out to build an ecosystem around the homeowner.“You’re being serviced by Mr. Cooper, which now means Rocket,” he explains. “You log in, you’ve got the loan amount, you’ve got the interest rate, you have the payment every month. Rocket shows you four different ways to refinance that loan. On the right hand side of that, it’s got your property details. It tells you the eight most recent home sales that occurred in the neighborhood, tells you what your home is worth, tells you how long it would take to sell your house based upon current market conditions. And if you want to list with a Rocket agent, we’ll do it for X percent different than other companies, and if you buy with us too, we’ll discount it further. Dripping on the homeowner for the eight to 13 years they own the property is absolutely potentially capable of changing the game.”
Dwiggins then wonders what such a scenario would spark Zillow and others to do.
“Zillow might buy a servicer,” he posits. “Zillow’s business model completely revolves around making sure consumers go to Zillow, inquire and become a lead. That’s their entire business. So if Rocket is successful at keeping people off of Zillow, that’s a huge problem for Zillow. This is the first time I’m seeing some interesting moves in the space that potentially could disrupt residential real estate—the status quo, at least.”
Advocate and influencer
Launched just two years ago, the Real Estate Insiders Unfiltered podcast has become a vehicle for Dwiggins, Robinson and their guests to candidly address the many challenges facing the industry. While the podcast was initially “just a fun thing to do for the hell of it because of all the drama in residential real estate,” Dwiggins shares that the show is now poised to take off in a big way.
“We’ve actually signed a deal with a pretty large organization that’s going to help syndicate it and help us monetize it,” he says. “We’ll be announcing it at the end of August. We have a professional production company, and now we’re going to have 10 times the traffic and be one of the industry’s largest podcasts. So we’re excited about that.”
According to Dwiggins, the podcast will move from one episode per week to two.
“What we do now is interview C-level executives from various aspects of the industry,” he says. “On our additional show, which starts in September, will be a top agent or top team across the U.S. It’ll be very tactile, very down in the trenches. ‘How did you become a top producer?’ ‘What are you using, what are your systems, what are your services?’ ‘How do you operate your business?’ It will be a whole layer for agents across the U.S. to follow.”
When asked what he sees industry-wise going forward, Dwiggins doesn’t hold back. He cautions that while many think things have calmed down for good, with most of the major lawsuits settled, that may not be the case.
“The industry is still risking further litigation because of cooperative compensation, which some companies still continue to do, and that’s just asking to get sued again in the future,” he says. “The buyer cases are hard to prove. There’s a bunch being thrown out and some that are progressing. I think those will all settle because they’re not very strong cases. If private listings become more commonplace then you’re going to see huge litigation, probably 24 to 36 months from now, with brokerages and agents being sued for convincing sellers to keep their property off the open market. I think from that standpoint the industry’s got a lot of growing up to do.”
Despite the potentially dicey road ahead for real estate, Dwiggins is as enthusiastic about his career now as he’s ever been. And even with all the industry angst over the past few years, he encourages young people to pursue careers in real estate…with one big caveat question.
“What are you willing to give up? Because in order to be successful in this business, there is no eight to five,” he says. “It’s a seven day a week job. You’re never going to have a guaranteed paycheck. But if you work hard, are willing to work your sphere, and take no as an answer a lot but look for yeses, then it’s a very lucrative business.
“Like 90% of people will fail at it, and that’s why there’s so much turnover. It’s hard. It’s not an easy job. So if you’re coming into it and want the freedom to be your own boss, then you already failed, because it doesn’t work that way. But it can be very rewarding, not just financially, but what you’re doing with people, helping them achieve the American dream, buy their first home and build a family and life. That’s pretty cool.”
