In the second part of this two-part series, Garrett Clark and Mike Peregrina, Co-Founder and CEO of Homie, discuss Utah's ever-changing real-estate market and the remarkable journey of how Homie, the innovative real estate company, navigated the highs and lows of the Global Pandemic in 2020, supply chain issues in 2021, and the ever rising interest rates of 2022.
To learn more about Homie's founding story, please watch the first part of the conversation here.
The story begins in 2019 when Homie successfully closed its series C funding, feeling optimistic about the future. However, 2020 had other plans, and the unexpected challenges hit Homie hard. Faced with the need to lay off employees and secure additional capital, the Mike drew from his experiences in weathering the 2009 and 2010 economic downturns. Homie adeptly managed the company on a week-to-week basis, ensuring its survival through tumultuous times.
By June 2020, Homie defied the odds and remarkably closed nearly 500 transactions, predominantly on the sell side. Surprisingly, this surge in selling activity also influenced its buy-side transactions, leading to significant growth across both aspects of the business.
As Homie ventured into 2021, a new set of challenges emerged. Home appreciation soared, investors snatched up properties with cash, and first-time home buyers struggled to keep up with rising prices, ultimately getting priced out of the market. Simultaneously, interest rates continued to climb, creating a daunting monthly cost of capital. These pressures compelled Homie to make difficult decisions, including laying off employees and reorganizing its operations. The co-founders found solace in their strong company culture, but the emotional toll of these actions was undeniable, especially when parting ways with excellent team members.
As the conversation unfolds, opinions are shared about the future of the market. The belief that interest rates have peaked and will gradually decrease is explored, offering hope for a more stable market. Additionally, Mike emphasizes the significance of getting prequalified before entering the real estate game to navigate any future challenges effectively.
One recurring theme that emerges from their experiences is the value of surrounding oneself with capable and supportive individuals. Understanding how different people handle pressures and stress becomes crucial in building a resilient team. Being transparent and uncompromising in business ethics is essential for long-term success.
For more insights on Utah's current real-estate market, please watch the full conversation here:
Meat & Potatoes Podcast is Silicon Slopes longest standing podcast show. The podcast highlights Utah startups and celebrates, promotes, and features business leaders within and outside the Silicon Slopes community.