He is tall, lean and blond, with dazzling white teeth, and he looks ever so much like Robert Redford. He rides around town in a chauffeured silver Cadillac with his initials, DJT, on the plates. He dates slinky fashion models, belongs to the most elegant clubs and, at only 30 years of age, estimates that he is worth “more than $200 million.”
Last week the New York Times published a special investigation looking at the Trump family’s real estate empire and the suspect tax schemes that they allegedly employed over the years to preserve, grow, and pass it down.
According to the Times, all of which has been rebuked by a lawyer for the president, Donald Trump received at least $413 million in today’s dollars from the family empire.
I just finished reading the investigation in its entirety. It’s a long one. But if you’re interested, you can do the same here. If you’d prefer the Coles Notes version (Cliff Notes for you Americans), have a scroll through the headlines in this article instead.
A friend of mine flipped me this New York Times article today talking about the rapidly growing interest in proptech and about Opendoor – a topic and a company that I have written about many times before on the blog.
Here’s a snippet about proptech:
The hauls are part of a race by investors to pour money into technology for real estate, or what Silicon Valley now calls proptech. Having watched tech start-ups upend old-line industries like taxis and hotels, venture capitalists are casting about for the next area to be infused with software and data. Many have homed in on real estate as a big opportunity because parts of the industry — like pricing, mortgages and building management — have been slow to adopt software that could make business more efficient.
On the Opendoor front, which is the largest/most valuable company in the proptech category, they have now raised over $1 billion. By the end of this year they plan to be in 22 cities across the United States.
Interestingly enough, they have started experimenting with other business models, beyond just buying and flipping homes. They now circumvent agents and sell some homes directly to customers.
But Eric Wu, the CEO of Opendoor, believes that you can’t automate proper advice and so that will remain. The role of agents is simply about to shift from “administration” to that of “advisory”.
I have been arguing for years that the home buying and selling process is ripe for change. And what we are seeing today is really the start of that.
According to the NY Times, real estate tech startups raised $3.4 billion in funding last year. Some firms, such as Fifth Wall Ventures, are entirely dedicated to the space.
This is money betting on change.
Photo by Grant Lemons on Unsplash
Economists at Facebook, Harvard, Princeton and NYU recently analyzed anonymous Facebook data in order to study our social connectedness. The New York Times’ Upshot wrote about it here and it is a must read.
There are a number of interesting takeaways from the study. One of them is that geography, distance, and political boundaries actually matter a great deal when it comes to our connectedness.
In other words, Americans are more like to be connected to someone nearby – within county or state boundaries – than they are to someone further away who may be infinitely more similar. This may seem somewhat intuitive.
But at the same time, having a dispersed network also suggests certain things. Here’s the relationship that they discovered:
These networks are important in part because of other patterns that are correlated with them. Counties with more dispersed networks — where a smaller share of Facebook friends are located nearby, or among the nearest 50 million people — are on average richer, more educated and have longer life expectancies. Places that are more closely connected to one another also have more migration, trade and patent citations between them.
Counties that are more geographically isolated in the index are more likely to have lower labor force participation and economic mobility, and they have higher rates of teenage births. Some of the most economically distressed parts of the country appear to be the most disconnected: Among the 10 U.S. counties with the highest share of friends within 50 miles, six are in Kentucky.
Again, it is worth checking out the full article. There’s also an interactive map to play around with.