1. What makes Legacy different from other Real Estate companies?

Chris G: Indeed, many Real Estate companies appear to be similar on the surface but are quite different below. Like an iceberg- only 10% is above water, the rest invisible. In the case of Legacy, our unwavering commitment to our communities makes us stand out. Whether builders, Loan Officers, brokers, house owners, or house buyers- we think of these communities as part of a larger whole- an ecosystem that must be attended to in toto, not just in parts. This has stood the test of time and even as we expand, that focus guides us.

2. You have a unique combination of builders, investors, homeowners, and home purchasers in your community. How do you manage all of these disparate audiences simultaneously?

The thread that binds these is the idea that in each of these communities, there are individuals that need a distinct outcome. Our teams have to deeply understand what is the outcome that individuals desire; we can’t a priori go in with a Legacy-first perspective. Second, we are very big on education; if people do not have access to what we offer and have a deep understanding of how we can help, how we work, and what processes we follow, then we don’t build trust, which is the currency of the entire Real Estate economy.

3. As you look to expand into new markets, what are the core factors in the target markets that interest Legacy?

If I were to put it simply, what markets are similar to the Seattle area? Which markets have good bones and good opportunities while being ready for innovative financial solutions that are common-sense in approach, easy to understand, and focused on outcome. The market should be of appreciable size, have a large class of people who want to be homeowners but need just a little nudge and a set of institutions that can support the ecosystem. As an example, we are making bets in many metros in Colorado and in the Phoenix area as well.

4. You write about “The Missing Middle”- those people who want to be homeowners that need just a little nudge to get there. If we focus on them, can we make a discernible difference in both homeownership stats but also the quality of our communities?

Homeownership is so much more than an economic decision. While it is that, it is also a decision about life, education, environment, and community. What we call “The Missing Middle” is a group of people who the traditional institutions haven’t done a great job of working with. Homeownership in the US has lingered at about 65% for decades, partially because the traditional way of lending and financing hasn’t really changed. We have to make that number higher.

5. What do the next three years look like for Legacy? Give us your predictions.

Legacy as I said has unwavering commitment to audiences and markets. Over the next three years, we’ll introduce more products and a comprehensive engagement platform based on the latest in technology. We will, also, move into new markets and build new communities across the country. We feel bullish on community!

Bellevue, WA April 16, 2024– Legacy Group Capital announces the acquisition of Boulder-based fintech Rook Capital, creator of the Shared Value Investment™.  The acquisition will accelerate Legacy’s innovative work in serving the housing needs of “the missing middle.”

As Home Equity Investments (HEI) evolve and grow into a foundational component of the real estate market, the need to empower builders with a homebuyer-focused HEI is paramount.  Rook Capital’s award-winning platform provides the best-in-class solution for homebuyer-focused HEI’s, bringing together and aligning builders and homebuyers.

“We fell in love with Rook Capital immediately,” said Scott Rerucha, Legacy CEO.  “The innovative HEI offering, the world-class technology, and a channel led strategy were a perfect fit for Legacy, “ he added.  Rook Capital co-founder and CEO Ed Messman said, “Bringing together builders, investors, and homebuyers allows the Rook vision to scale at a pace we’d never have been able to do without Legacy’s know-how, heft, and experience.”

Housing is front and center in the news today, as interest rates climb, supply tightens, and tens of millions of American families are unable to find or afford the right house.  In addition, traditional housing finance solutions are often inflexible for families on the cusp of being able to buy a home.  Rook’s approach to HEI creates a win-win for buyers and investors while offering an innovative solution for local builders to move inventory faster and thus build more housing units.

As part of the acquisition, Rook co-founder Ed Messman will join Legacy as Chief Investment Office and co-founder Kevin Cawley will join as Chief Technology Officer.  With its recent $20 million growth capital financing and the addition of veteran real estate leaders to its senior leadership team, Legacy Group Capital is poised to accelerate its growth plan and expand into six new markets over the next 2 years.

About Legacy Group Capital

Legacy Group Capital (Legacy) is an integrated real estate company focused on community-based engagement in private lending and real estate investing.  Legacy empowers homebuilders, real estate investors, homeowners, and homebuyers with a flexible lending and investment platform.  The Legacy platform offers unique and creative financial products that extend beyond standard guidelines. These products encompass acquisition loans, construction loans, rehab financing, and bridge loans that all reflect our common-sense approach to lending.

Currently, Legacy works with hundreds of homebuilders, brokers and mortgage loan officers while also serving thousands of investors across five real estate investment funds with access to over $500 million in equity and debt capital.

About Rook Capital

Rook is an innovative fintech company focused on widening home ownership and solving housing affordability.  Rook’s Shared Value Investment™ brings homebuyers, investors, and the housing ecosystem into partnership with full life-cycle alignment.  Rook has developed key partnerships with community banks, credit unions, community foundations and real estate companies.  Rook raised capital from a syndicate of strategic investors including LL Funds, First Mile Ventures, Kickstart Fund, Service Provider Capital, and Tango Ventures.

1. Tell us about Blueprint and how you approach the communities in real estate that you serve?

We see Blueprint as a “big tent” event, including all of the different real estate asset classes, and all of the different ways that technology is disrupting their various businesses. Blueprint is the single event every year where you know that all of the major players in the real estate tech ecosystem will be gathering to learn, network, and get deals done. We see our annual Vegas event as a vital mechanism for the industry to push innovation forward, and we take a “white glove” approach to building our community in the sense that we want to facilitate as many connections as we can among the important players. We have done our job right if everyone at Blueprint feels like they’ve made important contacts at the end of our event, and can go back to their offices energized, full of ideas, and with connections for partnerships.

2. While many live in a world of Zoom, what are the special and particular reasons to do a large physical event?

I think COVID taught us all that there is only so much that can be done over Zoom. We all did the best we could to keep things rolling while under lockdown, but I don’t know anyone who prefers virtual events to meeting in person — both from an experience standpoint, and in terms of outcomes. It is just much, much harder to create the kinds of meaningful professional relationships that result in major deals without the experience of being in person. During our inaugural event last October, which was the first time many of our attendees had gone anywhere since the pandemic, we received overwhelming positive feedback about the joy and relief people felt in being around others again face-to-face — and I’m sure that was a major factor in why several fundings and M&A transactions can be traced back to connections made at the event last year.

3. You have a mighty array of speakers. What are the binding and common elements that make these speakers so great?

Ultimately we feel like the speaker lineup is the very best collection of real estate tech innovators and technologists ever assembled under one roof. We work very hard on our programming throughout the year to engage with the most dynamic companies and people who are working on solving the most difficult and important issues facing the real estate industry as it evolves. As we put together the agenda, industry leading VCs like Fifth Wall, Navitas, Moderne Ventures and Metaprop have been a great resource to help us identify rocketship startups destined for great things. And it’s essential to have the major real estate operators like Tishman Speyer, Cushman & Wakefield, Jamestown, Lincoln Property Company and Greystar to share with our attendees what the needs of industry buyers are, and where they need innovation most.

4. As you think about the real estate ecosystem, what are the nuggets that attendees can expect to receive- that help them, practically, do their jobs better?

We have a fairly wide range of content on stage, much of which is aimed at understanding where the ball is moving in real estate tech (both in terms of client needs and investor enthusiasm) and figuring out which innovative practices and technologies will be truly game-changing for the industry broadly. We’ll have panels that dive deep into multifamily management, fractionalized assets, ibuying, uses of data in construction, and much much more. Attendees will come away with a better and broader understanding of the industry, and that sharp lens will help them have a better understanding of how their individual companies can find green space and thrive.

5. Do you see a lot of investment activity in the space and do you expect a good number of investors to be present?

According to CRETI, $13.1 billion in venture capital was invested in the real estate technology space in just the first half of 2022. While the climate has been a bit rough for some sectors of the startup economy, proptech has continued to attract strong backing, and we’re still hearing plenty of optimism from the venture community. We are proud to say that every prominent firm investing in proptech will be at Blueprint, so it should be a rich environment for companies looking for funding.

6. What are your parting thoughts on attending your event?

Blueprint Vegas 2022 is the only event where the entire real estate ecosystem will gather. There is no better place to make meaningful connections with peers and potential partners. Come for the thought leadership from companies like Pacaso, Compass, Moinian Group and Morgan Properties; don’t miss the packed Innovation Stage filled with the entrepreneurs changing the face of the built world; take advantage of our world-class networking technology; and make time for a little fun at our After Party featuring the Grammy Award winning performer Nelly. This is really an event NOT to be missed!

This week we have an interview with Ed Messman and Kevin Cawley of Rook Capital – where traditional real estate finance meets DeFi. For more info please go to … www.rook.capital

Marketing Darwinism:  Ed /Kevin:  Tell us about Rook Capital. Where did the inspiration come from?

For Ed, the inspiration came from two personal real life use cases of having to sell homes prematurely because of lack of access to liquidity.  Then more recently watching the phenomenal rise in housing prices and thinking about the next generation of home buyers getting boxed out from home ownership.  The original idea however has been on Kevin’s mind for a few years.  How can we at once innovate on a mortgage idea without attempting to disrupt what works with mortgages, to provide liquidity to house-poor Americans, and to make real estate appreciation attainable to everyone—these are the questions we feel we’ve answered with Rook.

Marketing Darwinism:  What are the main issues in the Housing Market?

Home affordability (for everyone but particularly for the next generation that is newly entering the workforce and family stage of life).  Access to easy investing in the asset class and/or the simple ability to support a friend, family member or accommodate a unique situation with a home purchase.  Easier access to liquidity for all stakeholders if and when you need it for your largest asset – your home.  The asset class is huge- $45 trillion- but the riches don’t accrue to everyone in a fair manner.

Marketing Darwinism:  Where does innovation come in with regard to these issues?

To fix home affordability we either need to increase supply (which will take years and is multi-pronged in new builds, zoning, supply chain, etc.) or develop new creative financing mechanisms- like a Shared Value Mortgage.  Furthermore, how do we engage the broader community of people to rally around supporting this by giving them a way to help by co-investing together within a fractionalization framework that is easy to understand, trustworthy, and not onerous

Marketing Darwinism:  What is your plan for scale and market ownership?

We will leverage and partner with the existing and entrenched ecosystem of 1.5M real estate agents and 750K mortgage lenders to help them introduce a new option for homebuyers.  By working with the existing ecosystem we align incentives and achieve scale more naturally than trying to completely disrupt or taking a full DTC approach.  We believe very much in scaling through channels and partnerships.

Marketing Darwinism:  Tell us about your individual journeys and how you arrived here?

Ed: I spent the first half of my career in venture finance where I structured financial instruments for high growth tech companies.  I jumped onto the operating side in 2008 where I was involved in software, fintech and data analytics startups.  As a parent of 3 Gen Z kids, I’m watching a new generation embrace new behaviors and mindsets and also face a daunting path to homeownership — which they are redefining what that even means.  The collision of fintech, real estate price acceleration, and DeFI with the behaviors and wants of a new generation has sparked a new mission for us.

Marketing Darwinism:  Parting thoughts?

Owning a home is sacred.  It offers the space for raising a family, for fellowship, for rest and sanctuary.  The issue in front of us and our kids is daunting and will require new creative ways that embrace the new mindsets and behaviors that are already in place.  It will require resilience to innovate in the backdrop of a highly regulated environment.  It will require more than just us…but the community at large…including the brave new world of DeFi.  If there were ever a moment for DeFi to flex it’s might, it is now.