After 20 years as CEO of one of the nation’s largest real estate portals and brokerage firms, Glenn Kelman announced Tuesday that he is resigning from Redfin and leaving the real estate industry completely.
The move comes months after Redfin was acquired by Rocket in an all-stock deal worth $1.75 billion. Kellman, who has become known over the years as a source of major breaking news from Redfin, announced the news in a post on LinkedIn.
Kerman’s last day will be Friday. Rocket CEO Varun Krishna has taken over the reins at Redfin, and the company is considering a successor to Kelman. Kellman will remain available as an advisor until April 1, he wrote.
Redfin CEO Glenn Kelman takes to the stage at Real Estate Connect San Francisco.
“Redfin has just completed its first phase of integration as a Rocket company,” Kelman wrote. “At next week’s all-hands meeting, we will begin a much longer second phase, which will be much larger. As we approached that, I had to make a decision whether to stay with Rocket for many years.”
Rocket’s acquisition of Redfin was one of the most important deals in a year full of M&A in real estate.
With the acquisition of Redfin, Rocket takes a big leap toward becoming a full-service national real estate company, giving consumers the space to view homes, pair with an agent, qualify for a mortgage, and pay off their mortgage all in one place.
As CEO, Mr. Kellman played a key role in transforming Redfin from a small startup that was an early adopter of the role of the Internet in real estate searches to a leading brokerage with agents in markets across the country.
He positioned the company as a consumer-focused brokerage firm with a clear goal of reducing the cost of home ownership and real estate transactions.
The effort culminated in June’s merger of Redfin and Rocket.
Kellman spoke exclusively with Inman insiders about next month’s Inman Connect San Diego sale.
During an interview with Inman founder Brad Inman, Kellman repeatedly pushed back at Inman’s reference to him in the past tense, as if he had left the company.
“I’m going to build Redfin with Rocket,” Kellman said at the time.
Brad Inman (left) and Glenn Kelman dance on stage at Inman Connect Las Vegas on August 3. Credit: AJ Canaria
He said it was a difficult decision to agree to sell the company, but he believes the partnership will benefit consumers.
“Rocket believes in technology and Rocket believes in service,” Kelman said. “Not many companies believe in this dual commitment.”
Mr. Kellman is known as a gregarious executive who speaks to all audiences, from reporters to Wall Street investors.
He told Inman that he was in a rustic cabin in Maine with his twin brother when the deal with Lockett closed.
“The silk thread from the corn ended up in the sink, so I got a hanger and then a plunger.” [to unclog it]“My normal life hasn’t changed,” Kelman said. So I wake up at 1am and clean up this sink. ”
Even in his farewell announcement, Kelman chose a headline that showed his sense of humor. It was “unemployed in Greenland”, a reference to the iconic line from Rob Reiner’s cult classic The Princess Bride.
What’s next for Kerman?
Kellman declined to say what his next move will be, only that it will be outside the real estate industry.
“I would like to find another mission-driven company outside of real estate,” Kelman wrote. “We are grateful that Lockett has been a great owner of Redfin and that Varun has been such a gracious leader.”
“I used to think of the business world as a prison, but being able to run fast and with really smart people felt liberating,” Kelman wrote.
“Every miracle of human ingenuity begins with the simple act of thinking for yourself, but it depends on finding someone to say what you really think,” Kelman wrote. “I discovered those people when Redfin was still based in apartments, and it grew 1,000x in our culture.”
In his farewell letter, Kelman said he would remain friends with Krishna and anyone in the industry, whether they had met or not.
“I never deserved to work with so many good people for so long, and now I will spend the rest of my life paying you back,” he wrote. “Any of you can show up at my door with a newborn baby, or after a flat tire in the rain, or just to say hello. In my mind, you’ll say one word, REDFIN, and I’ll say, ‘Come on.’ ”
Industry reaction
Mr. Kelman’s standing in the industry was reflected in the initial reactions from other top leaders in the real estate industry.
“Glenn was a tenacious and never-give-up entrepreneur who understood that it takes courage to stand out in the industry and speak the truth,” Brad Inman told Inman. “I love this man. He’s not done yet.”
Mike Simonsen, chief economist at Compass, called Kellman’s departure “the end of an era.”
“Glenn, it’s been a real pleasure to watch you coach over the years. I’ve always loved talking with your mentor, Kirill.” [Sheynkman]and I think you’re filling that role for a lot of people right now. Good luck and love to you!
In a nod to Redfin’s recent major acquisition deal with Rocket, HousingWire CEO Clayton Collins wrote: “Congratulations on the great business you’ve built and the incredible deal and integration with Rocket…”
Stephane Swanepoel, founder and executive chairman of T3 Sixty, commented: “You have been a true game changer. We are sorry to see you leave a company that has been synonymous with your name for so long. We wish you continued success in the next chapter of your career.”
Dan Green, Director of Mortgage Growth at Opendoor, added, “Glenn, I loved watching you execute your strategy. No one has done it like you have. Congratulations on your next move. We wish you all the best.”
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