Where Real Estate Gets Its Dirt

Did a forms vendor just buy REcolorado MLS?

I’m off-site this week without my “Murder Board“. So sans my red string and push pins I’m still putting the pieces together. But here’s what I’m finding out.

In October 2020 a software company filed for an LLC under the name of Hana Software.

The directors of the LLC were Si Hyung Park (male), John Park, and Matthew Wissinger.

Si Hyung Park is a technologist and worked for many tech and consulting companies (https://www.linkedin.com/in/si-hyung-p-b03834/)

John Park is an owner of MetroBrokers Elite (https://www.linkedin.com/in/john-park-1b7b777/_).  I don’t know if they are related. Couldn’t find any information on Matthew Wissinger.

In June 2023 they amended the LLC and Matthew Wissinger was dropped and Joesph E Burks was added.  According the LinkedIn Joseph Burks is the President of Equity Title of Colorado (https://www.linkedin.com/in/joseph-e-burks-a7533a23/)

In January of 2024 a name change was filed. Hana Software is now RE-Sure (https://resure.realestate).  According to LinkedIn Si Hyung Park is listed as the CEO of RE-Sure. That same month Joesph Burks also registered MAZL, LLC.  Which is the entity that is listed that acquired REColorado MLS. Also some of these companies are listed at the same street address.

I had heard from a source that RE-Sure was making the round earlier this year (maybe last year) trying to get their forms solution adopted.  As you may know the Colorado forms software market is pretty much locked up with CTMe (https://www.ctmecontracts.com/eContracts/wp/indexbottom.asp)

One of the MLS orgs RE-Sure was pitching to described them as “very full of themselves”.

Somewhat telling is the RE-Sure website lists SMDRA (one of the REcolorado shareholders), Equity Title, MetroBrokers Elite and Colorado Professional Title as “Our Client & Partners”.

Obviously these guys ( or maybe just Joesph Burks) had a relationship with South Metro Denver REALTORS association (SMDRA) for some time.

Not sure what all of this points too. I guess at the surface level maybe these guys think they can move the needle on the adoption of their forms solution by buying an MLS?  But I doubt there’s enough revenue in forms software to justify this acquisition cost.

  1. https://recolorado.com/recolorado-sale-faqs/
    FAQs: New Ownership and Your MLS Partner
    June 30, 2024
    News about the sale of Recolorado is spreading quickly through the state and the industry. As your MLS partner, we value honest and transparent communication.

    Below are some frequently asked questions about the sale of REcolorado and what it means for you as a subscriber. Rest assured, REcolorado will maintain the exceptional service you have come to expect throughout this transition and into the future as your MLS partner.

    Is REcolorado being sold?
    DMAR and SMDRA, REcolorado’s co-owners, have entered into an agreement to sell their respective shares of REcolorado to a private entity. Per a recent joint statement, they say:

    After extensive conversations with the respective boards, including research and evaluation of long-term options, the Denver Metro Association of Realtors® (DMAR) and the South Metro Denver Realtor® Association (SMDRA), the shareholders of REcolorado, have agreed in principle through a letter of agreement to sell the Denver area Multiple Listing Service (MLS) to a private company.

    Who is the Buyer?
    MAZL, LLC, a private company formed specifically to acquire the MLS service. Headed by J. Burks, a leader in the real estate industry for more than 40 years, MAZL has agreed to purchase REcolorado from DMAR and SMDRA. We believe MAZL will support REcolorado with unwavering dedication to our customers, Colorado brokers, ensuring that the MLS remains a cornerstone of the real estate community with an even broader offering of services. It’s important to clarify that MAZL is not a Private Equity Firm but rather a private entity.

    How will this sale impact the MLS services available to REcolorado subscribers?
    The MLS is an essential part of your business, and we remain committed to being your MLS partner. Our priority is to ensure that all subscribers retain full access to MLS data and functionality that is critical to their business. MAZL has shared its commitment to providing a broker-centric platform and assurance that REcolorado will continue to operate as a Multiple Listing Service, maintaining our core mission of delivering exceptional data, tools, and resources to our subscribers.

    Will MLS fees be increased? If so, when and how much?
    REcolorado and the purchaser understand that the MLS is an essential service and continuity is important. The Letter of Intent (LOI) includes a provision that the end user costs will either remain the same or be capped at a minimum annual increase.

    Will the sale of REcolorado affect protections it will receive from the opt-in to the NAR Settlement?
    REcolorado has submitted all necessary paperwork to opt-in to the NAR settlement. The protections REcolorado will receive by opting in will carry forward with new ownership and the company will comply with the terms of the settlement.

    Were the REcolorado board of directors removed from their positions? If so, why?
    As complete shareholders of Metrolist, Inc./dba REcolorado, DMAR and SMDRA boards of directors and their respective and appointed leadership teams signed and submitted a joint, unanimous resolution removing all REcolorado board members from their position and duties, effective Friday, June 28. This decision and action were taken as a result of the violation of the board of directors’ signed obligations to maintain confidentiality.

    Who is leading REcolorado now?
    A change in leadership is a common part of the transition to new ownership. Larry D. McGee, a Former Chairman of the REcolorado Board of Directors and award-winning real estate broker, will serve as interim CEO during the transition. Once the sale is final, a new CEO will be named. The transitional Board of Directors includes Brenden Baily CEO and Jessica Reinhardt, past President of the Denver Metro Association of REALTORS, Janet Marlow, past President and Melissa Maldonado, CEO of the South Metro Denver REALTOR Association.

    Why does a change in ownership make sense at this time?
    We strongly believe that this decision is the right one for the MLS, as the industry continues to advocate decoupling REALTOR® Associations and MLSs. As has been widely reported in industry reports and media coverage, decoupling MLSs and Associations could help protect MLS organizations from ongoing antitrust litigation. Separating could also improve MLS management, according to the latest Swanepoel Trends Report, which also recommended that MLSs be structured as for-profit businesses, while REALTOR Associations should be nonprofit organizations.

    Why weren’t REcolorado subscribers informed about the intent to sell the shares of REcolorado?
    Information about the proposed sale was leaked to industry media outlets in violation of non-disclosure agreements. Confidentiality agreements are a standard part of these types of business transactions. Our commitment is to keep you informed as the process unfolds.

    When will the deal close?
    With the signed Letter of Intent (LOI), the parties continue conducting due diligence on every detail of the proposed sale and work toward a completed sale contract. The sale price and timeline for the completion of the transaction have not been disclosed.

    When will we get additional details on the proposed agreement?
    The legal requirements and obligations of the sale process prevent us from sharing additional details at this time. Our commitment to each of you is to share those details as soon as possible.

    DMAR and SMDRA have provided additional information relevant to their members in this joint document.
    https://smdra.com/wp-content/uploads/2024/06/FAQs-Proposed-REcolorado-Sale-062824.pdf

  2. Greg,

    Wow this is truly interesting news, RE-Sure (& I) had no part or knowledge of this deal. Frankly, I wish I knew about it also.

    Why are you forwarding my linkedin account to everyone? We could have met over a beer and I could have told you everything I know.

    The only advantage that my team and I have is the four years of sweat, tears and life savings to build RE-Sure (i.m.h.o. the best solution out there by far).

    I’m responsible to protect the company and dispel false narratives like this. One negative but very imaginative article from this fake news outlet won’t hurt the company.

    Unfortunately that beer may occur in front of a litigation judge…

    Kumbaya my friend, if you’d like to have that beer please let me know, I’ll buy the first round 🙂

    -Si Hyung Park
    CEO of RE-Sure
    US Army Veteran
    Father, Native of Colorado,
    30 year snowboarding enthusiast

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  17. Greg: Wow, the comment somewhere that this guy is full of himself, CONFIRMED. Hilarious.

    Melissa Savenko
    CEO of Mike & Melissa Team
    Former BigLaw Associate
    Mother, Native of the Commonwealth of Virginia
    Reality TV Aficionado and Queen of Vibes

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