by G. Sax, Head of Communications, RESO
Welcome to part one of two in our interview with Russell Smith, President and COO of Earnnest. In the first set of three questions, we talked about unlikely work title combinations, MLS expansion of services and The Masters. Enjoy!
Q1: President and CEO. It’s a common title at the top of the business food chain. President and COO is not as common, yet that is where you find yourself at Earnnest after less than five years on the job instead of the “President” portion going to Earnnest CEO Rick Altizer or Cofounder and Chairman George Clements. Can you explain how this dynamic works for others considering nontraditional role splits?
Russell: I’ll say right off that it’s a situation that maybe wouldn’t work in a lot of organizations. But it really works for us. George is an agent with 20-plus years of experience in the Greenville, South Carolina, market. The man is a prince and one of the greatest guys I have ever met. He is constantly driven by trying to understand problems and creating solutions for them. He has such a great “founder” energy in that regard.
When he was a few years into this business, Rick came along with his robust background in leadership roles. He laid the foundation for this to be a much bigger company and solution.
I just so happened to have the good fortune to meet them through the National Association of REALTORS® REACH program, which Earnnest is a part of. I like to think that I was the missing piece in the triumvirate. Together, we have created an excellent partnership and wonderful working dynamic.
There have certainly been challenges, just like in any start-up, but we have a strong division of labor and mutual respect, which has made us a cohesive team. It may not work for everyone, but it works great for our company.
Q2: Your company deals in escrow money for many players in the real estate transaction, including agents brokers, lenders, homebuilders and the MLS. Where do RESO standards come in handy for this portion of the industry?
Russell: Standards are very important to our business, like banking standards for building out payment rails – how money moves around in the system. I guess I would say that ACH and wire transfers are comparable to the old RETS way of transferring data around real estate. It’s antiquated, but everyone who has been around for a while works within it.
But it does make you think: What would happen if we brought a standard into existence for earnest money that was modern and ultra capable?
At Earnnest, we may not currently have a strong standards play with RESO, but we absolutely support the concept. RESO brings together the best and brightest in the industry. There are other places where real estate leaders and technologists gather, sure, but when they gather for RESO, they come with and for a different viewpoint. It’s not a board-driven thing like some other big conferences. The people who go to RESO events want to move the industry forward.
I’ve found that connecting with MLS and technology leaders at RESO is a good way to be part of that discussion. Not to mention, it’s a good hang with folks who generally have open minds. We know that what we do at Earnnest is a new partnership type for MLSs, yet it’s still a great place to shop concepts to forward-thinking people.
Our take is that MLS is an important point of integration. Earnnest is a marketplace business. We want to integrate at the point of need, so we’re in Dotloop and ZipForms, for example. And, oh, I should say this…
Nicole Jensen and realMLS were the first MLS to integrate – shoutout to you, Nicole! We also just announced an integration with California Regional Multiple Listing Service (CRMLS) and now have a half dozen MLS partners while maintaining an agnostic position – meaning we can work with Matrix, FlexMLS, Paragon, etc.
Today’s best MLSs are thinking about ways to offer more value, not relying on being a listing database. Earnnest offers another opportunity to connect buyers and sellers. We are like Venmo for earnest money – safe, secure and easy. It’s the Apple Pay approach.
The MLS doesn’t get enough credit for creating a safe place to begin a transaction with viable listings. Compare the MLS to something like Craigslist, for instance. MLSs are just so much more efficient and trustworthy, so of course we want to be part of that.
Q3: You were present in the gallery at the last green for Rory McIlroy’s historic Masters win earlier this year. How does a West Coast guy land something like that on the entire opposite side of the country for such a big moment in the history of the game?
Russell: Pure, dumb luck, I guess. But there is a tale to tell. My dad is a fisheries biologist, and one of his long-time friends and work colleagues in that industry is related to one of the founders of the course. He has graciously taken me to the Masters a half dozen or so times.
I was also present for wins by Bubba Watson in 2014, Danny Willett in 2016 and Patrick Reed in 2018, but the 2025 Masters is going to go down in history as one of the all-time greats, and I know it.
The 2016 Masters may not compare historically, but it’s an important one for me, because Danny has actually become a friend of mine, and I’ve been able to join him for a meal in the champions locker room.
The Masters is one of the greatest experiences in sports. It doesn’t get any better, and I highly recommend it.
Three Questions is meant to be a fun interview series that features real estate industry professionals, their businesses and how they interact with real estate standards.
