Toor – Key Lockbox and Real Estate App
DEAL
EPISODE SUMMARY
🕓 Air Date: November 11, 2016
Asking For:
$500,000 for 10%
Investor:
Barbara Corcoran, Kevin O'Leary (50/50)
Deal:
$200,000 for 10%
PRODUCT SUMMARY
Toor is the world's smartest lockbox, allowing buyers and sellers to access properties with or without an agent.
WATCH HERE
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Background Story
Toor, a revolutionary smart lockbox, was introduced by Junior, a seasoned real estate broker hailing from Dallas, Texas. Junior’s journey in the real estate industry began at a young age, having flipped his first house at the age of 18. During his college years at Texas Tech, he served as the president of the real estate organization, showcasing a deep-rooted passion for the industry. His love for real estate was further fueled by growing up alongside friends in affluent neighborhoods, particularly in Mark Cuban’s vicinity.
The inspiration for Toor arose from Junior’s firsthand experiences with the challenges of traditional property tours. Recognizing the time-consuming and frustrating nature of the process, he sought to create a solution that would make house hunting more convenient. Junior envisioned a scenario where potential buyers could tour a property immediately without the delays associated with scheduling appointments or waiting for open houses. This vision led to the development of Toor, the world’s smartest lockbox.
Toor’s mission is to redefine the house-hunting experience by providing a tool that empowers both buyers and sellers. Junior’s background as a real estate insider contributes to Toor’s understanding of the industry’s pain points and the need for innovation. Through Toor, Junior aims to streamline the property tour process, making it more efficient and enjoyable for all involved parties. Despite facing skepticism in the Shark Tank due to zero sales, Toor had successfully raised over $100,000 through a Kickstarter campaign, demonstrating initial market interest and support for the innovative product.
The Product
Toor, heralded as the world’s smartest lockbox, is designed to transform the house-hunting experience by introducing unparalleled convenience and flexibility. Priced at $199, the lockbox boasts a range of innovative features that set it apart in the market. The core functionality of Toor centers around its seamless integration with a dedicated mobile app. Users, whether buyers or sellers, can leverage the Toor app to initiate property tours without the traditional hassles associated with scheduling or waiting for appointments.
The app allows users to send tour requests directly to sellers, who can grant immediate access to the property through the smart lockbox. The lockbox itself operates mechanically, allowing it to be opened and closed without physical interaction. This key feature, protected by a patent, enhances security and convenience for both parties involved. For sellers, Toor provides the flexibility to customize their showing preferences, allowing them to specify whether an agent’s presence is required or not.
Toor’s benefits extend beyond the immediate transaction, fostering a more efficient and enjoyable property tour process. Once the tour is complete, users can easily provide feedback through the app, streamlining communication between buyers and sellers. To purchase Toor, users can acquire the lockbox directly through the company’s website or other authorized retailers.
How It Went
The company’s position before Shark Tank
As of the Shark Tank presentation, Toor is positioned as a relatively new entrant into the market, with zero reported sales but significant potential demonstrated through a successful Kickstarter campaign. Despite lacking sales figures, Toor managed to raise over $100,000 in pre-sales through the crowdfunding campaign, showcasing early market interest and support for its innovative smart lockbox. Toor’s current financial health is reflective of its early-stage status, with the company relying on crowdfunding and pre-sales as primary sources of funding. The Kickstarter campaign successfully sold over 800 lockboxes, providing the company with an initial capital injection. However, it is essential to note that the company is yet to generate revenue from direct sales.
As a new player in the market, future collaborations with real estate agencies, technology distributors, or retail partners could play a pivotal role in expanding Toor’s market reach. Toor’s customer base is expected to include both buyers and sellers in the real estate market seeking a more convenient and efficient way to conduct property tours. The success of the Kickstarter campaign, where individuals pledged support for the product, indicates a level of consumer interest. Given Toor’s early stage and lack of reported sales, it is likely that the company is currently focused on product development, marketing, and building strategic partnerships to establish a solid foundation in the competitive real estate technology market.
In terms of structure, Toor is led by Junior, the founder and real estate broker, who brings industry expertise and a passion for innovation. The acceptance of a deal with Kevin and Barbara suggests a willingness to leverage the expertise and connections of seasoned investors to drive Toor’s success. The specifics of how the funding will be utilized, the company’s growth strategy, and its future financial projections were not disclosed in the episode but may become clearer as Toor progresses in the market with the support of its new partners.
The Negotiations:
The negotiations for Toor in the Shark Tank were intense and ultimately led to a deal. Junior entered seeking $500,000 in exchange for a 10% equity stake in his smart lockbox company. Kevin O’Leary was the first to make an offer, proposing $100,000 for 10% equity and a $400,000 loan at 18% interest. Barbara Corcoran joined the offer with a contingency, emphasizing the high-risk nature of the investment. Mark Cuban and Lori Greiner, however, expressed reservations and decided to opt out of the deal, citing the early stage of Toor and the lack of a clear path for their involvement.
Chris Sacca also voiced concerns about the idea, suggesting that the technology was not groundbreaking. Despite the skepticism and the tough negotiation, Junior managed to secure a deal. Kevin, known for his sharp business acumen, structured the deal with a $100,000 investment for 10% equity and a $400,000 loan at 18% interest. Barbara joined this offer with the contingency that they would work together to sell Toor to a large chain.
In a surprising turn, Junior negotiated further with Kevin and Barbara, and they reached a final deal at $200,000 for a 10% equity stake and a $300,000 loan. The negotiation showcased Junior’s ability to navigate the challenging environment of the Shark Tank and secure a mutually beneficial agreement with experienced investors. The final deal not only provided Toor with the capital it sought but also leveraged the expertise and industry connections of both Kevin and Barbara to potentially propel the smart lockbox company to greater heights in the competitive real estate technology market.
