“Cash is king,” the real estate analyst argued during his opening address at Inman Connect Las Vegas. His point was that losing money has turned from an advantage to a liability.

Inman events are the best way to connect. Gain insights and build your network this October at the virtual Inman Connect where we’ll explore the Industry’s Playbook for the Fall Market. Then, join us in January for Inman Connect New York, in person or virtually. Reserve your tickets now, prices will go up! The following post is presented to Select subscribers exclusively. 

Mike DelPrete at Inman Connect Las Vegas on Aug. 3  Credit: AJ Canaria of MoxiWorks

“Cash is king,” Mike DelPrete proclaimed.

DelPrete had taken to the stage at Inman Connect Las Vegas last week to discuss the state of the housing industry and in particular what is happening to big companies, such as Opendoor. During his presentation he ultimately argued that many newer entrants to the real estate business are coming after agent commissions.

But before he got to that point DelPrete explained that in the past, big companies with venture capital funding had the ability to lose money almost indefinitely. They existed in a state of “sustained unprofitability.”

“It’s a competitive advantage that is incredibly difficult to compete with,” DelPrete said.

However, thanks to the ongoing market shift and a changing economic landscape, investors pulling back and losing money forever is no longer an option. And that means for the real estate technology sector, “cash is king” because “you can’t pay bills in adjusted EBITDA, or contribution margin, or any other manufactured financial metric.”

The result is that “sustained unprofitability” is less and less of an option for big, historically well-funded companies.

“Now that has turned from an advantage to a liability,” DelPrete said of sustained unprofitability.

Watch DelPrete’s entire address via the video at the top of this post.

Email Jim Dalrymple II

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription