Redfin turns profitable

The Naked Truth took place last night in Seattle. TechFlash’s John Cook was in attendence and has a great recap of all the activities which included wisdom, advice, and profanties from Arrington and other moguls.

Redfin CEO Glenn Kelman revealed that his company just turned profitable and TechCrunch’s Michale Arrington’s managed to get a little more information from him off the record.

Since I was sitting next to him on the panel, I asked him off microphone what revenues were. He said the run rate is around $15 million. 2007 revenues were $5 million, 2006 revenues were $1 million.

The Seattle-based real estate startup represents buyers and sellers in residental real estate transactions for a fraction of the long-standing industry rates that take 5-6% of the sale price of a home and split it between buy and sell-side agents.

On the buy side Redfin reimburses 50% of the fee they receive back to the buyer. On the sell side they charge a $5,000-$7,000 flat fee. As a comparision, the normal agent cut on Million dollar house are up to $60,000 – so the savings are huge.

Great news for Redfin. Very bad news for the traditional real esate industry.

Redfin is 75 employees strong, has served over 3,000 customers to date and has secured $20 Million to date in financing from Madrona, Vulcan, DFJ, and BEV.