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The Future of Real Estate

 

How Agents Are Building Their Business at eXp Realty


Because eXp Realty is Agent-Owned

  • We operate with unhindered honesty in the way we do business
  • There are no hidden agendas
  • Full information is available to every agent-owner
  • Collaboration is just one of the natural results

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Because eXp Realty is Agent-Owned

  • We enjoy an environment of collaboration
  • We are all building and investing in our business
  • We bring our best to increase our brand
  • Our agent-owners earn money three ways

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Because eXp Realty Functions in A Cloud Office

  • We eliminate the need for the expensive overhead of a bricks and mortar space
  • While providing a convenient and flexible meeting place in a cloud environment
  • That money can be returned to agent-owners
  • Who are the true backbone of the company

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Technology and electronic commerce has had an immense impact on the real estate industry. Our cloud-based platform provides

  • Cutting edge tools to develop and run our business
  • Unrivaled agent support
  • Ongoing and cataloged technology and business training
  • Leadership with an agent-first view
  • An ongoing search for the best tools

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An agent-owned, cloud office environment allows agents coast to coast, to come together to collaborate in many ways

  • We have over 20 hours of training weekly
  • We have mastermind sessions
  • We have open leadership meetings
  • We bring some of the brightest minds in to teach and share what's really working

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real estate future


eXp Realty agents and brokers are working together to build businesses:

  • to build and enhance brands,
  • increase profitability,
  • reduce overhead and risk,
  • and achieve bold career and life goals,
  • all while establishing a direct ownership interest in eXp Realty International Corporation as a shareholder and partner.

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Our Values Include Collaboration and Learning Together

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eXp Realty Revenue Share – Is it Sustainable?

eXp Realty Revenue Share – Is it Sustainable?

The revenue sharing aspect of the eXp Realty business model has drawn a lot of attention, both positive and negative. Critics have been pointing out what they deem as weaknesses in the business model.

There is admittedly, a lot of misunderstanding surround this particular pillar of the compensation model at eXp. It certainly is something that seems new to the real estate industry. Up until now, agents have not had the opportunity to share in the overall revenue of a real estate company.

Keller Williams introduced “profit sharing” to the industry many years ago. Many agents have become familiar with the concept. Is revenue sharing similar? Let’s break it down and talk about some of the misunderstandings and outright misrepresentations that are floating around regarding revenue sharing.

Revenue Sharing is Not New to the Real Estate Industry

Owners, brokers, and franchisees have been sharing in the revenue of their real estate companies for over 100 years. This is entrepreneurship. Owners put up all the money and take the risks to start and build a company. They deserve it, don’t you think?

There is a distinct difference between Keller William’s profit sharing program and eXp Realty’s revenue sharing program. Profit comes to agents after everything else has been paid. (Including the franchise owner’s, and regional owner’s, and corporate owner’s revenue). It comes monthly, when the local market center makes a profit, and it doesn’t come when the local market doesn’t make a profit. It also doesn’t come if the agent has not done a transaction that particular month. Suffice it to say, profit sharing comes off the bottom.

Revenue sharing comes off the top. Without getting too much into the weeds, (here’s a slide that explains the financial details of revenue sharing) each agent has a $16,000 cap with eXp. Roughly half of that revenue coming into the company is used to actually run the company, and roughly half is given back to the agents in the form of revenue share and stock awards. eXp Realty is NOT a multi-level marketing company.

Is Revenue Sharing Sustainable?

We’ve been hearing some neigh-sayers lately  – revenue sharing is not sustainable. Here’s the dirty secret…it’s been sustainable in the real estate industry for more than 100 years. The first brokerage business was opened circa 1908. Entrepreneurs have been owning brokerages since that time. Why would they do that if there was no revenue? Of course there is revenue for owners of companies.

There are billions of dollars funneling to the top of the traditional real estate company business model. Warren Buffet didn’t go buy a thousand houses during the recent real estate crash. Instead, he bought a bunch of real estate companies. He’s no fool. Ownership is where the money is.

The difference in the eXp Realty revenue sharing model is that the agents are the owners of the company, and as owners, they are sharing in the revenue. As long as eXp Realty is a real estate company and agents are helping buyers and sellers with their real estate transactions, there will be revenue. 

eXp Realty is a real estate company, first and foremost. Without real estate agents conducting business, there would be no revenue to share. When any company has ebb and flow of revenue and expenses, they make adjustments.

eXp has done exactly that. From the beginning of the revenue-sharing (2013) in the company, the plan was to adjust the compensation plan when we reached a certain growth marker…16,000 agents. That happened in December 2018, along with the Sustainable Equity Plan and Equity Offset Program. The plan was to maximize growth for a period of time, and then to move towards sustainability.

I marvel at the brilliant minds that put this company together! 

What About eXp Realty and Profitability?

As eXp Realty has grown over the last few years, (eXponential growth!) we have made investments in the staff and infrastructure of the company to meet the needs of growth. Although the company has not been profitable yet, our Chief Financial Officer reported at last month’s Shareholder Summit that we will be profitable by the beginning of 2020, given our current trajectory. 

Here are corroborating reports from independent analysts:

EXPI is bordering on breakeven, according to the 3 Real Estate analysts. They anticipate the company to incur a final loss in 2020, before generating positive profits of US$8.0m in 2021. EXPI is therefore projected to breakeven around 2 years from now. In order to meet this breakeven date, I calculated the rate at which EXPI must grow year-on-year. It turns out an average annual growth rate of 96% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

EXPI has managed its capital prudently, with debt making up 8.6% of equity. This means that EXPI has predominantly funded its operations from equity capital,and its low debt obligation reduces the risk around investing in the loss-making company.

From Simply Wall Street on June 8, 2019

Given that:

  • Revenue increased 153% in the first quarter of 2019 to $157 million, compared to $62 million in the first quarter of 2018.
  • 2018 REAL Trends 500 named eXp Realty No. 4 for closed transaction sides and No. 5 for closed sales volume in 2018.
  • 2018 Swanepoel Mega 1000 named eXp Realty the No. 3 top brokerage by agent count at the end of 2018, No. 4 for transaction sides and No. 6 for sales volume in 2018.
  • Agent count grew 139% year-over-year from 2017 to 2018.

We feel very confident that our growth will not not only meet expectations but exceed them. 

No one can predict the future, but our foundations are good. Our growth has been remarkable in every way. 

Other Revenue Streams for eXp World Holdings

eXp World Holdings, Inc. (NASDAQ: EXPI) is the holding company for a number of companies most notably eXp Realty. eXp World Holdings has several other verticals already, and more in the making. The main emphasis in the company’s choice in partners is CHOICE for the consumer.

  • eXp Realty Technology – VirBELA offers a modern, cloud-based environment focused on education and team development with clients in various industries from government to retail. VirBELA developed eXp Realty’s current cloud campus, which provides 24/7 access to collaborative tools, training and socialization for the company’s agents and staff. 
  • Our technology holdings also include the ShowMeNow app, home tour app that enables home shoppers to request immediate access to properties they are interested in. 
  • eXp Realty Affiliated Partners – eXp World Holdings is adding affiliated partners like Introlend First Cloud, a lending platform in which eXp agents can opt to become shareholders and earn dividends.
  • eXp Realty has added several service partners, like America’s Preferred Home Warranty, a platform that allows consumers to select their own service provider.
  • Moving Hub, a service to help buyers and sellers connect with moving services.
  • The future holds a lot of promise for Title partnerships, Insurance partnerships, a tax service, 360 photo and floor plan company, a currency exchange company (international buyers)…and who knows what else? In another year, our Director of Affiliate Services, Ted Laatz, surmises we’ll have a dozen partnerships.
  • All of these partnerships and services will add to the company’s revenue. It’s a bright future for eXp World Holdings!  

 

Our Revenue Sharing Story

Karen and I have been extremely happy with the revenue share that we have received from eXp Realty. We have been at this company for four years (next month!). Our passive income is now covering our housing costs and our automobile costs. Who says revenue share doesn’t work??!!! 

Interested in eXp Realty Maryland…Reach out to us for more of the story! Chris Highland, Cell – 301-401-5119, Broker – 888-860-7369, chris@chrishighland.com.

eXp Realty is an Entirely New Brokerage Model

eXp Realty is an Entirely New Brokerage Model

It’s different than the traditional brokerage model that we’ve been used to since cira 1908. That’s why it takes more than just a glance to understand the real value proposition. eXp Realty has turned the brokerage model upside down. Let’s do a quick comparison: The Traditional Brokerage Model in the U.S. Whether it is a… Continue Reading

eXp Realty ICON Agent Award

eXp Realty ICON Agent Award

eXp Realty has an amazing award for top producing agents…and it’s not a paper certificate, or even an engraved plaque! It’s worth eminently more. It is worth potential tens of thousands of dollars. This award is called the ICON Award. The eXp Realty ICON Agent Award currently provides each qualified ICON agent with up to… Continue Reading

We Are All Connected

We Are All Connected

It’s a new world for your brand and your business, a digital one-screen world. The good news is, you can still apply marketing fundamentals to connect with your customers. Right now, there are more people in the world with mobile subscriptions than there are people who have access to electricity. Isn’t that incredible? The thing… Continue Reading

eXp Realty is a Top Mover on Real Trends 500

eXp Realty is a Top Mover on Real Trends 500

eXp ranks No. 1 & No. 2 in Transactions & Volume in REAL Trends 500 #1 Top Movers: Transactions #2 Top Movers: Volume #2 Largest Independents #4 Closed Transaction Sides #5 Closed Sales Volume #5 The Billionaires’ Club The REAL Trends 500 Real Trends is a ranking publication for real estate companies in North America. They’ve… Continue Reading

eXp Year-End Earnings and Growth

eXp Year-End Earnings and Growth

eXp Realty published the quarterly and year-end earnings report. 2018 was a great year in every way! Here’s how the earnings and growth went: Fourth Quarter 2018 Earnings Total revenue for the fourth quarter was $150 million. This was roughly three times the revenue of the fourth quarter of 2017, which was $48.2 million. This… Continue Reading

eXp Realty Agent Count Reaches 16,000

eXp Realty Agent Count Reaches 16,000

UPDATE 10-4-2019:  Agent count reaches 23,000!   eXp Realty announced today (Jan 18, 2019) that it surpassed 16,000 agents and brokers in North America, which represents an increase of more than 145 percent since the same time last year. Back in 2013 when the company planned the first equity incentives for agents, they had the… Continue Reading

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Why Join eXp Realty?

We do things differently, and we offer much more.

At eXp Realty, The Agent-Owned Cloud Brokerage®, our family of agents and brokers build their own businesses. They work, attend classes, strategize, collaborate, innovate, enjoy water-cooler chats, build teams, build unity and share experiences inside of our Cloud Office Environment.

Together, we’re leveraging Systems and Tools in order to grow an agent and broker-owned international, publicly-traded company.

eXp Realty agents and brokers are working together to build businesses, build and enhance brands, increase profitability, reduce overhead and risk, and achieve bold career and life goals, all while establishing a direct ownership interest in eXp Realty International Corporation as a shareholder and partner.

Here's a perspective from one of the top agents in the country:

“We live in a world of disruption. Companies like Uber and Airbnb are challenging the status quo of some of the most tried and true industries with their unique platforms. eXp’s “cloud-based” real estate brokerage model brings this disruption to the traditional concept of the Real Estate Brokerage by changing how real estate agents are compensated and supported.When you remove the cost of locally owned offices, regional management, and national corporate overhead from the brokerage model it allows that revenue to flow back to you – the agents that created the revenue in the first place.You are probably perfectly happy with your current company. That’s what we all said before we joined eXp Realty. You owe it to yourself and your family to be open-minded enough to examine this opportunity. Then you can decide what’s best for you – but at least you’ll be informed.”~ Jay Kinder

Individually, Jay has established himself as one of the top agents in the world, selling more than 3, 000 homes while capturing 14% market share in Lawton, Oklahoma. In 2007, Jay was named #2 in the World for Coldwell Banker, competing with over 120, 000 realtors – being the youngest to ever obtain this achievement.

About Chris Highland

Chris Highland is an Associate Broker and Branch Office Manager with eXp Realty in Maryland. Chris has over 26 years of experience in residential real estate sales in Central Maryland. Connect with Chris on LinkedIn, Twitter, or Facebook. He is happy to answer any questions about eXp Realty. 301-401-5119. Chris Highland is an independent contractor of eXp Realty and this is not an official release of eXp Realty, its parent eXp World Holdings, Inc. or any related subsidiary.

Lisa Lowe, Broker - 888-860-7369

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