Real Brokerage at Oppenheimer Conference: Strategic Growth and Innovation

On Wednesday, 13 August 2025, Real Brokerage Inc (NASDAQ:REAX) presented at the Oppenheimer 28th Annual Technology, Internet & Communications Conference. The company highlighted its robust growth strategy and technological advancements, while acknowledging challenges in the current housing market. Despite market declines, Real Brokerage has achieved significant revenue growth, leveraging its proprietary technology and expansion into ancillary services.

Key Takeaways

• Real Brokerage’s revenue has grown sixfold since Q2 2022, despite a 25% market decline.
• The company’s AI-driven platform, Rezent, is mandatory for all agents, enhancing operational efficiency.
• RealWallet, a fintech product, has gained traction with 3,600 active users and $15 million in deposits.
• Expansion into high-margin services like title and mortgage aims to boost profitability.
• Real Brokerage is developing LEO, an AI-powered tool to enhance the home buying experience.

Financial Results

• Last twelve months (LTM) revenue reached $1.6 billion, a sixfold increase from Q2 2022.
• Gross margins are between 8-10% for brokerage, over 80% for title, and 40-50% for mortgage services.
• RealWallet is generating over $1 million in annual revenue.
• Operating efficiency is highlighted by a headcount ratio of one full-time employee per 87 agents.
• Fixed operating expenses as a percentage of revenue have decreased year-over-year.

Operational Updates

• 15% of agents joined through the private label program in the past 18 months.
• Launched RealWallet, offering business checking, debit cards, and credit lines in Canada.
• Acquired a consumer-facing home search portal from Fly Homes.
• Invested tens of millions in technology, with a focus on AI innovations like LEO Copilot.

Future Outlook

• Real Brokerage aims to increase ancillary service attachment rates to maximize transaction value.
• Continued AI investment to streamline workflows and enhance client experiences.
• Plans to launch U.S. lines of credit this quarter.
• Despite macroeconomic conditions, the company expects above-market growth.

Q&A Highlights

• Real’s technology platform, Rezent, is a key differentiator, mandatory for all agents.
• The revenue share model incentivizes agent recruitment and is tiered for rewards.
• RealWallet’s growth is supported by pending transactions and revenue share pools.
• The real estate market is viewed as being at historic lows, with expectations of upward movement.

In conclusion, Real Brokerage’s strategic focus on technology and service expansion positions it for continued growth. For a deeper understanding, refer to the full transcript below.

Full transcript - Oppenheimer 28th Annual Technology, Internet & Communications Conference:

Jason, Oppenheimer: Good afternoon, everyone, and thanks for joining us for a discussion with The Real Brokerage. Excited to have CFO Ravi Jani joining us. He’s gonna go through a number of slides, and then we’re gonna do some q and a. If you have a question for Ravi, put it in the, there’s a chat button below or feel free to email me at jason.healthteam@opco.com. So with that, Ravi, floor is yours.

Ravi Jani, CFO, Real: Thanks, Jason, and thanks, to the Oppenheimer team for having us. As Jason mentioned, my name is Ravi Jani. I’m the CFO of Real. Real is a real estate technology company that was founded in 2014. We have a very compelling growth story in the industry, particularly given the current state of the industry.

So, our primary business is real estate brokerage where we provide agents a platform to build their business. Offer some of the most compelling economics in the industry, a collaborative culture, and most importantly, an AI driven tech stack that’s centered on our own proprietary software, which is called Rezent, which I’ll talk about in greater detail.

Jason, Oppenheimer: Sorry.

Ravi Jani, CFO, Real: Sorry for there’s a little bit of feedback on my side. So to give a little bit of background on our

Jason, Oppenheimer: clear to us.

Ravi Jani, CFO, Real: Okay. Sorry. To give a little bit of background on our industry, there are approximately one and a half million agents in The US, around a 160,000 in Canada. And in an average year, the industry generates it’s all good? Okay.

Still hearing some feedback on this side. Apologies. To give a little bit of background on our industry, there are approximately one and a half million agents in The US, a 160,000 in Canada. In an average year, the industry generates roughly a 100,000,000,000 in annual revenue that represents the total amount of commissions paid to agents. Every agent must be affiliated with a brokerage such as Keller Williams, Coldwater Banker, or a brokerage like Real.

An agent can’t work, completely independently. They have to be affiliated with a larger brokerage or any brokerage, for oversight. So if you look at the market, it’s been dominated by traditional players for many decades, all of whom operate in the same way. They rely on physical office space for distribution of service. They charge agents a lot of money for what we believe is poor value.

And even though we’ve been growing very rapidly for the last several years, we’re still less than 2% of the overall market, which gives us confidence that we have a very long runway for growth ahead regardless of how the end market recovers. To give you a little bit of perspective on why the company exists, you know, when we started the company, we knew that there was a better opportunity to offer agents value relative to what incumbent models offered. And so if you go down the list of what differs real from a traditional brokerage, it starts with economics. It expands to technology where we have our own proprietary software. We have twenty four seven connectivity through our app, a culture that spans across ZIP codes, across state lines, across the country, continuous training every day.

There are new trainings available in REAL Academy led by some of our top agents in the country. So if you’re an agent with REAL, it doesn’t matter. If you’re confined to a certain region, you have the best of the industry at your fingertips. And as it relates to the growth potential, as I mentioned, it’s a very fragmented market, and so we believe we’re still in the first inning of what’s gonna be a very, long growth trajectory. Lastly, I’ll touch on ancillary services in greater detail, but we also offer title mortgage and fintech services to our agents.

And these are higher margin services that are, you know, quite nascent today, less than 5% of our gross profit, but will be long term, gross margin and profit drivers for the company. To give you a little bit of perspective on our growth trajectory. So when the company went public in 2020, it was actually a very unusual decision because at the time, Real was generating around $15,000,000 in annual revenue. But we believe that our agents were really our partners in building the business. And so we wanted to create an equity incentive plan where they could participate in the upside of the business that we were all building together.

And obviously having public equity is much more attractive than having equity in a private company. So we initially took the company public by listing on the TSX Venture Exchange in Canada. A year later, we direct listed in NASDAQ. And today, we’re currently only listed on the NASDAQ. We’re headquartered in The US.

But going back to 2020, 2021, we really started growing like crazy, and that was a very different housing market than the one that we’re in today. And yet despite the fact that the housing industry has now collapsed to what are trough like levels, we’ve continued to deliver incredible growth. If you compare our LTM revenue of 1,600,000,000.0 to the LTM revenue in q two twenty twenty two, just before the market started to turn, we’ve 6x. And that’s again against a market that’s declined by 25% over that time. And so we’ve proven that we can grow very rapidly despite a very challenged end market, and that just gives us a lot of confidence that we’ll continue to grow in 2025 and beyond even if mortgage rates stay higher for longer.

Although, I think, you know, recent indications are that we could see rate cuts, would obviously be a nice tailwind. So the the big question is really why are agents joining us? Why are we seeing so much growth when others are struggling or losing agents? And so from our perspective, there’s really four key reasons why agents joined Real. The first one is really the freedom and flexibility that we offer as being part of the real platform.

If you think about agents, they’re independent contractors, they’re entrepreneurs, they’re essentially small business owners, and yet their regulations require them to be affiliated with a brokerage. So when an agent works for a traditional brokerage like a REMAX or a Century twenty one, they end up building someone else’s brand. Right? They have a broker or a manager that tells them exactly what to do, when they come to the office, what their marketing material should look like. Someone else is effectively controlling their business even though at the end of the day they’re an independent contractor.

And so at Real, agents have the freedom and flexibility to build their businesses their way which is a huge draw for entrepreneurial agents. Last year, we introduced two programs called the private label and pro teams programs, which allow independent brokerages and teams to keep all of their external branding the same. They get to keep all of their individual compensation models on an agent team lead basis the same, and yet they can still join REAL. They can access all of our technology, all of our resources, benefit from lowering their own overhead costs, all while keeping their same external brand. And so private label has been a huge success.

Somewhere around 15% of the agents who’ve joined over the last eighteen months have joined under private label. And I think it’s really one of the most compelling opportunities, for independent brokerages out there who are looking to align with, you know, a larger player. Now the second reason why agents join us is obviously the economics, which I mentioned at the start of the call. We have a very unique compensation model that offers agents high commission splits, revenue sharing opportunities, and the potential to earn equity in the company by achieving certain milestones. And so the average agent who joins Real typically ends up paying half of what they would at a traditional brokerage.

And that means that for the vast majority of agents in the industry, they’re likely leaving significant income on the table by affiliating with any brokerage other than REAL. So to put some numbers on it, most brokerages will likely charge something around 30% splits on every commission dollar an agent generates. At REAL, our split starts at $85.15, meaning the agent gets to keep 85% of every commission dollar they generate, and that’s up to a $12,000 annual cap, which means once an agent has paid $12,000 in splits to real, they get to keep a 100% of every commission they generate and only pay us a flat transaction fee of $325 per transaction. And so that’s really appealing for high performing agents and teams, and that’s obviously why we’re seeing a lot of traction within those segments. Now the next reason why agents join us is technology, which is truly our forte.

We consider Real a technology company. Although we operate a brokerage and a mortgage and title company, it’s really our tech platform that sets us apart. At the core of our tech stack is a proprietary transaction management platform, which is called Reason. And Reason’s built around four main pillars really meant to empower agents and streamline their workflows. The first one being productivity.

And so this includes everything agents need from a CRM to a transaction management platform, tools to draft and sign contracts, as well as a dashboard that gives them real time visibility into their business twenty four seven. So everything is mobile first. It’s designed for our agent facing app and so that agents can manage and work, can manage their workflows from the palm of their hand, and they can spend more time out in the field with clients. Second under technology is marketing. So we’ve consciously decided not to market REAL as a consumer facing brand.

So unlike a traditional brokerage like a REMAX or Coldwell Banker, we don’t think consumers choose agents based on their brand affiliation. Like, nobody goes into a Coldwell Banker office and says, hey. I’m looking for a home, and so I’m here because I know Coldwell Banker is great agents. Instead, people choose agents based on referrals, based on knowing that that person is an expert in the area or by seeing their yard signs on social. And so we’re taking our marketing dollars, and we’re investing them in making our agents better known in their communities.

So agents have the opportunity to, order online brochures, yard signs, magnets, everything directly through our platform. Every agent has a personal branded app, personal branded website that comes free as part of the package with Real. And all of this is is managed through Reason, as I mentioned. The third bucket of technology is community. So we don’t have physical offices for agents to use.

Obviously, it’s a huge cost savings for us, but we recognize the importance of agents being able to get together. And so our app has a community feature for agents to do exactly that. Think of it like a a Facebook feed. Agents can ask questions. They can share success stories.

They can organize meetups. And the beauty of this is that agents are not confined to a physical office anymore. They can interact and tap into the knowledge of thousands of agents across the country rather than just, you know, the handful of folks who may be in their office. And so finally, under technology, you know, the true backbone of REAL is our efficiencies on the brokerage operation side. If you think about all the tasks that still get done by humans in the back office of a brokerage, things like reviewing files, signing documents, processing payments, we took all those tasks that consume human labor, and we put software to work to automate as much of it as as possible.

And so right now, it takes us two to three minutes of human labor to process a transaction and review a file versus a traditional brokerage, which would likely take two to three hours for, you know, a human sitting in an office space to get that work done. So it’s a huge competitive advantage for us that we believe sets us apart and allows us to operate with a much lower cost structure than a traditional brokerage. Now I think it’s important to just double click on technology for a moment, particularly given the investments we’re making in AI. And so we do believe that we’ve built the leading, tech platform for brokerage operations, and we’ve recently announced some AI innovations that represent the next step in our journey. So specifically last year, we announced that we’re centering reason around LEO Copilot, which is our AI powered command center.

So anytime an agent, logs into Reason, at the top is a banner for Leo Copilot. It’s a virtual assistant that has visibility into all of an agent’s transactions, all of their revenue share. Basically their entire business. It’s your virtual assistant that knows everything about deals you have coming, transactions that need documentation review. Anything that’s missing, it’s somebody proactively letting you know, hey.

This is what’s in the pipeline and make sure that you’re ready and that you’re not missing a beat. And so this AI driven approach, it allows agents to spend a lot less time doing administrative work and focusing on what matters most, which is serving their clients and closing deals. And it it really is a game changer. You know, as an anecdote in the second quarter, we have LEO Copilot act as the first layer in answering, customer support calls or agent support calls into, out of the reZend platform. And in the second quarter alone, Leo was able to answer 28% of calls into the support team, which means, you know, nearly 2,000 calls did not go to a human operator.

It gave agents a much faster response immediately, and it allowed our human support team to focus on more complex issues, elevating the bar for service. So we’re very excited about LEO and AI. We’re putting it to work every day. And because we have all of our agents on one common platform, we think it enables efficiencies that traditional brokerages just are, you know, years away from being able to untap. Now lastly, the the fourth reason why agents join Reels are culture, which, you know, may not resonate a lot with the Wall Street crowd, but, you know, agents want to work in an environment where they can grow, where they can learn from others.

And I’m very proud to say at REAL, we built a culture of collaboration over competition. At a traditional brokerage, you may be competing with the person in the desk across this you know, across the hall from you. At Real, given that the revenue share mentality, the collaboration mentality, we foster an environment where agents support each other. They want to share knowledge. They want to share in everybody’s collective success.

We think, approximately 50% of our agents are shareholders in the company, and they want to participate in the shared success of the company. And I think that really rings true for all of our agents, anybody who’s interacted with our agents or attended one of our events, the culture is something truly differentiated. I want to just spend a moment on the efficiency of our platform, which we talked about. The first chart, at the top of the screen shows our fixed cash operating expenses as a percentage of revenue, which has continued to decline year over year. It just demonstrates our ability to grow revenues much faster than fixed costs.

Another metric that we like to highlight is our headcount efficiency ratio, which is the ratio of agents to full time brokerage employees. So, typically, at a brokerage, you would have one employee for every 20 agents. At the end of the second quarter, our ratio was one full time employee for every 87 agents. And if you compare that to other brokerages, I mean, it’s, you know, multiples of what, any of the other public players, out there have demonstrated. And I think it’s a huge competitive advantage.

It just allows us to support a rapid growth while prudently scaling OpEx efficiently. We spent a lot of time talking about brokerage, but I think it’s important to also talk about ancillary services. So in recent years, we’ve made two acquisitions of a title company and a mortgage company, and expanding into these business lines was very deliberate because our brokerage gross margins today are between 810%, whereas title margins are north of 80% gross margins and mortgage is in the 40 to 50% range. And so it’s significantly higher revenue or significantly higher gross margin per transaction when you attach title and and mortgage. And so we’re in the process of scaling both of these businesses.

But when we look to the future, our our success and our growth isn’t just gonna be about attracting more agents and more transactions. Obviously, we’ll continue to do that, but it’s also about maximizing the value of each transaction, and that comes from attaching more of these services. Today, we’re around 4% attachment on the title side in the states we operate. We’re around 1% in mortgage. And so it’s a huge opportunity for us to drive improved profitability and expand our margins by attaching more of these, high margin services.

When we think about the future of the company, we our vision is really to transform the home buying experience for agents and their clients, and that’s gonna come from an AI driven experience. So anyone who’s bought a home today knows that the process is broken, it’s not enjoyable, you don’t have a lot of visibility into closing or even where you are in the process. And so we think that technology can dramatically improve that client experience. And so to that end, in October, we announced that we’re developing a new consumer facing product named LEO for clients. This is an AI powered text based interface that will allow our agents and their clients a seamless experience from discovery to close.

And you may have seen that last month, we announced we acquired the consumer facing home search portal from Fly Homes, which is a prop tech startup that’s invested significantly into enhancing the consumer experience. And so by leveraging the Fly Homes, team and combining that with our AI engineers, we’re really looking forward to launching the alpha version of LEO for clients later this fall. And it really represents a huge opportunity to improve the client experience and also drive attachment of our higher margin mortgage and title services as we’ll now have the direct line of contact into our into our agents’ clients. Now another major initiative that I I think is worth spending a little bit of time on is RealWallet, which is our first fintech product tailored specifically for real estate agents. So previously, when an agent would close a transaction, we would collect the funds, we would transfer the agent split directly into their bank accounts, and we wouldn’t monetize, you know, 80 to 90% of that transaction.

Last year, we launched the RealWallet, which is a digital wallet that every agent at Real will have access to. Today, agents in The US have the opportunity to open a business checking account. They can receive a Real branded debit card. And in Canada today, select Canadian agents have access to a line of credit. So since we’ve rolled out the wallet in the fourth quarter last year, two full quarters later, we now have 3,600 active wallet users.

The total deposit balance in real wallet checking accounts is $15,000,000. In Canada, we’ve extended $4,000,000 in lines of credit. And so if you think about the revenue streams from the wallet first, it’s interchange fees. Every time an agent swipes the debit card, we’ll earn a percentage of that transaction. Second, it’s the interest income on the float balance held in the wallet.

And third, it’s the the APR on credit lines, which today are only available in Canada, but we anticipate launching The U. S. Lines of credit this quarter. So just three quarters into the launch, we’re run rating at over $1,000,000 in annual revenue, and we look forward to watching this number grow as we’re really in the first inning. We haven’t rolled out rewards points, which are forthcoming, and we think the wallet adds a new layer of flexibility for agents.

It will create greater retention for agents using the wallet. It really exemplifies our vision to go beyond the traditional brokerage and really build a comprehensive ecosystem for agents to manage their business, manage their wealth, grow their wealth all in one platform. Now I think we can close the prepared remarks with why I’m so excited about our future. And if there’s a few key messages I want to leave you with, it’s first, we’re very confident in our ability to deliver significant above market growth regardless of how the macro recovers. Two, our proprietary software and AI powered platform create a competitive advantage, streamlines workflows, reduces our operating costs, and really empowers our agents to deliver better outcomes for their clients.

And then lastly, our expansion into high margin ancillary services such as mortgage, title, fintech positions us for substantial long term profitability growth. I think we can wrap the formal remarks there and and go to q Perfect. And

Jason, Oppenheimer: So, general reminder, if anyone wants to ask a question, feel free to put into the chat. So Ravi, first question, look, basically, every brokerage firm Louis, we can take down the the the slides. Basically, every major broker for claims to have strong technical capabilities. I mean, historically, a lot of the benefits you got from being part of a big brokerage firm was discounts on third party products. But, I mean, maybe talk humility how much have you spent to, you know, on your tech platform.

And then, I guess, like, you know, the ability to do it through a transaction end to end, right, probably should be the hallmark of a true digital workforce. Maybe elaborate on that a bit.

Ravi Jani, CFO, Real: Yeah. I mean, total investment into the tech platform is in the the tens of millions. In in the second quarter, we spent about 4,000,000 in r and d. So we’re run rating in the mid teens and and that’s annually and that’s growing. If you factor in fly homes that, you know, also spent a significant amount of money on their platform that’s now a part of ours, it it obviously would push that number higher.

You’re right. A lot of real estate brokerages talk about being technology companies, but you’re also right that today a lot of them still just offer a disparate collection of third party services. I think what differentiates Real is that a 100% of our agents use our technology. It’s not optional. And that level of adoption is what allows us to operate incredibly efficiently and to pass those savings onto our agents through the higher splits.

I think with respect to that end to end platform, it it starts with having all of your agents on one common platform. And then because it’s our own proprietary system, the ability to layer on ancillary services all in one ecosystem makes it easier. We’re not stitching together a bunch of third party tools or giving agents a bunch of discounts to a bunch of third parties and they can choose their own adventure. It’s we get to control the experience soup to nuts, and that’s that’s been our differentiated, value prop both on the front end and the back end.

Jason, Oppenheimer: Right. So, basically, we’re like other firms kind of have technology that’s, like, maybe a nice to have. The point is that if you join Real, you have to use the the technology. So, really, you know, you you just have this, like, very it’s basically a it’s it’s a forced buy in.

Ravi Jani, CFO, Real: Yeah. I I exactly. There’s there’s no other way for for

Jason, Oppenheimer: Oh, Robbie, you could stop stop sharing, basically. I think that’s the key here.

Ravi Jani, CFO, Real: Got it. I’ll stop sharing.

Jason, Oppenheimer: There we go.

Ravi Jani, CFO, Real: Nope. That’s correct. It’s yeah. It’s it’s mandatory. I mean, it’s at a traditional brokerage and and a lot of them have invested a lot of money in tech, but if you’re an agent and you’re working out of an office and you don’t wanna use the tech, that’s fine.

There’s a human there who will process the file for you. At Real, we we save that work for software, which can do it much more efficiently. And so, yeah, it’s not optional.

Jason, Oppenheimer: So, yeah, another question. I I just wanna jump over to some of the new products. So a lot of companies in the industry have wanted to launch mortgage and title just because the fees are so attractive, and it’s been difficult whether it’s rest for rules or, like, the like, just actually, you know, like, getting the workflow right. Can you disclose what are the attach rates right now? And just why do you think you you figured this out where so many others have struggled to figure out how to get these products to scale?

Ravi Jani, CFO, Real: Yeah. So I I may have mentioned the attach rates today are are quite low. On on the mortgage side, we’re around 1% of the states we operate. On the title side, we’re closer to 4%. You know, there’s sort of a near term and longer term strategy with respect to driving attachment.

I think in the near term, we’re going to continue to do a lot of the traditional things that we have been doing that have driven the 80% growth in mortgage in the second quarter. So that’s getting in front of agents, coming up with innovative programs like Real Originate that allows agents to become licensed loan officers. We’ve launched an inside sales team on the mortgage side, bringing over some professionals from Rocket. On the title side, we have a state based JV strategy, which means that we are opening up joint ventures in the states where title is licensed, some of our largest, most productive teams are joining as equity partners in the joint venture and sending a deal flow. And then as more agents in that state, send volume to the joint venture, they can qualify to become investors in the JV as well or partners in the JV rather.

So I think we’re in the early innings of proving out the attachment thesis. I think that’s sort of the near term is continue building on the progress that we have. The longer term is really building that better client experience and making title and mortgage part of the client experience in the flow, which is why we’re investing so many resources into building a consumer facing portal. That’s not a consumer app, but it’s really a text based interface that every agent will have their own unique phone number that they can use that’s you know, enhanced by AI. And that way when a client is looking for a home, they can search for a home, they can schedule viewings.

And then when it’s time to make an offer, they can get easily preapproved all via one closed loop system that’s all offered by Real.

Jason, Oppenheimer: Right. So, I mean, so much of your growth has come from agent addition. I mean, is there how do you think about it, between individual agents versus teams? Like, is there, like, a metric you can share, like, the average team size who who’s joined, let’s say, over, you know, the last few years?

Ravi Jani, CFO, Real: Yeah. It you know, it’s around 50% solo agents, 50% teams has been the mix. I think that it’s been a little bit heavier on teams in the last two to three years than when we first went public in 2020, 2021. I think part of that is just a function of getting some really strong teams join the platform. The business has really been validated by some wonderful teams who have come on board.

And then with the advent of private label last year, now around 15% of agents who join REAL are coming under the private label program, which is allowing independent brokerages to align with us. So the mix of agents is around fiftyfifty agent solo versus teams, but the team mix has certainly improved. And the quality of teams joining is really top notch relative to several years ago where it was much harder to convince a, you know, a large team to come join Real when we were sort of an unknown entity. Now we’re a known player. We’re, you know, top five, six brokerage in the industry.

We’re a force, and a lot of teams who are joining and aligning with us know that they see the future of the industry and where it’s going, they wanna be aligned with with the winners.

Jason, Oppenheimer: And then and, like, maybe talk about the is there a different economic incentive for teams versus because the way the rev share works, like and and that part of what’s attractive about that?

Ravi Jani, CFO, Real: The I mean, the revenue share model is consistent across solo agents and teams. Teams, depending on the team size, they can qualify for certain team based caps. So if you’re an agent on a team, that $12,000 cap may be a $6,000 cap or a $4,000 cap depending on the size of the team. Again, that’s one of the benefits for teams coming or agents aligning with the team as opposed to solo agents. But in general, the economics are largely the same.

The rev share model works the same whether or not it’s a team or solo agent.

Jason, Oppenheimer: You’ve been bringing on more high producing agents. And, again, based on, like, again, more on efficiency than, let’s say, just average home price. But, you know, what’s been the driver of that?

Ravi Jani, CFO, Real: Well, what’s been the driver of bringing on more high producing agents? I I think there’s a couple things happening in the market. One, you’re seeing the less productive agents just leave the industry. It’s a bit of a sign of times with the industry operating at such low levels, more of the volume is just going to, you know, full time agents, more productive agents. Our ability to attract some of the, you know, the most productive agents is really a function of just proving out the business model and the value prop.

I think a lot of the most productive teams are still aligned with traditional players, and they’ve been with the Douglas Ellemans or the, you know, Century twenty ones for decades, and they’ve never thought to look outside of what they know. But I think the next generation of producers is embracing this model as the future. And so I I know a a number of top teams who have left some of those traditional models. They see the 6 figure savings that they’re getting from being a part of REAL, and they would never go back. So I think it’s this sort of slow evolution of the industry from the traditional model to models like ours.

And, I I think we have, you know, one of the most attractive value propositions, if not the most in the industry. So I think it’s we’re accelerating that shift.

Jason, Oppenheimer: Can you talk a bit more about how the the rev share model works with agents and agent recruitment?

Ravi Jani, CFO, Real: Sure. So, the revenue share model is tiered. So it’s when agents join Real, if they attract other agents to join Real as well, they are then named as a if they’re named as a sponsor for that agent they’ve attracted to the company, they can earn a royalty effectively revenue share off of all the revenue that generated by that agent they brought onto the platform. And so depending on how many agents you’ve brought to Real, you can unlock subsequent tiers. So in your first line, it’s, of agents that you brought on, you can earn up to 5% of that agent’s gross commission income, which comes out of Real split.

Obviously, that scales up as you attract more agents to Real. The amount of revenue you can earn off of those agents also scales up, and you can unlock subsequent tiers of revenue share. Now for real, we have, the way that the revenue share model works is that there’s a cap on the amount of our split that we will pay out, in revenue share, which is 60% of the company dollar split. And so, you know, mathematically, if there’s a 15% gross profit split, 60% of that would be nine points. We would pay out a maximum of nine points on that transaction into the revenue share pool.

Jason, Oppenheimer: Question on the wallet. So super interesting, kind of both adding functionality to the to the agents as well as, you know, kind of financially, this is helpful to them. On the loans, like, how, like, how are the loans backstop? Like, what’s the credit recourse? So you send a million dollar I mean, whatever.

It might manually, few $100,000 loan and the agent doesn’t pay it back. What’s your recourse?

Ravi Jani, CFO, Real: Right. Well, I I think, the agent that would qualify for a few $100,000 loan would be an agent that has a lot of, you know, production. So an agent that has a lot of pending transactions, an agent that likely has revenue share. And so we obviously have a a first part, you know, first line of getting repaid just from the transactions in the pipeline. To the extent there was a need to collect or a default, there’s the independent agreement, kind of stipulates the revenue share pool as a backstop, but ultimately, that’s not the the the goal is really to just be very tight on our underwriting, make sure that we’re only extending credit to those agents who are with the platform, who have production, who have assets on the platform, and we’re being disciplined in extending credit to those that are really using it as a business line of credit and, you know, understand ROI that if I invest x dollars into my business, it’ll generate x return.

But, yeah, our ability to collect has not been a concern of ours.

Jason, Oppenheimer: And then the the company has always been I mean, look. It was founded as, a tech enabled brokerage platform, You know, really in the last, like, you know, call it eighteen months, right, there’s been a all of these new LLM, agentic models and tools you can use. Like, I mean, how much of that is already powering what you’re doing versus there’s just still, you know, much more to come either on the front end or the back end from an efficiency standpoint?

Ravi Jani, CFO, Real: I think with anything with AI, we’re in the first inning. I think we we’re standing up our own in house AI automation team as we speak this quarter that’s gonna be tasked with looking at every single process in the business to figure out what we can automate using AI if we’re not already doing it. I think we we’re early in, embracing AI. Like, Leo has been out for two years, so only a little bit longer than ChatGPT or a little less than ChatGPT. And so I think we’ve been leading the charge in embracing AI in the industry.

I think we’ll continue to, but it’s, you know, day one of

Jason, Oppenheimer: So there’s definitely some monologue to come. Last question, what are your thoughts on kind of the real estate market from here?

Ravi Jani, CFO, Real: Well, look, I think, as history would suggest, there’s probably only one way, you can go up where you can go from here, which is up. You know, we’re at historic trough levels in terms of existing home sales activity. I won’t venture to guess on timing of when the market recovers, but I think we’ve been bouncing along at this $4,000,000 existing home sales level, which, if history is a guide, is basically as low as the end market gets. The rate environment, you’ve seen a little bit of a pullback in the long bond, and I think there’s growing anticipation that rate cuts could be forthcoming. But ultimately, think Americans need homes.

I think the market’s undersupplied. I think we’re operating well below the historical, you know, mid cycle average. And so the direction of travel will be up, but I I won’t venture to guess on timing.

Jason, Oppenheimer: Got it. Okay. We’re gonna stop there. Ravi, thank you very much for your time. If anyone has any questions, feel free to reach out to me, and we can connect you with the company.

Thanks, everybody.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.