The Real Brokerage Inc. launched its first international office in Alberta, Canada as “Real Broker AB.” Real also operates in 31 states and the District of Columbia in the United States.
“This expansion into Canada is a major milestone for us,” said Real co-founder and CEO Tamir Poleg. “The real estate market in Canada is growing, with significant areas of opportunity. We believe Real can play a key role in the Canadian market and we look forward to building strong relationships with agents and clients in the country and increasing our international footprint.”
As part of the expansion, Real has appointed Dan Stante as the provincial broker for Alberta, and will be the first Real agent in Canada. Stante is currently a director of the Calgary Real Estate Board. In this role, he served on the Technology Standing Committee, where he assisted in implementing technological changes for the board to move to the Matrix MLS Platform. This included integrating ShowingTime and developing in-house mapping and tax tools. The remaining Sano Stante Real Estate’s Calgary-based team will be joining Real.
Founded in 2014 by Chief Executive Officer Tamir Poleg and Chief Technology Officer Gal Weiss, Real decided early on to brand itself as a technology-forward company. And several agents we spoke with mentioned a great mobile app. “We are very focused on technology, specifically mobile technology,” says Poleg.
In an interview with RealTrends, Poleg discussed the firm’s value proposition, which he says trends toward their splits, rev share and equity plans. According to Poleg, “We talk to our agents constantly, and many of them are attracted to the financial opportunities.” Real offers agents an 85/15 split, with a cap of $12,000. “Once you reach your cap, you pay $225 per transaction,” says Poleg. While there aren’t any monthly fees, there is an annual fee of $500, that’s “taken out of the first two closing for each agent each year.” They also offer a rev share.
The Real Brokerage didn’t submit for the RealTrends 500 or Nation’s Best brokerage rankings this year.
According to the brokerage’s unaudited Q2 earnings, revenue increased 790% in the second quarter of 2021 to $23 million, compared to $2.5 million in Q2 last year. Gross profit grew 764% to $2.4 million in the second quarter of 2021, compared to $281 thousand in Q2 2020. Net operating loss was $2.9 million in the second quarter of 2021, compared to a net loss of $1.2 million in the second quarter of 2020.
“During the second quarter, the combination of large increases in number of agents and revenue per agent accounted for revenue growth,” said Poleg. “In terms of outlook, on a monthly basis we added agents that collectively generated $20 million in trailing 12-month revenue recorded prior to joining Real. Based on these figures, we expect strong growth to continue.”