If you keep up with real estate industry news, you’ve probably heard that eXp Realty continues to make splashes. Its true, eXp Realty gross revenue has been growing substantially in the last few months alone. In fact, after Q2 of 2020 executives indicated a revenue growth rate of 33%. That’s HUGE for the company with no regression in sight as new agents joining the company trail close behind in terms of month over month growth.
You may be seeing the hype and thinking, this is great and all, but from a real estate agent standpoint, what do they really offer that’s different? All signs indicate that they must be doing something right.
In this article I will touch on the multiple income streams that are available to agents at eXp Realty, and how to branch out from the traditional 2-3 methods into 6-7 streams.
eXp Realty Express Offers is still somewhat in its infancy but the goal is clear. To remain at the top of an industry with ever-changeing technology, c level executives at eXp have shown their commitment to providing its agents and brokers with cutting edge software.
The iBuyer space is growing, and eXp Realty won’t be left behind, in fact it will be doing just the opposite as it competes with household names like Zillow, Opendoor, and Redfin as they attempt to hire their own agents in a similar model.
Agents receive income two ways in Express Offers. From the seller side (listing contract) and the ibuyer side (only if you introduced the ibuyer). When you introduce a new institutional buyer to the program, you are awarded a commission for every property they buy. Some heavy hitters on the platform buy and sell hundreds of properties a year!
Another less thought about stream is other eXp agents themselves. With access to the facebook workplace, you can literally get in touch with thousands of like-minded professionals in whatever area you have clients.
Since eXp Realty is set up as single brokerage, it streamlines the paperwork, farming, and negotioation aspects common in referral businesses.
Tip: Take advantage of advertising outside of your home state. Increase your chances for success by partnering with top agents in the area you target and earn virtual commissions monthly.
This program above all others, receives the most attention and some backlash. The reality is, eXp Realty is not a Pyramid scheme, ponzi scheme or anything else illegal. They are a publicly traded company on the Nasdaq with quarterly audits from the FCC.
Revenue Share at eXp is basically an incentive for agents to help grow the company and agent count. Similar to Keller Williams profit share (but better) Revenue Share puts every agent who decides to list you as their sponsor, in what’s called your downline. Roughly speaking you can expect around $1,000/year per agent. This estimate combines overperformers, underperformers, and consistent performers. Once those agents allow you to unlock the next tier, and the new agents do the same, you get the point…
The Tiers go down 7 levels and you earn an average of 3% of every transaction the sponsored makes, until he/she caps. This can be SO powerful if scaled correctly. Read more here!
eXp Realty Stocks
This is an income stream that you seldom if ever see related to a real estate brokerage. The ability to provide agents and brokers company stock creates a real sense of togetherness when helping grow the company.
You can aqcuire company stock in 3 different ways.
- Sustainable Equity Plan – Agents are awarded for completing certain tasks like closing on your first home every year($200 worth), fully capping each year($400 worth of stock) and or sponsor an agent and he/she closes thier first property of the year(First year only $400 worth). A 3 year vestinig period may apply.
- Icon Agent Award – Agents who hit a specific set of production and cultural requirements can receive their $16,000 cap back in the form of eXp Realty stock. For the production requirement, agents must have capped for that year and paid an additional $5,000 in transaction fees($250/transaction) or 20 closed deals beyond capping. Another way is to close on $500,000 or more with a minimum of 10 transactions. Beyond production, agents must also complete a cultural requirement such as becoming a mentor or online class instructor. $8,000 is awarded when you hit ICON status, $4,000 after you hit your cultural requirement, and the last $4,000 for attending 2 mandatory events (EXPCON & Shareholder Summit).
- Agent Equity Program – The last way to aqcuire company stock is by signing up for the Equity Program. This program allows eXp Realty to withhold 5% of every transaction, to purchase company stock at a 20% discount. The stock price is determined at the closing bell value after the last trading day of the month. Agents can opt in/out at any time easily.
This revenue stream is self explanatory. eXp offers tools and resources to make earning revenue from listings and buyers simple. eXp Realty is above all else, a real estate Brokerage. This is the main engine that all the other lead sources need to survive.
On top of industry leading softwars in KvCore, and ExpressOffers, eXp Realty offers agents training up to 60+ hours a week via online classes and lectures. The value here is immense because these teachers are certified experts(or else they would not qualify to lead a class) and know what they are talking about down to a “T”.
Think about all of the Youtube “Gurus” you have went to for knowledge and then you ask yourself, “Is this guy even qualified to teach these techniques?!” The expert guidance and community involvement makes eXp Realty a special place to hang your license.
Turn Great Deals Into Rentals
Ever come across an amazing deal but not have all the dots connected as to how you would make it work? eXp Realty provides training and guidance for aspiring investors to take advantage of investment opportunities without hesitation.
This stream is more optional and depends on your goals in real estate. I am a huge fan of the BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat). It allows you, via the FHA 203k or fannie mae HomeStyle loans, to add the rehab costs into the loan, and in most cases delayed payments till the work is finished.
Buy a rundown home in a nice or up-and-coming area for 30k. ARV (after repair value) is 195,000 and it needs 70,000 in repairs and upgrades. Get a loan for 100,000 with all improvements. In 3-6 months(after construction) you are sitting on 95,000 in equity. After 6 months(pending loan seasoning requirements) you can then move forward with a cash-out refinance and repeat the process.
Turn Great Deals Into Fix/Flips
This stream is similar to BRRRR except you are focusing on Buy, Rehab, Sell, Repeat. These can often be lofty projects to take on, but can be massively profitable if you follow the correct principles. I recommend finding a mentor in your area if you are brand new to flipping.
If you want to learn more about setting up, implementing and growing these income streams, Checkout the AgentElites Course. It is the most complete all-in-one training course that covers every step from onboarding to launching successful ad campaigns. Are you ready to take advantage of this life-changing opportunity?