1 real estate stocks that can get in the way of the brokerage business



RThere are $ 2.5 trillion worth of homes sold annually in the United States, and this is an industry that has tremendous potential to disrupt. In that Fool Live video clip, written on June 15, Motley Fool Development Director Anand Chokkavelu explains why eXp World Holdings (NASDAQ: EXPI) could have so much growth potential in the coming years.

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Anand Chokkavelu: eXp World Holdings, Ticker EXPI, is ranked 14th. It’s a completely remote cloud-based realtor disrupting traditional traditional stores like Keller Williams or Century 21, led by Glenn Sanford. He, his ex-wife and several other people own a controlling stake. They are very, very focused on agents to show that gross margins are only 9% because they seem to be following a strategy of allowing agents to basically eat what they kill, 80-20 commissions split with cap and trying to grow due to the volume. The 20% of the commission they receive is then used in a tiered marketing structure that encourages their agents to do what they do best. Sell ​​and in this case sell to other agents in connection with eXp. They also receive in-game skin grants and high Glassdoor ratings that they maintain, which is handy for agents. In terms of growth, this is a huge opportunity for housing, including international. They started commercial real estate at the end of 2020. They said they were open to other service businesses. They even license their virtual 3D office to other companies. It has a market capitalization of $ 5-6 billion, 12-month sales growth of 93%, a net money supply of $ 100 million, a profitable profit in 2020, and already had positive free cash flow. Some of the risks for me are associated with the incentive schemes there. Effects. I would like to look at the impact on gross margin and dilution. They need to be watched. If you are intrigued by eXp, also check Fathom Holdings (NASDAQ: FTHM), ticker FTHM. This is about one-tenth the size and seems to be in line with the same indicative strategy in terms of strategy.

Anand Chokkavelu, CFA owns shares in eXp World Holdings. Matthew Frankel, CFP does not hold positions on any of the mentioned shares. The Motley Fool owns shares in Fathom Holdings Inc. and eXp World Holdings and recommends them. The motley fool has disclosure policy

The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.


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