Commission advance startup backed by Serhant launches in South Florida

Firm also offers advances to developers and brokerages

Miami /
Nov.November 04, 2021 09:45 AM
RLTY Capital's Briggs Elwell and Ryan Serhant  

RLTY Capital’s Briggs Elwell and Ryan Serhant

RLTY Capital, a fintech commission advance startup backed by Ryan Serhant, is expanding to South Florida, The Real Deal has learned.

The New York-based firm, led by co-founder and CEO Briggs Elwell and co-founder Daniel Kennedy, is backed by Serhant’s brokerage, as well as by Related Companies Senior Vice President Chris Schmidt and Elegran CEO Michael Rossi. The company launched in New York City earlier this year and plans to operate across the country.

Like other commission advance firms, RLTY will purchase a stake in an agent’s commission for a discounted price. Unlike other firms, it does not need the approval of an agent’s managing broker or manager, and RLTY will typically pay the agent within a day, using its proprietary AI-enabled platform. It also does not limit the size of deals on which it will advance cash, which means it can provide advances to multimillion-dollar deals.

“There are a lot of commission advance companies. I didn’t want to do that,” Serhant said, citing firms that he said can be shark-like with exorbitant fees.

Serhant said the strength of the South Florida market is “one of the big reasons why RLTY chose to expand there next.”

Residential sales have soared in the tri-county region, as out-of-state buyers continue to move to South Florida, driving prices up. Serhant, a celebrity broker, was involved in the nearly $123 million sale of a Palm Beach mansion earlier this year, which set a record for the entire state. (That price likely does not include commissions and other fees.)

Serhant said many agents in New York who also operate in Florida have been requesting the commission advance service.

“South Florida was a logical transition for us given the success we’ve had in New York,” CEO Elwell added.

In addition to agents, RLTY works with brokerages to provide advances on their share of commission, as well as with developers for new development deals, Elwell said. The startup will be presenting its services to brokerages in South Florida.

Serhant compared the advances to small business loans, and said they are geared toward agents who want to expand their businesses and their brands. RLTY will purchase up to 100 percent of a commission, but it traditionally targets up to 80 percent.

Since launching in April, RLTY has been involved in hundreds of deals and purchased commission stakes in the millions of dollars, Elwell said.





    Related Articles

    arrow_forward_ios
    South Florida by the numbers: Winter sports heat up market
    South Florida by the numbers: Winter sports heat up market
    South Florida by the numbers: Winter sports heat up market
    Miami Beach state of mind: Hotelier buys Billy Joel’s former waterfront North Bay Road home
    Miami Beach state of mind: Hotelier buys Billy Joel’s former waterfront North Bay Road home
    Miami Beach state of mind: Hotelier buys Billy Joel’s former waterfront North Bay Road home
    Jeff Gordon and the Boca Raton home (Getty, Realtor.com via Premier Estate Properties)
    Jeff Gordon’s former Boca Raton mansion lists for $42M
    Jeff Gordon’s former Boca Raton mansion lists for $42M
    Lisa Hochstein and "Boob God" Leonard Hochstein, Nicky Jam and the property (Getty)
    “Boob God” plastic surgeon Leonard Hochstein sues Nicky Jam over home video shoot on Star Island
    “Boob God” plastic surgeon Leonard Hochstein sues Nicky Jam over home video shoot on Star Island
    Berkshire Hathaway EWM expands to Palm Beach
    Berkshire Hathaway EWM expands to Palm Beach
    Berkshire Hathaway EWM expands to Palm Beach
    Cash him outside: Music manager who reps Bhad Bhabie buys waterfront Miami Beach home
    Cash him outside: Music manager who reps Bhad Bhabie buys waterfront Miami Beach home
    Cash him outside: Music manager who reps Bhad Bhabie buys waterfront Miami Beach home
    Steve Stoute and the Pine Tree Drive Circle mansion (Getty)
    Music exec Steve Stoute behind $28M Miami Beach deal: sources
    Music exec Steve Stoute behind $28M Miami Beach deal: sources
    PE firms LarrainVial, DaGrosa Capital invest in Miami real estate companies
    PE firms LarrainVial, DaGrosa Capital invest in Miami real estate companies
    PE firms LarrainVial, DaGrosa Capital invest in Miami real estate companies
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...