RLTYco, a provider of agent services including healthcare and tax services, is growing its commission advance offering.
The company announced Wednesday it has closed on a deal to acquire RealCommissions, an Atlanta-based firm that serves as an approved vendor for both Berkshire Hathaway HomeServices and Keller Williams Realty. Financial terms of the deal were not disclosed.
Founded in 2004, RealCommissions has provided over $150 million in commission advances on pending deals across more than 25,000 transactions, according to a press release.
The commission advance industry, which provides agents discounted upfront payments for deals that haven’t closed yet, has long been a fragmented and often shadowy business made up of a patchwork of local providers.
Agents and brokerage heads have touted the need for a way to turn inconsistent payments into a smoother cash flow, agents have also criticized the high fees and aggressive collection practices they face at the hands of some platforms.
The industry’s current offerings could leave agents with “immense penalties,” Elwell said, adding that operators have “a lot of opportunity to grow in terms of professionalism and user experience.”
“We consider ourselves to be the most professional and lowest fee experience in the industry,” Elwell said, pointing to RLTYco’s model, which does not charge processing or application fees.
RealCommissions will retain its staff and brand, and Siegelman plans to remain involved as a strategic advisor.
“Our relationship with the RLTYco team was born out of a shared vision to pursue massive growth opportunities in new and existing markets,” Siegelman said in a statement.
RLTYco is open to more M&A opportunities, according to Elwell.
“We’ve had an immense amount of growth in all of our product lines,” he said. “Agents using commission advances also have a need for accounting services, healthcare [and] legal services.”
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