Under the umbrella of its parent firm, eXp World Holdings Inc., eXp Realty is a real estate agency that offers real estate services. Glenn Sanford, the founder of eXp Realty, started the company in 2009.
In 2013, eXp World Holdings went public. Then 2018 saw the listing of eXp on the NASDAQ. With the ticker code “EXPI,” eXp World Holdings Inc. is now a publicly listed corporation on the NASDAQ stock exchange. Through their existing stock brokerage, every investor can buy and sell shares of eXp Realty.
The following businesses are part of eXp World Holdings along with eXp Realty: eXp Global, Virbela, eXp Commercial, and Showcase IDX.
Being able to purchase stock in three different methods while performing real estate sales, as usual, is one of the many interesting advantages of being eXp Realty agents or brokers.
If you want to learn more about eXp Realty, contact us now.
Sustainable Equity Plan
Real estate agents participate in eXp Realty’s Sustainable Equity Plan, which rewards them with stock awards for performing certain company-related activities.
Closing your first home with eXp Realty every year will bring you $200 in EXPI stock.
Fully capped every year will bring you $400 worth of EXPI stock.
If you sponsor a realtor, eXp Realty will help them close on their first house – EXPI stock worth $400
Such awards have a 3-year vesting duration after being earned.
ICON Agent Award
The ICON Agent Award is given annually to an eXp Realty agent who sells rental properties at a high level, as measured by transaction volume or gross commission revenue. This award can return upwards of $16,000 in EXPI stock to the winning agent.
Agent Equity Program
Agents of eXp Realty can also take part in stock ownership by choosing to join the “Agent Equity Program”. Through this arrangement, eXp Realty is able to buy EXPI shares at a 10 percent discount and retain 5% of the commission on an agent’s sale.
The closing market price of EXPI stock on the final trading day of the month is used to calculate the share price. The date of issuance is also the same day.
The Opt-In/Opt-Out Form must be filled out by agents any time they decide to engage or not engage in this program.
Stock Divide
eXp World Holdings performed a 2-for-1 stock split on February 16, 2021. This implies that everyone who owned EXPI shares before February 16th now owns double the number of shares for the same price.
Companies usually split their stock in order to lower the price of the shares. Instead of purchasing several fractions of a share, investors can buy complete shares.
This is particularly significant for eXp World Holdings and eXp Realty since agents receive shares as rewards. Consider the $200 stock incentive that agents earn each year for their very first deal. About 1.25 shares is equal to $160 per share. At $80 per share, however, that is 2.5 shares.
Without the split, there could be a problem where agents wouldn’t receive a whole share when they won an award if the stock price kept rising.
Growth of Company Earnings
Over time, eXp World Holdings’ sales and cash flow have increased dramatically. EXPI had never experienced a quarter with a positive net income before the fourth quarter of 2019. However, EXPI has had phenomenal profit growth since then.
eXp World Holdings experienced a net revenue loss of almost $10 million in 2019. eXp World Holdings recorded a positive net cash flow of more than $30 million in 2020.
Additionally, EXPI has had significant income growth as a result of the accumulation of agents and the purchase of other businesses over the previous few years. EXPI generated sales of about $500 million in 2018. This income increased to $979 million in 2019, almost double. Then, in 2020, EXPI overcame the $1 billion revenue threshold and ended the year with $1.79 billion in earnings.
EXPI Dividend Stock
In 2021, eXp Realty started paying quarterly dividends to stockholders. These payments are paid from the company’s profits with the goal of giving shareholders a consistent flow of money.
The initial dividend was granted in April 2021 at a rate of $0.025 per share. In July 2021, the dividend payment grew to $0.03 per share, and in October 2021, it climbed to $0.035 per share. Each quarter, the dividend payment rose by $0.005 per share, reaching a final distribution of $0.075 per share.
Selling Your eXp Realty Stock Shares
Shares of EXPI stock may be sold using the agent’s Shareworks account or transferred to another real estate brokerage account after vesting. From November 1st, 2019, EXPI shares purchased through the online website in eXp Enterprise may be sold via Shareworks.
Shareworks will charge a $.03/share commission on shares of EXPI stock that are sold. There is also a $20 wiring charge. If accomplishing this transfer/sale online, there are no additional expenses.
If you purchased EXPI shares before November 1, 2019, you can sell them through Broadridge by calling Shareholder Support at 1-800-586-1585.
Shares purchased before November 2017 are regarded as “restricted stock” and must first have the restriction removed for a charge of $50. Other costs for selling or transferring shares obtained through Broadridge are not to my knowledge.
eXp World Holdings INC Businesses
A program called Showcase IDX links real estate web pages to your neighborhood MLS. Local listings can be shown on the website thanks to this relationship. Due to its cutting-edge, fashionable UI and extensive functionality, Showcase IDX is regarded as a leader in the real estate sector.
Success Enterprises
SUCCESS Enterprises was acquired by eXp World Holdings in 2020. In addition to SUCCESS magazine, SUCCESS.com, SUCCESS Newsletters, podcasts, online training classes, and associate social media profiles, SUCCESS is a renowned personal development firm that was founded in 1897.
Virbela
Virbela builds virtual workplaces for businesses all over the world. eXp World is powered by Virbela. The MIT Sloan School of Management, HTC, PricewaterhouseCoopers, and several other businesses also make use of Virbela’s virtual offices.
2020 saw the creation of eXp Commercial by eXp World Holdings, which separated the commercial brokerage from eXp Realty. Today, real estate agents from all over the US and the world call eXp Commercial home.
How to Be Eligible for the ICON Agent Award
There are 3 possible ways to be eligible for the ICON Agent Award.
Option 1
One of the available options for eXp realtors is getting $500,000 in gross commission (GCI), minimum of 10 transactions + $5,000 less capped transaction fees paid.
For eXp agents that focus on luxury real estate or reside in locations with much higher property values than the national average, this ICON award production criteria choice is excellent. If you finish at least 10 closed deals and generate yearly gross commissions of $500,000 or more, you are eligible to win the ICON Agent award. Agents can also pay a $5,000 one-time “ICON Qualification Fee” if they reach the output targets.
For example:
Your average commission is $25,000, and you sell at least 20 properties every year, for a total GCI of $500,000.
Your yearly commission cap can be reached in four transactions. The remaining sixteen transactions’ $250 transaction fee will be subtracted from your compensation, which would remain at 100% ($250 x 16 = $4,000).
To attain the minimum of $5,000 in capped costs, just add $1,000 to your ICON Qualification Fee.
Option 2
You’ll need to obtain the yearly commission ceiling ($16K), plus sell an additional 20 properties during the anniversary year ($5K in transaction fees are capped).
For this option, ICON agents are often high-volume producers. Agents must meet their yearly cap and finish an extra 20 full transactions in order to be eligible for ICON Agent.
In order to explain this, let’s look at how the 80/20 commission ratio contributes $16,000 to eXp Realty. Once an agent reaches their quota, they switch to a 100 percent commission split less a $250 transaction fee cap. You must conduct an extra 20 full transactions after capping in order to reach the $5,000 in capped transaction cost required for the ICON award (20 sales x $250 = $5,000).
For Team Leaders
If you run a team or regularly earn referral fees, all of the partial sales will count toward your production requirements.
For instance, if you were to earn four referral fees at a rate of 25%, it would be treated as one complete sale.
Alternatively, if your team offers you 50% on every transaction and sells 40 properties in the year of your anniversary, it would be considered 20 complete transactions.
For Individual People
Some of these statistics can seem a little intimidating, but consider this additional example:
To be eligible for ICON Agent, an individual agent with an average commission check of roughly $8,000 would need to sell about 30 properties annually.
To hit your goal ($8000 x 10 sales = $80K), you would need to sell 10 residences, and you would then need to complete another 20 deals in the year of your anniversary.
How to Obtain The $16,000 ICON Agent Stock Award in Full
The following criteria must be satisfied once you’ve completed the production standards in order to be eligible for the full $16,000 annually:
- $8000 – Your manufacturing needs were met.
- $4000 – Satisfied eXp’s cultural standards.
- $4000 – spent $2000 each on the two yearly eXp events.
Depending on the stock price as of the date of the award, eXp will determine the total number of shares you will receive. There are several vesting times for each requirement:
- $8,000 Production Award, three years vesting.
- $4,000 Cultural Award, two-year vesting.
- $4,000 Participation award, can be cashed out immediately with no vesting.
Final Thoughts
In addition to net profitability, eXp Realty has seen a significant increase in sales and cash flow.
The company’s expansion into new markets and acquisitions, together with the start of its quarterly dividend payments to shareholders, are some of the reasons for this.
For individuals wishing to invest in a developing real estate business that distributes monthly dividends, EXPI is a fantastic choice. This is particularly true for real estate brokers who are currently selling properties and want to get equity ownership as compensation in addition to their usual sales income.
Contact Elizabeth Riley today to learn more about her experience at eXp Realty!