Real Broker
Moving your real estate license from the US to Canada
As a real estate professional, envisioning a career in a new country can be both exciting and scary. Moving your real estate license from the US to Canada is a journey that not only involves crossing physical borders but also navigating through regulatory, educational, and market differences.
Welcome to the Cross-Border Shift: Your Guide to Transferring a U.S. Real Estate License to Canada
Embarking on a real estate journey across the border? You’re in the right place. Transitioning your career from the U.S. to the thriving Canadian market is an adventure filled with potential. But it also comes with its share of questions: How does the licensing transfer work? What are the legal and tax implications? How do you align with Canada’s market dynamics?
Don’t worry, we’ve got you covered. This guide is crafted to navigate you through the intricacies of moving your real estate license northward.
So, whether you’re drawn by Canada’s diverse housing market or its rich cultural tapestry, let’s get started on turning your career aspirations into reality.
Understanding Real Estate Licensing in the US and Canada
Navigating the licensing process for real estate professionals entails a comprehensive understanding of the systems in place in both the United States and Canada. While sharing a common goal of maintaining high standards in the real estate profession, these systems diverge significantly in their approach and requirements.
US Real Estate Licensing Overview
Becoming a licensed real estate agent in the US starts with a set of universally recognized steps, albeit with some variations based on state-specific laws. Candidates must complete a pre-licensing educational course covering the fundamentals of property laws, real estate principles, and ethics; after education comes the challenge of passing a state-administered licensing examination.
A crucial part of maintaining an active license in the US is the commitment to ongoing education, ensuring that agents stay up-to-date with the evolving landscape of the real estate industry. It’s also common for agents to affiliate with a brokerage, which provides additional support and resources for their practice.
Canadian Real Estate Licensing: A Provincial Matter
Moving your focus to Canada, the licensing path takes a different shape. Here, prospective agents must navigate a province-specific framework. This means the requirements in British Columbia may vastly differ from those in Nova Scotia. A central aspect involves choosing a real estate broker in Canada to affiliate with, which is often a requirement before you can officially practice.
The educational criteria set by Canadian provinces typically include courses on local property laws, market analysis, and transaction procedures, reflecting the region’s distinct legal and market conditions. As in the US, Canadian real estate professionals must engage in ongoing learning to retain their licenses. This system ensures that agents entering the market are well-equipped to handle the complexities of Canadian real estate transactions and are aligned with the professional standards upheld nationwide.
In both countries, obtaining and maintaining a real estate license protects consumers and ensures that real estate professionals are competent and ethical in their practice. Understanding these systems’ intricacies is the first step for any real estate professional considering a move across the border.
Comparative Analysis of Real Estate Markets: US vs. Canada
Investigating the real estate sectors of the US and Canada uncovers distinct characteristics and shared traits that are essential for agents to understand. For professionals considering a move, grasping these market differences and commonalities is vital in the transition process.
Economic Influences on Real Estate
Various economic factors influence the real estate markets in the US and Canada. While there are similarities in market trends, such as the impact of interest rates and economic growth, there are also distinct differences. For example, Canada’s market is often influenced by its immigration policies, which can drive demand in metropolitan areas.
Market Trends: Similarities and Differences
Both markets see fluctuations in housing prices and availability, but the driving forces behind these changes can differ. Urban centers like Toronto and Vancouver often see higher demand
and prices due to limited space and high immigration rates. In contrast, the US market is more diverse, with significant regional differences.
Cultural Considerations
Culturally, real estate practices in Canada might feel familiar yet distinct. Canadian buyers and sellers often place high value on environmental sustainability and community-oriented living spaces, trends also gaining momentum in the US.
Legal Framework for Transferring Licenses Internationally
Navigating the legal landscape for transferring a real estate license from the US to Canada involves understanding both countries’ regulatory environments. While there are no broad international agreements specifically for real estate licenses, each Canadian province has regulations regarding the recognition of foreign credentials and experience.
Step-by-Step Guide to Transferring Your License
Transferring your real estate license from the US to Canada is a structured process that requires careful planning, thorough research, and adherence to specific rules. Let’s break it down into manageable steps.
Initial Considerations: Eligibility and Prerequisites
Before embarking on this journey, assess your eligibility. This includes understanding your current qualifications and how they align with Canadian standards. These include:
- Current Licensing Status: You must hold an active real estate license in the US.
- Educational Background: Verification of your real estate education and any related certifications.
- Professional Experience: Some Canadian provinces may require proof of your real estate experience in the US.
- Legal Eligibility: Ensuring you have no legal impediments, such as unresolved disciplinary actions, that could affect your application.
- Residency Status: Understanding and planning for any residency requirements in Canada.
After considering these prerequisites, you’ll have a clearer picture of your eligibility. Now, let’s proceed to the steps for moving your real estate license from the US to Canada.
Step 1: Research Provincial Licensing Requirements
The first and most crucial step is thoroughly researching the licensing requirements in the Canadian province where you intend to practice. Since real estate regulation is provincially governed in Canada,
each province has its own set of rules and criteria that you must meet. This research will give you a comprehensive understanding of the education, examination, and application processes specific to your chosen province.
Step 2: Evaluating Educational Credentials
Once familiar with the provincial requirements, evaluate how your current educational qualifications align with those in Canada. This might involve getting your credentials assessed by a recognized Canadian credential assessment service. If you identify any gaps, you’ll need to plan for additional education or training to meet the provincial standards.
Step 3: Completing Required Real Estate Courses and Exams
If your assessment reveals the need for further education, the next step is to enroll in the necessary real estate courses. These courses will not only fill any educational gaps but also familiarize you with Canadian real estate laws and practices. Following your coursework, you’ll need to successfully pass the Canadian real estate licensing exams, which are pivotal for securing your license.
Step 4: Application Process for License Transfer
With your education and examination requirements satisfied, you can proceed to the application phase. This involves compiling and submitting a comprehensive package of documents, including proof of your US real estate license, educational credentials, exam results, and any other required paperwork. Be meticulous in following the application guidelines to avoid any delays or rejections.
Step 5: Awaiting Approval and Addressing Issues
The final step is a period of waiting for your application to be processed and approved. During this time, be prepared to address any further inquiries or requests for additional information from the licensing authorities. This proactive approach can help expedite the approval process.
Each of these steps is crucial in transferring your real estate license from the US to Canada. By following this guide carefully and attending to each detail, you can navigate the process more easily and confidently, setting the stage for a successful career in the Canadian real estate market.
Adapting to the Canadian Real Estate Market
Adapting to the Canadian real estate market is more than just a legal process; it’s about understanding the nuances of a new cultural and economic environment.
- Understand market dynamics. When moving to Canada’s metropolitan areas like Toronto, Vancouver, or Montreal, it’s essential to understand the unique dynamics of these urban real estate markets. These regions often exhibit higher demand and prices, influenced by immigration, economic growth, and urban development.
- Explore cultural nuances. The Canadian real estate market emphasizes community, environmental sustainability, and quality of living. Understanding these values can help you better serve your new clientele.
- Build a strong network in Canada. Networking is key in real estate. Start building relationships with other professionals, join local real estate associations, and immerse yourself in the community to establish a strong presence.
- Focus on your marketing strategy and tailor it to your new market. In transitioning to the Canadian market, a key strategy is to focus on creating a strong brand that resonates with your target audience. This involves tailoring your marketing efforts to align with Canadian values and preferences and effectively communicating your unique value proposition as a real estate professional.
Legal and Tax Implications
Moving your real estate license from the US to Canada also means navigating a new legal and tax landscape.
Caption: Navigating Canada’s legal and tax implications is crucial, as they can significantly differ from US ones.
Alt-tag: iPhone on top of tax forms and documents on a black table.
Legal Responsibilities
Familiarize yourself with Canadian real estate law, which can vary from US practices. This includes understanding contracts, disclosures, and fiduciary duties in the Canadian context.
Tax Considerations for US Expatriates
As a US expatriate working in Canada, you’ll need to understand the tax implications. This includes knowing how to file taxes in both countries and understanding the potential for double taxation.
Professional Development and Continuing Education
Professional growth doesn’t stop once you’ve successfully transferred your real estate license. Canada places a strong emphasis on continuing education and professional development.
Embracing Digital Marketing
In today’s digital age, real estate professionals must focus on boosting SEO with tools for Realtors®. This enhances your online visibility and helps reach a broader audience, crucial for success in the competitive Canadian real estate market.
Ongoing Education in Real Estate
Staying updated with the latest trends, laws, and market dynamics is essential. Canadian provinces often have mandatory continuing education requirements for real estate professionals.
Case Studies and Success Stories
Learning from those who have successfully made the transition can be incredibly insightful. Therefore, explore online communities and forums; chances
are you’ll come across many fellow real estate brokers who went through the same ordeal as you. Who knows, you might also meet new friends.
Opportunities for Professional Development
Canada offers numerous opportunities for professional growth. Make sure to explore tools for Realtors®, such as workshops, seminars, and online courses, to enhance your skills and knowledge.
Resources and Assistance
As you embark on the process of moving your real estate license from the US to Canada, a wealth of resources are available to assist you.
Online Resources
This includes websites of real estate boards in various Canadian provinces, government sites providing information on licensing and immigration, and professional organizations offering guidance and support. There are also online blogs and forums for brokers where you can find useful information that will help you start fresh in Canada and skyrocket your career as a broker.
Professional Services for License Transfer
Several professional services can help simplify the license transfer process, ranging from credential evaluation services to legal advisors specializing in real estate and immigration. 
Moving Towards a Brighter Future
Moving your real estate license from the US to Canada is more than just a professional change; it’s a step towards new opportunities and experiences. Embrace the challenges and opportunities that come with working in a new market. With the right preparation and mindset, your move to Canada can be a rewarding and enriching journey.
Real Broker Press Event Live Blog
Welcome to the live stream blog of the FIRST real brokerage summit in Canada.
Below is the scheduled outline for the event, I’ll be filling in some of the gaps – we’re five minutes to 9:00 and the show is about to kick off!
General Session
We are live in the Van Horne Ballroom with host of the show REALTOR® Jesse Peters (AKA Mr. Social Savvy)
9:05 AM – 9:15 AM: We Are One Real – Tamir Poleg, Chairman and CEO
Tamir opened up his speech discussing the importance of ensuring the event is safe for all, that REAL has zero tolerance for abuse and harassment and that REAL ensures safety for all.
Tamir touched base on Canada’s impact on REAL highlighting that the country represents 20%
10% of real agents are in Canada
Canada is nearly seeing double the performani
9:16 AM – 9:31 AM: 100x ROI Formula – Sharran Srivatsaa, President
Hype session to lead off what’s happening
9:33 AM – 10:03 AM: Leo ROARS
Pritesh and ‘J MONEY’ per Sharran are revamping the pro team backend
Automated Team Fees
•Automation: Transaction fees are now automatically added to every transaction.
•Efficiency: Saves time and reduces errors by eliminating manual entry.
Pay on Behalf Of
•Customizable: Team leaders can cover fees for specific agents and transactions.
•Flexibility: Manage fees easily and effectively.
New Feature: Rio’s Signature
•Document Templates: Brokers can now upload and share document templates with their teams.
Leo AI
New feature will allow agents to call their brokers – the call will be recorded live, transcripted and my guess likely saved for later use where the AI will grow its knowledge base on the conversations it records.
10:04 AM – 10:30 AM: What’s New and Coming for Canada – Dre Madden, Chief Marketing Officer
Dre announced that ONEREAL.CA has been launched for Canada – REPYYC was responsible for securing and providing the domain JOINREAL.CA
OneRealLuxury.com – Launched
Real debuts their luxury presence, marketing material, sites, and the emphasis on growing a database of luxury properties.
11:03 AM – 11:53 AM: Your 2024 Listing Attraction Playbook – Jimmy Mackin, CEO of Curaytor
Jimmy provides a state of the union and where he sees the market going
Overall Jimmy is dropping some takeaways for REAL agents to inject into their marketing.
• Encourage Reviews and Referrals:
• Importance of one clear call to action in marketing campaigns.
• Example: “Write a review. I’m never too busy for referrals.”
Developing Effective Marketing Campaigns
• Understanding Success:
• Define the emotion and action desired from each campaign.
• Aim for authenticity and real engagement over polished but empty corporate marketing.
Example of Effective Marketing
• Jason’s Buyer Call to Action:
• Personal and specific message seeking properties for clients.
• Highlighting efforts and value provided to customers.
Avoiding Corporate Marketing Pitfalls
• Critique of Traditional Marketing:
• Corporate marketing is often safe, manicured, and ignored.
• Example of ineffective Toyota Corolla ad vs. humorous, authentic Craigslist ad.
Importance of Authenticity
• Authentic Messaging:
• Authentic messages resonate more than overly polished ones.
• Examples highlight the importance of being real and relatable in marketing.
Effective Communication Scripts
• Avoid Desperation:
• Desperate-sounding messages can put off consumers.
• Example of a desperate follow-up message to avoid.
• Conversation Starters:
• Use scripts that invite engagement without sounding desperate.
• Example script: “Hey, Tom, I was doing an equity check for my clients and thought of you. I’m seeing a lot of movement in your area. Have you been following the market lately?”
Key Takeaways
• Clarity and Focus:
• Have a clear, single call to action in all marketing materials.
• Authenticity Over Polish:
• Authentic, relatable marketing is more effective than polished corporate messaging.
• Engagement Scripts:
• Use scripts that start conversations and invite responses, rather than applying pressure.
Thursday, May 23
Marketing Machine with Sharran and Jimmy
6:45 AM – 7:00 AM MDT
Real Brokerage | Fourth Quarter & 2023 Year End Financials
A Banner Year for Growth and Innovation
Screenshots throughout courtesy of The Real Brokerage Inc. Simply Wall St Profile taken on March 13th 2024.
2023 was a standout year for The Real Brokerage Inc., marked by significant achievements and growth, even amidst the real estate industry’s ups and downs. The company’s commitment to empowering real estate agents with advanced technology and a supportive platform has clearly paid off, reflecting in their record-breaking financial figures. 
Before I dig into why this model is exploding, why it’s growing faster than any other model, etc. I’ll give you my perspective. If you come from a small brokerage, you’re only as big as the walls around you.
This brokerage, even if it wasn’t backed and ran by a true industry leader (Sharran) who I will dig deeper into later, the model itself is agent driven. The ones in the trenches, your teammates, the ones running robust marketing campaigns, generating leads, hiring staff, scaling teams, etc.
These are who we learn, grow, and build value for our teams and clients with. I have the ability in my network to connect and provide value with top teams across Canada and the US, sharing insight on our million dollars of PPC experience, new lead sources, trends, sharing platforms, etc.
All this is beyond empowering for agents and teams alike, what we offer since moving to this brokerage is exponentially greater than what we once did, and will only continue to grow as we invest back into ourselves and our partners. This model provides growth and collaboration unparalleled in the industry.
Key Financial Highlights
- Robust Revenue Growth: The company’s revenue soared to $689.2 million for the year, up by 81% compared to the previous year. This surge is a testament to the increasing value agents and clients find in Real’s innovative platform.
- Gross Profit Upsurge: Gross profit also saw a remarkable rise, reaching $62.9 million, nearly doubling from the previous year. It indicates not just higher revenue, but also efficient management and operational effectiveness.
- Net Loss Insights: While the net loss widened to $27.5 million for the year, it’s essential to view this within the context of broader strategic investments the company made in technology, market expansion, and agent support, which are expected to fuel future profitability and stability.
Operational Achievements
- Expanding Agent Network: The agent count on Real’s platform grew by 66% year-over-year, with around 16,000 agents by early 2024. This growth signifies the platform’s rising popularity and the tangible value it offers to real estate professionals.
- Transaction Volume: The total value of real estate transactions brokered through Real’s platform hit $25.9 billion in 2023, underscoring the trust and efficiency that agents and clients experience with Real.
Innovations and Future Outlook
- One Real App & Real Wallet: The launch of the One Real consumer-facing app and the Real Wallet financial ecosystem are game-changers. They’re set to revolutionize the real estate transaction process, making it smoother and more integrated for agents and their clients.
- Private Label and ProTeams Programs: These new initiatives offer unprecedented opportunities for independent brokerages and teams to leverage Real’s robust platform, enhancing their operational efficiency and market reach.
What This Means for Real Estate Agents
For agents affiliated with The Real Brokerage Inc., these results are not just numbers but a reflection of the company’s robust health and its commitment to innovation and agent success. The financial growth, coupled with strategic investments in technology and agent support, indicates a promising horizon for all associated with Real.
- Empowerment through Technology: The continuous tech advancements mean agents are equipped with the best tools to serve their clients effectively and efficiently.
- Growing Network: Being part of a rapidly expanding network offers more opportunities for collaboration, learning, and business growth.
Final Thoughts
Real Brokerage impressive performance is a clear indicator of its strong position in the real estate industry and its unwavering commitment to empowering agents and reshaping the real estate experience. As we move forward, the brokerages focus remains on leveraging this momentum to achieve even greater heights and redefine what’s possible in real estate.
| THE REAL BROKERAGE, INC. | ||||||
| CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | ||||||
| (Expressed in thousands of U.S. dollars) | ||||||
| (unaudited) | ||||||
| As of | ||||||
| December 31, 2023 | December 31, 2022 | |||||
| ASSETS | ||||||
| CURRENT ASSETS | ||||||
| Cash and cash equivalents | $ | 14,707 | $ | 10,846 | ||
| Restricted cash | 12,948 | 7,481 | ||||
| Investments in financial assets | 14,222 | 7,892 | ||||
| Trade receivables | 6,441 | 1,547 | ||||
| Other receivables | 63 | 74 | ||||
| Prepaid expenses and deposits | 2,132 | 529 | ||||
| TOTAL CURRENT ASSETS | 50,513 | 28,369 | ||||
| NON-CURRENT ASSETS | ||||||
| Intangible assets | 3,442 | 3,708 | ||||
| Goodwill | 8,993 | 10,262 | ||||
| Property and equipment | 1,600 | 1,350 | ||||
| Right-of-use assets | – | 73 | ||||
| TOTAL NON-CURRENT ASSETS | 14,035 | 15,393 | ||||
| TOTAL ASSETS | 64,548 | 43,762 | ||||
| LIABILITIES AND EQUITY | ||||||
| CURRENT LIABILITIES | ||||||
| Accounts payable | 571 | 474 | ||||
| Accrued liabilities | 13,374 | 11,866 | ||||
| Customer deposits | 12,948 | 7,481 | ||||
| Other payables | 302 | 1,188 | ||||
| Lease liabilities | – | 96 | ||||
| TOTAL CURRENT LIABILITIES | 27,195 | 21,105 | ||||
| NON-CURRENT LIABILITIES | ||||||
| Warrants outstanding | 269 | 242 | ||||
| TOTAL NON-CURRENT LIABILITIES | 269 | 242 | ||||
| TOTAL LIABILITIES | 27,464 | 21,347 | ||||
| EQUITY | ||||||
| EQUITY ATTRIBUTABLE TO OWNERS | ||||||
| Share premium | 62,567 | 63,204 | ||||
| Stock-based compensation reserve | 52,937 | 25,083 | ||||
| Deficit | (78,205 | ) | (50,704 | ) | ||
| Other reserves | (167 | ) | (469 | ) | ||
| Treasury Stock, at cost | (257 | ) | (14,962 | ) | ||
| EQUITY ATTRIBUTABLE TO OWNERS | 36,875 | 22,152 | ||||
| Non-controlling interests | 209 | 263 | ||||
| TOTAL EQUITY | 37,084 | 22,415 | ||||
| TOTAL LIABILITIES AND EQUITY | 64,548 | 43,762 | ||||
| THE REAL BROKERAGE, INC. | ||||||||||||
| CONSOLIDATED STATEMENTS OF LOSS AND OTHER COMPREHENSIVE LOSS | ||||||||||||
| (Expressed in thousands of U.S. dollars, except for per share amounts) | ||||||||||||
| (unaudited) | ||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
| Revenues | $ | 181,341 | $ | 96,118 | $ | 689,158 | $ | 381,756 | ||||
| Commissions and other agent-related costs | 165,810 | 87,898 | 626,285 | 349,806 | ||||||||
| Gross Profit | 15,531 | 8,220 | 62,873 | 31,950 | ||||||||
| General & administrative expenses | 15,387 | 7,121 | 42,913 | 24,155 | ||||||||
| Marketing expenses | 9,084 | 7,061 | 38,611 | 22,674 | ||||||||
| Research and development expenses | 2,325 | 1,002 | 7,359 | 4,867 | ||||||||
| Operating Loss | (11,265 | ) | (6,964 | ) | (26,010 | ) | (19,746 | ) | ||||
| Other income/(expenses), net | (693 | ) | 62 | (587 | ) | 729 | ||||||
| Listing expenses | – | (16 | ) | – | (151 | ) | ||||||
| Finance expenses, net | (32 | ) | 159 | (619 | ) | (1,167 | ) | |||||
| Net Loss | (11,990 | ) | (6,759 | ) | (27,216 | ) | (20,335 | ) | ||||
| Net Income Attributable to Noncontrolling Interests | (26 | ) | 50 | 285 | 242 | |||||||
| Net Loss Attributable to Owners of the Company | (11,964 | ) | (6,809 | ) | (27,501 | ) | (20,577 | ) | ||||
| Other comprehensive income/(loss), Items that will be reclassified subsequently to profit or loss: | ||||||||||||
| Cumulative (gain)/loss on investments in debt instruments classified as at FVTOCI reclassified to profit or loss | 116 | 128 | 330 | (407 | ) | |||||||
| Foreign currency translation adjustment | (38 | ) | (58 | ) | (28 | ) | 285 | |||||
| Total Comprehensive Loss Attributable to Owners of the Company | (11,886 | ) | (6,739 | ) | (27,199 | ) | (20,699 | ) | ||||
| Total Comprehensive Income Attributable to NCI | (26 | ) | 50 | 285 | 242 | |||||||
| Total Comprehensive Loss | (11,912 | ) | (6,689 | ) | (26,914 | ) | (20,457 | ) | ||||
| Loss per share | ||||||||||||
| Weighted-average number of Common Shares | 182,450 | 179,103 | 178,127 | 178,201 | ||||||||
| Basic and diluted loss per share | $ | (0.07 | ) | $ | (0.04 | ) | $ | (0.15 | ) | $ | (0.12 | ) |
| THE REAL BROKERAGE, INC. | ||||||||||||
| CONSOLIDATED STATEMENT OF CASH FLOWS | ||||||||||||
| (Expressed in thousands of U.S. dollars) | ||||||||||||
| (unaudited) | ||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
| OPERATING ACTIVITIES | ||||||||||||
| Net Loss | $ | (11,990 | ) | $ | (6,759 | ) | $ | (27,216 | ) | $ | (20,335 | ) |
| Adjustments for: | ||||||||||||
| Depreciation and amortization | 298 | 108 | 1,128 | 333 | ||||||||
| Impairment of goodwill | – | – | 723 | – | ||||||||
| Equity-settled share-based payment | 19,423 | 13,877 | 38,403 | 16,201 | ||||||||
| Finance costs | (65 | ) | (70 | ) | 91 | 167 | ||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Trade receivables | (3,902 | ) | (764 | ) | (4,894 | ) | (1,293 | ) | ||||
| Other receivables | 12 | – | 11 | (51 | ) | |||||||
| Prepaid expenses and deposits | (807 | ) | 253 | (1,603 | ) | (81 | ) | |||||
| Accounts payable | (82 | ) | (835 | ) | 97 | 420 | ||||||
| Accrued liabilities | (4,316 | ) | (917 | ) | 7,752 | 5,316 | ||||||
| Customer deposits | (3,385 | ) | (2,599 | ) | 5,467 | 4,170 | ||||||
| Other payables | (1,770 | ) | (340 | ) | (86 | ) | 1,148 | |||||
| NET CASH PROVIDED BY OPERATING ACTIVITIES | (6,584 | ) | 1,954 | 19,873 | 5,995 | |||||||
| INVESTING ACTIVITIES | ||||||||||||
| Purchase of property and equipment | (182 | ) | (481 | ) | (629 | ) | (1,408 | ) | ||||
| Acquisition of subsidiaries | – | (707 | ) | – | (8,152 | ) | ||||||
| Investment deposits in debt instruments held at FVTOCI | (81 | ) | 1,306 | (6,847 | ) | (125 | ) | |||||
| Investment withdrawals in debt instruments held at FVTOCI | 2 | 637 | 847 | 637 | ||||||||
| NET CASH USED IN INVESTING ACTIVITIES | (261 | ) | 755 | (6,629 | ) | (9,048 | ) | |||||
| FINANCING ACTIVITIES | ||||||||||||
| Purchases of common shares | (1,104 | ) | (1,149 | ) | (2,865 | ) | (8,060 | ) | ||||
| Shares withheld for taxes | (362 | ) | – | (362 | ) | – | ||||||
| Proceeds from exercise of stock options | (90 | ) | 192 | 502 | 265 | |||||||
| Payment of lease liabilities | – | 33 | (96 | ) | (35 | ) | ||||||
| Cash payment for contingent consideration | – | – | (800 | ) | – | |||||||
| Dividends paid to non-controlling interest | (36 | ) | 48 | (339 | ) | (19 | ) | |||||
| NET CASH USED IN FINANCING ACTIVITIES | (1,592 | ) | (876 | ) | (3,960 | ) | (7,849 | ) | ||||
| Net change in cash, cash equivalents and restricted cash | (7,714 | ) | (6,300 | ) | 9,284 | (10,902 | ) | |||||
| Cash, cash equivalents and restricted cash, beginning of year | 35,339 | 24,547 | 18,327 | 29,129 | ||||||||
| Fluctuations in foreign currency | 29 | 80 | 44 | 100 | ||||||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH BALANCE, ENDING BALANCE | $ | 27,655 | $ | 18,327 | $ | 27,655 | $ | 18,327 | ||||
| SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES: | ||||||||||||
| Share-based compensation as part of Expetitle consideration | – | – | – | 4,325 | ||||||||
| Share-based compensation as part of LemonBrew consideration | – | – | – | 450 | ||||||||
| THE REAL BROKERAGE, INC. | ||||||||||||
| RECONCILIATION OF TOTAL COMPREHENSIVE LOSS ATTRIBUTABLE TO OWNERS OF THE COMPANY TO ADJUSTED EBITDA | ||||||||||||
| AND ADJUSTED EBITDA EXCLUDING NON-RECURRING STOCK BASED COMPENSATION BALANCE SHEET ADJUSTMENT | ||||||||||||
| (Expressed in thousands of U.S. dollars) | ||||||||||||
| (unaudited) | ||||||||||||
Three Months Ended | For the Year Ended | |||||||||||
December 31, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | |||||||||
| Net Loss and Comprehensive Loss | $ | (11,886 | ) | $ | (6,739 | ) | $ | (27,199 | ) | $ | (20,699 | ) |
| Add/(Deduct): | ||||||||||||
| Finance Expenses, net | 32 | (170 | ) | 619 | 1,167 | |||||||
| Net Income Attributable to Noncontrolling Interest | (26 | ) | 50 | 285 | 242 | |||||||
| Cumulative (Gain)/Loss on Investments in Debt Instruments Classified as at FVTOCI Reclassified to Profit or Loss | (116 | ) | (128 | ) | (330 | ) | 407 | |||||
| Depreciation | 298 | 108 | 1,128 | 333 | ||||||||
| Stock Based Compensation Adjustments | 19,423 | 6,132 | 38,403 | 16,700 | ||||||||
| Goodwill Impairment | 723 | – | 723 | – | ||||||||
| Listing Expenses | – | 16 | – | 151 | ||||||||
| Restructuring Expenses | 58 | 160 | 223 | 222 | ||||||||
| Other Professional Expenses | – | 456 | – | 762 | ||||||||
| Adjusted EBITDA1 | 8,506 | (115 | ) | 13,852 | (715 | ) | ||||||
| Non-Recurring Stock Based Compensation Balance Sheet Adjustment | 6,208 | 6,208 | ||||||||||
| Adjusted EBITDA1 Excluding Non-Recurring Stock Based Compensation Balance Sheet Adjustment | 2,298 | (115 | ) | 7,644 | (715 | ) | ||||||
| 1Adjusted EBITDA for December 31, 2022 has been restated to account for Stock-Based Compensation recognized in Cost of Goods Sold. | ||||||||||||
| THE REAL BROKERAGE, INC. | ||||||||
| BREAKOUT OF REVENUE BY SEGMENT | ||||||||
| (Expressed in thousands of U.S. dollars) | ||||||||
| (unaudited) | ||||||||
Three Months Ended | For the Year Ended | |||||||
December 31, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | |||||
| Main revenue streams | ||||||||
| Commissions | $ | 180,417 | $ | 97,327 | $ | 684,873 | $ | 379,868 |
| Title | 480 | 477 | 2,990 | 1,869 | ||||
| Mortgage Income | 444 | 19 | 1,295 | 19 | ||||
| Total Revenue | 181,341 | 97,823 | 689,158 | 381,756 | ||||
THE REAL BROKERAGE INC. | ||||||||||
| RECONCILIATION OF OPERATING EXPENSE TO ADJUSTED OPERATING EXPENSE BY QUARTER | ||||||||||
| (Expressed in thousands of U.S. dollars) | ||||||||||
| (unaudited) | ||||||||||
2022 | 2023 | |||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |||
| Operating Expense | $10,129 | $13,496 | $12,886 | $15,184 | $17,846 | $21,499 | $22,742 | $26,796 | ||
| Less: Revenue Share Expense | 2,703 | 4,376 | 3,876 | 4,020 | 5,434 | 7,684 | 7,946 | 6,840 | ||
| Revenue Share Expense (% of revenue) | 4.4% | 3.9% | 3.5% | 4.2% | 5.0% | 4.1% | 3.7% | 3.8% | ||
| Less: | ||||||||||
| Stock-Based Compensation – Employees | 1,205 | 897 | 281 | 608 | 1,019 | 1,214 | 285 | 6,543 | ||
| Stock-Based Compensation – Agents | 582 | 547 | 1,776 | 2,614 | 1,541 | 1,640 | 2,769 | 1,830 | ||
| Depreciation Expense | 3 | 135 | 87 | 108 | 269 | 284 | 277 | 298 | ||
| Restructuring Expense | – | – | 62 | 160 | 41 | 44 | 80 | 58 | ||
| Subtotal | 1,790 | 1,579 | 2,206 | 3,490 | 2,870 | 3,182 | 3,411 | 8,729 | ||
| Adjusted Operating Expense1 | 5,636 | 7,541 | 6,804 | 7,674 | 9,542 | 10,633 | 11,385 | 11,226 | ||
| Adjusted Operating Expense (% of revenue) | 9.1% | 6.7% | 6.1% | 8.0% | 8.8% | 5.7% | 5.3% | 6.2% | ||
| 1Adjusted operating expense excludes revenue share, stock-based compensation, depreciation and other non-recurring or non-cash expenses. | ||||||||||
| THE REAL BROKERAGE INC. | ||||||||||
| KEY PERFORMANCE METRICS BY QUARTER | ||||||||||
| (unaudited) | ||||||||||
2022 | 2023 | |||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |||
| Transaction Data | ||||||||||
| Closed Transaction Sides | 6,248 | 10,224 | 11,233 | 9,745 | 10,963 | 17,537 | 20,397 | 17,749 | ||
| Total Value of Home Side Transactions ($, billions) | 2.4 | 4.2 | 4.2 | 3.5 | 4.0 | 7.0 | 8.1 | 6.8 | ||
| Median Home Sale Price ($, thousands) | $345 | $375 | $360 | $348 | $350 | $369 | $370 | $355 | ||
| Agent Metrics | ||||||||||
| Total Agents | 4,500 | 5,600 | 6,700 | 8,200 | 10,000 | 11,500 | 12,175 | 13,650 | ||
| Agent Churn Rate (%) | 7.9 | 7.2 | 7.3 | 4.4 | 8.3 | 6.5 | 10.8 | 6.2 | ||
| Revenue Churn Rate (%) | 1.6 | 2.1 | 2.5 | 2.4 | 4.3 | 3.8 | 4.5 | 4.9 | ||
| Headcount and Efficiency Metrics | ||||||||||
| Full-Time Employees | 112 | 121 | 122 | 118 | 127 | 145 | 162 | 159 | ||
| Full-Time Employees, Excluding One Real Title and One Real Mortgage | 82 | 91 | 87 | 84 | 88 | 102 | 120 | 118 | ||
| Headcount Efficiency Ratio1 | 1:55 | 1:62 | 1:77 | 1:98 | 1:114 | 1:113 | 1:101 | 1:116 | ||
| Revenue Per Full Time Employee ($, thousands)2 | $752 | $1,235 | $1,283 | $1,144 | $1,226 | $1,817 | $1,789 | $1,537 | ||
| Operating Expense Excluding Revenue Share ($, thousands) | $7,426 | $9,120 | $9,010 | $11,164 | $12,412 | $13,815 | $14,796 | $19,956 | ||
| Operating Expense Per Transaction Excluding Revenue Share ($) | $1,189 | $892 | $802 | $1,146 | $1,132 | $788 | $725 | $1,124 | ||
| Adjusted Operating Expense ($, thousands)3 | $5,636 | $7,541 | $6,804 | $7,674 | $9,542 | $10,633 | $11,385 | $11,226 | ||
| Adjusted Operating Expense Per Transaction ($) | $902 | $738 | $606 | $787 | $870 | $606 | $558 | $632 | ||
| 1Defined as the ratio of full-time brokerage employees (excluding One Real Title and One Real Mortgage employees) to the number of agents on our platform. | ||||||||||
| 2Reflects total Revenue divided by full-time brokerage employees (excluding One Real Title and One Real Mortgage employees). | ||||||||||
| 3Adjusted operating expense excludes revenue share, stock-based compensation, depreciation and other non-recurring or non-cash expenses. | ||||||||||
Forward-Looking Information
Finding Honest Brokerage Reviews: A Guide for Real Estate Agents
Choosing the right brokerage is a critical consideration for real estate professionals at any stage in their careers. Having interviewed hundreds of agents, from industry veterans to those just about to secure their licenses, I’ve gathered a wealth of perspective both in running one of the biggest teams in Canada as well as hearing a large mix of backgrounds, aspirations, visions, and understanding (or truly misunderstanding of the industry.
Whether you’re an experienced agent considering a change (or seeking more opportunity than just transactions) or a newcomer about to step into the industry, clear and honest feedback from peers can be incredibly valuable. This article aims to direct you to the most reliable resources for genuine reviews and shared experiences from myself and real estate professionals, helping you make a decision that’s right for you.
My biggest piece of advice though is make them get specific. Whether you’re joining a team or a brokerage, don’t just take their word for it on a surface level, ask them to elaborate and give you complete transparency in what they offer.
“We provide leads” Could mean you get 5 crappy leads per year, that will do nothing for your business.
“We provide training” This could be coming from a broker that hasn’t been in the industry actively selling for decades, doesn’t understand digital marketing, and is it set that their way of doing business is the best because it worked for them in the 90s? The fact is, not all training is valuable, not all training will help your business, and not all training will be right for you. This is why it’s important you interview multiple brokerages and even teams within a brokerage to see how they operate and thrive within the vessel that is the brokerage.
“We will be there for you” What does that mean? Through your first how many deals will they review your contracts, provide advice, teach you how to form a strong offer, teach you the things that the course doesn’t even begin to scratch the surface of.
“Our office has a great culture” Might simply refer to the occasional office party and not the day-to-day support, camaraderie, and collaboration that truly define a great workplace. What is important to you? Friends within the brokerage? People who will mentally and emotionally support you, or a place of like minded hard working individuals to motivate you? What values and culture does your brokerage push and emphasize the most.
“Our brand is well-known” Might not translate to a significant advantage for you if the brokerage doesn’t invest in maintaining its reputation or providing agents with marketing support that leverages the brand’s power.
“Our technology is cutting-edge” Could simply be a fancy way of saying they have an outdated CRM that’s been given a fresh coat of paint, rather than truly innovative tools that can streamline your workflow and impress clients.
Why Honesty In Reviews Matter
The boring answer: Understanding the experiences of others can provide a clearer picture of a brokerage’s culture, support, training opportunities, and business model, helping you to align with a firm that matches your career goals and values.
Choosing the Right Real Estate Team: An Honest Guide
When it comes to finding a brokerage or team in real estate, the glossy brochures and polished websites only tell part of the story. For both new and seasoned agents, understanding what truly lies beneath the surface of attractive offers and promises is key.
The Truth Behind Choosing a Brokerage
While experienced agents might find doors opening more easily for them, especially with high-profile brokerages looking to leverage their network, the reality for new agents can be starkly different. Not all brokerages are keen on taking newbies under their wing, primarily due to the intensive training and support required. Moreover, while joining a team can be a fantastic accelerator for a fledgling career, it’s crucial to recognize that not all teams offer the same level of opportunity or support.
Questions to Ask Before Joining a Team
Before committing to a team, arm yourself with these essential questions to ensure a fit that’s beneficial for your growth and success:
- What are the commission splits for your team and the brokerage? – Don’t ask this first though 😉
- Can you describe the lead flow and how leads are distributed? Also don’t ask this first.
- What type of administrative support is available to agents? Brokerages are less likely to provide any support outside of front end staff for the brokerage and conveyancing. Teams will vary, from a whole host of support staff, writers, photographers, graphics, data / mls support and document control, inside sales agents, etc. Our team for example offers all of the above and more, all of these people support our agents in various ways. For example our writer helps facilitate and create masterful content for our blogs / guides, this allows our agents to convey their knowledge in person and leave their clients with professional marketing pieces that support their messaging (assisted by the graphics department).
- What training and development opportunities do you offer? Ongoing? Weekly? What is the focus? What has past training in the last year looked like specifically? Can I chat with someone on your team or at the brokerage about your training?
- What’s the team’s track record? Can you share success stories? Any good team should be an open book with this.
- How is performance measured and rewarded within the team? Are there performance metrics? Do you require a specific amount of deals to be on the team? Does this effect my lead flow, splits, etc? Some teams will be run like a military special forces team, while others will be more inclined to go the route of allowing their agents to ebb and flow (within their minimum requirements) and understand that agents motivations can ebb and flow throughout their careers.
- What marketing and advertising support does the brokerage provide to agents?
- How does the brokerage and team handle referrals or SOI deals? Your brokerage should send referrals your way that are looking for you, and teams will vary quite a bit in how they handle SOI deals and the splits they attach with them.
- What technology tools and platforms does the brokerage offer? This is important, but consider this, you are either running your own business or joining a team that should be a well oiled machine, so your reliance on the brokerage for this should be minimal. Perks are places that have contracts / relationships for software that will reduce fees and save you money, just remember that an IDX site is not the same across the board, nor are CRMs and other important pieces of software.
- Are there any fees or costs that agents are responsible for? I think you should pay CLOSE ATTENTION to this one, the small costs matter, from brokerage to team splits, deal fees, insurance, required travel / training costs, or any fees owed for leaving, these are just the tip of the iceberg of costs you could silently be accountable for. What does your team charge (hopefully they don’t) for printing? Your brokerage likely will charge you (I’ve yet to find one that offers free printing) and these fees can be substantial.
- How does the brokerage support agent growth and career advancement? Are there opportunities to do more? Mentorship? Partnership? The opportunity to work with referral relationships, builders, etc.
- What is the brokerage’s policy on agent branding and self-promotion? More specifically what CAN’T you do. This is important and can really vary by region.
- How does the brokerage foster a sense of community among its agents? A lot of brokerages will sell this as a value proposition and my only advice is to remember that you’re only as big as the circle you surround yourself with.
- How competitive is the brokerage within the local market? Volume (Total), average deal per agent, total agents, brokerage growth trajectory over last few years, do they have monthly recognition, quarterly, yearly, and is that important to you?
- What continuing education opportunities does the brokerage provide? I think you should be asking what the brokerage does to support your growth as an entrepreneur and business owner. Is it leads, technology, admin support, etc. What does the roadmap look like?
- What kind of office space and facilities are available to agents? While some brokerages may be cloud based (Real Broker) some larger teams will still lease private office space to facilitate their day to day business operations.
- How flexible are the working arrangements for agents? A great question for teams especially. Do they take on full time agents only or part time as well, does that matter to you? What are the requirements week to week and expectations being on the team.
- What is the brokerage’s strategy for online marketing and social media? Another one that’s important for both teams and
- How does the brokerage support work-life balance for its agents? Are there support agents to back you up, does the team create structures and systems to help out agents when they’re gone,
- What networking opportunities does the brokerage offer? A great way to mastermind and connect with other leaders in the industry.
- What role do agents play in the decision-making processes of the brokerage?
- How does the brokerage support agents with difficult transactions? This is where a team can really matter for some. Not all
- What is the average retention rate of agents at the brokerage and on your team? Our team tracks local brokerage numbers and has since we started, it’s important to know where brokerages are trending towards and if there’s stability. Public record of brokerage agents and information should be mandatory for any brokerage to operate.
- How does the brokerage approach innovation and staying ahead of industry trends? I hate hearing this answer 90% of the time and quite frankly you will get fooled “We have the latest tech, a free crm, lead gen, free leads, and we’re using AI!” What the hell does that actually mean? What specifically are you using for a crm, why are you using it, was it because the franchise / brokerage has it, because it’s the cheapest, or is it because it’s good for SEO, PPC, lead gen, the CRM is unbeatable? Those details MATTER, you may not know why, but that’s why you’re reading this. Quite frankly, it’s easy for any brokerage today to (have it all) the tech, training, leads, and it’s easy for them to
- What philanthropic or community service activities does the brokerage engage in? A great way to either jump aboard some great causes or push others as you pioneer your own.
- How transparent is the brokerage about its business operations and financial health? Is the brokerage publicly traded? Is it privately owned? We’ve had brokerages cease to exist overnight with life changing amounts of money owed / lost due to misappropriation of brokerage funds. This is a business and you should have some form of visibility and assurances that your brokerage is operating healthy. While it’s important to understand a teams health as well, the closure of a team wouldn’t have the same impact on you outside of some increased costs, time, and potential loss of pipeline but you would still be able to continue to trade in real estate within your brokerage and collect any commissions owed / outstanding without issue.
Utilizing Google
Start by searching for reviews on Google and watching videos on YouTube. Use queries like “what it’s like working at [Brokerage Name]” or “review of [Brokerage Name] by former agents” to uncover detailed accounts of agents’ experiences.
Questions to Search on Google
To get started, here are some questions you can type into Google. These queries are designed to help you find genuine feedback and reviews about brokerages:
- What is it like working at [Brokerage Name]?
- Legal issues involving [Brokerage Name]
- [Brokerage Name] financial stability report
- [Brokerage Name] agent reviews
- [Brokerage Name] commission structure
- Detailed breakdown of [Brokerage Name] commission split models
- Agent turnover rate at [Brokerage Name]
- Contributions of [Brokerage Name] to real estate innovation and technology
- [Brokerage Name] support for new agents
- [Brokerage Name] vs [Competitor Brokerage Name]
- [Brokerage Name] culture and values
Pro tip – You can run similar searches on Youtube and watch videos from agents.
Finding Specific Discussions on Forums like Reddit
Sometimes, the most honest discussions are found in community forums like Reddit. To find these, you can refine your Google search by including the site: parameter. Here’s how: 
How to research a real estate brokerage on Reddit
- Why I left [Brokerage Name] site:reddit.com
- [Brokerage Name] review site:reddit.com
- [Brokerage Name] culture site:reddit.com
How to research a real estate brokerage on Glassdoor
- [Brokerage Name] employee reviews site:glassdoor.com
- [Brokerage Name] benefits review site:glassdoor.com
- [Brokerage Name] leadership site:glassdoor.com
- [Brokerage Name] salary transparency site:glassdoor.com
- [Brokerage Name] commission feedback site:glassdoor.com
- [Brokerage Name] career progression site:glassdoor.com
How to research a real estate brokerage on LinkedIn
- [Brokerage Name] company culture site:linkedin.com
- [Brokerage Name] employee stories site:linkedin.com
- [Brokerage Name] company updates site:linkedin.com
- [Brokerage Name] networking opportunities site:linkedin.com
- [Brokerage Name] industry reputation site:linkedin.com
- [Brokerage Name] awards and recognitions site:linkedin.com
How to research a real estate brokerage on Indeed
- [Brokerage Name] work-life balance site:indeed.com
- [Brokerage Name] agent testimonials site:indeed.com
- [Brokerage Name] office locations review site:indeed.com
- [Brokerage Name] job security site:indeed.com
- [Brokerage Name] management review site:indeed.com
- [Brokerage Name] employee satisfaction site:indeed.com
How to research a real estate brokerage on Quora
- What is it like to work at [Brokerage Name]? site:quora.com
- How does [Brokerage Name] compare to other real estate brokerages? site:quora.com
- [Brokerage Name] support for new agents site:quora.com
This method filters your search results to show only pages from Reddit or other sites you know will have user generated input and content, where you’re more likely to find unfiltered opinions and detailed accounts of agents’ experiences with specific brokerages. These places also often offer anonymity and allow you to get (hopefully) true and unfiltered experiences from fellow REALTORS®
Engaging with ChatGPT
ChatGPT can offer summaries of user experiences and direct you to online discussions or articles about specific brokerages. Ask targeted questions about the brokerage’s reputation, support systems, and agent satisfaction.
BE AWARE THOUGH. AI in my opinion should be used strategically and research like this may not be best suited unless you’re skilled with prompting. A search of “best real estate team” may land you with what you’re lead to be believe is wisdom from a LLM but is actually information from a paid article that deceived the AI. Be skeptical of results here and really emphasize sourcing the information.
Exploring Forums and Social Media
Join real estate-focused forums, Facebook groups, and subreddits like r/RealEstate to ask about and read discussions on various brokerages. These platforms often feature candid conversations and can be a goldmine for honest feedback.
What brokerage should I Join?
I’m gonna get a little deep here, because this matters and if you’ve gotten this far, you truly care about making the right choice.
In your journey to finding the right brokerage, remember that conversations and relationships will a cornerstone of your success. It’s essential to engage with as many people as possible, from industry veterans to newcomers, to gain a comprehensive understanding of the culture, values, and operational ethos of potential brokerages and partnerships. Be cautious but optimistic, enthusiastic in what they offer, but press for details and thoroughness.
With that said… The most critical realization you must come to is that you, and you alone, are the ultimate driver of your business. The brokerage you choose serves as a vessel, facilitating your journey but not defining its course.
The true essence of making a sound decision lies in aligning yourself with a brokerage that not only shares your values but also supports your growth through mentorship, opportunities, and community. Seek out those who are deeply embedded in the business, who understand its intricacies, and can offer you nuanced, practical advice on navigating the complexities of the real estate industry.
The best strategy, in my opinion, is to immerse yourself in environments where mentorship thrives and where you’re surrounded by individuals who are not just successful but are also willing to share their knowledge and experiences. This network of mentors and peers will become your invaluable resource, offering insights that go beyond the surface level and helping you to craft strategies that are uniquely suited to your style and aspirations. This is what drives agents to be better and do more for their industry elevating it as a whole.
Brokerages to Start Exploring
If you’re at a complete loss, here’s my top list of brokerages to explore
- Real Broker
- Exp Realty
- Keller Williams Realty
- RE/MAX
- Compass
- Redfin
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