The Real Brokerage Inc., a cloud-based publicly traded real estate brokerage, announced its acquisition of Redline Real Estate Group and its expansion into Canada’s third-largest province, British Columbia.
“Acquiring brokerage firms as a method to grow agent count is not part of our strategy,” said Tamir Poleg, chairman and chief executive officer of Real. “However, Canada is important to our overall growth and this transaction allows us to leverage our relationship with one of Canada’s top brokerage teams to serve as the foundation for our expansion into British Columbia.”
Redline Realty was founded in 2005 and currently has 90 agents across Alberta, Ontario and British Columbia.
Real was founded in 2014 and currently operates in 44 states, D.C., and the three Canadian provinces with a network of more than 7,000 agents. In 2021, Redline joined Real’s network of agents. The owners and CEOs of Redline, Brett Turner and Darren Langille, led the team’s transition to Real.
Through this acquisition, Redline aims to provide agents with the “technology, culture and financial incentives to realize their full potential,” the statement says.
“…one year later we are thrilled to be the catalyst for Real’s Canadian expansion into British Columbia,” said Langille.
Real increased its agent base by 82% Year to date in 2022.
In September, Real signed an agreement to acquire the mortgage brokerage arm of real estate technology and home loan platform LemonBrew, for $1.25 million. Real paid $800,000 in cash and $450,000 in stock options for the acquisition.
In January, Real also acquired Expetitle, now called Real Title, a multi-state title company for $8.232 million, with $7.432 million paid in cash and $800,000 subject to escrow.
However, even though Real had a “strong quarter of revenue growth,” it did not turn in a profit in Q2 of 2022, Brooklee Han reported in May, 2022. Its revenue increased by 562% reaching $61.6 million, an increase from its $9.3 million revenue generated in Q1 of 2021, but also experienced a net operating loss of $4.3 million, compared to $3.7 million in the same quarter of 2021.