In an industry that’s all about relationships – finding them, building them, maintaining them – it’s easy for independent real estate agents to overlook the one that’s possibly the most important. The one they have with their own business.
That’s the big-picture pain point that Briggs Elwell and Daniel Kennedy identified when they decided to co-found RLTYco in 2021. The company has just announced a partnership with Forbes Global Properties that will give US-based members of the network priority access to its suite of services, including accelerated commission funding.
Real estate agents are brands in their own right, individualists managing the sales funnel from start to end. Meanwhile curating their reputation. Meanwhile always on the lookout for that next trophy listing. That demands energy, vision, resilience.
Data from the National Association of Realtors reveals that of its 1.5 million members in the United States, around 87 percent are independent contractors, closely allied with but not directly employed by brokerages. Even with the support and marketing power of the brokerages behind them, the classification as contractors (1099 workers as opposed to W2 employees) comes with business challenges.
Markets may be cyclical, but independent agents – and their incomes – are frequently at the mercy of long and complex deal completions, with admin that’s tortoise-slow. Worst disruption? Extreme weather events with short warnings and long consequences. A constantly moving set of circumstances that means sole operators can lose focus on basics like accounting and cashflow, tax planning, healthcare and legal services – let alone making the time and headspace for long-term strategy and business growth.
While many agents have invested in tech – virtual assistants and AI tools for day-to-day marketing, valuations and market intel, for example – it’s the suite of often costly HR services normally accorded to full- or part-time employees that can provide value of a different kind.
With a deep understanding of the short- and long-term challenges faced by independent contractors lacking a comprehensive business support structure, Elwell and Kennedy initially launched RLTYco with a focus on commission funding. Even at the highest levels of multi-million-dollar deals, knowing exactly when and how much commission is incoming – and how much should be put aside for tax and health insurance – can be a guessing game.
“I spent most of my career before RLTYco working for a major developer in New York,” says Elwell. “Although I’m a licensed realtor, I wasn’t showing houses. However, I did engage in everything from sales through to biz dev and witnessed first-hand the inadequacies experienced by agents on both the broker and development sides – none of them had the luxury of the benefits provided to salaried employees.”
An attorney by trade, Kennedy has been involved in “probably thousands of real estate transactions,” as well as acting for brokerages and developers. “Real estate agents’ income can be very cyclical – you can have a great year, then a terrible one.” Together with Elwell, who have known each other for many years, Kennedy observed the reality of these ups and downs during the pandemic – and the value that commission advancing could bring to help people to budget.
“Often it’s just a matter of trying to steady that cashflow, whether it’s to build your team, put more into marketing or, quite frankly, to cover your kids’ private-school tuition fees – whatever your priority happens to be at that time.”
Starting in New York City (“one of the more complicated markets”), the startup launched as RLTY Capital and has since expanded its services to include RLTY Legal, RLTY Tax (partnered with Legal Zoom) and RLTY Health (partnered with UnitedHealthcare). This one-stop-shop of services – specifically designed for the nuances of operating as independent real estate professionals – enables agents to better plan, access funds and keep their eyes on the success and growth of their careers, their teams and their future business strategy.
Now also operating in New Jersey, Connecticut and South Florida, and poised to enter other US markets imminently, the startup is on the brink of its own further growth with two recent high-profile appointments: Marcelo Lavanhini as CFO and Eric Zollinger as Head of Sales.
Zollinger knows personally the benefits RLTYco’s services can bring: “In my 25-year career, I’ve never faced a financial challenge like the one I encountered earlier this year with a critical funding gap before closing. Having previously worked with Briggs Elwell, and knowing him to be a really good, trustworthy guy, I went to RLTYco to explore advancing my commission – the process was remarkably straightforward. Commission funding has been notoriously looked down on, took time and was tedious with manager approvals. What I had built up in my mind as a potentially complicated and stressful transaction turned out to be incredibly simple. Within 24 hours of applying online, funds were deposited directly into my account.”
For real estate professionals seeking financial flexibility, Zollinger recommends RLTYco’s commission funding as “a quick, viable and confidential solution.” And the wider mission and offering? He believes in that so strongly that, when offered the Head of Sales position, he didn’t hesitate to accept.
It’s yet another innovative real estate relationship helping shape the sector’s future.
