This week we are going to pick back up with the weekly eXp World Holdings, Inc stock updates (trading as “EXPI”). The stock, for the most part, has been holding solid for several months now and is gaining notoriety outside of the real estate industry.
As we always mention on this site, please understand that nothing in this post should be considered as financial advice. All information provided here is public knowledge and none of it should be construed as forward-looking in any way. For more information, please take a minute to read the disclaimer here.
EXPI closed at $3.39 on Friday, 8/4/17, bouncing back from a low this week of $2.84 on Monday morning. It appears that the reason for the rally in eXp World Holding, Inc.’s stock price is the growing number of financial analysts who are now following the company closely and reporting positive things about the financial structure and strength.
eXp Realty is growing at a rapid pace, which is obviously contributing to the optimism as well, but at the end of the day all you really want to know is what the stock price means to you, right?
To try to shed some light on that, we’ll look at two scenarios:
- Closing a $250,000 deal on 8/4/2017 and opting to purchase your discounted stock
- Closing the same deal on January 1, 2017
Closing a Deal and Purchasing Stock on 8/4/2017
We’ve written about how real estate professionals can purchase stock at each closing at a discount, but basically, you can allocate 5% of your commission to purchasing EXPI at a 20% discount. So, for a $250,000 transaction with the full 3% commission, about $262.50 would go toward stock. (Only if you choose to participate, of course.) For the sake of easy math and clarity, we’ll say the 30-day average of the stock is $2.6250. Typical investors would therefore get 100 shares for $262.50, but you would get 125 shares [$262.50/($2.6250*.8)]. So you are already ahead of the curve by $84.75 [(25 extra shares)*$3.39 share value)].
Isn’t it nice to be able to take the money you would be wasting on brokerage overhead and royalty fees and use it toward your personal portfolio?
Closing a Deal and Purchasing Stock on 1/1/2017
In early January of this year, the 30-day average would have been just little higher than it would be for a closing today, so you’d get a something closer to 115 shares for that $250,000 closing. So you would be ahead by about $50.85 from your first closing of the year. And you didn’t have to change anything or perform any additional tasks. All you did was sell the houses you were going to sell anyways!
With only two closings totaling $500,000 in volume, you would already be up $135.60. Think about the difference that can make over the course of your career…
- Do you do 12 transactions a year? 15 transactions?
- How many more years are you planning to work as a real estate professional?
- Why should your broker continue to get that money instead of you?
It’s Your Money, Start Keeping It!
This is just a very broad overview to explain the potential benefit of taking advantage of the stock options eXp World Holdings, Inc offers. For more information, please use the Contact Us page to call, text, chat or email us with any additional questions you may have. If you are looking for specific advice on EXPI and what the future looks like for the company, that information will have to come from a financial expert. But if you just want to know more about the program, we’re here for you.