La Rosa Acquires Second Real Estate Brokerage Franchisee with Audited Revenue of $10.8 Million and Positive Net Income in 2022. Kissimmee generated revenue of $10.8 million and had positive net income in 2022. The franchisee provides residential and commercial real estate brokerage services. It also provides coaching and support services to agents on a fee basis.
Joe La Rosa, CEO of the Company, commented, “We are executing on our planned roll-up strategy of acquiring profitable franchisees. We believe that this acquisition when combined with the previous acquisition of La Rosa Realty Lake Nona, Inc., will double our top-line revenue. We have several other acquisitions in the pipeline, and we expect both our top-line and bottom-line revenue to improve considerably as our current infrastructure is set up to support five times our current agent count. We believe our brokerage model is unique when compared to many of our competitors in our local market. It is agent centric with 100% commission and it also provides real estate brokers and sales agents who are seeking financial independence with a turnkey solution and support in growing their brokerages while they fund their own businesses. This enables us to maintain a low fixed-cost business model with several recurring revenue streams, yielding relatively high margins and cash flow. We also offer proprietary technology, training, and support to our agents at a minimal cost to them which we believe is one of the best packages offered in the industry.”
When we look at some of the competitors out there, EXP Realty (EXPI) cloud-based, doesn't run the risk of COVID hurting them since they are not your typical Brick & Mortar business. What makes you think in your opinion, this company can reach the levels of their competitors?
I know it's too early to tell but, that would be my concern. On top of that, acquiring new franchises could increase long term debt for the company and peer rea; estate companies don't have a high valuation in the stock market. Thanks for sharing your trade idea.
Thoughts?
DEXWireNews
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@Vic_Tech_Trader, La Rosa has huge future prospect i mean looking at company's starts, immediately after the IPO (Initial Public Offering) La Rosa was able to maintain its level on the chart. The stock did not experience a pump and dump scheme whereas so many startups seldom experience such dilemma. moreover, La Rosa reduce gave out 50% discount on First IPO, giving it a boost in the stock ticker. Above all, La Rosa sure has what it takes to compete with EXP Realty and a whole lots of Realty Stocks.
Vic_Tech_Trader
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@DEXWireNews, I have to disagree with one aspect, depending on the levels you are talking about, La Rosa hasn't really held very much. On the other hand, I do see the potential of this company, but, I do want to see it acquire some more "real estate" & diversify their portfolio a bit. Thanks for your feedback, I am looking into acquiring some shares here shortly. Happy Trading.
I know it's too early to tell but, that would be my concern. On top of that, acquiring new franchises could increase long term debt for the company and peer rea; estate companies don't have a high valuation in the stock market. Thanks for sharing your trade idea.
Thoughts?