La Rosa Holdings Is Just Starting To Transform The Real Estate Market

The real estate market is on the verge of a historic boom. 

In fact, according to the National Association of Realtors, existing home sales cold run 15.5% higher in 2024. New home sales could climb another 13.9%, with housing starts forecasts to run another 5.4%. Better, according to analysts at Research and Markets, the global real estate market could grow at a CAGR of 5.2% through 2030 to $5.85 trillion. That projected growth means real estate could be one of the most attractive opportunities in New Year 2024. 

Granted, the residential and commercial real estate markets are indeed working through a "challenging" period from a series of interest rate hikes and an imbalance in supply and demand. However, these challenges won't affect every company the same way.

In fact, La Rosa Holdings provides an excellent example of why doing things differently can create competitive advantages. 

Remember, the real estate sector is a $113 trillion sector in the U.S. markets alone. So, there's plenty of deals to be made. In addition, while interest rates are at 7% and higher in some cases, that's not out of the "artificial normal" created by the pandemic. 

Also, while many are getting sticker shock, from a historical perspective, current rates align with decades of precedent. In fact, between April 1971 and September 2023, 30-year fixed-rate mortgages averaged 7.74%. Once people get accustomed to a more appropriate and historically normal interest rate environment, the real estate market, residential and commercial, can see a tremendous rebound. 

La Rosa Holdings is Attracting Agents with 100% Commissions

The company has been attracting new agents at an impressive rate – thanks to its agent-centric commission model where the agent keeps 100% of their commission. 

Fueling further growth is the company has been driving exponential growth through rollup expansion, which has allowed it to take advantage of the changing agency model trends taking place in the real estate industry. In fact, it just announced it will acquire a controlling interest in the Company’s franchisee - Horeb Kissimmee Realty, LLC located in Kissimmee, Florida. 

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.” 

For more information on La Rosa Holdings Corp. (NASDAQ: LRHC), click here.

This post was authored by an external contributor and does not represent Benzinga's opinions and has not been edited for content. This contains sponsored content and is for informational purposes only and not intended to be investing advice.