January 21

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eXp Realty Stock Program Explained

In this video, I will go over all the details on the eXp Realty stock program. I've never been a big "stock person" but if I can be awarded it or get it at a discount for doing the things I'm already doing, I'm interested...

eXp Realty is publicly traded on the NASDAQ stock exchange under the ticker symbol EXPI. One of the unique benefits of being an eXp Realty agent is the opportunity to acquire stock in a variety of ways.

In this quick video, I explain the different ways agents are awarded and can earn stock in eXp Realty. This includes the direct purchase program, the ICON agent program, and through stock awards for certain production and attraction milestones.

I also explain the different vesting requirements and give some example scenarios to help make sense of it all.

Below you watch the full video.

Here is the full video:

Transcription:

Kyle Handy 0:00
Kyle here again, just wanted send a quick video sharing with you how the XP AI stock program works. So as you may or may not know, here at XP, we are a publicly traded company. And so they we do have stock that we have the ability to earn to purchase. And so I just want to take a few minutes and kind of go over that with you right now and hopefully answer any questions you might have have about that. So we can acquire stock six different ways at the XP. First off, you can actually go Google XP AI and you will pull up our ticker symbol, that's our ticker symbol you'll pull up and you can see exactly where the XP is being traded at currently. It's over the counter so you can go you could go buy the stock today if you wanted to. Today, it's being traded at $12 and 85 cents. This is being recorded on March 8 2008. As you can see, the stock has been steadily going up. Just two years ago, the stock you look in 16 was at about 70 cents. So it's it's been definitely growing over this period of time. And today it's being traded at $12 and 85 cents. So that being said, How can you get more of the stock? Well, you got six different ways that you can do it. We've got our direct purchase plan, which is basically once you get a closing and you earn commission off of it, I'll give you an example. You can contribute up to 5% of your commission to purchase the XP stock at a 20% discount. So what that looks like, give me an example. So you sell a home for $300,000 you're going to earn on that home 3% so you get a Gross commission of $9,000. Say for instance, you've not capped yet with the company. So you're going to get 80% of that. So point times point 870 $200. We do have a $30 errors and emissions fee, and then also a $25 broker review fee. So we're going to subtract out $55 from that 7145. Multiply that by 5%.

Kyle Handy 2:32
leaving you with $357 and 25 cents that can go to purchase XP stuck. So the way that that works is remember, you also receive a 20% discount on that purchase. So let's just say the stock was trading at $10 per share. At the time that you earn this commission, you're going to get a 20% discount, so you're going to buy it at $8 per share. So you would take this amount 300 and $57 and 25 cents divided by $8 per share, meaning that you will have earned on that one transaction $44 or 44 shares of stock 44.65 shares of stock that you will get put into an account that you hold with ESP. And this money does not it's not subject to vesting, you can withdraw it, there's a certain timeframe, I believe it's 45 days that you do have to have it there's you can't just do it and then pull it out right away, but it is not subject to you know, any other longer vesting terms. So that's a quick way that you can acquire stock in the company. The other way is you'll see this chart down below. This is going to show you how many shares that you will acquire for doing certain milestones. So, for instance, if you whenever any agent closes their first transaction with ESP, they are awarded This many shares of stock depending on how many agents are currently with the company. So congratulations any agent who's done their deal is now part owner of XP Realty. And you can see here right now we are right around the 8000 agent mark. So you might be getting about 50 right now. And, you know, once we go over 1000, it's still 50. So even, you know, up until 12,000 agents, you'll be getting 50 shares of stock on that first transaction. Once we get to 12,000 agents, it's going to go to 35 shares of stock. Once we get to 16,000 agents, it's going to go to 25 shares of stock whenever you do that first transaction. So that's one way. The other way is once you cap meaning that you've paid your $16,000 into the brokerage, you're also going to get this many shares of stock, depending on our agent count. So right now you would receive either 125 shares or 100. chairs depending on where we exactly stand if we're over 8000, or just just shy. So that's the other way is by capping. The last part is whenever you attract an agent to the company, meaning that you bring somebody on, and they name you as their sponsor, you're going to get this amount of shares of stock and XP. And so you'll see here, you would get at this point in time, let's just say 100 shares of stock. And that would be held for you within a different account at XP. So the vesting period on these awards are three years. So you do need to stay active with ESP for three years in order to receive these stock awards. So this is a different account than the direct purchase plan, which you can pull out, you know, pretty pretty quickly, so much sooner than the three years so you got the direct purchase. You got the first transaction, you got capping, you've got attracting an agent to the company. The other one and this is the one that I get most excited about. This was a big reason of why I joined the XP is the icon agent program. And I'm going to show you that on the next slide. So I'll get to that in one second. But then the last way is that you can also just buy it on the exchange, you can go to your stockbroker, you can look you know, at your, however you trade stocks, and you can literally just pull up the SPI purchase stock that way. But But anyways, the one that I'm really excited about is the icon agent program. Let me show you here how that works. So with the icon agent program, there are two ways to qualify. We got the traditional way, the one that, you know is more applicable for me here in San Antonio, but essentially it's once you cap so you've paid in your 80,000 in gross commission income

Kyle Handy 6:58
once you've kept your Then you do an additional 20 transactions, you will then receive back your entire $16,000 in the form of XP stock at whatever it's being traded at at that time. So if it was trading at $10, you get 1600 shares of XP stock put into that account, it is going into the vested account, three quarters of it goes into the vested account. So you wouldn't need to wait for three years to be able to capitalize on three quarters of it. So $12,000 of that 16,000 4000 of it is available to you right away kind of in that same timeframe is what I was telling you about the direct purchase plan it you know, essentially right away but I believe it's actually closer to 45 days, you can just pull it up the day after so it does end up taking about 45 days to get that stock. So that is the icon agent how you qualify. The most common way Now they've also opened up an additional way for people who are doing either commercial real estate, or if you're doing luxury real estate, and maybe you do don't do that many transactions, but you do a lot of gross commission income. There is an additional way. So if you do over $500,000 in gross commission income in any given year, and you've paid obviously your full cap to the company, then at that point, you would also qualify for the icon agent program. So those are the two ways let me give you an example of this first way because this I feel is the most applicable. But say for instance, here in San Antonio, we have an average or we need 80,000 in gross commission to cap we know that so 80,000 in gross commission, we pay in 20% to the company that means that we've paid $16,000 to the company. So for 80,000 in gross commission, say my average commission amount Is $6,000. So I'm going to divide that by $6,000. That's about 13 deals that I would need just to be able to cap here in San Antonio with my average purchase price at $200,000, my average commission amount at $6,000. That puts me at about a little over 13 transactions to be able to cap with the XP. So that would get me to cap and then if I wanted to become an icon agent, I would have to do an additional 20 transactions on top of those 13. So basically, anybody who's doing over this number, in that scenario with a $6,000 average commission amount, you would need right around that 33 transaction mark to be able to be eligible for the icon agent program. The icon agent program. The other thing is there is a vetting committee that does also make sure that you know whoever does get selected for icon agent they are a cultural fit for the company. And so that is one other thing that that is required is that, you know, you are contributing in some way, whether it's, you know, helping to, you know, host a class perhaps, or something along those lines, but it's very, as far as the cultural fit, you know, it's very easy to do it as long as you're, you know, doing things to help XP and, and you've hit those transaction milestones. So that's my most exciting part about it. I know that we will be looking to be an icon agent here shortly this year, so can't wait till I get named to that icon agent and I'm able to receive those stock. It's going to be a great, great incentive. But this is just a really, really unique deal. Because at this point, I mean, the people who say, Well, I would love to, you know, be be working at you know, 100% Well, this is your way that you get there. If you're doing you know, over this amount of transactions per year, you're going to be able to be eligible for it. And then at that point, you've gotten all of your $16,000 that you paid in. And it's like you were working at 100% for the entire year. So, anyways, if you have any questions as always, feel free to reach out to me. I've got, you know, plenty other videos to that I can send you if you have questions about any other parts of the company. So look forward to talking to you later. Bye



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