California real estate startup Reali The company is the latest to fall victim to rising mortgage rates and declining home sales.
The San Mateo, Calif. start-up cited “challenging real estate and financial market conditions and an unfavorable capital raising environment” as reasons for closing the business founded by Ami Avrahami and Amit Heller in 2015.
“Active real estate transactions will continue to be supported by a small team of employees through the end of the year,” the company said in a release.
The startup offers power purchase services, cash offer programs and has a financing department. rare reloan, offers mortgages in 14 states. After launching a flat rate brokerage in 2016, the company acquired a startup mortgage company. render Merged with Reali Loans in 2019.
Reali is in talks with companies interested in acquiring some of its businesses, including mortgage originations, ownership, escrow and power purchases, the startup said.
The company’s plans to close its business came less than two years after it moved to San Diego with its acquisition of a California real estate broker. TXR Holmes, with 90 agents in January. Since 2016, Reali has raised more than his $290 million, and his latest $100 million in August 2021 was Jeeve Ventures.
At the time of the funding, the company said it had 180 employees working in the United States and 25 in Israel. In March 2020, when real estate transactions declined at the start of the pandemic, the company reduce labor force by 50% The workforce in Israel has been reduced to less than 20 people.
Reali’s San Mateo headquarters has a total of 33 broker associates and 227 sales representatives. California Department of Real Estate.
The company did not respond to questions about the size of layoffs planned for September and the total number of employees.
Many venture capital-backed real estate firms are laying off workers as the housing market slows. fly homes laid off 20% of its workforce in July, with former employees claiming to have cut 200 positions.
A “buy before you sell” company Return trip It also said May was “the best month ever” and issued pink slips to about 20% of its employees this month, despite a strong second quarter.
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