AI-driven platform expands with mortgage services in 26 states
Real estate technology company reAlpha has acquired Be My Neighbor, a mortgage brokerage operating in 26 states, for $6 million.
According to an 8-K filing, reAlpha will pay the co-founders of Be My Neighbor - Christopher Griffith, Isabel Williams, and Nathan Knottingham - an initial $1.5 million in cash and $1.5 million in restricted shares of reAlpha stock. An additional $3 million in earn-out payments may be made if Be My Neighbor hits specific revenue and profit targets over time.
The acquisition is part of reAlpha’s broader strategy to streamline the homebuying process by integrating mortgage services into its real estate platform, which already uses generative AI to assist buyers.
“We are excited to announce the acquisition of Be My Neighbor and add its capabilities to reAlpha’s AI-driven platform,” said Brent Miller, chief financial officer of reAlpha. “This acquisition furthers our long-term plan of developing a full-service commission-free homebuying and financing technology platform powered by our proprietary AI technology and dedicated professionals.”
Be My Neighbor will continue to operate under its current brand, led by co-founders Griffith, Williams, and Knottingham. However, the company will now leverage reAlpha’s AI technology to offer a more streamlined mortgage process.
“We believe reAlpha is accelerating the evolution of the $20.2 trillion mortgage industry into the digital age,” Be My Neighbor broker-owner Christopher Griffith said in a media release. “reAlpha is transforming legacy processes into one comprehensive, online, commission-free, buyer-centered experience. We see great promise in reAlpha’s long-term strategy and are excited to help carry out their vision.”
“The acquisition of Be My Neighbor represents a strategic move to deepen our vertical integration within the real estate industry,” added Sureet Pabbi, vice president of M&A at reAlpha. “By acquiring a mortgage brokerage company, we’re capturing additional revenue stream opportunities and enhancing our control over a critical part of the homebuying process.”
The deal aligns with reAlpha’s recent launch of its AI-powered, commission-free homebuying platform, announced on April 24, 2024. The platform, which uses an AI agent named Claire, aims to guide homebuyers through the entire process, from property search to closing.
Currently, reAlpha’s platform is available in 20 counties across Florida, but the company is actively pursuing additional MLS and brokerage licenses to expand into more states.
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