The real estate start-up Reali will close its doors
California real estate startup Reali is closing and plans to lay off most of its employees on September 9. The company is the latest to fall victim to rising mortgage rates and falling home sales.
The San Mateo, Calif., startup cited “tough real estate and financial market conditions and an unfavorable capital raising environment” as reasons to shut down its company founded in 2015 by Ami Avrahami and Amit Heller.
“Active real estate transactions will continue to be supported through the end of the year by a small team of employees,” the company said in a statement.
The startup offers power purchase services, cash offer programs and has a loan arm, Home loans, which provides mortgage financing in 14 states. After launching its flat-rate brokerage in 2016, the company acquired a start-up mortgage lender lenda in 2019, which she integrated into Reali Loans.
Reali is in talks with companies that want to acquire parts of its business, including mortgage origination, title and escrow and power buying, the startup said.
The company’s plan to close operations comes less than two years after it expanded into San Diego after acquiring a California real estate brokerage firm. TXR Homes, with 90 agents in January. Since 2016, Reali has raised over $290 million in funding, with its last round of $100 million in August 2021 led by Zeev Ventures.
At the time of funding, the company said 180 employees worked in the United States and 25 in Israel. In March 2020, when real estate transactions plummeted at the start of the pandemic, the company reduced its workforce by 50% and fell to less than 20 employees in Israel.
A total of 33 associate brokers and 227 salespeople are affiliated with Reali’s San Mateo headquarters, according to the California Department of Real Estate.
The company did not respond to questions about the scale of the upcoming layoff in September and the total number of employees.
Following a downturn in the housing market, a number of venture capital-fueled property companies are laying off staff. Flyhomes laid off 20% of its employees in July, with former employees claiming to have cut 200 positions.
Cabinet “Buy before you sell” Return also issued pink slips to about 20% of its workforce this month, despite May’s “strongest month ever” and strong second-quarter results.