Good morning, and welcome to motivational Monday. Can I get a quick audio check-in the chat? Good morning.

Audio check-in the mic. Sounds good. Awesome. So for our returning members this week, please do not touch the resolutions of your monitor. I know you may be asking Hey, Lewis. Looks like, Matt Hodge this week, but I'm actually filling in for him. He's over in Italy celebrating his wife's birthday.

I'm Lewis Furman. I'm the senior VP of an acquisition and in house attorney for LPT Realty and joining us as always is our founder and CEO Robert Palmer. Good morning, Robert.

Hey, good morning, guys. How do I sound like? I got the new mic busted out this morning. Got a little little different setup here from Montana. I got a big motivation Monday, so we're, we're here to do this thing.

Yeah. No. It looks amazing back there.

Yeah. Does, my mic sound good? We good? Alright.

Cool. Yeah. A lot of exciting stuff today.

You know, like I mentioned, we, for those of you who follow me on Facebook or we're in the, the official Facebook group for LPT, gonna make some big announcements today, bring some things forward that we were gonna originally hold out to Grand Pre, but as I have mentioned on some previous motivation Mondays, I really want Grand Prix to be all about, the community and the digital community that we're building and and basically making the Grand Pri a physical representation of that community. We're gonna go ahead and and do some other things the coming weeks between now and Grand Prix, which is only about, four weeks away.

Excited to see everybody in Saint Pete. It's gonna be a really good time. We've got some really exciting stuff planned. Again, just it's kind of the unconferenced.

That was one of the jokes. We've we've had some people tell us. We unveiled the plan to a few folks and it's kind of the unconferenced because, again, the idea is more about the community and everyone connecting. So we're not just there to jam as much content on everyone's throat as possible, you know, keeping too tight on schedule.

I think one of the issues last year was people didn't have enough of that time to mingle. So we're definitely gonna give a lot more flexibility this year. We have twice as much convention space as we did last year. With the addition of the hotel across the street.

So it's gonna be, it's gonna be a lot of fun.

Yeah. I've been I've been, you know, reached out by a lot of our members and they can't for Grand Prix. I know we're gonna have a great attendance agents from all over the nation are gonna be, you know, meeting us for the first time, meeting us for the second time, and know, just continuously building that culture here at LPT Realty that I know are so important for you, Robert. Yeah.

Yeah. It's good, man. Like you said, Matt Hodge is over in Italy today. He'll still be in Italy next week.

But, he hopes to make motivation on Monday. And then I'll actually be doing next week's motivation Monday from Vegas, fresh off watching the Super Bowl. So that's gonna be a good weekend. There's actually some interesting industry stuff going on in in Vegas this weekend.

That's I really wasn't going to the Super Bowl, but there's some industry stuff I wanna check out. Definitely share more with you guys about that. Next week on motivation on Monday. But let's get into it.

If we wanna get the slides up and, jump right into today's announcements and some things that we're doing to make LPT even better, for all of our agents.

So as I mentioned, because Grand Prix is all about community and unveiling the new digital connect community and our vision for how our agents all across the country are gonna connect and build stronger bonds to continue to further this amazing culture we've built.

Dave, if those are moving automatically, you're gonna have to try to stop that because they can't get ahead of me on the on the slides there. We're approaching our two year anniversary as a company, which we're gonna officially celebrate at Grand Prix. That's March fifth and sixth. It is crazy to believe that we are just now coming up on the two-year mark has a brokerage, and we've accomplished a lot of amazing things together.

Some of you, I feel like I've known forever, even though for a lot of us, it's been less than two years. And that we really are building something special here together. Alright. Next slide.

Alright. So we are on this race to ten thousand agents.

The cool thing is we are on pace to hit the ten thousand agent mark sometime in March. So, definitely, before March thirty first, so it's exciting. You know, we set this goal to be at ten thousand agents by the end of q one, in, in in in this year. And, we're on pace to do it.

We had a really great January. We're not announcing numbers. So the last number we officially announced was six thousand back in October. I can tell you that we are firmly on track to hit this ten thousand goal, before March thirty first.

And so we're going to continue to gather got some people asking them to chat if we can go full screen on the slides, Davey. If you wanna maybe spotlight the slides, and I can go small or kinda flip back and forth, wanna make sure everybody can read them and see what we got going on. So really exciting, you know, ten thousand agents is a serious milestone for any brokerage you know, particularly one that is barely two years old. So exciting there.

Going on to the next slide.

So if you look at the other cloud brokerages, when they hit ten thousand agents, they had some things going for them that we don't yet they've been in business for around ten years. Most of the other cloud broker just hit that ten thousand agent mark somewhere between, like, the ninth and tenth year they were in business. That's a lot of time to kind of figure things out and work the kinks out. And we've very much had to build the plan as we fly. So a big thank you to all of you amazing agents for bearing with us as there's been little hiccups here and there. You know, my commitment has always been we're not gonna be perfect, but when we do make a mistake, we are going to try to fix faster than anyone else, and that's what I want LPT to be known for.

We are human. We're not perfect. There's gonna be mistakes. But when we find those mistakes, we will work harder and faster than anyone be more committed than anyone else to getting those mistakes corrected.

And as I like to say it, getting the cart back on the on the road and back on the track, they were already publicly traded. That's a big advantage. You know, I'm still funding this company personally, to grow it. We don't have Wall Street money yet.

We're not publicly traded.

The other cloud brokerage is by the time they reach ten thousand agents. We're already publicly traded. That also makes agent attraction a little easier. You know, there's this this kind of idea of all your more stable once you're publicly traded. And so, again, that's something that we are we are heading toward. We have a goal of, but we are not there today.

They were already in over forty eight states and even some other countries. Again, our or the fact that our growth has happened in a tighter geographic area, is a big testament to the model. And then the really big one is they got to experience a couple of real estate booms. You know, we launched in would be one of the worst two year periods in real estate.

And so despite that, we are building an amazing brokerage, and we are building it at the bottoms of a bus it comes to unit count, which is going to put us in such a better position than anyone else when we do see the next boom. So a lot of exciting things, a lot of comparisons there. Again, we're not we're not the first brokerage, cloud brokerage to hit ten thousand agents. We are definitely the fastest.

And, again, to do it with the resources we have, the geography, the geography we have, the market we've been experiencing is all pretty amazing. Again, this is a testament to you. You know, you guys came here, you believed in the vision, you believed in the model, and then you went out there and turned this brokerage into what it is today.

So what I wanna talk about and this is interesting.

This is something that we internally talked about before we even launched LPT Realty was we were basically creating this brand new category of brokerage. But part of the problem with that is if you go out looking too different than everyone else. It's hard for folks to understand, well, what are you? You know, are you you're not a rev share brokerage.

You are rev share brokerage. What are we? And so we purposely kinda held this language back until today. And again, since we're coming up on that two year mark, I feel like this is the right time, we're coming up on that ten thousand agent mark.

I feel like this is the right time. So we are today gonna unveil the original vision for what I wanted to call this new category of brokerage that we've created here at LPT Realty.

Next slide, Davey. So if we go back and look at the evolution of real estate brokerage.

You know, Keller Williams, in 1983, launched. They came up with this revolutionary idea of profit share. Where they would allow agents to earn profits from the agents that they help to track to the brokerage. I think the really important thing here that Gary recognized was that there is no one better to recruit agents than other agents. And, you know, you can have in house recruiters. You can have people on the phones, calling every brokerage has to recruit.

But he realized the power of having agents recruit other agents. And that there's a trust there. There is a community inside of this overall real estate community. And even though we are competitors with each other, we also have a community, and we work together, and that was an important recognition and so, you know, Keller Williams really came on the scene with profit share, which was revolutionary at the time, and changed the face of the real estate industry.

So then moving forward, in in two thousand nine, you had another big lead forward, Davey, if we can hit the next one. And that's when Exp invented revenue share. And so they took a look and said, you know what? We see some weaknesses in profit share.

We see some places where profit share isn't necessarily rewarding the agents correctly.

You know, you still have the market center and their expenses to take into account. And so the two big moves that happened in two thousand nine with the XP, was this move into the cloud, and then this move from profit share to revenue share.

And then Little LPT came on the scene in 2022, and we created a whole new category, of brokerage. And it's what we call hybrid. And so for from here forward, we're going to refer to revenue share at LPT as Hybrid share because that's really what it is. Hybrid share, for the first time ever, we're gonna get into a lot of these bullet points.

It allows more agents to be a part of the model. It allows agents to stay longer. It allows it to be okay. For agents who don't wanna recruit to be a part of this model and feel like they're at home.

And so, you know, why is hybrid share superior? Why do we think this is the next move forward? This is a brand new category. This isn't just Oh, we're gonna take the rev share model and tweak the numbers a little bit.

We literally created a whole new category that allows different types of agents at different walks of life to come together.

Into this hybrid cloud brokerage where we have options and agent choice around comp plan, and then allows agents who are recruiting and who are attracting other agents to now earn revenue on two types of comp plans. They can earn revenue on the agents who are on the hundred percent comp plan and agents who are on a traditional split plan with a cap. So a couple of things.

You get ahead of me there, Dave. You know, first of all, hybrid share is built for the long term. So, you know, one of the things that we saw with revenue share was there's almost this get rich quick feel to it because a lot of agents are paying that eighty twenty on their early deals. And this is this is the deep philosophical thing, and I'm gonna touch on this lightly, but if you think about it, if you're gonna pay eighty twenty, and you don't sell enough deals to cap, then is the cloud really doing you any type of service, right, has technology and has the cloud served you as an agent if you're not a capper?

If you're a cap or great, you can go to a lot of different brokerages and go to a hundred percent commission once you sell a certain number of deals. But what I really see with the cloud was the opportunity to serve the agents who aren't necessarily going to be capers. And so, one of the issues with revenue share is because agents come in and those early deals, they're paying the full eighty twenty, there's a faster rush of cash. But then one of two things happens.

Either those agents cap because there are a lot of cappers. And then once they cap, you go to zero. And, obviously, with the eighty twenty, you're gonna make more money quick, but then they're gonna cap and that revenue stops or they're gonna leave the brokerage because a lot of agents will say, you know what? I'm never going to reach that cap.

I'm never going to successfully recruit agents. Why am I paying an eighty twenty split, I'm going to go to a different model, a different brokerage with a better plan. And so while revenue share made people feel really good early on and really quick because you had the new agents coming in who were paying eighty twenty and then left where you had the agents who came in on the eighty twenty, And then they kept. And either way, the revenue stopped.

But there was this early quick hit, this get rich quick feeling to it, and our model changes you know, agents get a fair comp plan where they pay less across more deals, which means, obviously, there's less revenue to share. But what's important is it allows agents to stay longer. And retention is the key to winning everything related to real estate. We are already a high turnover business We have a high failure rate.

We talk about this a lot here on motivation on Monday. We wanna give agents every chance. We wanna give you as entrepreneurs every chance to seed and make it and stay with us and be your brokerage for life. Now that means things slow down.

You don't get the money as quickly. You don't see that the quick pop. You don't see the get rich quick. You've gotta be in this for the long haul, and that's one of the dynamics that hybrid share creates.

It also better aligns the brokerages, the team leaders, and the solo agents' interest. Alright? We see this a lot. This is why so many mega teams are coming from all across the country to LPT realty right now because they recognize the importance of having everyone's interests be aligned.

In traditional team cloud cap models, team members get a different cap than solo agents. This creates a disproportionate effect. If you're a mega team, a really big team and you have, say, a quarter cap, how is a small team just getting started who's still on a full cap supposed to compete with you? If you're an agent on a team and you're on a quarter cap and you suddenly leave that team because you wanna grow to the next level of your business and your cap quadruples overnight, All of a sudden, it's not very attractive to stay at that brokerage.

And on the flip side, you have the brokerage itself saying, wait a minute. Every time somebody joins one of these really big teams, our revenue gets cut by seventy five percent. We go from a full cap to a quarter cap. That costs us a lot of money.

And so you have everyone jockeying in different actions. The brokerages want the brokerage wants agents to stay solo so they can keep getting that eighty twenty longer. You know, the team leaders, obviously, are trying to figure out how to fit in and help their agents and help them be successful, but they're almost at battle with the brokerage because the brokerage has to give up money when someone joins their team. And so all of this stuff running together we said, you know what?

If we just give the same comp plans to everyone, so that it's agent choice, let the agents choose. Now, we as a brokerage are incentive to help agents find a team if that's what's right for them. If an agent does decide to leave a team, they don't get this shock of a massively higher cap, And then that allows our teams to grow so much faster because they now have the support from the brokerage to help grow, and they have all of these other solo agents that are on a fair comp plan who are who if they decide they want to join a team are already part of the brokerage. And so all of that together is an absolutely big win.

Couple of things, allows agents who just wanna sell real estate without any recruiting to have a fair compensation model and a true home. We hear this a lot. Your rev share, it feels like the rev share kinda brokerages. You know, failed a lot of agents who just wanna sell real estate.

Now if you're if you're a mega agent and you're gonna get all your cat back in stock and things like that, that's a different category. What I'm talking about is if you look at that bottom down there, the seventy percent of all agents who don't close enough to cap and who will not have anyone in their organization or downline, the the current and legacy revenue share models left them behind. And part of the problem is you cannot build the massive network that we want to build if seventy percent of the agents in the entire country cannot get a fair deal at your brokerage. And so again, this is something big that hybrid share solved.

And then finally, I touched on this, the higher retention rate, which allows the company to grow beyond what I consider the current glass ceiling of the rev share models. If you look, you know, no rev share company has gotten to that hundred thousand mark, and the growth over there is slowing dramatically. And so I believe that if you want to get to the true scale, If we wanna have a quarter million agents on this platform, we cannot ignore and we cannot leave behind the seventy percent of agents who that model doesn't serve. And that really is the key to hybrid share.

And the beautiful thing is with technology in the cloud, we can absolutely do it. If you look at the advantages that we have, from a cost standpoint, a delivery standpoint, a training standpoint, and everything else by being a cloud brokerage, it is massive. The legacy franchise models with the brick and mortar and not even so much the rent. It's all the staff.

You know, if you think about it, you know, if you've got thousands of offices across the country, each one of those staffed with people that are making salaries, and all these different things, that gets really, really expensive. And so at LPT, we really embrace the true benefit and potential of being cloud And that's why we could build a model that puts more a more money back in the individual agents' pockets on those early deals and gives everyone, not just the top thirty percent. Everyone a true chance of success inside of this brokerage. And then most importantly, real estate first, this is one of our really big principles here.

And hybrid share is that bridge to real estate first. Hybrid share fixed some of those issues with the rev share model that allowed it to forget about real estate a little bit or get a little far shifted away from real estate and too focused on recruiting. And so that's something I'm very proud of. Hybrid share is is what we are here at LPT Realty.

And so as a part of that, we're going to be renaming our top plan, from Revshare Partner to just brokerage partner. Alright? At the end of the day, When you're on that top plan, you can run a team, you can have your own branch offices, you can earn hybrid share, you can mentor other agents, and so we are renaming that plan to brokerage partner because this is the language of who LPT is. We are the first ever hybrid share brokerage a revolutionary new concept that makes the cloud brokerage model accessible to more agents with better retention and more possibility for future success.

And we have brokerage partners as our eighty twenty with a fifteen thousand dollar cap plan because that's how we view you. You are our brokerage partners helping to grow and build and and run your teams and have your offices and mentor other agents, and it's an important part of who we are. So it's a big move today to go to new language about how we talk about who we are here at LPC Realty.

And so as we built the first ever hybrid share brokerage, and we created this brand new category, obviously, that comes with some challenges. And so today's big announcements are about us making changes to clean up some of, the mistakes we made, some of the things we didn't consider. Some of the problems we tried to solve for in one way, and now after having two years of history, and having, you know, thousands and thousands and tens of thousands of transactions under our belt, we recognize that there were some things we didn't get right. But, again, we're building something that had never been built before. Your feedback was very important. We got it through our AACs.

Big shout out and thank you to everyone who participates in the AACs. We got it through our executive ticket bucket, where you all provide feedback to us. And while sometimes it may feel like that's falling into a black hole. Trust me, we are reading it.

I'm reading it. We are taking it to heart, and we are looking at how to make moves around your suggestions and your thoughts. And then finally, agent conversations, you know, I tried it to be accessible and to our agents and get that feedback. It's important to me to have my finger on the pulse of the brokerage, and that starts with each and every one of you.

And so all of the things we're about to go over that our changes, came from those discussions. And, again, comes from the fact that no one had ever married these two models before, and we tried to get the balance right between the business builder plan and the brokerage partner plan. And what do you do when someone's on a split and someone else is on a flat fee? And so today, we making some changes to improve, parts of that model to make it more favorable to all of you.

So we can jump right into that, Davey, with the next line. Alright. So model improvements.

Number one, core versus non core transactions will no longer affect commissions, caps, or rev share pool contributions. Right? This is a big one. When we launch the brokerage, We had this concept of core versus non core, which was very important for our stock plan, and it will stay in place on the stock plan side.

That is a much more difficult document for to open up and change. What we're doing is we are we are, detaching that from whether or not things count towards your cap, whether or not things count under your core com your basic commission plan or your chosen commission plan, and then whether or not that closing will put money into the rep share pool, in order to pay, the agents who helped attract you to LPT. So going forward, all plan commissions will count toward CAPP and the rev share pool regardless of the type of transaction. Alright?

All transactions are gonna carry the standard plan commission rate, so whether that's five hundred or twenty percent, and all transactions are gonna carry the one ninety five transaction fee. And then some transactions, commercial, personal, and BPO will carry a different type of fee structure or a risk management fee. And we're gonna get into this. This is something that other brokerages use heavily.

Let's go on to the next slide, David.

This risk management fee concept. And so if you look, the other two big cloud publicly traded brokerages have both raised their risk management fees across all agents and all transactions, one pretty recently and one in the last year. I think a big part of that, and we talked about this you know, six months ago, the failure to recognize the added risk of commercial transactions inside of a residential brokerage. And so when you go out and you say, hey, we're gonna let commercial count just the same as residential, but on the flip side, there's higher risk, there's higher E and O costs, there's a higher likelihood of lawsuit, all these different things, a brokerage has to figure out a way to make up for that risk.

Alright? And so the way that this happens or the way they've fixed this at other brokerages is they decided to just charge everybody more. So every single transaction up to a cap, which, again, they just raised to a higher number. They charge risk management fees, and that was their approach.

Our approach is to be more surgical and say, okay, if you are doing one of these higher cost higher risk plans like commercial, we're only going to charge you. We're not going to charge everyone else. Alright? So on a commercial deal going forward, your standard comp plan will apply, either five hundred or twenty percent that will go towards your cap.

And then we're going to have this risk management fee, which for brokerage partners is point one percent of sales price. And for business builders is point three percent of the sales price. So still an encouragement for people to upgrade to that brokerage partner plan, and then what we're still working on is a dedicated commercial brokerage that will have additional tools in a comp plan. I still believe that we need a dedicated, commercial brokerage you know, I believe that we're going to have that.

I believe that's going to have a slightly different plan, but this is our solution to how do we solve for commercial inside of the residential brokerage? Now look, we're going to try this. If this bombs and fails miserably, and we have to go back the other direction, because people say, hey, we don't like the fact that you charge these risk management fees on commercial, because the other guys don't, well, we can look at charging risk management fees on all deals the way the other guys do. That is not my preference.

My hope is that this works. But, again, we're always gonna be transparent with you guys about what we're doing, why we're doing it, why it's important to what we're building, why we think other people got it right or got it wrong, And so, again, this has been months and months of us crunching numbers and having meetings and trying to figure out the best possible way to make this fair. And so we feel like these risk management fees are the fairest way to do this. Now the standard comp plan goes into the rev share pool.

Now when someone in your down line closes a commercial deal, if they're a rev share partner and they're uncapped, the twenty percent will go toward their cap, and it will go toward the rev share pool. Again, this is something that we heard from you a lot about how to clean this up. We looked at maybe doing a higher cap for agents who want it to be a part of commercial, but then we continued to leave the business builders behind just a lot of issues that we had to look at. And so after again, months and months and months of of trying to figure this out this is where we landed.

Alright. And so again, we'll we're gonna put more information out on this. We'll put out some FAQs. We'll have some additional meetings, but I wanted to come on today.

And explain, how this works and how we're thinking about it. Alright. Next slide.

So this is a big one. I saw somebody say in there, oh, are we gonna apply, you know, one ninety five small deals. Like, this was part of why we built the model that we did. How do you handle it when the commission on a deal gets too small for the basic fees to work.

Right? We can't get five hundred dollars because there's only four hundred dollars in commission to deal. We can't get the one ninety five because there's only five hundred dollars in the deal, whatever those numbers are. And so we this was really where we got stuck, and we kept getting hung up here, and we kept going back and forth.

And this actually is a is a pretty new thing, I would say just in the last, maybe a couple of weeks that we really figured out and landed on, and that is this concept of the low commission exception request. Because, again, we're all about agent choice. We want to give you the optionality to decide how to run your business because some agents may say, you know what? I would rather pay the five hundred and have it count toward my cap even though there's only five hundred bucks in the deal.

Right? I'm getting a five hundred dollar commission. I'll let l p take l p t take all five hundred of it and count it toward my cap because I wanna cap faster and I have other deals closing, and I can afford to do that. Another agent may say, you know what?

I am just not in a financial position to do that right now, out of that five hundred dollar commission, I need as much as I can get. So you have the option to put in for a low commission exception request where we will then take a twenty percent risk management fee. The twenty percent risk management fee does not apply towards your cap. Risk management fees do not go into the rev share pool Right?

So each agent is losing something here, and LPT is losing something too. Instead of us getting the full five hundred on that five hundred dollar commission example, we're now gonna get a hundred dollars. The give on your side as an agent for selecting that is that hundred dollars does not count towards your cap. So there is a give and take on both sides when you choose to exercise the low commission exception request.

Again, we are trying to build something complicated here. Again, a brand new category had never been done before. And, again, after two years, we recognized We have to have ways to grant these types of exceptions. We have to have ways to give this type of agent optionality.

So now it is up to you. If you want that five hundred dollars to count towards your cap on a deal, even if it's super small, you're welcome to do that. Or if you say, you know what, I need the extra money this month, because I've got bills to pay or I've gotta reinvest in my business or whatever that is I'm trying to grow. You have the choice to put in for this low commission exception request where we will flip to the twenty percent risk management fee instead of charging the standard plan commissions.

And this really cleans up a lot of issues we had across rentals, across, you know, the the low commission transactions, we have looked at everything, about making this happen. And so I just saw a question. Does the low commission change after you cap? Well, you wouldn't choose it because you'd be capped so all you would be paying is the one ninety five.

Now you may decide, hey, I'm only getting a hundred dollar commission. I'd rather pay twenty instead of one ninety five, but the cap does still apply. So you're in a better position after you've capped to not need to exercise, the low commission accept. So, again, guys, there are going to be outlier situations where we miss but we feel like this framework really catches ninety nine point nine percent of all of the things that we're trying to get out there.

And then finally, personal transaction. So we will continue to waive our plan commission on personal transactions.

There will be a two hundred and fifty dollar risk management fee on their personal transactions. Again, we're moving things into the new framework. You know, we used to say, oh, it's a noncore, so the two fifty, doesn't count toward this or that. Now it's a risk management fee.

So it's just clearer language about what counts and what doesn't count. And then finally for BPOs, we're gonna charge a ten dollar risk management fee. So now you can clearly understand if you are paying commission to the company at either twenty percent or five hundred dollars, that money will go towards your cap, that money will go toward the rev share pool. That is a unknown thing.

And then if you're paying a risk management fee, because you either voluntarily selected the low commission exception, You're doing a personal transaction, you're doing a BPO, or the additional, risk management fee that we charge on commercial, those things do not go toward CAPP and do not go toward the rev share pool. So we feel like, again, while we know we've gotta do a lot of training and education around this, Everything we did is agent friendly. We've run almost every example, and it will put you in a better position than you would have been in before. So we're excited, excited to get this out there and get this rolled out.

Because we know there were some agents who either didn't come to LPT because too much of their business fell into these areas that we missed, they were doing too many leases under twenty five hundred dollars or maybe too much commercial. And so we know there were folks that didn't come to LPT for those reasons. And then we also know there are some agents who left LPT, because they found themselves in one of those issues and maybe their business shifted. And so we wanted to correct that and fix that.

Because we want we want LPT to be everyone's brokerage for life.

Next slide, Dave.

Alright. This is a big one. I saw this being asked about in the chat. If we can go back full screen with that, platted residential land zone for single family residence is now considered a residential transaction.

Again, we we know we still have some work to do. This was the easiest one to fix. So if you have a plated piece of land that someone's going to build a single family home on, we are now considering that residential.

Large acreage, large agricultural land, land that's being subdivided for development, that is all still considered commercial, but we wanted to clean this piece up. I think as you know, so obviously now too with the commercial transactions counting toward CAP, it is not nearly as big of a deal as it was a day ago. But this type of land transaction where it is a residential land transaction to build a single family home on, that is now considered residential and will fall under all the normal all the normal treatment just like it had a house on it. So that was, again, something big we wanted to clean up.

You know, some of these were just, again, as we were building this model out, and trying to be more judicious and understand risk in different transactions because look, big acreage of land that someone's going to subdivide does have a higher risk for the brokerage. You see a lot of lawsuits around that. The fraud risk on those right now, there is more fraud happening around vacant land. Than any other type of of fraud right now.

People are making, you know, fake IDs to sell land they don't own and running off with the money. There is a lot of risk in land we hear you and we wanted to clean this piece of it up. So residential plated land zone for single family residence is now considered a residential transaction. And if it's over twenty five hundred dollars, it will be a core residential transaction.

Again, for stock purposes, that doesn't change. We still have the core and non core, but the counting toward cap, the counting toward the rev share pool, That's the piece we have now detached and cleaned up.

And then one more really big announcement if we can get that last slide up, Dave.

Because we recognize that there are people who did not join LPT because of concerns around these things that we just corrected, or people maybe who left LPT because these things we just corrected, we are going to extend the deadline for early adopter benefits and the the Florida pre IPO benefits until February twenty ninth to give all of you a chance to go out there and share these improvements that we have now put out into the model, some of these little, nuances that we've now cleaned up so that more folks have an opportunity to join, LPT realty. We had a lot of people trying to get in right at the wire.

We we all worked really hard. I wanna say a big thank you to the entire staff. People stay late. People send out ICAs.

I don't want anyone to feel like because of this extension of that work was for nothing. You know, this was a tough decision for us to sit down and make over the weekend. We had a lot of conversations. And, honestly, if we if we weren't making all of these significant changes and improvements to the model, we would not have done this extension.

You know, I take it seriously. I don't I don't want us to feel like, hey, we put we put out a fake deadline or our deadlines aren't sincere. We just felt like with all of the changes we're announcing this morning with these things that we're cleaning up around the again, the smaller deals going toward cap, the smaller rentals going toward cap, the new commercial plan that that we needed to give folks an extension and one more chance to get in and be part of the group who believed early in a shared LPC Ralty. There will not be another extension. I don't want anybody thinking, oh, two nine. We're gonna extend it again. Right here right now, I I can guarantee you there will not be another extension.

The March thirty first deadline to move license over sticks, So they'll need to sign their ICA by February twenty ninth, and then they have until March thirty first, to move their license over. It's important to me that all of our agents are with us at the end of q one. You know, again, we're gonna cross the ten thousand agent threshold in q one. This is a big moment in our history as a brokerage.

So we wanna get everybody in and lodged and ready to go before the end of q one of this year. So again, we're going to we will post this slide deck into LPT connect. We'll throw in on a news article. You'll be able to log in there and find it.

I think Matt Hodge is gonna blast it out on the email blast as soon as he gets to his hotel.

In Italy.

But again, big, big shift today, big changes, big improvements for all of you. We are listening to you. We we feel like this was a big step forward to simplify the framework. It's gonna make life easier on the compliance folks that are that are trying to apply our policies.

It's gonna make life easier on all of you. To have a more consistent method of how commissions are being applied. On those and again, the stuff we changed today may be affected three or four percent of transactions. But we understand that if if you're an agent where it's half of your transactions or more than three or four percent, we wanna listen to that, and we're not just gonna throw out you know, the outliers, and we will always stay committed to making this model, absolutely as friendly for you and as simple to understand as possible.

While still protecting the integrity of the brokerage and and the risk profile of the brokerage. And and again, understanding, hey, we can't just say, yeah, you can do commercial deals for five hundred dollars that goes towards cap with no additional costs. Like, there are things, that we have to be judicious about, and we have to make good decisions because we have to protect all of us because LPT needs to be here for the long haul. Hybrid share was built around sustainability.

Hybrid share was built around a long term journey together brokerage for life. And again, we remain committed cleaning up any little issues that do come up from us creating a brand new category that had never been done before in this industry.

Yeah. So the these improvements are absolutely amazing. Like, when you look at this concept of hybrid sharing, how you have moved the industry forward, you know, I can sit here and just look back at the previous eras, right, where agents whenever they joined the brokerage in the past, they would have to mold to that brokerage. And now with hybrid share for first time, it's this concept of the brokerage molding to the agent.

And you continuously mentioned this, right, where you wanted to to develop a platform where agents can achieve their individual definitions of success. And sometimes that concept's not really understood because, you know, agents do define success differently everyone will have different goals in real estate and that shifts frequently and being able to call a brokerage a home that we can continuously adapt to that agent and help them achieve their definition of success is so important for those agents to achieve their goals and to adapt to where they are at in their real estate journey. So I

hope you know, each and every one of you are excited today about the announcements and improvements that you heard about LPT realty. I know we we are over time, today, Robert, any final words.

Mack again, guys, I'm proud to be in business with each and every one of you. You know, proud that that we can all work together and again solve these problems. And stick together and, again, build something absolutely amazing, you know, hybrid share, brand new category. We're gonna cross that ten thousand agent mark sometime next month.

So exciting. You know, cleaning up these little problems in our first two years. You know, other broker just took much longer to to to figure out what was wrong. And and then some chose to fix it and some didn't.

And I think what is most important to me and what's most important for all of us together is I don't want somebody ten years from now putting up a slide showing that they moved the model one level beyond us. Right? I don't want it to go profit share, rev share, hybrid share, something else. It's gonna go profit share, rev share, hybrid share, and and the game ends with like, we will stay committed to making the changes and adapting to the model and adapting the technology changes so that we don't see another brokerage slide in front of us in ten years or five years or whatever that clock is, because we failed to solve the problems internally or because we failed to adapt to the marketer because we just plain got lazy.

And, that's not what LPT is all about. We are the brokers for life, and that's a commitment to you as much as it's a commitment from you to us. Right? When you say LPT is my brokerage for life.

You're making a commitment to us. But when we look at you and say, we want LPT to be your brokerage for life, we're making a commitment to you too. Because that means we have to be willing to adapt and push the envelope forward and move the model forward or else we'll force you to leave if we don't keep up and that's the mistake the other brokerages have made. So, again, I appreciate each and every one of you.

You are amazing entrepreneurs. I'm so proud to have you on this ship with us as we sail into uncharted waters. And build a a brand new category of this hybrid share brokerage. And and we're winning, and we're gonna continue to win together.

And I hope to see a lot of you at at at Grand Prix here in just, just a month. Have a great week. Go out there and crush it.

Go get into your communities. Go help your homebuyers and home sellers, and I'll see you next week. I'll be live from Vegas for next motivation Monday.

Awesome.