Realiste - is a prop-tech company that develops an AI-powered property investment search platform, the biggest database of properties and investment data in the world available in 100+ cities, a transaction platform, and portfolio management capabilities for investors.

Investors (retail and institutional) receive all data for decision-making, complimentary AI insights, and have the ability to transact (buy and sell) through the Realiste exchange platform.

The mission of the company is to give people the last freedom, access to carefully curated risk-free investment opportunities in the property market. At Realiste, our goal is to revolutionize the transaction cycle in the real estate industry.

The idea was first conceived by the company's founder and CEO, Alex Galt, a real estate investor and deep market specialist. He realized that people know so little of the golden opportunities that real estate markets offer. Alex started his professional career in real estate, as an owner of a real estate agency with a focus on investments. During that time, at 20 years old, he was selling land parcels and he came across an ordinary plot of land that had caught the interest of an investor who was willing to pay well over the market average. However, the owners refused to sell although they were impoverished and selling that plot would make them an immense fortune, enabling them to move and greatly improve their quality of life.


Alex was incredibly inspired by this encounter, realizing that people simply are unaware of real estate opportunities and how much life can be drastically altered if people simply understood what they're missing out on. He identified that most people simply assume that relocating and improving their lives are very expensive processes when in reality that is not necessarily the case. He wanted to give people the freedom to make informed choices on where they live or on what investments they make.


He later came to understand the growing potential of AI and IT as a whole and he decided to merge those two worlds of AI and real estate by creating a platform that utilizes AI to deliver accurate data on global markets in relative instants. Most investors and buyers are only well acquainted with their local market, and so there was a gaping need to provide accurate data on real estate markets around the world in a few clicks, expanding the chance of profitable opportunities. Hence, Alex started working on Realiste 7 years ago and in March 2022, the platform's beta was officially launched.

Online broker

Retail and institutional investors use the Realiste platform to obtain free and accurate AI analytics and market data to purchase an apartment. In exchange, Realiste takes the client's personal data and passes the mostly completed transaction onto the real estate developer, while receiving an average of 5% commission.

According to analytics, after the first of operations, 16.3% of clients were return customers with the projected number being 45% in 2024. The average client buys 2 units every year.

The model is transactional yet the company is not a real estate agency. There are fundamental differences in the practices and values with an example being that Realiste has a substantially lower cost of sales since there are no agents, unlike an agency. Additionally, the company's targeted market is the global real estate market unlike the one or two local markets agencies operate in.


Data is collected from developers (collected by a local team led by BD) about the apartments they want to sell - stock or inventory. The data is updated daily, thus creating a reliable and up-to-date picture of the market. We are able to convert this data from Excel sheets, PDFs, and chats through which developers provide apartments for sale, and modules for direct integration of this data to our platform in real time (uploaded from their database).


The result is an open database of up-to-date data on new buildings https://exchange.realiste.ai/. The client (buyer, investor) on the platform can select a project and book an apartment online (in the 1st version of the platform). In newer versions of the platform, the client can buy an apartment 100% online through the Realiste platform. If a client buys an apartment through the Realiste platform, then Realiste acts as the nominal owner of the property on behalf of the client (similar to a broker on the stock market). The client can also sell the property purchased on the platform as well.


Before or after booking apartments on the Realiste platform, clients are assigned personal managers who guide investors through transactions, showcase the platform, and support them at every stage. This way, clients gain a better understanding of the platform's operations, and the company increases sales conversion.

The developer pays a commission for the sale ranging from 2% to 10%.


With an AI platform, revenue comes from:

• Commissions for the sale on the Realiste exchange platform (when a client sells his property, which he bought in Realiste)
• Risk-free storage of clients' money on deposits with a percentage taken on these deposits
• Other services (insurance, financing, investment leverage, paid subscriptions, etc.)

According to the data, we believe that if Realiste AI enters a city, providing transparency through data, investment strategies, and specific units for purchase, there is an opportunity to elevate the company's valuation to over $50 million in a $10 billion market. Additionally, this has the potential to attract interest from local players looking for acquisition opportunities.


With 100,000+ registered users in 2023, currently, there is nothing quite like our AI-based real estate exchange platform in the world.

Expansion includes the following stages:

1. City Selection
Choose any city worldwide where Realiste has not yet established a presence. Realiste employs a data-driven approach to select the most captivating cities, typically from a list of the top 200 cities globally. However, under special circumstances, Realiste may consider cities that are not on the list if there are compelling reasons.

2. City Partnership Inquiry
Contact the Realiste team to verify if the chosen city is available for partnership.

3. Signing the Term Sheet with Realiste Holding

4. Seeking an Investor
The investor and new founder must actively search for seed money or consider taking on the role themselves to secure funds for licensing in the city and facilitating the launch. The license encompasses rights to Realiste AI in the local area, the AI model with accompanying data, and all established business developments.

5. Payment
Upon company formation, the investor will receive a 10% stake in the new company and transfer the rights to the Realiste software license to the new company's assets. This involves a payment of $500,000 ($300,000 for the launch, and $200,000 for company development).

6. Initial Program Launch
Within 2-3 weeks, Realiste will initiate the first version of the program for the chosen city. This version will encompass most of the system's functionality, although the data may still be raw and imprecise.

7. Company Setup
The Realiste team and the investor will jointly appoint an agent to establish the new company. In this process, Realiste will obtain 90% ownership, with the investor retaining 10% in exchange for transferring the software license. Within three months, the Realiste team will identify a managing partner for the new venture, transferring necessary resources for operations. The managing partner will secure $300,000 to $500,000 from local investors and assemble a team. At this stage, the investor holds 10%, the managing partner 49%, and Realiste Holding company retains 51%.

8. Transaction Documents

9. Business Model Testing
The managing partner will spend 3-4 months testing up to 5 potential business models in the market and select 1-2 models best suited for the local market.

10. Scaling
The founder must be actively involved in pursuing additional investments for the company, focusing on rounds A and potentially B. Realiste is open to adjusting the ownership structure if required.

11. Sale of the Company
If an offer to purchase the company operating in the city is received and both investors and the team vote in favor of the sale, Realiste will separate the product for that city from the main core. The product will be transferred to the ownership of a local company (IPBox) to facilitate its sale at a high valuation within the local market. The product will continue to operate in the same manner, but it cannot be used in other cities.

Realiste AI plans to grow into a leading proptech company and become the best in the online sales of new buildings. The approximate economics of the company's growth, which may vary depending on factors such as the city, local VC environment, and market size, is as follows.

How to read the table:

• Revenue: The company's income from the sale of new buildings.
  
  
• Sales costs: 40% of revenue calculated, taking into account the company's marketing expenses for customer acquisition and a maximum commission of 20% for the sales department.
  
  
• Other income: Calculated as 20% of the expenses for the administrative part of the business, including employee salaries.
  
  
• Net: Calculated as Revenue minus all costs.
  
  
• Valuation: Calculated as Revenue multiplied by 10.
  
  

• Investments are presented as a preliminary estimate, according to the table, they are not mandatory from the first year of operation. They are needed for faster growth
  

Within a 1-5 year timeframe, the company has the following goals:


a) Selling the Company to a Strategist: The company may be sold to a strategic buyer, potentially realizing a substantial return on investment based on the company's valuation at the time of the sale.


b) Business with a 50%+ Margin and Revenue Share: Alternatively, the company can aim to operate profitably with a 50% profit margin. Shareholders would receive a share of the revenue based on their ownership stakes.


c) Launch an IPO on a Local Stock Exchange: Another option is to take the company public through an initial public offering (IPO) on a local stock exchange, which can provide liquidity to shareholders and potentially increase the company's valuation further.


The specific path chosen may depend on various factors, including market conditions, investor preferences, and the company's growth trajectory in the chosen city.

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