Shares of Reliance Global Group, Inc. (NASDAQ: RELI) are experiencing a notable increase following the announcement of a new division. As of the latest current-market check, RELI stock surged by 26.91%, reaching $4.88.
Reliance Global (RELI) has unveiled the establishment of a Real Estate division, leveraging Ezra Beyman’s extensive expertise in constructing the third-largest mortgage brokerage in the United States and amassing a multi-billion-dollar portfolio of multi-family properties.
Additionally, Abe Miller, a distinguished real estate investor and mergers and acquisitions executive, has agreed to join Reliance to lead this new division and provide guidance on future real estate transactions.
Strategic Vision and Leadership
Mr. Miller has an excellent track record that demonstrates his ability to increase asset value and negotiate complicated market dynamics to create significant investment returns. One example of this is the successful building of a $3 billion real estate portfolio through judicious purchases.
Interestingly, Mr. Miller’s pay will be fully success-based rather than having a set salary. This new division aims to supplement, rather than replace, the Company’s primary focus on acquiring profitable and cash flow positive insurance agencies.
Future Prospects and Strategic Alignment
Reliance is taking a big step forward with the launch of its new real estate business, which will concentrate on the development and purchase of multi-family and commercial real estate holdings. Reliance is a pioneer in the insurance technology market, using artificial intelligence (AI) and cloud-based technologies to streamline and modernize the insurance agency/brokerage industry.
As the leader of this newest endeavor, Mr. Miller will strengthen Reliance’s standing as a cutting-edge, tech-focused company dedicated to long-term profitability and maximizing shareholder value. The new division is expected to launch following the completion of the Spetner acquisition, aligning seamlessly with Reliance’s ongoing strategy centered on profitable and cash flow positive acquisitions.
This expansion into real estate will diversify Reliance’s portfolio, leveraging non-dilutive financing sources supported by the intrinsic value of the assets and the Company’s operational cash flows.
