I have an idea for a brokerage business I want to start in Georgia focusing on rural properties. Not only am I not a broker yet, but I won't even get my real estate license until this month. I realize I have to wait 3 years before I can become a broker, but my intention is to partner with another broker, or retired broker, who can serve as managing broker (for a % of transactions) until I take over that role in 3+ years.

I have spoken to one other person who has successfuly done this, but I wanted to post here to see if any of you had thoughts on it. Real Estate sales isn't necessarily my expertise, but I have successfully started several businesses, including an Inc. 500 marketing services business. I am very comfortable with all aspects of starting and managing the business.

Thanks for any insight you can share.

Lead_dog... others are likely to disagree with me on this, but I think you have a fair shot.

The biggest shortcoming of folks who start brokerages, in my experience anyway, has been in being real estate smart and business dumb. If you really have the business savvy you imply, you could get things really going.

However, you do admit that your not so hot on the real estate side. This is bad in that your not going to draw new agents since you don't really have the market knowledge they need to aquire.

I suspect that to really make this work, your going to want to bring in a seasoned agent or broker. Offer them a piece of the pie in exchange for some mentoring of new agents and being the go-to person for real estate specific issues.

You can start by doing a search on the MLS for agents who are doing the most business and contacting them about the opportunity.

I've started several businesses myself and it took a couple of failures before I got my head de-rectumulated and realized that doing what a business does and successfully running a business are two different things, sounds like your already there.

The brokererage I worked with in Santa Cruz County was built on this kind of model - they are doing very well.

R

Thanks for your reply Rebel. You're right that I can't claim to know the specific nuances of real estate real well. What I do understand is positioning, branding, marketing, lead generation, technology and sales. That's my area of expertise, and the businesses I have built have largely been lead generation and management services and web based systems. While that's not real estate, a lot of the real estate "game" is finding/qualifying/motivating buyers, and giving sellers (listings) the confidence to list with you. If you have a strong brand and web presence, hopefully that will go a ways toward giving sellers confidence to give you listings.

Technology also plays a part. In focusing on the rural market, I believe there are lots of urbanites that want to either acquire land and move to the country or to hold. Since it can often be a lengthy trip, technology is important in terms of using web photos and videos to market properties and help buyers drive out to see properties that truly match their interests. I see a real void in this area of helping urban buyers (with money) to find and acquire the property they want.

I think your idea of brining in a seasoned/experienced broker is a good one. It's just a matter of finding the right person.

Thanks for responding.

Here's a problem I see you running into:
Finding someone to partner with you. If they're just looking at getting a split of transactions, what do they need you for? (I know, your business savvy... but it might be harder to convince someone of that value than you think.)
And... a percent of what transactions? You'll have some amount of time that you are brand new, have only a handful of agents, and a split of a handful of transactions wouldn't draw anyone. In my experience anyone who is looking to manage is looking for less risk and a more steady pay-check. Most of the time, te best managers aren't the best sales people. They are 2 different strengths- and if they're shying away from sales and looking toward a steady paycheck... what are you offering?

Hi Carla,

Great points, and I agree no one would partner unless there was mutual value. But here's what I was thinking. I would either need to partner with someone in or nearing retirement, or someone not in my geographic or vertical market. That way what "they get out of it" is a percent of revenue of a market that would otherwise be unavilable to them.

I was referring to a percentage of all transactions that this brokerage sells. What we would be offering, to your point, is effective marketing resources, lead generation and sales support. The hope was that that would be helpful and attractive to agents. Of course you're right that a steady paycheck wouldn't be the focus in the beginning. However, my plan was to agressively market and sell full-time until we needed additional help.

Perhaps it's not realistic, and you and others have great experience, which is why I was asking.