when to start your own real estate firm

When Should You Start Your Own Real Estate Firm

Joe Stampone Start a Company 8 Comments

One of the aspects that make real estate such a great career is that it is made up of so many entrepreneurial-minded professionals. Most professionals in the business want to eventually go off and do their own deals. However, the challenge every real estate professional faces is determining when is the right time to go out on their own.

While there’s no perfect time, I think there are a few pre-requisites every real estate entrepreneur needs:

  • The technical skills and knowledge needed to run all aspects of a deal from sourcing and acquisition to financing, asset management and disposition.
  • A diverse and trusted network of investors, lenders, brokers, and other market participants.
  • A competitive advantage; it can be as simple as intimate knowledge of a market and asset class, grit, passion, and willingness to put in the work, or the ability to think differently and execute a unique business plan.

I think Seth Godin sums up the ideal moment to go off on your own perfectly:

You might be waiting for things to settle down. For the kids to be old enough, for work to calm down, for the economy to recover, for the weather to cooperate, for your bad back to let up just a little…

The thing is, people who make a difference never wait for just the right time. They know that it will never arrive.

Instead, they make their ruckus when they are short of sleep, out of money, hungry, in the middle of a domestic mess and during a blizzard. Whenever.

As long as whenever is now.

There is no good time to go off on your own, unless that time is now. The opportunity cost of leaving your job will only increase, there will always be an excuse, and the time will never feel perfect, but you need to rip off the band aid and jump into the entrepreneurial world head first.

  • safdsfssd

    In order to start your own real estate company, I would recommend asking yourself the following questions:
    (1) Do I have the expertise or a strong investment angle (2) Do I have the network to source deals (3) Do I have the $$$$$ to lock up and invest in deals (4) Do I have the right partners to enter this grind (5) Are the market conditions right. If you can answer those questions truthfully, then ask a couple of your close acquaintances to review your answers and speak with them about starting your own company. Maybe they will join you, but more importantly they will or at least should give you an honest opinion on your idea of starting a company today. You need to have at least 80% of those questions answered with a “yes” and number 5 being the most important.

    I understand that people say, well if I don’t start a company today, then I’ll never do it… That’s a completely wrong attitude to have before engaging in this hardship. Starting a company in general is already tough but differentiating yourself from the next investor to raise $ is even harder. This passage is coming from first hand experience on a start-up that I am currently running which answered 80% of the questions with a yes, but lacked #4. I could write-up another 2-3 pages on #4, because it is the most important aspect of starting a business, finding the right partner.

  • Nice Post…

  • Joe, that Seth Godin quote is hilarious! The second half reminds me of me in 2012. Good for a laugh now. Thanks for the inspiration. Darren

  • Funny, but spot on!

  • There has never been a better time to Start A Real Estate Business than Now. The internet has leveled the playing field for everyone. It’s also never been cheaper to buy unwanted rural land.

  • @stevenbutala:disqus agreed. We’re going through a massive culture shift and the opportunity is huge. The question is, are you a #1 or are you better suited to be a #2 or #3?

  • Pingback: Park Street Partners – Finding Opportunity in Unsexy Assets | A Student of the Real Estate Game()

  • Pingback: 10 Federal: Embracing Technology to Outperform the Competition - JRL Realty Resources()