The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success

Does this new opportunity meet NECST?

Remove ads while supporting the Unscripted philosophy...become an INSIDER.


Bronze Contributor
Speedway Pass
Aug 9, 2007
Hi all, long time no talk with most of you.

Very quick background – I’ve been in real estate for the past 8 years (5 in development, 2 in asset management) and for the past 8 months I’ve been working for an apartment investment firm and I’m one of two individuals responsible for presenting new acquisitions opportunities to our company's President. We buy large apartment communities throughout the US - usually 150+ units and deals over $10,000,000. Our President makes the final decision as to whether or not we pursue a deal. I get paid a salary, plus I get a sizable commission on any deal we buy. Most of the deals are in the $10-20mm range and the target (agreed to in writing) is that on that deal size I’ll make a commission between $15,000 - $30,000 per deal. Our goal is 4-5 deals per year, although this year we are struggling to buy properties because the apartment market is so hot and good properties are being bid up very high and usually to a point where they no longer make sense. So in the 8 months I’ve been with the firm, we haven’t bought a single property. We have made about 60 offers though. My initial plan was just to focus on this opportunity 100% for 2 years as the market was primed for acquisitions and my salary plus my commissions would put me in the upper 100s or lower 200s per year. I would then use the excess as an investor in the deals as well. But it is looking less and less like those projections will come true.

Recently, I’ve been approached by a friend who owns a food delivery business (and comes from a very wealthy family of entrepreneurs) about starting a residential real estate brokerage, after we’ve both had terrible personal experiences with real estate agents/brokers and heard story after story from our friends about poor customer service from agents. I have never been a full time agent, but have a license and represented myself on a deal last year and did another deal for a friend. On the deal I did for myself, my counterpart was an agent in the top 1% of agents in our state, and I found her to be incompetent, a terrible communicator and overall very hard to work with. On the deal I did for my friend, the buyers of his home were 2 doctors who were very demanding and difficult to work with. The other agent told me at closing this was the most complicated, difficult deal she’d done in 30 years. I didn’t tell her it was the first deal I’d ever done :eusa_clap: It was tough, no question, but if that’s the toughest deal ever I could sell houses with my eyes closed. My friend has no real estate experience, only his disgruntled experience of hiring and firing 4 agents recently while trying to buy a foreclosed condo. He has good business sense (and business genes) and deep pockets. He’d be the $$ and I’d run the real estate portion of the company.

Our plan would be to start small with the brokerage and just hire exceptional agents as we find them. So we would both continue our other businesses full time and do this on the side, until it got built up to a point where we might jump into it full time. Or most likely I would run the business full time and he would be the financial partner.
I’ve tried running both of these opportunities (my current job and this new opp) through MJ’s CENTS model to see how they shake out. My current job is great on most fronts, except control, which effects my income/investment potential. This new opportunity is good, but lacks the commandment of entry, at least in my opinion. I’d be very curious to see if you guys think anything is missing in my analysis. Thanks!

Current gig:NEED – yes, good clean apartment homes always needed; market booming currently; long term demographics favor apartments

ENTRY – very tough to buy 100 unit + buildings, takes mgmt expertise, high amounts of capital

CONTROL – my boss / company has all the control so this FAILS; he decides what to offer on and what not to and my commission is based on buying deals so if he chooses not to buy for a year, I make no commission

SCALE – our business scales well; company owns over 6,000 apartment units, I’m allowed to defer part of commission into deals as part owner of the deals and/or invest my own money in deals (obviously very small % owner)

TIME – It is not hands off for me currently as I am scouting new opportunities, however, as I increase my ownership in deals it will be over time (but slow process)

New opportunity:NEED – In my experience, most real estate agents are not good communicators, not good at customer service, etc. We can be MUCH better. People will continue to buy homes over time. Sales, prices, multiple offers already common in my area and are starting to become common for good, move-in ready homes in most neighborhoods

ENTRY – 90 hours of classroom instruction, pass two exams, hired by an agency on usually 100% commission (our plan is exceptionalism)

CONTROL – I would be 50% owner of the company and own real estate brokerage, high level of control

SCALE – the more solid agents we find and hire, the more homes sold, the more $$ we make; we can also scale into speaking gigs/seminars (we are both great speakers/presenters), website, etc

TIME – with the exception of the initial start up, our time is spent managing the business, not selling homes

Don't like ads? Remove them while supporting the forum. Subscribe.

Last edited by a moderator:


Read Millionaire Fastlane
Dec 11, 2011
Minneapolis, MN
Hi Sid,
I have thought about doing something very similar. Although, I wanted to target mine more towards single family investment properties. I just dont really see the scalability in this venture. I understand that you can grow by getting more agents, etc, but you being the broker will still have to sign off on all of the deals.

What would be your differentiating factors besides better communication? What part of the country are you working from? Is it a good market to be getting into?


Silver Contributor
Read Millionaire Fastlane
Speedway Pass
Jun 22, 2012
Chicago, IL
I was thinking scale and control... I am a BIG rookie- probably the biggest rookie on this site. So I may be TOTALLY wrong....

TMF Book says that you need TOTAL control to be in the driver seat- to drive your business when, where, and how YOU see fit...What if you and your partner disagrees on something? Since he has all the money I can see that posing a problem- because money is power- he has the money- so he has the power in the business ultimately.

I also don't see how this has PROCESS...I only see the EVENT...The event being you and him teaming up to do business... Where is all the leg work and steps leading up to it?

My opinion, in my rookie capacity and comprehension skills believe that this endeavor does not meet the standards of CENTS.
Last edited by a moderator:

Create an account or login to comment

You must be a member in order to leave a comment

Create account

Create an account on our community. It's easy!

Log in

Already have an account? Log in here.

Sponsored Offers

  • Sticky
MARKETPLACE Fox's Web Design Guide: Earn $100K this year (Yes, 2020!) and Go Fastlane
It's definitely possible, although it may not be feasible right away. I'm from the U.S. but have...
  • Sticky
FEATURED! Introducing... WEALTH EXPO$ED, A Short Story By MJ DeMarco
Amazing book! Actually I bought it, before I joined the forum and it motivated me to join...
  • Sticky
MARKETPLACE How To Create A 100K-1M+ Sales Funnel
@LynX You know, this is a "Marketplace" Thread. Completely appropriate to offer goods and...
  • Sticky
MARKETPLACE You Are One Call Away From Living Your Dream Life - LightHouse’s Accountability Program ⚡
Dropping a quick note in here to say... if you are on TFL, you are part of an elite group of...
  • Sticky
MARKETPLACE KAK’s “Kill Bigger” Incubation Program- With DAILY personal attention.
I joined @Kak's business incubator in the first week of May. During our daily chats we uncovered...
  • Sticky
MARKETPLACE Lex DeVille's - Advanced Freelance Udemy Courses!
This is your May reminder that you can do this. I'll keep it short. These are the May promos...
  • Sticky
MARKETPLACE Grow Your Business With a Book (An Unorthodox Marketing Strategy That Built One of the Largest...
Thanks! This is a cool idea, actually. I would like to use your experience as I heard that these...

Visit A Forum Sponsor

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Monthly conference calls with doers
Ideas needing execution, more!

Join Fastlane Insiders.

Top Bottom
AdBlock Detected - Please Disable

Yes, ads can be annoying. But please... support the Unscripted/Fastlane mission (and to respect the immense amount of time needed to manage this forum) please DISABLE your ad-block. Thank you.

I've Disabled AdBlock