Blog / Leadership
The biggest fear in opening your own real estate business
Do we have enough capital?
Sam Kelso and Emily Sim opened Ray White Balmain in January 2013. Neither had sold in the Balmain area before. Both were nervous - did they have enough money to do this?
Clever in their approach, these new business owners started with little capital and have managed to grow their real estate business in a competitive market and turn a profit in their first year.
A winning partnership, effective cost saving initiatives and the right support has seen this business team’s first 12 months a success. This is their story.
Sam and Emily’s first year’s success
Capital
- Started with a capital limit of $50k
- Drove substantial cost savings in first 12 months
- Achieved profit in first 12 months
Listings
- Neither Sam or Emily had ever sold in the trade area
- Opened office January 2013 with no listings
- Achieved the highest non-waterfront sale in the suburb at $3.72m
- Opened 2014 with 10 auction listings
Property Management
- Opened January 2013 with no property managements
- Made no acquisitions of rentroll
- Completed year gaining 50 property managements
How Sam and Emily saved $130,000 in the first year
- Polished concrete vs other floor coverings - saving $5,000
- Builder - saving $20,000
- No phone system - saving $5,000
- No server - saving $5,000
- No receptionist - saving $30,000
- Rent free period - saving $5,000
- 50% cheaper rent, sacrificing best position - saving $60,000
Watch Sam and Emily’s full story of their first year at hottopics.com.au/ray-white-video.php
Like to know more about how Sam and Emily did this? contact Stephen Nell on 0413 484 040
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