I’m a Realtor and I want to start my own company!
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I’m a Realtor and I want to start my own company!


Hey everybody, my name is Kartik Subramaniam Am I’m a real estate entrepreneur here in Southern California and the founder of a very large real estate education company I absolutely love what I do. I have a passion for the business and happy to have found it. Follow my journey here on YouTube Hi everybody Kartik Subramaniam over at ADHI Schools. Wanted to respond to an email that I got here recently and the email basically goes like this Dear Kartik: I have been a real estate agent now after taking your class For seven years and i’ve made a lot of money selling real estate I think it’s time for the next step in my career and I want to open my own real estate brokerage. I Understand you have your own company. I wanted to get your thoughts on this topic and any advice would be most appreciated Sincerely and the student’s name Now the reason I wanted to talk about this specifically is because the last five years everybody in the real estate business frankly Has been the beneficiary of a bull market. There’s a very famous saying “A rising tide raises all boats” So if you’re operating in the real estate business right now It’s quite likely that you’re doing relatively well. Now because of that, the ego will take hold and you’ll think that you want to be on your own and I understand that. I think a lot of people that are successful in real estate kind of have the progression of I’ll get my license I’ll start being a real estate agent. I’ll make a bunch of money I’ll start my own company and then I can retire I will share with you that Starting your own company and having all of that overhead might not be the route that you want to go as a business person now frankly, I Started my own real estate company at the age of 26. I’m 38 now. So twelve years on my own and I ask myself…… By the way, I wouldn’t have it any other way, you know, but that’s kind of the way I’m wired But it’s quite likely that I might have been wealthier if I would have just stayed in a real estate office used their infrastructure. Flushed their toilets Ate their donuts. Flirted with their receptionist=) I can’t do that here… But flirt with their receptionist and had all the profit for myself Let someone else absorb all of the overhead now Frankly I know as a real estate agent generally a lot of us are naturally entrepreneurial We want to make our own business. We want to build our own brands and we want to be on our own I totally understand that I’m just discussing with you things that you might not have thought of you got to have errors and omissions insurance That’s gonna cost money You’re gonna probably have rent if you want to hire agents are our office here is you know We have you know several offices in our building. We have the studio. We just built we have an audio room We have a main office. We have a conference room. I mean all this stuff costs money You don’t think about this until you have your own company everything down I was just actually Wackoe was in our audio room yesterday and he was eating I’m sure some pastry of some sort and he went to go throw it away and I’m like, oh You know and I didn’t realize we don’t have a trash can in that audio room, right? It’s kind of a clean room and he came out here So the point is everything down to the trash cans and the desks and the chairs and the you know You have to spend all that on your own I think a lot of people as real estate agents When you walk into an office and everything’s just there it didn’t get there magically someone paid for all that so you’re gonna have rent you’re gonna have furniture you’re gonna have Equipment that you need to buy you realize you need to scan something. Oh my God. I don’t have a scanner You got to go to Best Buy and buy a scanner or get it off Amazon So all this stuff all these expenses that you’re going to incur starting your own company I’m not saying you shouldn’t do it I did it. But if I had an older brother that was going down my path I think some advice would be “Hey just be sure that you know what you’re getting into Before you start your own real estate brokerage” So that’s my advice to you my friend. If you want to start your own company fine But just realize it is really quick to blow through money. Rent insurance and utilities Furniture, you know and then the question then becomes well, “How do you get people to work for you?” Because real estate agents generally can tend to be quite fickle You know, you’re you got them on an 80% split all of a sudden they get someone offering them 85% They’re gonna leave someone else offers them 90%. They’re gonna leave So unless you have a deep relationship with the people that you work with, you know? They’re they might be out the door at the next best opportunity and that can hurt you over time So the point is is that just don’t go into this blindly two things I want to just really impart to you if you’re considering starting your own firm Number one be aware of the expenses and number two know where we are in the real estate cycle The last five years again have been a crazy bull market I’m not saying the recession’s gonna hit tomorrow, but we’re several decades into the cycle It’s just up down up down up down and if you start your own company At the height of the market and all of a sudden there’s a downturn your bills aren’t gonna stop So just some practical advice from someone who Number one has his own real estate company I used to work at a very large company and it was only it was only after I left that company I realized all I need to make a copy. I don’t have a copy machine. So those things are hard lessons to learn and they can be expensive if you’re not fully prepared Just make sure your ego is in check. If you’re gonna start your own company, it shouldn’t be just blind ambition That makes your run toward that finish line, make sure you’ve thought about it at the end of the day Remember Warren Buffett’s number one rule don’t lose money. Rule number two Never forget rule number one. As always don’t forget to follow me on Instagram. I’d love to connect with you on and offline Don’t forget to subscribe to the channel Subscribing helps me make more videos and we will catch you on the next one. Thanks

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