WHY stock brokers should do
Real Estate broking?
Agenda:
• Stock broking current scenario
• Why real estate broking?
• What is a real estate broking business?
• What are t...
What is the number 1 threat to a
Stock brokers’ business?
Stock broking current scenario
• Average Daily volume falling
▫ From a peak of 14,000 crore to ?
• No Differentiation betw...
Why real estate broking?
• Net worth share in asset class in %:
▫ ______ stocks (at current Prices)
▫ __________is in Real...
Some comparisons
Comparison as an Asset Class
Equity Real Estate
• Highly volatile
• Liquid
• Coupled with foreign markets
• Market prices ...
Stock Broking Real Estate Broking
• No local knowledge necessary
• Exchange is your network
• Low commission per
transacti...
Revenue per transaction
Stock Brokers Real Estate
• Average transaction size of Rs.
20,000
• Say a 0.50% commission
• Tota...
Return on Time invested
Stock Broking Real Estate Broking
• Upto the minute updates on
the stocks you trade
• Highly disci...
• Number of brokers in Ahmedabad: Approx. 10,000
active.
• Number of deals : 10,000-12,000 registrations a
month
• Estimat...
• With Tata Nano, Ford, Peugeot setting up plants in Gujarat, real
estate is going to be in demand
• Migration of people t...
What does a buyer want?
• Inventory
• Agent time
• Guidance
• Saving of his time
• Quick Closure
What does a seller want?
• More genuine buyers
• Get best price for his property
• Liquidate at the earliest
• Agent’s tim...
Why a broker cannot satisfy?
• Getting and retaining best employees
• Training
• Advertisement Budget
• No Surety of Incom...
Why employees don’t stay?
• Employer gets the lion’s share of income
• Boss gives little value addition to each deal once
...
Get access to HNI/NRI clients?
• Get relevant training and provide good service.
• Get properties which they would prefer:...
How to increase deals?
• Give more options to buyers
• Employ more agents to serve the customer better
• Use technology to...
Technology: How important?
Example of A listing
• Property with an excellent view over looking a
river, sea and a hill.
• ...
Technology: How important?
• Buyers require more information e.g.: floor
plan, elevation photos, views, amenities etc.
• C...
What are the new trends in this
business?
• Role of Media
• Resale properties
• Dependence on agents as plethora of option...
Real Estate broking will follow the foot
steps of organized stock broking
• Earlier it was dominated by Mumbai based firms...
What makes a profitable business?
Which business is more profitable?
More number of property options
for customers
OR
Less number of property options
for cu...
Which business is more profitable?
A well trained agent
OR
Untrained assistants / employees
Which business is more profitable?
Latest technology to market their
properties
OR
Doesn’t use technology to market
their ...
Which business is more profitable?
A large international network
OR
A stand alone operation
Which business survives longer?
With lower recurring cost
OR
When recurring cost is high
Which business is more profitable?
Is in Business since long
OR
Just opened
Which business is more profitable?
Running based on a proven concept globally
OR
A office started without any proven conce...
Which business is more profitable?
A system driven model
OR
A person driven model
Verious Real estate company
enter in to indian Real estate
broking Business
Giving your business the RE/MAX
leverage
Established in Denver, Colorado (USA) in 1973 by –
Dave Liniger
The only internation
real estate broking
company still own...
- Real Estate Maximums
RE/MAX did house
sales of more than
$500 bn.
If RE/MAX was a
company, we would be
bigger than
WALMART
GLOBAL RECOGNITION
Brand Name Recognition
RE/MAX is #1
The most recognized logo in real estate
39
The ICON in the INDUSTRY
40
Business Model:
A business model working
successfully in more than
7000 offices and created
millions of entrepreneurs
worl...
Only real estate
company to feature
in the book “50
Companies That
Changed the
World” by Howard
Rothman
World’s largest Real Estate brokerage franchising
network…!
Ability to do business in more
than 88 countries
OPERATING IN 105 REGIONS IN 88 COUNTRIES
Network...
88 Countries
7000+ Offices
100,000+ Agents
12,00,000+ Transactions
Network…
23 Regions
100+ Offices
450+ Agents
8 Transactions/day
Education & Training
More than 25,000 hours of training in India done
Conferences & Conventions
Technology
www.remax.com
1 Million Unique Visitors per month
World’s largest visited real estate website
Tools To Grow Your Business
Offices in Ahmedabad
1 Mr. Vivek Parikh Satellite RE/MAX Metro
2 Mr.Nishant Makhija and Mr. Vinod Makhija Vastrapur RE/MAX...
Broker Owners Of Ahmedabad
Achievements
RE/MAX Bangalore Franchise does landmark
transaction
Achievements
• Lodha World One
Achievements
Thank You
Why Stock Brokers should Join Real Estate Broking
Upcoming SlideShare
Loading in …5
×

Why Stock Brokers should Join Real Estate Broking

1,061
-1

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
1,061
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
21
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Why Stock Brokers should Join Real Estate Broking

  1. 1. WHY stock brokers should do Real Estate broking?
  2. 2. Agenda: • Stock broking current scenario • Why real estate broking? • What is a real estate broking business? • What are the new trends in this business? • How will real estate broking look in next 10 years? • What makes a profitable business? • The RE/MAX Concept.
  3. 3. What is the number 1 threat to a Stock brokers’ business?
  4. 4. Stock broking current scenario • Average Daily volume falling ▫ From a peak of 14,000 crore to ? • No Differentiation between brokers • Value addition to customer • Internet broking eating in to market share
  5. 5. Why real estate broking? • Net worth share in asset class in %: ▫ ______ stocks (at current Prices) ▫ __________is in Real estate ▫ Gold , Bank deposits, Mutual Funds, Insurance, etc. • Name 5 National stock broking companies • Name 5 Financial institution • Name 5 Real estate broking companies
  6. 6. Some comparisons
  7. 7. Comparison as an Asset Class Equity Real Estate • Highly volatile • Liquid • Coupled with foreign markets • Market prices determined by handful of FIs • Stable • Not easily liquid able • Relatively decoupled. • Market prices determined by local economies and domestic conditions
  8. 8. Stock Broking Real Estate Broking • No local knowledge necessary • Exchange is your network • Low commission per transaction • Local knowledge very much important • You require the network to be built • High commission per deal
  9. 9. Revenue per transaction Stock Brokers Real Estate • Average transaction size of Rs. 20,000 • Say a 0.50% commission • Total revenue: Rs.100 • So you need 2,000 transactions to get 2 lakhs. • On a deal of 1 crore: • A commission of 2% • Total Revenue: 2 lakh
  10. 10. Return on Time invested Stock Broking Real Estate Broking • Upto the minute updates on the stocks you trade • Highly disciplined job of 9 to 4 • Back office work there after • Less updates to track • Work on your own schedule • Less number of transactions so less back office work
  11. 11. • Number of brokers in Ahmedabad: Approx. 10,000 active. • Number of deals : 10,000-12,000 registrations a month • Estimate of primary deals being done by brokers: 50%- 60% (increasing as number deals reduce) • Investors from all India have invested in Gujarat
  12. 12. • With Tata Nano, Ford, Peugeot setting up plants in Gujarat, real estate is going to be in demand • Migration of people to cities is set to grow: 70% of India still stays in villages. • Gujarat’s GDP is growing faster than the rest of India since 3 or more years. • 3 of the top 100 growing cities in world are in Gujarat • Number 1 city : Ahmedabad • Best state: Gujarat in Real estate transparency survey 2011
  13. 13. What does a buyer want? • Inventory • Agent time • Guidance • Saving of his time • Quick Closure
  14. 14. What does a seller want? • More genuine buyers • Get best price for his property • Liquidate at the earliest • Agent’s time • Guidance of valuation • Relevant buyers consider his property
  15. 15. Why a broker cannot satisfy? • Getting and retaining best employees • Training • Advertisement Budget • No Surety of Income • Limited budget for Running costs • Network
  16. 16. Why employees don’t stay? • Employer gets the lion’s share of income • Boss gives little value addition to each deal once the employee becomes experienced • Lack of independence • Lack of Personal Identity • Limited office growth
  17. 17. Get access to HNI/NRI clients? • Get relevant training and provide good service. • Get properties which they would prefer: ▫ 100% white for NRI ▫ Give a good ROI for HNI • Provide a experience to client to gain trust • Use technology extensively
  18. 18. How to increase deals? • Give more options to buyers • Employ more agents to serve the customer better • Use technology to increase the viewers of the property
  19. 19. Technology: How important? Example of A listing • Property with an excellent view over looking a river, sea and a hill. • Very upmarket locality. • 3 bed room, fully furnished, good wood work. • Parking for 2 cars.
  20. 20. Technology: How important? • Buyers require more information e.g.: floor plan, elevation photos, views, amenities etc. • Cost of petrol increases so buyers prefer to see properties over internet and short list rather than visit each and every option • Buyers don’t have time • Buyers can be outside city or even country. • Buyers want to share information with others
  21. 21. What are the new trends in this business? • Role of Media • Resale properties • Dependence on agents as plethora of options emerge • Technology • Foreign investments : both ways • White money
  22. 22. Real Estate broking will follow the foot steps of organized stock broking • Earlier it was dominated by Mumbai based firms • Then regional stock exchanges • NSE Came in to operation : ▫ Technology ▫ Risk Management ▫ Franchising ▫ Research • Customer retention becomes the only important factor in determining your success.
  23. 23. What makes a profitable business?
  24. 24. Which business is more profitable? More number of property options for customers OR Less number of property options for customers
  25. 25. Which business is more profitable? A well trained agent OR Untrained assistants / employees
  26. 26. Which business is more profitable? Latest technology to market their properties OR Doesn’t use technology to market their properties
  27. 27. Which business is more profitable? A large international network OR A stand alone operation
  28. 28. Which business survives longer? With lower recurring cost OR When recurring cost is high
  29. 29. Which business is more profitable? Is in Business since long OR Just opened
  30. 30. Which business is more profitable? Running based on a proven concept globally OR A office started without any proven concept
  31. 31. Which business is more profitable? A system driven model OR A person driven model
  32. 32. Verious Real estate company enter in to indian Real estate broking Business
  33. 33. Giving your business the RE/MAX leverage
  34. 34. Established in Denver, Colorado (USA) in 1973 by – Dave Liniger The only internation real estate broking company still owned and operated by the original promoter
  35. 35. - Real Estate Maximums
  36. 36. RE/MAX did house sales of more than $500 bn. If RE/MAX was a company, we would be bigger than WALMART
  37. 37. GLOBAL RECOGNITION
  38. 38. Brand Name Recognition RE/MAX is #1 The most recognized logo in real estate 39
  39. 39. The ICON in the INDUSTRY 40
  40. 40. Business Model: A business model working successfully in more than 7000 offices and created millions of entrepreneurs worldwide
  41. 41. Only real estate company to feature in the book “50 Companies That Changed the World” by Howard Rothman
  42. 42. World’s largest Real Estate brokerage franchising network…!
  43. 43. Ability to do business in more than 88 countries
  44. 44. OPERATING IN 105 REGIONS IN 88 COUNTRIES
  45. 45. Network... 88 Countries 7000+ Offices 100,000+ Agents 12,00,000+ Transactions
  46. 46. Network… 23 Regions 100+ Offices 450+ Agents 8 Transactions/day
  47. 47. Education & Training
  48. 48. More than 25,000 hours of training in India done
  49. 49. Conferences & Conventions
  50. 50. Technology
  51. 51. www.remax.com 1 Million Unique Visitors per month World’s largest visited real estate website
  52. 52. Tools To Grow Your Business
  53. 53. Offices in Ahmedabad 1 Mr. Vivek Parikh Satellite RE/MAX Metro 2 Mr.Nishant Makhija and Mr. Vinod Makhija Vastrapur RE/MAX Real Estate Services 3 Mr. Anand Choksi Satellite RE/MAX Advantage 4 Mr. Ankit Patel, Memnagar RE/MAX Castlemore Realty 5 Tushar Gandhi and Mr. Hemant Gandhi S.G. Highway RE/MAX Vintron Gold 6 Nikul Patel Sardar Patel RE/MAX Achievers 7 Mr. Manish Shah and Mr. Upendra Shah Maninagar RE/MAX Real Estate Experts 8 Mr. Nirav Vakharia/Mr. Harit Parikh Stadium RE/MAX REALTY SOLUTIONS
  54. 54. Broker Owners Of Ahmedabad
  55. 55. Achievements RE/MAX Bangalore Franchise does landmark transaction
  56. 56. Achievements • Lodha World One
  57. 57. Achievements
  58. 58. Thank You
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×