Robert Scholem left his job as a senior executive to start his own real estate management and acquisitions firm, Rhoam Realty Group, on Long Island during the recession. While the struggling economy has posed challenges, Scholem believes demographics are on his side and has focused on serving both aging property owners looking to retire from management as well as novice investors. One year in, Rhoam has started slowly but Scholem expects growth and plans to continue investing in the business for long-term success.

1. Robert Scholem took his last run over the
Whitestone Bridge a year ago.
After seven years of driving to work from his
Commack home to his job at Acadia Realty Trust
in White Plains, Scholem traded in his senior ex-
ecutive suits and ties for jeans and casual shirts,
launching his own shop in March. At Rhoam Re-
alty Group, a real estate management and acqui-
sitions firm in Syosset, Scholem answers only to
himself, and his partner, Gerard Crozier, a veter-
an manager who has run high-rise buildings in
New York City.
Is it madness starting up a real estate busi-
ness in the depths of a recession? No way, Sc-
holem said, but the 48-year-old native Long Is-
lander admits it’s been far from easy.
“The economy has certainly put a damper on
things,” Scholem understated. “People are very
hesitant, but we’ve taken on a handful of indi-
vidual investors who are looking for properties.”
Beyond the recession, there were hurdles he
never saw ahead. Never being the front man of
a company, Scholem admits networking has
been a challenge.
“I don’t think I realized the enormity of that
task when we started,” he said. “It’s been a
learning curve to understand what it takes to
network but I have met some really good people
on Long Island that I would never have met
otherwise.”
But Scholem’s a man with a plan. Demograph-
ics are on his side, he believes, and he’s positioned
Rhoam to take advantage of the numbers, target-
ing the old and the young.
He’s going after the aging population of real
estate owners who have invested in Long Island
for decades. Scholem sees a generation that does-
n’t want the headaches of, for example, collecting
rent, or responding to that middle-of-the-night
leak or parking lots that need fixing.
“We let them know we will run it the way
they ran it – the handshake and traditional
value way,” he said.
Another niche Scholem hopes to exploit is
rookies to the real estate game, those who have
funds to invest but zero industry know-how.
“This investor is directly involved in the
process of acquiring the property to ensure full
transparency in all acquisitions,” Scholem said.
“What we do is help them through the process
and then manage it for them once they own
that real estate.”
Starting up any business is a leap of faith
in any economy, with the Small Business Asso-
ciation reporting that 70 percent of launches
stay afloat for two years, while 50 percent are
shipwrecked after five years.
But there’s an opinion that the time to get
into the real estate business has never been
better for the right individuals. Or so said one
close observer, Gary Meltzer, a partner at Mine-
ola’s Meltzer, Lippe, Goldstein & Breitstone.
Meltzer, who represents sellers, buyers,
landlords and tenants in all aspects of commer-
cial and residential real estate, encourages
those with the right stuff to take advantage of
current conditions.
“Because it’s a tough economy, prices are
going to be competitive,” Meltzer said. “If you’re
willing to invest your time, work really hard and
become better than all your competitors, then
your talent is going to rise to the top.”
But avoid certain traps, Meltzer said, such
as thinking you have to land a job at every net-
working event and being discouraged when you
don’t.
“A prospective client may one day become a
real client and ultimately become one of your
marketers and recommend you to others,” he
said.
Also, offer something your established com-
petitors run from, such as discounted services.
“They could consider cutting their rate or
even offer their service for one month free,”
Meltzer said. “To me that’s as good direct mar-
keting as you can achieve.”
The first priority for Sholem and his team –
partner Crozier and one administrative assis-
tant – was to invest about $30,000 for up-to-the
minute technology.
Their business plan is based on saving pen-
nies in other ways, including both partners not
taking a dime for the first 18 months. The AA is
working part time. “Other than [paying her]
everything is going right back into the busi-
ness,” Scholem said.
Another important strategy for a start-up re-
alty firm is to remember, Meltzer said, Billy
Crystal as Fernando, the Latin movie star ad-
vising that “it’s much more important to look
good than to feel good.”
“I see too many new businesses sending out
the same kind of pitch materials. Concentrate
on getting a good image out – something that’s
captivating,” Meltzer said.
Scholem gets it, with a full-color brochure
that shows money and care has been spent pro-
jecting a serious image.
One satisfied customer is Gary Forte, who
runs a real estate company in Deer Park. Forte
turned to Scholem to help negotiate leases for
10 properties that house national franchises.
“[Scholem’s] strong point is putting the
client at ease with his laid back demeanor and
letting the client know they are in good hands,”
Forte said.
Rhoam has started slowly, with expectations
to generate something less than $100,000 by
year’s end. Projections are for four times that in
2011, Scholem said.
He’s keeping the faith and promises to stay
away from the Whitestone. “I will keep on in-
vesting in the business as long as I need to be-
cause I really think at the end of the day it will
work.”
SEPT. 10-16, 2010 I VOL. 57 I NO. 41 I $2.00 I libn.com
©2010, Long Island Business News, all rights reserved
Fortune favors the brave
By LISA MORRIS JOSEFAK
Launching a real estate firm in the
recession isn’t for the faint of heart
Robert Scholem: Staying at home on Long Island
to run his own show.