How to start a real estate business in crisis?

Start-up strategy for an advisory firm

Although real estate market is facing foggy moments, Nicoleta Radu says this situation opens the opportunity for setting up an advisory company, and the team she is building now will fit in the market and will be ready for the moment when it will take the constant upward path.

“The current market experience, all the events taking place is a good lesson to me. I am only preparing for what is next, and to be there at the start line. At this moment, the market provides moments of start-ups for all players, for developers as well as for investors and advisors”, said Nicoleta Radu (photo), managing partner at Zanti Exclusive.

With a starting capital hovering between 70,000 euros, Zanti Exclusive aims at combining the commercial advisory, marketing services and real estate transactions, both leasing and sales.

“The company shaped this year, once I made up my mind to build my own team. It is a company created together with Florin Nita, founder of Zanti group. The companies he set up all this time were based on land transactions and this is why we wanted to build an advisory company on other segments of the real estate market”, Radu added.

According to Zanti manager, when you want to set up an advisory company, you firstly must know exactly what you want , establish the types of services you want to offer, target client profile, and a short term strategy for six to twelve months, interval in which you frame a medium to long time strategy for three-five years.

“You must perfectly dose both human resources and financial resources and to create a spending and income budget, in order to reach the support level with own funds at the moment you have previously set”, said Nicoleta Radu, adding that it is very important to adopt a flexible management and to adjust your style of management and development for the company according to swings and market opportunities.

Secrets of the company: small portfolios and effective team

At this moment, Zanti Exclusive has a team of seven employees, but the company representative says that in the following six months it will increase team to ten employees, in order to administrate the current clients portfolio.

“We are working with small portfolios, in order to administrate the sale process properly. We hold projects in all neighborhoods in Bucharest, as well as holiday projects in the country. Moreover, we are readying projects that will be launched mid 2009,” Radu stated.

Zanti Exclusive will provide commercial advisory services, project profile and concept, marketing strategies and feasibility research, being designed to those who want to work on the market as long-term players, and with an accurate strategy regarding real estate projects development.

“We started with the residential market, as it is the key-topic to all debates. Additionally, it seemed slightly overstressed in terms of price per square meter late last year and also over-evaluated in terms of real demand with the purchase power as short-term potential (1-3 years). We are in talks with an office building developer, following to dedicate an entire team to this segment and we plan on expanding the retail advisory department”, Nicoleta Radu pointed out.

The company’s target for next year consists in administrating three to five projects.

“I believe the west will become the north side of Bucharest in terms of number of square meters, but in terms of competition, there are two different destinations. In the west, players build office building designed to back office departments and/or for companies whose business interest is in that area, while the north side will remain the business landmark of Bucharest,” Radu added.

Translated by Camelia Oancea

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