There are real estate offices all over the country. So it might seem like there isn’t really a way that a company can put a new spin on things. But HomeGate Real Estate thinks differently.
Based in Charleston, South Carolina, the company sets itself apart not by how it offers real estate solutions to consumers, but by how it treats its brokers. If you’re interested in breaking into the real estate industry, this business model may be of interest. Read on for more in this week’s Small Business Spotlight.
What the Business Does
Provides residential real estate services.
On the consumer side, HomeGate functions much like any normal real estate office. They help residents buy, sell and market their homes.
Business Niche: Residual Income for Real Estate Agents
Providing residual income opportunities for brokers.
Founder and CEO Paul Tippets told Small Business Trends, “Agents and brokers normally only create income when they make a sale. With HomeGate, agents and brokers can recruit other agents and brokers to the company. When they sponsor and recruit other agents and brokers, they make 4% on every transaction from whom they sponsor into the company. This is unlimited and is uncapped as long as both agents keep their real estate license active.”
How the Business Got Started
To create a company that supports brokers.
Tippets explains, “With over 23 years in business, the owners have created a structure that they would want as an agent or broker opening their own brokerage.”
Biggest Win
Achieving nationwide growth.
HomeGate is based in Charleston. But it’s growing fast. And the team hopes to keep that expansion going.
Tippets says, “Currently we have 6 offices in 4 states. With growth comes more exposure and market share.”
Biggest Risk
Changing the structure of the business.
Tippets says, “If the current brokers were not on board with the change, it could have hindered our growth, and possibly would have had to start over from scratch.”
Lesson Learned
Hire experienced agents right away.
At first, the company hired a lot of new brokers just breaking into the industry. But if he could do it all over again, Tippets says he’d take another route.
He explains, “Experienced agents attract other experienced producing agents.” That makes it easier to provide residual income for real estate agents as we go.
How They’d Spend an Extra $100,000
Leveraging new technology and growth opportunities.
Tippets explains, “$100,000 could help scale our business nationwide faster and allow us to enhance our technology. Currently we are growing by word of mouth only. No loans have been taken out, and we are growing organically.”
What Sets the Business Apart
A community service element.
Tippets says, “We strive to give back to the community by donating to several charities, and volunteering to help out when needed. In June we will be volunteering to join a local business in the area to clean up our beaches.”
Favorite Quote
The answer is always no, unless you ask.
Tippets explains, “Not sure who said it, but I say it all the time.”
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Images: HomeGate Real Estate business lounge, 2019 awards banquet