If you haven’t read the previous articles, I will summarize it for you: we started with a fascinating fundraising, we then completed a deal in which the hidden difficulties became apparent to us and taught us a lot, and lastly, we delivered eight apartments to our investors. Now, we are standing at the finish line and the funds are starting to flow into the bank account, and I’ve become, Gal Rubin, the real estate developer.
But no, for me we weren’t done yet. It was clear to me that this product was working, so, for me, this deal was just the beginning.
• Because I gave up profits in order to produce the most profitable investment for the clients, so they would trust me, and so it would give me the opportunity to learn and create a better financial future for them.
• Because, while I did find one good deal, for it to be a business, I needed to produce a series of these kinds of deals, that would create this kind of profit constantly (my target at first was five deals a year – that meant one every two months and a bit)
• Because the profitability model needed to change completely, and suddenly the apartments would be a little more expensive to investors – yes friends, the business owner also needs to make a profit.
• Because finding six buyers is difficult, but for it to be a business, you have to find six buyers every month and that makes it much harder.
• Because with great power comes great responsibility, especially when you handle other people’s finances.
Then, I found myself at a decision junction; is there enough “meat” here to start a business?
Is it at all possible to increase it, by acquiring more assets and clients?
I remember that, while I was thinking to myself “where is this going?”, I got a phone call from one of our realtors. He told me that another floor in the building we had the first deal in, was for sale. I started checking prices, building a quick business plan, and looking at this deal in particular, while repressing the desire to make a decision about the business.
Looking back, I would say that I was procrastinating making this big decision. At the time, though, I called it “being present in the moment” and “going with the flow”, but that’s what a procrastinator would say.
I found an amazing couple, who could purchase the project by themselves. A total of two additional apartments, and I already know the building, and the scope of the transaction is small, so I am very comfortable with the deal.
But even in my business meetings with them, I’m still thinking about the decision. After all, every customer who comes in and trusts us, expects this thing to continue to grow.
Another deal, and another deal. Things are going well, and then I understand, the business has been set up and it works. Now I have to stop and set more precise goals and objectives, so that I can plan the progress of the business and take a critical look to the results and outcomes of the business.
That way, without stopping and officially saying that the business was set up, Pro Greece officially sets off. Since then, we have built about 100 residential apartments in Thessaloniki for our clients and have proceeded to manage them for short and long term.
This article is the epilogue for this whole stage: the dilemmas, the concerns, the thoughts that accompanied me when it all started and how the decisions were made.
The fifth article will begin a new chapter on which I would like to talk to you about product design.