Students running real estate

The business logo is a silhouette of a man in a suit, casually leaning over some buildings. It is all black and white, except for a tie, which comes in five colors, each representing one of the five current real estate agents.

The office, located on Glenville Avenue in Allston, started out as a ‘hole-in-the-wall’ space that the five built up together, according to Gabrielle Fernandes, one of the agents on staff.

The main clients are students looking to rent off-campus apartments, a target group Fernandes said seems immune to recession problems.

The fledgling company, launched Jan. 15, 2009, is called Hodara Real Estate Group LLC.

Besides the company’s unique ability to turn profits in economically dire times, it is noted for its most characteristic feature’-‘- its broker and owner, Alex Hodara is a junior in Boston University’s School of Management.

BORN FOR BUSINESS

Hodara’s entrepreneurial spirit first emerged his sophomore year of high school, when winnings from a fantasy football league allowed him to import premium poker chips from China and sell them online. He then started the ‘eBoy Foundation’ with friends, where he sold donated items on eBay to charity. He eventually raised enough money to donate a Biomentrics Ankle Platform Systemto Mountainside Children’s Specialized Hospital, Hodara wrote in an email interview.

He first became involved in real estate as a freshman at BU, after he started exploring ‘all the entrepreneurial ventures [he] could get into,’ Hodara wrote in the email.

‘I thought getting my real estate license would be fun,’ he said. ‘I asked a few of my friends to do it with me, but they didn’t think it would lead to anything, so I went by myself.’

Hodara’s venture into real estate, however, did lead to opportunity. After going through the process of becoming a real estate agent’-‘- he had to pay a fee of about $450, take 24 hours of coursework and a test’-‘- Hodara worked for other companies for two years as a leasing agent. He then decided to get his broker license to pursue his own business, and start his own Limited Liability Company.

‘After I had all that out of the way, I was able to make my brokerage into an LLC, so we were actually working under Hodara Real Estate Group LLC’s brokerage license,’ he wrote.

THE RIGHT KIND OF HELP

After putting together his own business, Hodara’s next step was hiring employees. In addition to Fernandes, he paid for three of his other friends’-‘- Ramzi Budayr, James Starkey and Adam Kramer, all SMG juniors’-‘- to get their real estate licenses.

‘I choose people I can trust and who believe in me,’ he wrote. ‘All four of my agents are unbelievable, and in my opinion, much better salesmen than I’ll ever be.’

While he had some concern about hiring friends, his agents said his choice has worked well for the dynamic of the company.

‘It works a lot because of trust,’ said Fernandes, an SMG sophomore. ‘It’s okay for us to call each other at any time.’

Even though the broker is legally in charge of a given agency, and has more responsibility than any of the individual agents ‘- who cannot rent or sell property unless they are working under an established agency ‘- Hodara’s agents said much of the responsibility in the company is shared equally.

‘Within our office, so far, the definitions are blurred,’ said Budayr. ‘Because we’re so close with Alex, he’s treated us like partners and has given us a lot of responsibility. We’re all learning a lot.’

A BALANCING ACT

Though balancing a full-time college course load with work can be difficult, Fernandes said Hodara resolves the conflict by making sure his agents have their priorities set appropriately.

When he proposed the business venture to the other four students, he made sure to emphasize that it would take a backseat to more important things, such as schoolwork and their friendship, Fernandes said.

‘My personal struggle is finding the balance of doing all my schoolwork and putting enough time and effort into my job,’ Fernandes said. ‘Alex is such a great example to me, since he manages his own company and takes a full course load. We don’t feel pressure from our job to make it a priority over anything else.’

While Hodara recommends three days at the office a week, the agents often dedicate four to five days, for a total of 25 or more hours of office work a week. Starting up a business also requires many team meetings and brainstorming sessions, which can bring the working time up to 35 hours a week, Budayr said.

‘I choose people who could juggle both school and real estate,’ wrote Hodara in the email. ‘I’d put all four of their GPA’s up against any other four students at BU, and I guarantee they are doing better, while helping me run Hodara Real Estate Group.’

Hodara said the ambitious task of simultaneously running a business and going to school has its advantages, however, because it allows the company to be more understanding of the needs and requests of students.

‘We promote ourselves as being different than the other agencies,’ he wrote. ‘We aren’t doing this as a ‘real’ job, it’s like a hobby. Our goal is to change the image of real estate agents.’

According to Hodara’s claimed profits, this strategy seems to be working. He said he has gotten a threefold return on his original investment, with profits turning in the first two weeks.

Fernandes said targeting the very specific student rental market is a huge part of their success, since it has not declined in the recession.

‘It can be more cost efficient to move off campus, if they can find the right place,’ said Fernandes. ‘That’s what we try to do by comparing on-campus apartments to off-campus ones.’

CLIENT

RATINGS

While college students may benefit from saving money by moving into an off-campus apartment, some of Hodara Real Estate’s clients said they also benefited from the company’s unique service.

Vin Vomero, a junior in the College of Engineering, used a different local real estate company the previous year, and Hodara Real Estate Group this year. He found that the student agents were less forceful than full-time agents, since their livelihood does not depend on renting students apartments.

‘They understand what’s going on and keep the parents informed, since they are usually the ones who pay,’ he said. ‘They don’t push you into just getting any place. They really want to help you find the right one.’

Despite their unique sensitivity to student issues, clients said the company also realizes the need to project professionalism even while dealing with peers.

‘They want to be taken seriously,’ said Michelle Higgins, an SMG junior, who used Hodara Real Estate Group to find her first off-campus apartment this year. ‘Alex is really professional because he doesn’t want his company to be seen as ditzy kids who are just working with their friends. It’s a serious business.’

LOOKING AHEAD

Although students are currently the company’s main clients, the agency will also market towards interns, medical students and young professionals moving into Boston as the summer approaches, said Fernandes. In addition, she said they are starting to work with investors interested in buying property in the area.

There are also loose plans for physical expansion of office space, or relocation in the next year, according to Budayr. However, the most concrete plans involve simply hiring more agents.

Each of the colored ties on the logos above the agents’ workspaces represents the agent’s team color, Budayr said. Hodara has entrusted them with the responsibility of hiring and training about five or more team members each, who will then work closely with their team manager to continue expanding the business. He said the agency will continue to rely on undergraduate students, preferably underclassmen, who will learn from the current managers, and continue on with the business.

‘When I build my team, they’ll use the color orange,’ said Budayr. ‘The teams will compete against each other in a friendly way. Next year we’ll be able to hit it hard in a different way.’

As the youngest founding member, Fernandes said she is aware she could potentially be next to take control of the agency, but is not taking anything for granted.

‘It will be a matter of where Alex is going after graduation,’ she said. ‘He wants to keep passing this down, but it’s really all up in the air. We might find someone new who shows great passion and enthusiasm.’

As for this summer, however, Hodara said he will start a program inspired by Century 21’s International Headquarters Chief Operating Officer called College Housing Investment Program, which will generate an income analysis for any property near college campuses in the market. He also has plans to open his company in other college markets.

‘I will always be looking to open new businesses all my life,’ he said. ‘It is like a game for me.’