BrokerageIndustry News

Breaking the business model mold

Entrepreneurs: Rattling the real estate industry (Part 1)

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

Editor's note: In this three-part series, we talk to some new entrepreneurs on the real estate block, and find out what they're doing, what they're doing differently and how the industry has reacted to them. They'll talk about what it takes to launch a real estate company and barriers to innovation the industry puts up along the way. (See Part 2: Up at 3:30 a.m. and Part 3: Roadblocks to innovation.) One Percent Realty, a discount brokerage that opened for business in July 2002, was inspired by a tardy real estate agent. A law firm owner's success in Web-prospecting for personal-injury business led to the development of, an Internet portal established in October 2003 that links home buyers with real estate agents in selected markets. The founders of these two companies say there is still room for entrepreneurs in the real estate industry, but it takes more than ideas to succeed. Steve Malachowski, a real estate broker with experience in commercial real estate manag...