Real estate, famously, moves in boom-and-bust cycles. Just last month, reports of an oversupply in Metro Manila condominiums spread concern about the real estate industry. Cooler heads rose above the speculation, talking about adjustment periods and market correction. And some analysts also noted that the oversupply is a localized event. At the same time, others fell back to the old adage that this too shall pass. Real estate always recovers and the boom will return.
Recently, I had the good fortune of talking to one of the leaders in the real estate industry, Eddie Santos, the founder of real estate brokerage RE/MAX Regent. Not only did Eddie grow RE/MAX from zero to billions in the sustained boom years of the real estate industry, but he also foresaw how parts of the market were overpriced when I interviewed him before the oversupply reports.
Prophetically, Eddie said, “I must admit it’s really overvalued because for 20 years straight, the market has increased and increased. And the developers, what happened is, every time they have a new project, it’s an all-time high, all-time high, all-time high. The market can just take so much. This is my challenge. Bring down the price 20%, I’ll sell all those inventories.”
No stranger to personal hardship and entrepreneurial failures, Eddie Santos embodies the resilience that is required for business to succeed and ultimately thrive — particularly in the cyclical real estate industry. He offers invaluable advice for those who want to make it in real estate and, also, for entrepreneurs who hunger to succeed in their chosen field. Rather than focus on strategy, training, market insight, or access to data — all of which RE/MAX possesses — Eddie chooses to zero in on honesty, integrity, and dedication instead. I’ve highlighted a few of the lessons we can learn from this entrepreneurial master.
RESILIENCE IN REAL ESTATE: ‘WHAT’S IMPORTANT IS GETTING UP’Prior to founding RE/MAX Regent, Eddie Santos was a stockbroker — yet another boom-and-bust industry. Here, he found early success, but it all came tumbling down after the Asian financial crisis of 1997. Even with this setback, Eddie soon rose again by putting up a real estate brokerage called Regent.
“It wasn’t an easy journey,” Eddie recalls. “I knew nothing about the brokerage industry. In fact, when I got [my clients’] properties, it took me two years to close my first transaction. So zero, zero, zero for two straight years.”
It began with a trickle, just enough to continue operations. But soon, the company, which would become RE/MAX Regent after becoming a part of the global RE/MAX network, would find its feet and rise to success.
“In 2004, things turned for the better,” Eddie recounts. “It was the start of many years of a progressive real estate boom for the Philippines, owing to the fact that the economy became better. And prices year after year after year became an all-time high. I was glad that I was able to start during those years because it laid the groundwork.”
From this foundation RE/MAX Regent grew to 41 offices in the Philippines with over 500 real estate agents in its network.
Eddie summarizes his lessons on resilience, saying, “You have to learn to stand up. I mean, you might fall once or twice, but what’s important is really getting up.”
SECRETS TO SUCCESS: ‘HONESTY, INTEGRITY AND DEDICATION’To oversimplify the real estate brokerage, RE/MAX Regent is a franchise network. Brokers pay RE/MAX to be part of their network, receiving exposure, training, and access to RE/MAX tools.
The strategy is all in the name. “RE/MAX actually stands for real estate maximums,” Eddie explains. “We give you the maximum commissions. We give you the maximum exposure, the maximum training, and the maximum technology, technological tools.”
But what made RE/MAX Regent different? What propelled them to succeed where others didn’t?
Eddie says, “If you’re going to concentrate in real estate, in putting up a real estate brokerage, you have to know the market, the prices, the zonal values, the location, location, location. These are all key.”
RE/MAX Regent, in particular, focused on the upscale real estate market, famously closing a deal on the first billion-peso home property. And yet, instead of focusing on the network’s strengths or the technology it employs, Eddie focuses on three things: “Honesty, integrity, and dedication to your craft. Those are three very important virtues that one must possess.”
It is these three things that Eddie credits for the success of RE/MAX Regent. Expounding on the topic, he discusses how it all comes back to customer satisfaction.
“The best advertisement is a satisfied customer,” he says, “because they’ll say, ‘Hey Eddie, I’m so happy with your service. The title I got in four weeks instead of like 10 months with other companies. I will recommend you to my friends.’ And when they recommend friends, the other friends start recommending.”
REAL ESTATE ADVICE: ‘YOU ALWAYS HAVE TO BE HUNGRY’When it comes to the future of real estate in the Philippines, Eddie Santos remains bullish about the market and focused on fundamentals, on the end-user. The reason for his optimism is the Philippines’ large population, which is now coming of age, ready to buy their first home.
“We’re blessed with 110 million Filipinos,” Eddie says, and then compares the Philippines to thriving real estate markets such as Hong Kong. “And then you look at Hong Kong. As far as I can see, it’s like skyscrapers, and they’re only 20 million.”
To these end-buyers of real estate, he advises to continue buying real estate, citing how real estate can be money-earning assets even in hard times.
“Not even the very best broker can tell you if the market will go up or the market will go down. If you could afford it and the price point is attractive to you, buy it. Especially for people whose age is between 40 to 50. [Real estate values] may go down, but in your lifetime, you will see it go up again. I strongly urge you to buy four or five properties and then rent the others, live in one. So at least in your growing age, you don’t have to burden your children.”
To other brokers in the real estate industry, Eddie advises constant learning. “You always have to be hungry,” he says. “You always have to educate yourself because right now it’s an ever-changing landscape for the real estate industry. Even though I’ve been 25 years in the industry already, I still think there’s still a lot to be learned.”
RJ Ledesma (www.rjledesma.com) is a Hall of Fame Awardee for Best Male Host at the Aliw Awards, a multi-awarded serial entrepreneur, motivational speaker, and business mentor, podcaster, an Honorary Consul, and editor-in-chief of The Business Manual. Mr. Ledesma can be found on LinkedIn, Facebook and Instagram. The RJ Ledesma Podcast is available on Facebook, Spotify, Google and Apple Podcasts.
