Real estate companies booming in spite of slow rebound in the housing market

 Minneapolis, November, 2010. The burst of the United States housing bubble in 2008 affected not only house values, but had a binding consequence for the country’s real estate related industries. Real estate brokers, lending institutions, builders, and mortgage brokers all felt the wrath together. This caused businesses to adapt or close down operations. So who is booming and who is busting?

Countless companies suffered from the market crash. Lehman Brothers, one of the most influential financial institutions in the United States, filed the largest bankruptcy in U.S history.  America's First Home LLP and other booming regional builders like MW Johnson Construction filed bankruptcy in 2008.

These were not isolated cases; companies in every one of the fifty states closed their doors and left thousands of employees jobless.

Predictions for the 2011 housing market expect slow economic activity beginning with the upcoming winter months, which is of no surprise. The Wall Street Journal reporter Nick Timiraos, who specializes in housing and real estate markets, stated “some economists don’t see a recovery until late next year or early 2012.” John Mauldin from Forbes.com reminisces by saying “I wrote three years ago that it could be well into 2011 before we get to a bottom,” he also mentioned “That may have been optimistic.” Mark Zandi, with Moody’s Analytics said “More home prices will decline,” but optimistically “there’ll be no vicious, self-reinforcing spiral down.”

With the change of landscape in the real estate market, many businesses were forced out of the marketplace. Now, new emerging companies have implemented innovative business models to weather the storm and thrive in an overall difficult battle zone. Some companies are even showing very profitable results.

One of the companies showing early triumphs is Renters Warehouse, which currently does business in Minnesota and Arizona, and has hinted expansion into additional markets. Chairman and CEO Brenton Hayden, “Young Entrepreneur of the Year” (in MN 2010) and arguably the youngest franchisor in America, created a proven model specializing in Residential Property Management and Tenant placement.

Real Estate Entrepreneurs Michael Thomas and Brian Plunkett have also seized opportunities in the Florida market. Their recent successful business venture brought a once failed development called “Millstone Landing” back to life. This isn’t the first time they transformed newly constructed foreclosed houses into move-in ready homes for families. Over the past few years, their home sales have been scattered all across the state of Florida.

Near the end of 2009 Minnesota Based Real Estate Investment Firm, Real EstateAcquisitions USA, began buying up and renovating distressed single family homes. Managing Director Mario Dattilo has assembled a team to systematically remove the burden from owners and financial institutions by buying their unwanted houses. Home buyers who move into the company’s fully remodeled homes benefit from above average upgrades at a very affordable purchase price. In addition to the company’s rapid success in Minnesota, they will soon expand operations to the Southwest Florida market.

So why are they booming? The new marketplace still has hidden demands. Creativity, flexibility, and a vision that recognizes opportunity in every obstacle are common traits within these companies’ leadership teams. Although many have closed their doors, these along with other companies clearly have theirs wide open.