Re/Max;
The Sandra Sanders Story

Franchise Success Stories

By Amy Covington

The year was 1975. The place, the south bay of Los Angeles. With the kids off to school, Sandra Sanders was bored, plain and simple. She had plenty of options--she could perfect her backhand and join an afternoon coffee "clique," or she could do something more productive. Instead of picking up her racket Sanders got her real estate license. After getting her start with a local agency, Sanders became a partner in the business in 1984. By 1989, her partners were ready to make their exodus and she took over in 1987. The 80s were booming but little did Sanders know that the bottom was about to fall out of the real estate market.

"I really extended myself in 1989 by opening several offices," said Sanders. "In 1990 the economy became sketchy and I had several offices plus an escrow company and we weren't selling much real estate. It was really scary." With classic perseverance, Sanders and her team pulled through but that's not to say there weren't other difficult times.

"In 1994, we had resurgence [in the economy]. There were two real estate offices that wanted to sell to me and I felt that we were out of the woods, so I bought them. They [the previous owners] felt they'd been through a hard time and wanted to do something else." As luck would have it, California's real estate market again went through some tough times in 1995. "I was afraid. Our offices needed renovations but fortunately in 1996 everything worked out fine."

"You're more successful if you are from the industry
and understand real estate yourself"

Sanders seems to be blessed with fortitude when it comes to navigating rough waters. But it wasn't blind luck or even a sunny disposition - although it's evident she has both on her side. According to Sanders, diversification is what helped keep her business afloat. In addition to her real estate franchises, Sanders runs a title company called Progressive Title, as well as a mortgage company, which is a joint venture with Chase Manhattan and several escrow offices. Today, Sanders is 100% owner of RE/MAX Palos Verdes Realty; 73% owner of RE/MAX Executives; and a partner in RE/MAX Commercial & Investments.

"I think real estate brokers across the nation need to branch out into affiliate businesses," Sanders advised. Other words of wisdom she's willing to impart include "working very hard and being a service to your agents; being patient and supportive and giving them all the tools and service you possibly can, along with working a lot of long hours for a lot of years."

An important thing to note is that in many franchise businesses the franchisee does not necessarily need to have experience in that particular industry and in many cases it is preferable that he or she enter with a clean slate; however, when it comes to owning a real estate franchise, it is best to have years of experience in the real estate sector.

"To me, you're more successful if you are from the industry and understand real estate yourself," said Sanders. "You understand the problems and can be a mentor to your agents."

Another point to consider is that when you are looking at real estate franchises the amount of money you make depends on numerous factors such as the climate of your local real estate market, the skill level and work ethic of your agents, as well as the economy. If successful, one can make a lot of money in real estate; however in some circumstances it can be feast or famine, as evidenced by Sander's experience in the early and mid-90s. But if you have the right amount of real estate know-how and dedication, you should be equipped to weather any storm and come out ahead. Sandra Sanders is a perfect example of how one mother, who was simply looking for a way to get out of the house, can create a real estate empire through will power, foresight, and a little bit of luck.

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