The Richest Self-Made Woman In Real Estate Shares Her Best Advice
Douglas Elliman is one of the oldest and largest real estate brokerage firms in the United States, with around $27.4 billion in annual sales volume and 7,000 brokers.
From her origins as an apartment developer on Long Island in New York to obtaining Douglas Elliman with Howard Lorber, Herman is a self-made businessperson who everyone turns to for advice on property matters.
Business ERA sat down with Herman to discuss various topics including but not limited to; real estate industry, what tips she would give entrepreneurs among others and how they can avoid such mistakes of avoiding what she went through. She also tells about some of her day’s routines.
Real estate business is an affair of the heart. How has stronger bonds helped your career grow?
Dottie Herman: Most businesses are relational, but especially real estate. It’s all about your relationships.
I truly believe in getting to know people, which generates authentic relationships. That’s why I make it a point to get to know all of the agents and employees who work for my company. This personalization creates a positive rapport, especially with new agents. But I don’t limit myself to our real estate agents.
I want there to be strong connections between every person belonging this organization whatever their position might be at it; because they are just as essential as any other departmental head within our organization.I am a hands-on CEO that wants every opinion that helps my company continue growing.When we opened up offices in another state I spoke with local press and merchants.Talking with the locals was an eye-opener into what our potential customers need or would love from us as a company.
Who believed in you before you made it big, and what did you learn in the process?
Dottie Herman: My boss at Merrill Lynch was George Rathmann who once said “I was a diamond in the rough”.
He saw the potential in me that I was too young and inexperienced to recognize in myself.
I also had a few wonderful mentors, including Diane Nash, who like George saw something in me that no one else did at the time – she always inspired me to be the best I could be.
And finally, my partner at Douglas Elliman, Howard Lorber, believed in me so much, he invested in my business.
What’s your best advice to your 20-year-old self?
Dottie Herman: To do what I did, you must reach for the stars.
This is what I would say to my twenty-something self – “do not let any obstacles stop you. Where there are hurdles there are also golden opportunities.”
And most important, I’d drive home how important it is to get to know the people that truly make the decisions within the company you work for.
What’s the biggest mistake that people make in real estate?
Dottie Herman: A lot of agents are not consistent. When you work on a big deal for months and it falls apart, you can see people who go into a downward spiral, and struggle to get out of it, and if you are in a rabbit hole, you won’t be able to see the light of day at the same time.
People should remember that all experience is a learning moment and you just have to dust yourself off and start again. Be upset with yourself for two days, then get back in the game.
“Success is failure turned inside out” is one of my favorite quotes.
Zack Friedman: You had a tragedy when you were young. How do you think this affected you?
Dottie Herman: My family was in an awful car crash, which claimed my mother’s life.
From this I learned that life could end or change in less than a second.
Since my mother died when I was 11 years old, but I am also the oldest sibling in our family, so I became very independent. There was a lot of things that I did at my age alone while other kids did not do. Also, I learnt how to take chances and assess the risk-reward relationship.
How does technology affect real estate now? What would you say to those who believe technology will replace human brokers?
Dottie Herman: Technology and information are important no matter how they are delivered.
However, there is still need for people to navigate through this information and technology platform as well as having someone who knows about local markets that happen to be of interest for your purchase decisions.
What are three best career advices?
Dottie Herman:
Conquer obstacles; find other ways round them if necessary
Be authentic
Love what you do
What advice would give a starting entrepreneur?
Dottie Herman: Have your business plan and know where the money will come from.
Most businesses who fail do so because they are undercapitalized.
You have to be willing to eat sleep drink the business. It never sleeps nor waits for one either – it has to be earned through hard work by being the best you can be.
If you hire people, get the best. If however the funds aren’t available for hiring top talent make sure that any new person who shows great ambition and potential to be taught the way that you want things done.
What’s your morning routine? Do you have a nighttime routine?
I always start my day with a cup of coffee and the New York Times. After this, I work out for sixty minutes either in the spinning class or at the gym.
Before going to bed, I make sure to check my emails that I could not deal with during the day. When I am done with this, I like doing crossword puzzles.