How Barbara Corcoran sold the Corcoran Group for $ 66 million
- Barbara Corcoran sold her real estate company The Corcoran Group in 2001 for $ 66 million.
- She started the company in the 1970s on a $ 1,000 loan from her ex-boyfriend and ex-business partner.
- The key to their success was being organized, being smart, and “spending every dollar like I was poor”.
In the 1970s, Barbara Corcoran took a $ 1,000 loan from her boyfriend at the time to start a real estate business with him. She never dreamed that she would sell this business for $ 66 million in 2001.
Originally the company was called Corcoran-Simone Company. (The name of her boyfriend at the time was Ramone Simone.) But when Simone announced it was him Leaving Corcoran for her secretaryCorcoran spun off part of the business into the Corcoran Group.
In an episode of the Business Insider podcast “Success! How i did itCorcoran told US Editor-in-Chief Alyson Shontell how she maxed out that $ 1,000 (which is now closer to $ 5,000, adjusted for inflation).
Corcoran didn’t come from a wealthy family – she grew up as one of 10 children in a two-bedroom, one-bathroom house. But Corcoran remembered that her mother was incredibly organized – her mother ran the family “like a boot camp” – and Corcoran channeled that energy into her career.
When she broke up with Simone, Corcoran said, she bought a three-line ad in the New York Times. She went back to her old boss at a real estate agency and asked for one of his ads to advertise; he gave her the device next to the manager’s apartment.
The apartment had an L-shaped living room and small bedroom, “like any other apartment in New York,” Corcoran recalled. She noted that most of the other New York Times ads for similar apartments were “One bedroom 320 months,” “One bedroom 330 a month,” and so on.
So she got creative. Corcoran had a wall built in the apartment and advertised it as “1 BR Plus Den: 340”.
“I probably got 80 calls the next morning,” Corcoran said. “Within the first two days, I had a check for $ 340.”
Years later, when Corcoran’s business was worth millions and its ranks had grown, she still has never given up that mindset.
Corcoran said, “Even before I sold my business when I had a thousand people salespeople, I still used the exact same methodology. I kept running against the clock and thinking, ‘Well, at least I have nine months now, I have now 10 months’ time and carefully manage my overheads and spend every dollar like I’m poor. “