Legal Expertise Meets Real Estate: How One Arkansas Broker is Raising Professional Standards

Written by:

Steve Marcinuk

Date:

21 Nov 2025

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Arkansas offers a distinctive environment for real estate, where legal knowledge plays a direct role in property transactions. Jerry Larkowski, Executive Broker at ESQ Realty Group, exemplifies a small but growing group of professionals who hold both law and real estate licenses, combining legal insight with hands-on market experience.

In Arkansas, there are about 18,000 real estate licensees and 9,700 attorneys, but only around 30 individuals hold both credentials. ESQ Realty Group employs four of these dual-licensed professionals, giving the firm an uncommon edge in the marketplace.

From Courtroom to Closing Table

Larkowski’s route to real estate was unconventional. After earning his law license in 1991, he spent 25 years as a trial attorney. Burnout prompted him to leave his firm in 2015 for a role with a commodities trading client. When that job ended during the COVID-19 pandemic, he turned to a real estate license he had acquired the previous year, just as the market began to surge with low interest rates.

“The year before, I had gotten the real estate license, and for that first year, I was just playing with it, nights, weekends, lunch hours,” Larkowski says. “But when they had to lay me off at that company, I had both a real estate license and a law license.”

He was drawn to real estate after seeing the financial rewards. Having connected buyers and sellers, he compared realtor commissions to his legal fees and realized, “They were making more money than I was.”

The move paid off. By 2022, Larkowski was earning as much in real estate as he had as a lawyer, closing 90 transactions in 2021 and 2022. This success led him to build a team and mentor new agents.

The Attorney Advantage in Real Estate

A legal background brings practical benefits to daily real estate operations. While Larkowski is clear with clients that they are hiring him as a realtor, not as their attorney, legal training allows for faster and more accurate contract work.

“We make it very clear to them in our contract with them, you’re hiring us as realtors. You’re not hiring us as lawyers. If we get that deep in the weeds, you are going to have to get an attorney.”

Still, having legal expertise on hand streamlines the process. When complex language or unusual situations arise, ESQ Realty Group can respond within an hour, compared to the typical delay when agents must consult a company attorney. “The average realtor just has to call their company’s lawyer, and you’re lucky if you get a call back that day. You’re lucky if you get an answer the next day,” Larkowski says. “With us, we’re talking about an hour.”

Legal training also changes how contracts are handled. Larkowski instructs his team to read real estate contracts with care, not as routine paperwork. “At the end of the day, it’s still a contract, and that’s something I have to tell all the agents that work with me. You’ve got to read this language. Read it like a sentence. Yes, you’re adding an answer, but this is not a job application that you’re filling in the blank. This is a contract that you’re preparing.”

Market Conditions and Buyer Behavior

Arkansas’s real estate market faces many of the same pressures as the rest of the country, but changes often arrive later. Larkowski observes that Arkansas typically trails national trends by six to twelve months, giving local professionals advance insight by monitoring coastal markets.

“Arkansas has always been that way. I’ll be here 50 years next summer, and we’re always six months to a year behind what the rest of the country does,” he says. “So it’s always nice to see what’s happening on the coast, because you know that in about six months, it’ll be here.”

The market remained active through July 2024, then slowed in August and September, with further cooling during the usual November–December lull. Despite these cycles, first-time buyers continue to face significant challenges from high interest rates.

Larkowski advises first-time buyers not to wait for rates to fall. “You cannot wait for rates to drop. There’s plenty of inventory for you to get your start on. It may not be as appealing as what you could have gotten in 2021 and 2022, but it’s still there, and it still makes sense.”

He stresses that the long-term benefits of homeownership remain. “You’re still going to build equity in a house, you’re still going to pay down the note, you’re still going to have appreciation in value of the property, and all of the reasons to buy a house are still there.”

To illustrate the pitfalls of waiting, Larkowski compares it to delaying marriage for financial reasons: “Do you ever fall in love with your woman and say, you know, I’d really like to marry her and spend the rest of my life with her, but I’m going to wait till she gets a raise, because then financially, it’ll be a little bit better? That doesn’t work, and it doesn’t work in real estate either.”

Investment Market Dynamics

Investor activity in Arkansas has slowed due to higher interest rates, which have made leveraged purchases less attractive. “You can’t put money down on a rent house or a duplex or a fourplex and borrow money in the process and pay seven and a half, 8% interest, but the return on your investment is in the fives and low sixes. That math never works. You’re going to lose money every time.”

However, with fewer first-time buyers and investors in the market, there is less competition for available properties. “This is a good time to buy, because the field is not crowded. And if the numbers aren’t just really sexy right now, it will get better soon.”

Cash buyers continue to find opportunities, with cap rates in the fives, sixes, and sevens still available in Arkansas.

Regional Market Differences

Arkansas’s varied geography leads to different local market patterns. Hot Springs, a resort town with lakes, casinos, and historic sites, has traditionally attracted investors, but current market conditions have slowed that activity. In Little Rock, increased rental inventory means tenants have more choices, and economic pressure is driving more people to share housing costs. Property owners must keep rentals competitive and well-maintained to attract stable tenants.

Insurance and Regulatory Factors

Weather-related insurance costs have risen in Arkansas due to tornadoes, wind storms, and hail in recent years, increasing expenses for both buyers and investors. “We’ve had our own set of weather conditions, and it made insurance rates go up, premiums to the point that it hurts. And that’s probably another reason why some of the first-time home buyers and investors have been a little more quiet this year,” Larkowski says.

He reports that industry sources expect insurance premiums to stabilize or decrease by 2026. “What I’m hearing from multiple sources is 2026 those insurance quotes are going to go down. They’re not going to go up anymore.”

Looking Ahead: New Construction and Multifamily

Larkowski sees new construction, especially multifamily, as a major trend for the next one to two years. Many older multifamily buildings have significant deferred maintenance, which deters investors. “A lot of landlords just plug leaks when the leak arises, rather than get ahead of the game and try to prevent the leaks from happening, and so you’ve got a bunch of patchwork,” he says.

New construction offers lower insurance costs, fewer repairs, and a more hands-off approach for investors. “Nothing gets investors moving more quickly than brand new construction, especially of multifamily, because they know that they’re not going to have to have plumbers and electricians on speed dial.”

Career Evolution and Market Opportunity

Larkowski’s career—from trial law to commodities trading to real estate—demonstrates that significant professional change is possible at any stage. “Don’t think just because you have one life, you have to have one career. You can learn and excel in another career. And I’m exhibit A to that.”

For out-of-state investors, his message is clear: “Come on in. The water is fine. It’s been better, and it will get better. But now is a good time to get in, because when the interest rates go down, when insurance quotes go down, you’re not going to be able to get what you want as much, because you’re going to have so many other competing buyers.”

Current market conditions have slowed activity for sellers, who are seeing fewer showings and offers than in recent years. This environment creates negotiating opportunities for buyers and investors who are prepared to act.

ESQ Realty Group’s dual-licensed approach illustrates how legal expertise can improve real estate service, especially in a market where legal complexity often underlies transactions. For Arkansas buyers and investors, access to this level of professional knowledge provides both practical advantages and greater confidence in navigating major financial decisions.