Gotham Capital Management handles many facets of REO business
Part of the reason Coffin can make this all work is by rewarding his people for cross-business contracts.
"If you are a real estate agent and you recommend to your client a construction company because the client needs work done on the home, that really doesn't work out well for the agent financially," Coffin said. "We ask our people to tell their clients we can do all this other business. If we pick up a construction job, the agent will get a minimum 25 percent bonus. If that 20,000 square foot home construction job came through, a broker would be bonused. It could be a million dollar project which means the agent will get $250,000. That's a big chunk of change for a real estate agent."
Gotham only got its real estate license about a year ago. Things started off slowly but the whole synergy thing started to steamroll in the final quarter last year.
"We did $2 million in construction in 2012, this year we will do $20 million to $40 million," Coffin predicts. "In addition, this year, we'll transact about $50 million worth of real estate."
Coffin, who grew up in Spokane, Wash., went to the University of Colorado before dropping out at the age of 19 and starting his own company selling perfumes and colognes. Between the ages of 19 and 24, Coffin figures he opened several businesses before trying his hand at the creative arts. Then he became a painter before moving on to house flipping.
With Gotham Capital, Coffin gets to be creative and entrepreneurial. Is it a model that's sustainable? Maybe, maybe not, but with the real estate market coming back, at least he has good timing.
Steve Bergsman is a freelance writer in Arizona and author of several books. His latest book, "The Death of Johnny Ace," is now available for sale on Amazon.
|Contact Steve Bergsman:|
|Letter to the Editor|
Redfin marches into Brooklyn
What's Your Home Worth?