I was catching up on my Google Reader and can’t believe I past this one up from earlier this month. I don’t care if it’s the second post in a row about 1000Watt. All I can say is I’m smelling what these guys are cooking.
It’s an interview Marc does with John Vatistas discussing the merger of Equitable Sotheby’s International of Phoenix and Russ Lyon Realty Company. John hits upon a point I’ve made before about the current real estate market.
“Marc: A dead market can certainly have that effect.
Vatistas: A couple of thoughts on this: The market had no bearing on the deal for me. If it was an amazing market or a terrible market, the deal makes perfect sense on so many levels. However, it’s basic real estate sense. When the market is down, buy. Increase market share. Combine personnel and reduce costs. Upgrade everything and everyone you can. Be poised to be the leader. Our competition is looking at us. Meanwhile we are looking directly ahead with blinders on.
Me: It’s about striking when the iron is cold.
Vatistas: Yes. And being more ready than everyone else when it heats back up. We are already knee deep in the process as I say this. The synergies are simply staggering. We have many offices close to each other that are being merged. The cost structure drops dramatically as a result of combining back offices. The agent pool is head and shoulders above the competition. We combined our management teams and really use their specific talents. ”
Read the whole story here:
1000Watt Blog- Striking while the iron is cold: An interview
