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Two capable-and highly motivated, agents-who joined Realty Executives in its infancy were to play a significant role in its history. For John Hendrickson and Dave Liniger, though, Realty Executives was to be a relatively brief stop on the way to building their own empires. One quickly faded into obscurity. The other succeeded, and even today is prospering by promoting his own version of Dale's 100 percent concept.
The former Realty Executives agent who took the 100 percent concept and ran with it was David L. Liniger, an eager young real estate salesman. Liniger had joined Dale Rector's Tempe, Arizona office on June 15,1971 after a brief stint at Ed Thirkhill Realty, a traditional Phoenix brokerage. Within a month, records show he had moved on to the Realty Executives office in nearby Mesa. During his Arizona tenure, which lasted slightly more than one year, Liniger tracked some 21 listings and 18 sales. At one point, says Dale, he even managed the Tempe Realty Executives office.
The two then struck what Dale calls a "gentleman's agreement."
Liniger wanted to move to Denver to explore the possibilities of expanding Realty Executives into that booming metropolitan area, according to Dale.
"The partnership agreement was that we would be 50-50 partners, that we would own the offices. I would guarantee the loans, because we'd have to go to the bank," says Dale. "I had known this banker from Pueblo who had moved to the Denver suburb of Lakewood to manage a bank there ...it was the first time either Dave or I had ever seen a bank machine outside the building where you could punch a few numbers and get actual money.
"The banker, Robin Bailey, was so proud of being the first to have this machine and of course Dave and I were really thrilled to see this sort of innovation.
"Anyway, we made arrangements to get our loan there and open offices. But the main thing was he had to get his broker's license before he could do anything. Then, any profit made we'd split down the middle and, of course, we had conflicts.
"He said `Dale, you can't charge $35 a month and come out on this thing, so you know we'll have to have more money than that.'
"I said, `Well, with the two of us, we might have to charge $50,"' Dale says with a laugh.
On July 7, 1972, Liniger called Dale with an update on the Denver progress. In response, Dale penned the following note, reinforcing their plans and partnership in the Denver project:
July 7, 1972
Dave Liniger 7103 South Tamarac Street Englewood, Colorado 80110
Dear Dave,
It was great to talk to you this morning. Thank you very much for your call.
Enclosed is our new salesman's manual. I think it
will especially help the new members of the organization.
Please let me know of your ideas on how to make it better.
We will open with the trade-in program in effect so that should be a help in attracting salesmen.
As we progress in SanDiego, I will keep you informed of the legal and technical problems.
It was great to talk to you.
Very sincerely yours,
R. Dale Rector
To qualify for the broker's license he would need if he were to set up the Realty Executives shop-or any other shop for that matter-and to learn the Denver territory, Liniger went to work for the Denver firm of Van Schaack & Company, a conventional real estate outfit. From there, he sought Dale's help to obtain his Colorado real estate credentials.
Liniger wrote the following letter to Dale:
Dale quickly responded with the following note:
August 25, 1972 Colorado Real Estate Commission RE: Dave Liniger Dear Sirs:
Dave was one of the finest Associates we have ever had in our organization, and we certainly recommend that he be granted his Broker's license in Colorado.
While he was with us, Dave's listings totaled 21, and he had 18 sales.
Very sincerely yours,
R. Dale Rector
NO SELLING JOB - was needed to enlist Realty Executives, 1000 Apache Boulevard, into Chamber of Commerce membership. The firm's salesmen (from left) Steve Sasse, Tim McBratney and Dave Liniger discuss Chamber activities with C of C builder Hut Hutson...
With the exception of a few phone conversations and a couple of trips to Denver to check on how plans were proceeding, Dale had little contact with Liniger during the ensuing months. So, when one of his Phoenix agents returned from a trip through Denver, Dale was blind-sided by his telephone call. He had a very distressing question concerning Liniger.
"He said, `Dale, what's this deal about `Reax' in Denver? You know, our code name is Reax, what are they doing up there?"'
"He was referring to a company named Re/Max," says Dale, "and was obviously confused since our MLS code was Reax."
"I called Dave and asked `What the hell is going on?' And he says, `Well, you know, in our agreement, if there was a bankruptcy, the agreement was automatically void. And, in order to make this thing work, in order to do the things I needed to do, I had to go bankrupt,"' Dale remembers Liniger informing him.
"I felt terrible ...betrayed," he says.
As Dale recalls the succession of events, Liniger had by then partnered with four others who funded a new real estate enterprise that he had conceived. Charging each of his new agents a $125 fee each month, he and his partners would then receive monthly payments of $25 apiece.
In January 1973 David L. Liniger filed for incorporation with the Colorado Secretary of State's office. By establishing his company, then Real Estate Maximums Inc., he accomplished what Dale and he had initially contemplated doingopen a Colorado real estate company based on Dale's 100 percent commission concept. The only difference was that rather than a partner, he had become a competitor....(Click Here for the rest of the story)
Excerpts from Signs of Success by Steve Tripp. Foreword by Tom Hopkins, Meritage Press � 1995 ISBN# 0-9645698-0-9. Information deemed to be accurate. 100% Success, LLC disclaims any liability incurred in connection with use of information appearing.
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