The
following interview was originally published as part of Wicked
Business Boston with Charlie Abrahams. Listen to the
audio interview here.
Charlie Abrahams: Can you start talking about how you
first got involved in the real estate industry and what initially
attracted you to the career?
Larry Rideout: I’ve been fortunate
to have strong women in my life, including four daughters and a
wife. My mother actually encouraged me to get a real estate license
because her father was a realtor in Malden, and she thought I had
the same personality. To appease her, I went and got my license,
which at that time was a broker license. I put it in my wallet and
renewed it every two years without giving it much thought. Later,
when I met my wife, my life took a different turn. There was a
point where she said, “You’re not going anywhere with
what you’re doing right now. I know you have a real estate
license. Why don’t you try to get a job?” To appease
her, I went around interviewing at offices. They didn’t hire
me because my resume only showed that I could drive an 18-wheeler.
Finally, someone in Woburn hired me at Century 21, and here I am
today.
Looking back at your early years in real estate, even prior to
that, when you were in the trucking industry, what were some of the
most valuable lessons you learned that still influence your
approach today?
When I was 18 years old, I came to Charlestown with no job and
no idea what I was going to do. There weren’t many hiring
opportunities, but there was a factory in Charlestown, US Gypsum,
under the Tobin Bridge. They hired me for the packing department. I
was working alongside hardened men, throwing 80 to 100-pound bags
of plaster onto trucks all day. It wasn’t intellectually
demanding work, but I learned a strong work ethic from those men. I
also learned a lot about becoming a man in that environment. It was
simple, but it emphasized teamwork. Those few years really impacted
me and shaped my belief in the importance of teamwork.
CA: What motivated you to eventually start Gibson
Sotheby’s International Realty and what was your vision
for the company when you joined?
LR: In November 2006, we acquired Gibson Domain
Domain, an independent agency in the South End, and everything grew
from there. My partner, Paul McGann, worked with me when I was
the senior vice president of franchise sales for Realogy
Corporation. I had been in that role for 11 years, helping people
grow their companies through mergers, acquisitions, and recruiting.
One day, while I was sitting on a tarmac in Chicago, Paul called
and said he had just walked into an opportunity in Boston. He
suggested we try to grow a company ourselves instead of helping
others do it. I was happy to stop the constant travel, leaving home
every Monday and returning on Friday. We met with Selby and Nick,
well-known figures in Boston real estate, and made a deal. In
November 2006, we acquired Gibson Domain Domain, an independent
agency in the South End, and everything grew from there.
CA: During those early days when you first started
Gibson Sotheby’s International Realty, were there any
significant challenges or setbacks you faced? Obviously the global
meltdown of 2009 was a few years after you got things going. How
did you overcome them and did they in any way shape your
professional journey?
LR: Yes, that period was probably as
significant to my business education as my time in Charlestown was
to my personal growth. When we bought Gibson Sotheby’s
International Realty, it was a real investment of our own money. We
had spent most of our capital on purchasing the company, so we
didn’t have much left when the market shut down. We were
barely making it work and watching everyone else struggle too. Paul
and I had a conversation where we decided we could either give up
or try to grow. We chose to grow. We acquired five companies
essentially for the keys, agreeing to take over their expenses.
These acquisitions turned out to be in markets that became
extremely profitable when the market turned in 2011. We ended up
with six offices in Boston. We had to survive, pay the bills, and
do everything necessary, but ultimately, it became the catalyst for
our company’s growth.
CA: Can you discuss one or two of the pivotal
moments or key decisions in your career that led to the growth and
success of Gibson Sotheby’s International Realty under
your leadership?
LR: What I just mentioned about the 2009 crisis
ties into this. We learned from that experience and applied a
saying from one of my mentors: “Real estate is always
growing. You’re either growing larger or you’re growing
smaller.” This became our impetus to continue growing. From
2011 to about 2015, we built our infrastructure. There came a point
when we realized we had the support to grow even more. We expanded
from seven offices to about 15, increasing our footprint. We
promised our agents, whom we consider family, that our expansion
would benefit them. We don’t just open offices for the sake
of numbers. Every year, we analyze our closings and strategically
decide where to expand. This opens up referral networks for our
team and new markets for them. That’s how we’ve
structured our growth, and today we have 27 offices.
CA: As you progressed in your career, has your
leadership style evolved? Were there any mentors or influences that
play a critical role in your development as a leader?
LR: Yes, several come to mind. In my life
before Real Estate, my Dad with his tremendous work ethic and love
of family and also my co-worker and friend, David Catalano, who
taught me how to be a man. He affected how I approached life
overall. In my corporate life, there was Kathy O’Shaughnessy.
When I got into Century 21 and they brought me into the corporate
entity, which led to my role at Realogy, we didn’t have much
money. She made me a regional VP (I forget the exact title) and
told me I needed to dress better for the role. She gave me a credit
card to buy two suits and two pairs of shoes, so I could look the
part. She supported me throughout my journey and helped me climb
the ladder at Century 21. I was effective at what I did and got
promoted until I became a senior vice president at Realogy. As for
my leadership style, it has evolved. We’ve matured. When we
first started, we were operating by the seat of our pants. Now we
have an experienced leadership team that understands how we think
and operates accordingly. We’ve always prioritized culture as
the most important factor in recruiting or acquiring companies.
It’s not about productivity; we’ve turned away very
productive people because they didn’t fit our culture. This
focus has only gotten stronger over the years. With age and
experience, I can now anticipate problems before they arise, and I
work with my leadership team to address them. The years of
experience have helped everyone in terms of running the
company.
CA: Gibson Sotheby’s International Realty has
been a well-respected name in luxury real estate in part because of
the branding of Sotheby’s. What personal strategies or
innovations did you implement that contributed to the
company’s continued strong reputation?
LR: We’re a bit of an anomaly in the
industry.We made a decision early on not to have traditional
managers. Instead, we focus on leadership and specialists for
specific needs. We have an accounting department, leaders who take
care of the agents, and a marketing team that handles marketing. In
my experience overseeing a thousand offices at Realogy, I found
that managers often had to wear too many hats – recruiting,
meeting standards, and so on. We don’t base anything on those
metrics. Our philosophy is that none of us get paid unless our
agents get paid. This drives our culture and our investment in our
agents. I’m proud that almost all of my leadership team
started as admins and worked their way up. They could run any
company in any state now. This internal growth has contributed
significantly to our strong reputation.
CA: How do you stay ahead of trends in the real
estate market and what advice do you have for others looking to
adapt and thrive in such a competitive industry?
LR: I call it the 10,000-foot perch. With 27
offices covering essentially all of Massachusetts, we’re in
second home markets, luxury markets, and starter markets. This
gives us an information advantage that most people don’t
have. I can see trends emerging just by observing how different
markets turn. Every morning, I review our numbers and then read
extensively – the Wall Street Journal, New York Times, and
real estate publications. I try to understand what’s
happening in other markets because it’s critical to us. We
used to say that anything happening in California would eventually
reach us. So if you watch your markets and larger markets,
you’ll be well-prepared.
CA: Reflecting on your journey, what are some of
the proudest achievements or moments that stand out to you in your
career at Gibson Sotheby’s International Realty?
LR: Two achievements stand out. First, two of
my four daughters have followed me into the business, and
there’s nothing like going to work every day with your
children. They’re now in major leadership positions, which
makes me incredibly proud. Second, it’s the growth from
within our company. We decided early on that our leadership team
should know what it’s like to work in real estate. So
we’ve had people work in every department before reaching
their final position. My chief operating officer,
Michelle Pelletier, started as an admin and worked in
marketing. Everyone understands how we operate, and I’m
extremely proud of my leadership team.
CA: This past week, the real estate industry
experienced the largest shakeup for agents in a century when it
comes to commissions. How has Gibson
Sotheby’s International Realty prepared for this, and
what do you think will happen as a result?
LR: I have strong feelings about this. On
August 17th, there will be a lot of misinformation, with the media
potentially portraying it as Armageddon. The reality is quite
different. We’ve been training our agents for the last year
about this, and in recent weeks, we’ve set up dialogues to
prepare them. We’re confident our agents will be able to
communicate effectively about these changes. Sellers will still
sell, and buyers will still buy. The key is for agents to be able
to explain how things work now. Many of our competitors
haven’t prepared as we have, so we know we have an advantage.
Unfortunately, this change will likely reduce the number of
realtors in the industry. If you’re not inclined to work
24/7, it’s going to be a challenging job. However, for those
who know what they’re doing, there will be opportunities as
business shifts their way.
CA: A week ago you won the Andrew F. Hickey
Distinguished Service award by the Greater
Boston Association of REALTORS®. What
exactly is that award and what does it mean to you?
LR: I was honored to receive that award last
week. Having attended many GBAR and realtor events over the years,
this particular award was always one I aspired to receive.
It’s special because it doesn’t just recognize efforts
within committees and GBAR organization, but it acknowledges impact
on the industry as a whole. It made me proud to be recognized for
my contribution to the broader industry, not just specific
committee work. The previous recipients of this award are iconic
figures in real estate, so I feel both honored and humbled to be
included in that group.
CA: Looking to the future, what are your goals for
Gibson Sotheby’s International Realty, and how do you
envision continuing to drive success and innovation in the real
estate industry?
LR: We plan to follow the same strategy that
has brought us success so far. This includes strategic growth,
recruiting agents who fit our culture, and maintaining our
reputation for honesty and straightforwardness. I’m proud
that when I interact with the real estate community, people
consistently praise our agents and our company. We’ll stay
the course with a steady hand. We don’t get flustered or
swayed easily. Our leadership team maintains this steady approach,
and I believe our agents do the same. Our goal is to continue
providing excellent service and maintaining our strong reputation
in the industry.
To learn more about Larry Rideout, click
here.