Good Company Q&A: Dave Liniger

In his latest book – “The Perfect 10: 10 Leadership Principles to Achieve True Independence, Extreme Wealth, and Huge Success,” business leader Dave Liniger offers can’t-miss insights for entrepreneurs across industry sectors. Between book signings, we chatted with him about everything from risk-taking to the future of real estate.

Title: RE/MAX Co-Founder and Chairman of the Board

Age: 78

Hometown: Marion, Indiana

What he’s reading: Dave Liniger is a speed reader who flies through five to six books a week. Currently, he’s poring over “A Sniper in the Arizona,” John Culbertson’s Vietnam memoir.

ColoradoBiz: Was residential real estate always part of the plan?

Dave Liniger: I was in the military when I was very young, stationed in Southeast Asia and then Tucson and Tempe. During that time, I took an opportunity to buy a small rental property, and I managed to fix it up and sell it for quite a profit compared to the income I was making in the military. I was more interested in flipping properties at first, and along the way I decided to get my real estate license, to save on the commission on my properties. I’d heard of God’s Country, so my family and I moved to Denver on Halloween of 1971. I immediately got my real estate license and went to work for the leading company of that time. By February I was a licensed agent, and six months later I became a broker. In January of 1973, I started the RE/MAX concept – short for Real Estate Maximums – with my wife Gail.

CB: At this point, the RE/MAX model is a universal concept, and it feels like the company has always been here.

 DL: Yeah, it’s a 51-year overnight success story!

CB: You just make it look easy then?

DL: Starting RE/MAX, I was pretty inexperienced. I did a good job making every mistake you could make. It took five years, from 1973 to 1978, but by the end of ‘78 we were the top residential real estate company in Colorado. We sold our first franchise in Kansas City in ‘75, and two more franchises the following year. By 1977 we were franchising throughout the U.S., and by 1980 we were franchising heavily in Canada. The rest is history. Today we have 150,000 associates in 9,000 offices worldwide. And it all started with one little office on East Belleview Avenue that opened in March of 1973.

CB: Was there backlash during RE/MAX’s early days? 

DL: My team and I were the first to really change an entire industry. We were young, and we didn’t want to do things the old-fashioned way, so we started a revolution. Major competitors tried to put me out of business. If my idea worked, and agents could keep most of their commissions, that was going to be a huge pay raise. It was controversial, and I was hated by the powers that be. It’s a lengthy story – too long to recount here – but my new book goes into detail.

CB: It’s fair to say that you took a big risk with RE/MAX. What would you tell other business leaders about risk-taking?

 DL: Courage comes from confidence, and confidence comes from experience. For a neophyte trying to start a company – for somebody who maybe doesn’t have years of experience or mentoring – it can be difficult to make decisions. You must have an appetite for risk; you must have an appetite for change. But you can’t be stupid. Most people make decisions based on emotion. To be successful, you have to make logical decisions instead of emotional ones.

CB: This sounds like solid advice for any business leader. Do most of the principles laid out in “The Perfect 10” span industry sectors?

DL: I’ve been involved in about 20 different businesses, and the basics are the same in any industry, whether you’re selling real estate or making motorcycles. “The Perfect 10” was designed with leaders in mind – those who want to start an entrepreneurial venture. I try to help other entrepreneurs see what mistakes I’ve made so they don’t have to repeat them.

CB: Why do some companies thrive while other similar businesses fail?

My co-author Laura Morton and I did an in-depth study of how leadership has changed in America over the last 50 years. We found that people like to have control of their lives, including what they do at the office. We looked at the success stories behind Apple, Google, Amazon and Facebook. All of the giants that have evolved in last three decades have a much different leadership and management style than companies from previous years. The leadership takes into consideration the needs, wants and desires of employees as much as the service and desires of the customer. Having a different leadership style has made some companies incredibly powerful and successful.

CB: The businesses you mentioned are some of the biggest in the world, but residential real estate seems more like a small biz. What can small business owners do to get ahead?

 DL: Small business is incredibly important. There’s no national real estate market; there are thousands of very small local markets. Small business owners who become successful figure out how to engrain themselves into their community. These are neighbors providing services to neighbors. Live in the neighborhood you service. Tell people about how your children go to the same schools. Focus on a localized message. It doesn’t matter what market you’re in: You want the community to embrace what you’re doing, so you buy the jerseys for the local softball team, for example. You embrace the community – you give back to the community – and you’ll have a tremendous competitive advantage.

CB: What’s the outlook for real estate in 2024 and beyond?

DL: The future of real estate is bright. People want to own their homes. That’s still the American Dream. Millennials might be thinking that’s not achievable anymore, but real estate is a cyclical industry, and the real estate cycle continues to evolve. In RE/MAX’s 51-year history, there have been seven cycles, and we’ve learned to adapt to each one. Things will stabilize in the next two to three years. Interest rates will come down.

CB: On a parting note, can you share your top piece of advice for somebody who is thinking about starting a business?

DL: Understand that your enthusiasm and excitement will override your common sense. Nothing ever costs as little as you think it will. Nothing is ever going to be simple and easy. But with persistence, you can accomplish a tremendous amount.