Real estate is a fairly segmented industry, and business models don’t change very much over the years. Brokerage companies buy and sell properties for prospective homeowners, investors buy properties for investments, property managers manage properties, and mortgage bankers finance properties.
Occasionally, someone wanders into the real estate business from somewhere outside of this universe and creates a totally a new model — either because he or she is brash, or not smart enough to realize this new invention is too good or too bad to be sustainable.
Such is the case with Erik Coffin, CEO of Gotham Capital Management, who is doing so many different things with his relatively new Beverly Hills-based company that I’m not even sure he can keep track of it all.
I asked him, “What’s the main thing Gotham Capital does?” He answered, without irony, “We don’t know. We make money.”