Real Estate’s Thrill-seeker

By Roger Cruzen

Brian Troop says he has always been a risk-taker  and a thrill-seeker. A self-proclaimed “adrenaline junkie” who can’t get enough of fast cars, boats, and bikes, Troop lives for adventure, whether it’s on a snowboard tackling a steep vertical slope covered with a foot of virgin powder or unearthing better ways to serve clients of the Ventura County real estate brokerage that bears his name.  •  Troop’s fondness for taking risks has paid off handsomely. Two decades after opening a single office with a handful of agents in a Simi Valley shopping center, Troop Real Estate, Inc. has climbed to the top of the list of most successful brokerages in Ventura County with 15 offices, 650 agents, and a staff of 50. How Troop Real Estate got there is testament to a leadership style that prizes innovation and taking risks but steadfastly preserves the kind of small-town, community service-focused approach Brian Troop envisioned in 1987 when he founded the company.

Troop REO and Auction Solutions

>> Consider two recent ventures designed to ensure Troop agents continue to succeed and serve their clients’ needs in a market where the rules have changed dramatically.

In 2007, with home sales on the skids, Troop knew the only way some sellers might stave off foreclosure would be to convince banks to consider a “short sale,” where the lender accepts a purchase offer that is less than what the seller owes. He also knew that short sales are complex, time-consuming transactions that require expert negotiation skills and an iron constitution. How could he improve the process and help his agents capture their share of these transactions?

Rather than teach agents the ins and outs, Troop recruited an attorney with experience doing short sales and formed a subsidiary, Troop Solutions. Now, when Troop agents and their clients have a short sale opportunity, they have a legal expert on their side to negotiate a final deal with the bank. In exchange, agents contribute a portion of their commission. As of mid-April, Troop Solutions had helped negotiate contracts on 43 properties.

“Some agents didn’t want to have to give up any of their commission until they found they also don’t have to spend all the time it takes to negotiate a short sale with the banks,” Troop explains. “Usually, the first place they [banks] squeeze is the agent’s commission, but our attorney establishes up-front that commission is not a negotiating point. Even the banks love it because they’re no longer dealing with a seller who is emotional about losing their home or a REALTOR® who is emotional about a commission.”

Troop offers clients another option through its newly formed Troop Auction division, which held its first property auction in early May. “It’s just another way to market properties for our clients and to generate offers and hopefully get them sold,” he says.

The Independent Difference

>> Troop Real Estate melds the best practices of a franchise with an acute understanding of the local market. That provides “The Independent Difference” that Brian Troop says makes his agents stand out.

That difference is demonstrated in Troop’s marketing programs. While agents at the national brands contribute to both national and local marketing efforts, independent firms like Troop spend their entire marketing budget (around $1 million last year) at home. Having a large local war chest has allowed Troop to take some calculated risks—like creating an award-winning local cable television program that showcased points of interest across the county and provided a venue for agents to display high-quality video tours of their listings. While the cable show was a huge success when the market was hot, slowing sales encouraged the company to reallocate funds toward other approaches. (Note to competitors: The show will be back when the market is.)

The company also hasn’t been afraid to transition from traditional print advertising. Its offline advertising focuses on driving consumers to troop.com, already the number two real estate Web site in Ventura County behind Realtor.com, averaging a million visits a month.

Putting It All on the Line

>> Brian Troop was 19 and cleaning carpets and refinishing floors when his father, now-retired REALTOR® Mark Troop, suggested he try his hand at real estate. “That was 1978, and interest rates had gone from 12 to 18 percent in about six months,” he chuckles. “I had to learn what they called ‘creative financing.’” After obtaining his license, Troop joined a real estate firm in Chatsworth and continued his floor care business on the side.

But his natural enthusiasm for sales propelled him to almost instant success. By the end of his second full year in real estate, Troop’s office had converted to Coldwell Banker and he had become one of the franchise’s top agents in California, averaging seven closings a month. At age 22, he was named sales manager of Coldwell Banker’s Simi Valley office—the youngest in the firm’s history. “I was very goal-oriented,” he recalls. “My objective was to become president of Coldwell Banker.”

That goal changed by 1983, Troop says, after Coldwell Banker was purchased by Sears. Discouraged by changes in the organization, Troop left to become a partner in a small brokerage, where he spent three years before setting off on his own. It was May 1987, and he had 18 agents and staff, a wife and baby, and a mortgage to pay.

“Brian risked it all to start Troop Real Estate,” recalls Vice President and Director of Operations Debbie McCarthy, a member of the Troop team from the start. “I can recall putting deals together while the office was still under construction. We had makeshift desks and could work only during the day because there was no power to the building.

“What is most remarkable about Brian’s achievement is that he has guided this company to the forefront of an industry in the face of intense competition from national corporations and franchisors with deep pockets and endless resources,” says McCarthy. “To counter this, Brian cared. He cared for the communities served by Troop Real Estate, and he cared for and respected the professionalism and success of his agents and staff.”

“When I split off, my goal was to open a small boutique with a high level of integrity and an outstanding work ethic,” Troop remembers. “As we grew, I tried to create a culture that has a real family feel. In fact, my sister and my mother-in-law still work here, my parents retired a couple of years ago, and I’ve got a 19-year-old son and a 21-year-old daughter I hope will join us. Everybody here I know personally.”

Ultimately, it is this personal, family-style approach that Troop believes makes a difference when clients are selecting a brokerage. Troop has served on dozens of community boards and committees and encourages his agents to do the same. Troop Real Estate has raised more than $600,000 for local school programs in 12 years, and its high-profile partnership with a local food bank distributes Thanksgiving meals to more than 1,200 families. Troop proudly notes that one of those who received a meal some years back eventually earned a real estate license and became a Troop Real Estate top producer.

Faced with a market that’s like snowboarding on a bed of hot coals, Brian Troop takes nothing for granted: “I’ve made my share of mistakes but, knock on wood, I’ve made some good choices and surrounded myself with good people.” Troop suggests the future may be more about becoming better at what they’ve always done, not growing larger. “To be honest, five years from now I’d just like to be able to say I’ve maintained what I’ve built and continued to provide a level of service that is above and beyond the competition.”

Gadget You Can’t Live Without:

Cell phone

Career Outside of Real Estate You Would Have Chosen:

Helicopter snowboarding guide in Canada

Favorite Web site: 

mammothmountain.com

Passionate About: 

Snowboarding

Favorite Quote:

“Greatness comes from ordinary people who dare to live extraordinary lives and those who dare to climb the highest peaks.”–Kimerly Adamson

Favorite Read:

Stuart Woods’ novels

Actor Who Would Play Me:

Tom Cruise

Life’s Goal:

To work with passion and commitment and strive to make a difference in people’s lives so that I will always be remembered in a positive way.

Roger Cruzen is a freelance writer based in Minneapolis, Minn.