Re/Max 2000 of Phoenix Shuts 13 Offices

Re/Max 2000, one of the larger brokerages operating out of Gilbert, Arizona has shut down 13 of their offices. The firm is facing difficult circumstances with a slowing Phoenix market and to “save the company” they have ceased operations in these offices.

What I can not understand is why they let go the agents? Paying for office space and support personnel is expensive obviously in a slow sales market, but why kick all of your agents to the curb. That seems so old school thinking.

I would have consolidated the support services for the agents that want to remain in another office, provide remote access to the agents for the services they need, and allow the agents to keep beating the bushes for sales.

Sure, closings and some support services would need to be held at locations that take a longer drive but the concept of a real estate office is a bit passé in the internet world.

“The market has impacted us tremendously, and it was something we basically had no control over,” Kline said. “We cannot any longer invest our personal resources into the business.”
The closure puts 350 agents and 20 other employees out of work.
But Kline’s attorney, Dax Watson, said owners are mulling options for reopening the franchise on a smaller scale.
“It appears there may be some opportunity to save Re/Max 2000 and work through some of these issues,” Watson said.
He said Dave Liniger, co-founder and chairman of Denver-based Re/Max International Inc., flew to Phoenix to meet with Kline to discuss options. He said Liniger and other employees from Re/Max’s corporate headquarters plan to meet Wednesday for further discussion. via BusinessWeek.

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There Are 10 Responses So Far. »

  1. From what I’ve read of the business model the agents weren’t paying. I’m also pretty sure the office space was leased to the company so consolidating wouldn’t save money unless those leases could be dismissed. I think outright closure was the cleanest solution. Business of the Year 2006, business bust 2007.

  2. YOU ARE A DISHONEST MAN SIR.
    .
    Didn’t you do the same thing in NY with your 6 restaurants too? Shut them down over night and flee to Arizona? Where were you going to go from here? Mexico? Hawaii?

    In my opinion, Re/Max International is as guilty as you are, letting you get away with this.

    You, Both have lost respect and credibility in the eyes of the public as well as the whole real estate community.You have turned a lot of lives upside down.

    Here is what I think: As soon as your lawyer moves all your assets where they need to go, you are going to do this again. I feel sorry for the good hearted agents that are trapped in your web thinking otherwise.

    All the producing and wise agents are gone regardless of your threats and cheap tactics. I hear you are holding their listings hostage demanding 25% before they can go to another agency. Way to go Mr. Kline. You are really showing your true face now Sir and if you are doing that with your good agents, folks just figure out what he is going to do to you.

    Dear agents, Do you really think that people are going to do business with you under his name, ” Re/Max 2000″? Wake up and smell the roses. He’ll be the last person any body trusts and wants to do business with. I heard Citi Mortgage disassociated themselves with him and closed all their doors at his offices and MOVED ON. They don’t need any part of this embarrassment.

    You have made your money Sir. Let these poor agents go make their own. Don’t hold them hostage.

    You had no mercy telling them to go get lost the day before Christmas. Did you? What makes you think they are going to trust you any more except that they are afraid of you. You are a vicious man. An Ugly Moster. A discusting, dishonorable and unworthy man.

    Had it not been for Re/Max twisting your arms to save their face, You would have never kept any of those offices open. Would you?

    You are so low sir that you put your hands in the pockets of the weak and the venerable to feed your family. I wonder what your children are going to think of you when they find out. As if your children are the only ones that have to be fed. You are a thief Sir.

    None of the other Re/Max franchise owners in the Valley want to associate themselves with you or wanting to do anything with you AT ALL. You have dragged and brought them down to your level. you NOW hate Re/Max EVEN MORE for not letting you flee the scene and you will do anything to drag us down with you. Dirty (inappropriate term).

    I hear you open your books up to the agents that are leaving you telling them, ” look, see how many agents were not paying their dues”, LOL, Sir, go get a life, tell that to the tourists. Well, that’s what you get for being greedy and stupid. If you were such a fool that didn’t understand the market conditions and keep buying these franchises till a few months ago, Mr. Leader, what do you expect from your followers?

    Such a captain you are sir. Putting the ship on fire with everyone on board and fleeting the scene. Is that what they do in NY?

    At the end, whether you believe in God or not Sir, it is all going to come back to you. “you reap what you sew.”

    You should leave the country and go hide somewhere that no one has ever seen you or heard of your name. If I were one of your children, I would have requested the authorities to change my last name or give my custody over to someones else. Anybody is better than you at this time Mr. Kline.

    I know If it really were me doing what you did, I would have killed myself. You might want to consider that. SHAME ON YOU.

  3. BOB, DO NOT LISTTEN TPO THESE PEOPLE!!!! THEY MUST BE SOME OF THE LOSER AGENTS YOU HAD!!!!!!!!!!!!!!

  4. The above comments are probably from the loser agents that did not pay their personal bills to you.. I have known you and worked with you and you are one of the best brokers I have known. This loser that wrote the article should think about what he said and think about what he should say about the banks, auto industry, stock brokers, and insurance giants that took our tax dollars to bail them out.

    Keep up the good work I am proud to know you and will stand beside you in your battle with jerks like above..

    John

  5. Congratulations to Bob for reorganizing his business without the help of the government. Big business fails convinces the government to bail them out with our tax dollars.

    I heard RE/MAX International borrowed $295 million at the same time RE/MAX 2000 was in trouble and guess what! They borrowed the money from Citibank so our idiot above does not know what he is talking about.

    I guess RE/MAX International could not help Bob because they had no money themselves!

    With 400 agents Bo probably paid RE/MAX International around One million dollars per year, $195 X 400 agents X 12 months.

    I can’t believe they left him and his agents high and dry and used the money they borrowed to retire their own debt. (See Bank Loan Report January 2008 publication).

    I spoke with Bob and his court case records are public record in Colorado and congratulations on taking on the big guys and good luck with your counter suit of $12 million.

    I would work for you any day of the week, keep up the good work and don’t give up!

    God Bless you and your great family.

  6. Thanks for the words of support they are greatly appreciated.

    The person above probably never owned a lemonade stand and apparently does not know anything about business. When our company fell into tough times as early as January of 2007 we paid our bills and our agents from personal funds in excess of $200,000 for at least 8 months. The a fraud was discovered, the real estate market downturn, and the economy in general rained havoc on our company. Agents did not pay their monthly expenses and RE/MAX International provided no support even though we paid them over one million dollars in agent fees and overrides each year. Not to mention we were listed in the “Top 100″ RE/MAX offices in the world in fact we were number 6 and produced over One billion in Sales representing over 4,200 transactions.
    I was nominated Broker of the Year and received many awards and recognition over the years.

    I was stabbed in the back by the organization that I paid several hundred thousand dollars for franchises who condoned the recruitment of my agents by competing RE/MAX offices and stripped me of future revenue. In addition I was misled and forced to transfer approximately 1200 real estate listings subjecting me to an additional substantial loss of revenue.

    As far as the unprofessional individual above, open your lemonade stand and I will guarantee you will fail in one week.

    Oh by the way if you want to attack my family lets do it on a personal level, just name the time and place.

    Robert C. Kline

  7. Get a life Dave Liniger did you forget your checks bounced when you started RE/MAX International.

    Try supporting good people like BOB who put you on the map in Arizona….Get a life people see your true colors…pay me millions and screw you when help is needed!

  8. One can go out of business, but with some integrity. This is not Robert Kline’s style. Taking commission checks to start his new company. Shame on you Bob! There was no fraud or embezzlement. You fired that person months before you went under. What about the donations made by agents to charity that were never forwarded. And LLC’s never set up. Yes, the facts say no integrity.

  9. I have been married to Bob for 23 years and he is a very carrying person who made personal loans to agents when business was slow, worked seven days per week and hours late into the night. He was recognized for his accomplishments by many organizations. He was named Broker of The Year by the same organization that failed to provide help, was named business of the year by The Chandler Chamber of Commerce, was featured on numerous magazines and publications and was a member of the exclusive RE/MAX Chairmans Leadership Advisory.

    Ho dare you make negative comments about my husband, what have you accomplished in your life to attack an prejudge an individual that always cared about people.

    You are probably a very frustrated individual that does not realize that their are circumstances out of your control when the economy takes a dive and agents fail to pay money that was due to us in excess of $900,000.00.

    And by the way we invested over $1 million dollars to start our business and paid RE/MAX International over $250,000.00 for franchises and fees in excess of $1 million per year.

    How much did you invest in your business as a professional, excuse me for using that word…you are obviousely far from a professional when you attack someone elses character.

    I guess you should read the newspaper more often and you will discover that major companies are facing financial hardship as well as many individuals. Providing support would be acceptable and professional.

    We are rebuilding our business and doing very well, we now have three real estate companies and over 100 professional associates. Oh By the way! You do not qualify!!!!

    Mary Kline

  10. Bob and Mary, please explain why producing agents that month after month paid their dues should pay the price for non-paying agents and mismanagement? Commission checks were cashed DAYS before you closed your doors when you knew you going under. Those commissions were stolen! You could have returned them to the title companies. Those are the facts. That would have been honorable. If you want to dispute that make sure you open your books because that will show what really happened.

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