A month ago I asked the question, “Is It True Realogy Might Not Survive 2009?” that caused some controversy. We now know the answer, Realogy will make it through 2009 as Apollo Management, the firm that took Realogy private in 2006, has committed 150 million dollars to Realogy for 2009 to weather the storm.

With the cyclical nature of housing sales hitting bottom at present the company is now in a position to survive with this promise of operating cash. The brands involved are the biggest names in real estate and the investment by Apollo is too big to let slide into oblivion.

But for the agents down in the trenches it has to be great news to wake up to. They have made a commitment to the firms they represent on the street, and now they will know these brands have made a commitment back to them.

But that pledge, announced two weeks ago, raises a big question: Will $150 million be enough to save Realogy during the worst housing downturn since the Depression?
Leon Black’s private-equity shop is standing by its investment in Realogy, even as others question the brokerage firm’s viability.
Leon Black’s private-equity shop is standing by its investment in Realogy, even as others question the brokerage firm’s viability.
Leon Black’s private-equity shop is standing by its investment in Realogy, even as others question the brokerage firm’s viability.
Apollo and Realogy executives say yes. Realogy’s Chief Executive Richard A. Smith notes that the company has cut costs by $350 million over the past three years and is trying to take advantage of the tough times by increasing market share, such as the launch of the Better Homes & Gardens Real Estate brand. “Housing is a very cyclical industry,” he said in an interview. “We’ve been preparing for this.” via  WSJ.com.

Related posts:

1. CitiGroup Selling Real Estate Division to Apollo
2. Realogy Posts Strong 4th Quarter on Weak 2009 Numbers
3. Contractor Builds Million Dollar Business Card
4. Mortgage Banker Association Takes 30 Million Dollar Loss on Real Estate
5. Ford Foundations Creates New 50 Million Dollar Forclosure Fund