It’s All in the Family
By Gina Dostler
Father and son Michael and Phillip Caruso discuss the family enterprise, the Michael Caruso Real Estate Group, now partnered with Surterre Properties. Phillip, 23, who also has broker’s license, joined the family team in 2013. It’s a family partnership that unites young ideas with sound experience.
Q: Michael, you made it through the 2008 mortgage crises. How did you do it?
A: We were no strangers to shifts and changes and several times we’ve had to make marketing corrections. We thought we had a pretty good grasp on it until the melt down proved so disastrous to people at all levels. Like many in the real estate business, we had dozens of clients that had property to sell but the market had stalled. During the tough times we worked with short sales to help our clients lease homes they really preferred to sell.
Q: How did this help your situation?
A: The housing market between 2008 and 2010 didn’t allow a sale without substantial loss. Instead we leased about 50 properties to maintain equilibrium. By leasing, a breakeven point was maintained so the seller could hold on to the property until the market found its hold again. Our goal was to get our clients through the tough times and at the same time keep bread on our table. We also hired on a fulltime short-sale assistant to handle foreclosures. The strategy worked and now that the market is much better, the whole family is setting out to sell homes for our clients.
Q: Even in tough times, you found time to give back.
A: It’s simply part of our family culture. Of my 32-year career in real estate, 16 years of it have been presiding as president of the OC Association of Realtors and vice chair on the California Association of Realtors’ professional standards committee as well as various committees for National Association of Realtors. Together, our family is committed to Habitat for Humanity and at various times we have helped to build homes such as in New Orleans after Katrina and locally in San Juan Capistrano. When my wife and I get too old to swing a hammer, we will pass it on to Phillip to keep our commitment going.
Q: What is happening in the housing market now?
A: It is a better market, for sure. So many positive signs in California overall, improved employment and population growth are bringing people back. There was an exodus where families and companies relocated outside the state. But now we see executives returning, companies rebuilding. I also believe the companies that stayed put during those times like Allergen and Pimco kept a significant amount of employment here and prevented hard times that sadly hit other cities.
Q: Phillip, what inspired you into this competitive market?
A: I loved watching my dad work and was surrounded by real estate terms and transactions early on. After graduating high school I went to University of Arizona to study regional development not realizing I was going to come back and use it alongside my dad. Out of college I went to work for a large commercial land development company during which time I got my real estate and broker’s license. Then when my dad’s company partnered with Surterre Properties. I came aboard to help.
Q: How does a regional development degree help you?
A: When I went for the degree, I really didn’t have in mind to use it for selling homes. Real estate involves a lot of analytical data and I was more on the creative side of things, loved architecture and the different design aspects involved. My intent with a regional development degree was urban planning, a growing niche in commercial business. Bringing this knowledge to our company allows me foresight into the market trends and how housing is changing in relation to communities.
Q: In what way?
A: Such as areas like Laguna Beach, where you have storefronts on the bottom and apartment living on top. Or like the development going on at the Newport Peninsula, as beautiful condos overlooking Lido Island are built over fully functional offices. It’s all about walk-ability. Park the car on Friday night and don’t need it until Monday morning. Restaurants, theatre, music are all accessible by foot. Urban planning and sustainability is the future of real estate development. My dad was one of the first eco-green brokers in California and I guess I’m just following in his footsteps.
Q: You just closed your first listing in March for $2.4 million in Laguna.
A: Yes, it was really amazing and the really cool thing is it closed on my 25th birthday. Growing up I used to ride my bike and skateboard on that same street; now I’m selling those homes. Though the listing closed fast, there were a lot of processes behind it. It’s a feat of magic to get the seller to invest money and time before placing the home for sale. My father and I were able to convince the seller even though the pre-marketing preparation was a hefty budget. I was able to oversee and participate in the improvements and staging which only took four months, but really gave the edge for a quick sell.
