In the driver’s seat

An interview with 2001 Chairman of the Board
John Eckstrum

by Marty Kramer   John Eckstrum wants you to take advantage of him.

To be more accurate, he wants you to take advantage of the organization he will lead this year. As chairman of the board of the Texas Association of REALTORS®, Eckstrum feels one of his top priorities is to make sure members know what TAR can do for them and encourage them to tap into the benefits. "Once people learn about the association, they learn about the Dennises," he says, referring to TAR Legal Hotline Attorney Dennis Schmidt. "It becomes a real win-win situation."

Tested by fire, helped by friends
Eckstrum learned first-hand just how helpful TAR can be when his company, First Group, was named as a defendant in a lawsuit in the eighties. "We had co-brokered several homes in a subdivision," he says, "and the realization came to pass that there had been a creosote plant on the land." A class-action suit was filed with about half the subdivision participating. First Group was sued on the basis that they should have known some of the land was contaminated. "There was no way that we could know," says Eckstrum. "By the time we arrived, the homes were built, the streets were in, the subdivision was approved by the city. It was just a typical subdivision."

At a TAR meeting, he learned about the TAR legal defense fund, which the association uses to support members involved in landmark legal battles. Eckstrum applied for assistance from the fund, and his case was approved. NAR also shared in the legal defense. Over eight and a half years, the legal defense fund paid out more than $300,000 toward First Group’s defense. "We were eventually able to settle the lawsuit for a thousand dollars," he says. He notes that several of the other defendants went out of business.

He feels a deep sense of obligation to TAR and hopes he can give back by spreading the word about how useful the association can be to others.

Making the most of an opportunity
Like many in the industry, real estate was not Eckstrum’s first career. In the mid-sixties, he graduated from mortuary school and got a job in a funeral home. (He still maintains his license as a funeral director and embalmer.) While working at the funeral home at night and selling cars during the day, he was presented with an opportunity to buy a water-district home. "It didn’t cost anything to buy it," he recalls. "All you had to do was move in and start making payments." Eckstrum made the decision to do just that, and soon after was persuaded by the man who sold him the home to go to work for him. He started selling lots in the subdivision where he lived. Pretty soon, he was earning in one good weekend as much as his annual salary at the funeral home.

"It absolutely scared me to death," he says, "that you could earn that kind of money in that amount of time doing something that was so much fun. It was a joy to be out there selling real estate compared to what I had been doing for a living." Consequently, he resigned from the funeral home.

Eckstrum sees at least one similarity in working in the two businesses. "You’ve got to be there for the customer like a rock–if you do it right."

Wearing many hats
After riding a few market ups and downs, Eckstrum opened his own company, then in 1974, joined ranks with Mario Arriaga to create what was then called First Realty (now First Group).

First Group’s five individuals are engaged in a wide variety of brokerage activities. "We own and operate a shopping center, an office complex, and many warehouses," he says. The company also lists and sells commercial properties, manages warehouses and buildings, has a construction company to develop projects, lists and sells residential real estate, and performs residential appraisals and consulting services. "I get to do it all," Eckstrum says with a wide smile. "I can understand and empathize with every REALTOR® in Texas, because we practice every day just like they do."

His volunteer roots in the REALTOR® organization date back to 1972, when a REALTOR® in Conroe told him he really needed to get active in the local association. He went to a few meetings and attended the TAR convention that year as well. "I’ve always enjoyed the networking," he says. "You can always find someone to give you advice or share their experiences."

Addressing challenges and protecting the industry
In addition to communicating what TAR can do for its members, Eckstrum foresees several challenges in the coming year. "There will be four or five thousand issues on the table at the Capitol next year, and how we successfully deal with them–protect our membership and property owners–will go a long way toward defining our year." He also anticipates an excellent opportunity in continuing to shape the relationships between Texas REALTORS® and real estate professionals in Mexico. "I can see the border disappearing," he says.

Studying ways to get younger people interested in real estate as a profession is another item on Eckstrum’s agenda. And he is very enthusiastic about getting the TAR Issues Mobilization Fund off the ground. This fund will help local communities address issues that could affect REALTORS® and property owners across the state. He is not only concerned about burdensome restrictions but also groups that want to circumvent real estate professionals at the expense of brokers and property owners. "There are too many people shooting at us," he says. "Everyone wants our commission, but few want to go out to a property and drive the sign in the ground with a hammer."

Eckstrum stresses the importance of the association’s role in educating TAR members about new technology and providing tech products and services that will help REALTORS® in their business. "I think the new ZipForm software is a fantastic benefit," he says. But his is a measured approach when it comes to leading-edge technology. "Even with digital cameras, wireless e-mail, and Internet connections in your automobile, that doesn’t necessarily mean you do business any better or that your customer is more comfortable with you. You’ve got to keep it in perspective." He summarizes his feelings on the matter with a line he heard at a seminar: "The more tech, the more touch required."

Accomplishments, big and small
Eckstrum has been in the business long enough to compile a long list of accomplishments. And he’s as proud of the assistance he has provided Mom-and-Pop businesses as he is the $16 million transaction that brought a major Houston company’s expansion to Conroe and created 2,200 jobs. Conroe has blossomed from a one-traffic-light town in 1964 when Eckstrum moved there to a city with 25,000 people and a hundred traffic lights today. "I played a part in some of that," he says. "Just a little bit. That’s fun."

The Texas Association of REALTORS® Political Action Committee’s (TARPAC/TREPAC) success in meeting its $1 million goal in 2000 is another activity in which he is pleased to have played a part. "There were so many doubters and those who were comfortable at a lower level," he says. He is also immensely proud of his family, and he speaks with great satisfaction about the success and growth of his local association, the Montgomery County Association of REALTORS®.

Eckstrum considers himself an optimist–in a planned and organized way. "If we as members stand together, we can accomplish anything," he says. He believes in concentrating on one thing and doing it really well before moving on to the next project. Rest assured that he will bring that kind of focus to his post as the 2001 chairman of the board to ensure that REALTORS® across Texas get the most from their association.

Photo by Dennis Fagan.

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