Mr. Gallin says that in his youth, he had no interest in going into real estate.
David Geffen, another longtime friend, adds that Mr. Gallin's new business has some key advantages over house flipping.
But it's Mr. Gallin's latest foray into designing houses for clients that has made him happiest, his friends say.
Mr. Gallin quit the entertainment business 13 years ago, and buying and selling houses became more of a focus.
Mr. Gallin's Los Angeles residence, a roughly 4, 000-square-foot home that he rents from actress Cameron Diaz, has floor-to-ceiling oak bookshelves he installed in the living room.
Once out on their own, Kwatinetz and cofounder Michael Green, another former Gallin manager who represented trash-talking comedian Martin Lawrence, quickly established a reputation for playing hardball with record labels.
Real-estate agents say that the high fees can be worth it because a home built and designed by Mr. Gallin often carries a premium, and living in one is something of a status symbol.
Wire-brushed vertical-grain oak is another Sandy Gallin signature.
Billy Rose, president and co-founder of the Agency, a real-estate firm in Beverly Hills, says that a house designed by Mr. Gallin will often sell for 10% to 30% more than would a comparable home.
Mr. Gallin declined to comment on his pricing but says his services can save a client millions of dollars because he knows how to cut deals with contractors, landscape designers and antiques stores after decades of doing it for his own homes.
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