Buddy Coleman, founder of ERC and Rausch Coleman Homes, has died

Fort Smith businessman and one-time mayoral candidate Ernest Robert “Buddy” Coleman has died. He was 89. Part of the housing development company he founded in 1957 recently sold for more than $1 billion.

According to his posted obituary, Coleman was born May 6, 1936, in Fort Smith to Emanuel Dorsey and Cora Coleman. He graduated from Fort Smith High School in 1953 and later earned bachelor’s degree in philosophy and business administration from Ouachita Baptist University in 1961.

He built his first home in 1957, and was the founder of ERC Properties and Rausch Coleman Homes.

“While he had a great passion for work, his love for his family and church was evident throughout his life,” noted the obituary. “He taught Sunday school for many years and loved spending weekends at ‘The Farm’ with his children and grandchildren. He leaves behind a legacy of faith, generosity, mentorship, and service.”

His son, Rod Coleman, told Talk Business & Politics that his dad taught Sunday school for more than 60 years in four different churches.

“He was really proud of that. He loved to teach,” Coleman said.

He also was proud of the real estate development businesses he founded. Rod Coleman said the businesses have built more than 75,000 units in 9 states. In early 2025, Fayetteville-based Rausch Coleman Homes would sell to Lennar Homes, the nation’s second-largest homebuilder, for more than $1 billion. At the time, Rausch was the nation’s 21st largest homebuilder, building 5,000 homes a year in seven states.

“Being a poor boy from Barling, he had that work ethic to do whatever he needed to do to be a success, but to say he knew that it would be that (multi-billion-dollar business), I doubt that he did,” Rod said.

Rod said his dad loved Barling and the Fort Smith community, and was a leader in the development of what is now known as Chaffee Crossing.

In an April 2025 interview, John Rausch, president and CEO of Rausch Companies, said he remembered being a teenager when they started Rausch Coleman Homes. Rausch said Buddy shared with him “his passion for improving people’s lives and giving them an opportunity to better themselves.”

“My grandfather built his first home when he was 19, and I built my first home when I was 18, so getting one year ahead of him was always fun,” Rausch said.

Buddy ran unsuccessfully for Fort Smith mayor in the early 1990s against then Mayor Ray Baker.

Buddy is survived by his wife, Lynn Coleman; his children Ernest Robert “Rod” Coleman Jr., and Kathy of Fort Smith, Patti and Fred Rausch of Springdale, and Ashley Dover of Fayetteville; his sister Cathy Colley, and numerous grandchildren and great-grandchildren.

A service will be held 11 a.m., Jan. 21 at Cross Church in Springdale. The family will visit with family and friends from 9:30 to 10:45 a.m. Link here for the complete obituary.