Realty411 Magazine The Future of Real Estate is Here | Page 14

Without
these benefits,
I think it would
have been much
more difficult.
We kept great notes, had meetings on the
progress and issues with the second city
constantly and have essentially devel-
oped a roadmap for going into additional
cities.
Question: How many clients now own
in Dallas? How many homes are cur-
rently under your management?
A: We have just under 250 properties un-
der management in Dallas and there are
right at 80 clients who own properties in
the metroplex.
and would be lucky to get 1-year leases
in Dallas. We scoffed at that belief and
brought the exact same property manage-
ment and renovation style to Dallas from
Memphis. We believed that a home that
has been renovated to a higher standard
and a management company with great
communication and service could easily
command a 2-year lease. Today, we rent
80% of our properties in the DFW market
on 2-year leases.
Q: Are you still hosting property bus
tours in both cities? Where can we find
out more information about them?
A: We do not do bus tours of the cities
anymore. We have investors visiting our
offices weekly to see properties and the
operation. The events that we host now,
one in each city each year, are geared
toward showcasing our team and our op-
eration as we all the attributes of the cities
neur in Memphis for 25 plus years. My
older brother Kent Clothier, Jr. more than
doubled the size of a private company in
Florida at the age of 28 growing sales for
that company to over $2 billion a year.
Kent may not be a part of the day-to-day
business operations for our companies, but
he is a great example of our family being
driven to excel. Our families’ success
is due to the fact that we have failed and
been able to grow and learn from those
failures. What you see today is a compa-
ny where the culture is so important. We
have 44 employees and they all strive to
excel and be the best. That is very similar
to the culture we have developed in every
company we have built.
Q: Can you give us a sneak peak to what
the future holds for the Clothier team
and family?
A: We are already in a third city, Houston,
Question: Are you inclined to stay with-
in certain areas of the city? How were
those areas chosen?
A: Just like in Mem-
“Just like in Memphis, we are trying to buy in areas that we are
phis, we are trying to
buy in areas that we are
very familiar with. We have an understanding of the dynamics
very familiar with. We
have an understanding
in the area and the economic factors that make it a good rent-
of the dynamics in the
area and the economic
al part of town. Our biggest concerns are always going to be
factors that make it
a good rental part of
access to jobs, access to transportation and schools.”
town. Our biggest
concerns are always
going to be access to jobs, access to
themselves. We try to include charities
TX, exploring and looking for office loca-
transportation and schools. So right
and big companies in the cities as well as
tion as well as properties. There is a lot of
now we are buying in spot areas of town
inviting political leaders to address the
good opportunity coming for our existing
and are only managing in maybe 10%
groups. Our events now are much less
and future clients and three cities will
of the entire metroplex. There is plenty
about selling properties and more about
certainly help us to fill all of the demand.
of room to grow and expand into other
helping investors get a good feel for the
It has been a process of development over
areas of the city, but right now we are
market and the company and then make a
the last 10 years and these next few years
concentrating on doing it right, not so
decision if the market and the partner are
certainly look to be very promising for our
much doing it quickly.
the right fit for them. Of course, there is
company and for our clients. With three
always time on our weekends for investors cities we believe we will be able to fill the
Q: How does the Dallas rental market
to get out and see properties and we en-
demand from smart real estate investors as
compare with Memphis, as far as ROI,
courage it, but we wanted to take the focus they look to develop portfolios of consis-
vacancies and taxes?
off of the “bus tour” or “buying tour”
tent and stable returns on solid assets.
A: The two markets are remarkably
mentality and put it back on the long-term
similar as far as returns are concerned,
relationship aspect of investing in buy and Q: Is there anything you would like to
but Dallas certainly presents more
hold real estate.
add about the Dallas market and your
challenges with insurance and tax rates.
involvement in that city?
They are a little more fluid than they
Q: Your company has accomplished so
A: We are really excited about the Dallas/
are in Memphis and are more prone to
much in such a small amount of time,
Ft. Worth market and even about the
change. So we keep a very close eye on
what do you attribute your success to?
possibilities in the near future for Hous-
those two costs, which are major factors
A: This is not new to my family. My
ton. This is going to be a fun year and
in an investors ROI. As far as vacan-
father has been an entrepreneur for over
we are focused on positive growth and
cies are concerned, we were told early
30 years and he followed in the footsteps
building some great friendships with our
on that we would have high turnover
of my grandfather who was an entrepre-
new clients.
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