Tom Motlow

This transcript has been edited for clarity, readability, and flow. Minor adjustments have been made to remove filler words and improve structure while preserving the original meaning and intent of the conversation.

Henry Harrison:
Hello, Tom. Welcome to the show, Entrepreneurs, Business and Finance.

Tom is one of my longtime friends from Dallas. I met him not long after I moved here, back when we were both single. I was at your wedding—before you had a son, and now you’ve got a son in college.

We met through a mutual friend, spent plenty of time at happy hours and on the tennis court, and over time I realized you were a very smart real estate investor who later became a builder.

You also organized one of the first larger investment partnerships I was involved in. We built a model home that was featured nationally and went on to build around 17 or 18 homes priced at over a million dollars at the time—which would be two to three million today.

Your investors did well, and you’ve been a great friend and supporter ever since.

Let’s start here—how did you get into real estate?

Tom Motlow:
I didn’t start out in real estate. Right out of college, I went into medical sales—pharmaceuticals and equipment.

I moved to Dallas in 1980 and worked for several large Fortune 500 companies over the next few years. It was fine, but I wasn’t enthusiastic about working for a big corporation.

You’re always subject to changes—recessions, restructuring—and you don’t really feel like you’re building anything.

Along the way, I met other young guys in Dallas doing real estate—commercial brokerage, investments, land deals—and they were making significant money.

I remember thinking, “They’re making in one deal what I make in a year.”

So I decided to make the jump. I saved about a year’s worth of living expenses and joined Henry S. Miller Company, which later became part of Grubb & Ellis.

I spent years selling commercial real estate—apartments, shopping centers, land—and worked through both good markets and bad, including the late 1980s recession when the RTC was selling foreclosed properties.

Henry Harrison:
At some point, brokerage opened your eyes to the principal side of the business.

Tom Motlow:
Exactly.

I was constantly dealing with investors, developers, and builders. I started thinking I wanted to be on that side of the table.

So I began investing gradually.

Whenever I closed a deal and earned $75,000 or $100,000, I would reinvest it.

I started buying duplexes in the Lower Greenville area of Dallas. Back then, it was affordable but attracting young tenants and growth.

I bought properties that needed renovation and kept adding to the portfolio—eventually owning 30 to 40 duplexes.

Sometimes I had to get creative:

• Borrowing against stock

• Using creative financing

• Even putting earnest money on a credit card

Over time, it became almost a full-time job managing them, but it was a strong portfolio in a growing area.

Henry Harrison:
That gradual approach is impressive—you built knowledge and capital before moving into development.

Tom Motlow:
That’s right.

Eventually, land values in Greenville started rising faster than the value of the buildings. At that point, it made more sense to redevelop.

So I started tearing down older properties and building new duplex-style homes, then moved into townhome developments.

One of the first projects was near Ross Avenue, closer to downtown. I built several projects over time—probably 70 to 80 units total.

Some were sold, others held as rentals.

Today, I’m building higher-end properties:

• Luxury duplexes selling for over $1.2 million per side

• Custom homes in the $2 million to $2.5 million range

The business has definitely evolved.

Henry Harrison:
And you learned this without formal builder training—it was hands-on.

Tom Motlow:
Absolutely. A lot of it was trial and error, plus learning from others.

Over time, you start recognizing what works.

Today’s projects are more complex because:

• Land is expensive

• Materials are expensive

• Interest rates are higher

You have to hit the right price point for a deal to work.

Henry Harrison:
That highlights something people don’t always see—this is a long-cycle business.

Tom Motlow:
It is.

A single project can take 18 months to two years from start to finish—and larger ones even longer.

Markets can change dramatically during that time.

I’ve been through at least four recessions, including the 2008–2009 downturn.

In that cycle, I had projects under construction where:

• Half sold

• Then the market froze

We had to rent out remaining units just to carry the project.

I also had to make capital calls to investors and negotiate with lenders.

That’s part of the business—you have to be prepared for it.

Henry Harrison:
You’ve also done partnerships, including the Lake Forest project we worked on together.

Tom Motlow:
Yes.

Partnerships can work very well when structured properly. They allow you to combine:

• Capital

• Guarantees

• Expertise

But timing is everything. If the market turns, you need strong partners and flexibility to survive.

Henry Harrison:
One key lesson from your career is that this is not a get-rich-quick business.

Tom Motlow:
Exactly.

It’s a long-term wealth-building business.

If you buy well and hold quality property, values tend to rise over time.

Inflation alone pushes rents and prices higher.

Patience and discipline are critical.

Henry Harrison:
And you mentioned something interesting—you often wish you had held onto properties instead of selling them.

Tom Motlow:
That’s true.

At the time, selling usually felt like the right decision—and often it was profitable.

But looking back, most of those properties are worth significantly more today.

If I had held everything, my net worth would likely be much higher.

Of course, holding everything isn’t always practical—you still have to manage risk and stress—but the principle holds:

• Good real estate tends to appreciate over time.

Henry Harrison:
Before we wrap up, you also invested in multifamily properties.

Tom Motlow:
Yes, during my brokerage years.

That’s one of the best ways to learn—you see dozens of deals and start recognizing value.

With partners, we bought:

• A 127-unit property

• A 74-unit property

• A 100-unit property

These were value-add opportunities—we improved them, raised rents, and sold after a few years for solid gains.

It was opportunistic but worked well because we were already in the business.

Henry Harrison:
That’s a great place to end.

Tom, you’ve shared a lot of valuable insight. Thanks for coming on the show—I look forward to seeing you on the tennis court and at lunch soon.

Tom Motlow:
Same here. Thanks, Henry. Always enjoy talking with you.

Henry Harrison:
Likewise. Bye.

Tom Motlow:
Bye.