LUCK IS WHEN PREPERATION MEETS OPPORTUNITY

The year was 1954. A petite older woman ran up the front steps two at a time to the Citizen’s State Bank in Woodville, Texas. Dragging along behind her was a five-year-old trying to keep up wishing Mama would slow down. She’s always running everywhere dragging this tow headed whiny child behind her. Citizens State was a typical small town independently owned bank. Does anyone remember small independent banks? There was free coffee and food in the lobby. Several old men would sit, drink coffee, gossip, and read the newspapers offered for free. The tellers knew everyone by name; no ID was required. “Oh your Miss Dolly’s daughter, just a minute we’ll get that done for you.” This was done when I would drop by the bank, on my bike, after school around the age of 10. Those were the days my friend. The main shareholder in the bank was Mr. F. He sat on the side of the lobby at this huge desk…no office enclosure…you could see him and he could see everyone. Imagine: about 60, balding head, wire rim glasses, white starched shirt with those elastic things men wore to keep their cuffs in the right place, suspenders that always matched belt and shoes, which were always polished. I know that’s a run on sentence or something, but it had to be. On this one day, he would change my grandmother’s world…and eventually he would change mine.

During one of our many trips to the bank, he called out to my grandmother asking her to stop by on her way out. What I’m about to tell you is a blending of several of these sessions with Mr. F. He asked her permission to check her bank account. After doing his thing, he made a proposal that today would be unheard of and I am sure there is now some regulatory law somewhere by some bureaucrat making this illegal, but let’s proceed. He told Miss Dolly that he admired her tenacity and her spirit. He could not believe that she had survived my mother’s death and the horrific trial that had ensued and had taken a six month old infant to raise alone. To quote he said “You are the hardest working woman I have ever seen.” “All you need is a bit of help to get started.” Even then certain men in positions of power saw and honored women with drive and spirit. 

His “help” was he knew of the houses that were in foreclosure long before they would be listed on the court house wall for auction/repossession by the bank. (you know there’s a law against that now…has to be). He said that he was going to let her take possession of one of these houses for $500.00. In 1954 that was a fortune! She immediately said that she did not have that kind of money; he said that he knew and would give a line of credit for the $500.00. No collateral…no money down…no credit rating check…just her good name and work ethic. The house was a mess and needed repair work. It would become a rent house. Saying she knew nothing about a rent house, his reply was that he would help her. She did not mention repairs because she knew how fix everything! She could do plumbing, electric, carpentry, and even change the sparkplugs on her car, if needed. So begins the beginning of the next phase of her life. At this time, she is 55 years old.

Miss Dolly took possession of that house. Every day while I was in school she did the repair work including re-roofing the entire roof. She even made me paint with her. I’d do the bottom half and she would be on the ladder. I still hate painting to this very day. When she finished, Mr. F came to look at the little rent house. He then explained what to do: mentoring 101 before it became a cliché:

1. Find good renters. Check out their clothes, their physical appearance as to cleanliness.

He believed that if one could not keep their bodies clean, keeping a house clean was not possible. Also, check their cars. He said this was a person’s second most important purchase. If it’s a mess, they will destroy a home. I believe all of that is illegal today [but true] as well. OH WELL!

2. Set a fair rent.

He said not to be greedy. Cover the bank note and have some for repairs. He believed that fairness in rent made for good renters.

3. Have a written list of expectations as the land lord. It was not a lease; it was a list.

4. Expect rent on time every time, but have a sense of compassion, but don’t fall for ever thing and most of all don’t get fooled twice.

5. When the house is almost paid off, use it as equity and purchase the second home.

Rinse and repeat.

So, with this man’s help, Miss Dolly began single handedly purchasing properties all over Tyler County through the bank. She repaired each one herself. She even dug septic lines…gross job and of course I had to help with the wheel barrows of dirt moved from Point A to Point B.

By 1960, she had over 15 rental properties which paid for themselves very quickly. For a small county that is an unbelievable number of houses. I remember each night she would sit with her ledgers…No Quicken here folks; pencil, figures, and number sense methodically done each night. In these ledgers all costs, incoming and outgoing monies were noted. The dates of all rent money paid with the receipt numbers. She taught me how to write professional receipts at eight years of age and I did it for years! She would often send me to the bank on my bike with a bank bag filled with money to deposit. [NOT TODAY] Notes about the tenants both positive and not so positive were written as well as any reasons for late rents. She also in that same ledger would keep a running amortization table of when the property was near pay off. She knew exactly how much principle and interest was left on each one. And, SHE DID THESE CALCULATIONS IN HER HEAD…DID YOU GET THAT? IN HER HEAD! This woman who left school in third grade did these complex numbers without any mechanical help…did it exist even then? I have such vivid memories of these things as I was in middle school. Here was the order of the evening:

Fix dinner and eat it together. The two of us with china, utensils, a prayer which I had to offer. And it was NOT “Good food, good meat…Good God let’s eat!”

Ask Karen about her day and demand a real answer. We talked about all kinds of things most adults would never discuss with a child. Topics like politics, religion, news events. I never heard “baby talk.” There’s a reason I teach history and political science. I was asked about the book I was reading at bed time. Not to

be “cheesy” but in Miss Dolly’s house READING WAS FUNDAMENTAL.

I had to give specific details about what I learned that day. Make up something Quick!

Clear table and Karen does the dishes. YEA!

Get ledgers and do property work.

Watch a little TV.

Read Bible for an hour. Take notes and write down thoughts. 

Go to bed.

You see Miss Dolly prepared to be “lucky.” When presented with receiving help to start a business, she took it. She was prepared spiritually and mentally. She did not see a hand out…she saw a step up. She never forgot the largess of Mr. F. In fact, he was her financial advisor until he retired. He never charged her a dime for this advice. All he said was that hard work and frugality would pay off in the end. This would start her next “career” which is another posting. And I haven’t even started on what she did before becoming a landlord. Stay tuned for the next installment. The successful people in life and business I know are not “lucky.” They work the program of marriage, child rearing, personal growth, seeking and taking advice. I know it works in God’s time which sometimes happens a little early for some and some of us take a little longer to prepare. WORK THE PROGRAM!

MISS DOLLY'S FIRST FORAY INTO REAL ESTATE