Lee, Lee & Puckett Associates, Inc. : A Lasting Legacy

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Lee, Lee & Puckitt Associates, Inc.: A LASTING LEGACY

STORY BY LORIE A. WOODWARD

PHOTOS BY SIXTY SAGE PHOTOGRAPHY

In 1962, Martin Lee left his construction career in the Permian Basin oil patch to establish the San Angelo-based ranch real estate firm that has grown into Lee, Lee & Puckitt Associates Inc.

“God kind of guided us to a very prominent start—and we’ve just stewarded our business and our relationships from there,” said Martin, who serves as Partner Emeritus/Broker and excels at mentoring younger associates. “If you treat people with fairness, honesty, respect and kindness, the business part will take care of itself.”

As the story goes, Martin was helming construction projects for an oil company in Midland. The company was interested in acquiring ranches, so Martin, whose family has been ranching for more than 100 years, “just started looking.” The company bought a large ranch he offered for sale. With that transaction, the energy company became a steady, repeat client.

“Opportunities came up,” Martin said. “Having a large client led to more large clients and more large ranches. It was just a natural growth.”

According to Martin’s brother, Tom Lee, who joined the firm in 1973, the growth occurred more quickly than Martin’s humble re-telling indicates.

“Almost immediately after Martin got his license, he got a listing for a 30,000-acre ranch just south of Marfa,” Tom said. “He made a name for handling large transactions with integrity and attention to detail.”

In those days, land in that part of the state was selling for about $6 per acre. Today, the brokerage has a listing in the same area as that original ranch. It is listed for $595 per acre. This example and countless others like it reinforce Martin’s belief in the wisdom and power of investing in land.

“You make very little ranching itself, but you’re generating income off the cattle and the land is steadily appreciating,” Martin said. According to his estimates, Texas land has appreciated by 5–8 percent year over year since the early 1900s.

“Land is better than cash because it’s inflation proof,” Martin said. “Land is the new gold standard.”

While this truism has been borne out over time, it’s not a new revelation. It is a lesson they learned early from their grandfather, a rancher in the honored West Texas style.

“My grandfather told me ‘Put your money in land and the dollar you put in it will hold the value of the day you put it in,’” said Tom, who was reared with his one sibling on the family ranch in Coke and Runnels counties.

Through the 1960s, Tom ranched full-time, and Martin partnered with him on cattle. When the cattle market took a bad turn in the early 1970s, Martin suggested Tom get his real estate license and sell ranches with him.

“I was swamped and needed good help,” Martin said.

Tom said, “Early on he guided me through this business and helped me with my career, just like he has done with everyone else who has joined us since then.”

The knowledge they (and their other team members) gained from ranching has proven to be invaluable to their clients.

“Selling ranches is kind of like ranching, but you don’t lose as much money,” said Tom, laughing.

Grinning at his brother’s joke, Martin quickly emphasized that nothing replaces real world experience. Trying to make a ranch cash flow while managing the cattle and natural resources teaches lessons that aren’t available in any textbook or real estate course.

“I don’t think you really know how to sell a ranch until you have ranched and lived that life,” Martin said. “There are so many questions that need answers and the only way to truly know those answers is to have been there.”

Campfire Stories

Tom used to keep a running tally of the number of acres they’d sold. He stopped counting at 2 million. They’ve sold a lot of ranches since then.

In 1987, Lee Puckitt, Partner/Broker, joined the brokerage. Then, in 1997, Lee Hortenstine became part. Six year later, Kevin Reed began riding for the brand. Hortenstine and Reed became Partners in 2006. In 2007, Lee Puckitt’s son Lane joined the brokerage, earned his broker’s license in 2009 and now is a Partner/Broker. The agents include Elaine Lee, Tres Watson, Leslea Charlesworth and Hunter Albrecht.

“We’ve been very selective about who we’ve brought into the business because they have to share our values and commitment to fair dealing,” Tom said. “With that said, we need the vigor and enthusiasm of youth to keep our business thriving and growing.”

Their team covers the entire spectrum of age and experience. The current roster includes people in every decade of life from 20-something to 80-something. The benefit is a synergy that produces workable solutions to clients’ most challenging problems. Unlike many teams, they can look to the future and six decades into the past.

“I’ve been in the business for 60 years, and I can still look back at those old deals and find something that can help make a deal work today,” Martin said. “You can learn something from every deal and if you retain it, you can expand your knowledge base. Ranch real estate is a business that takes some time to grow into.”

In addition, Tom worked as an appraiser early on and later Lee joined him. In 1991, Lee went on to receive his Texas Certification. They bring a clear-eyed, fact-based perspective to valuing properties that benefits the team and the clients.

“If you understand the true value of the land in the current market, then you know how to accurately price a property with a great deal of certainty,” Lee said. “When you know how to value things, it’s not guessing or wishing.”

Through the years, the firm’s sweet spot has been ranches in West Texas and New Mexico that are generally in the 4,000-acre to 40,000-acre range. Of course, they’ve handled smaller transactions and larger ones. And they’ve done deals in all parts of Texas.

“We treat each client and each transaction as if it’s the only one we have, regardless of size,” Martin said. “It’s the most important deal to our clients and therefore, it’s the most important deal for us.”

While doing business, they’ve amassed a lot of campfire stories. Some feature intriguing deals. Others showcase colorful personalities. Some highlight both.

In the early 1990s, Tom represented a potential buyer of a 100,000-acre ranch that Martin received the executive rights to represent the seller. The Duval County ranch had been owned by Clinton Manges, a controversial oil tycoon.

Former ABC Anchor and White House Correspondent Sam Donaldson became a regular and repeat customer. The El Paso native sold two ranches in New Mexico with Martin’s help. Their relationship started out as purely business but after exploring most of the nooks and crannies in the Land of Enchantment, the two became fast friends. They continue to visit one another in New Mexico, where both men have homes.

“Sam knew everyone in Washington, D.C. and thanks to him so did we,” Martin said. “Those sorts of people who buy and sell ranches know their business, and they expect the same from the people around them. We’ve had a lot of big names who came back time after time— and when they do that it means you’re doing something right.”

Another favorite story involves a 30,000acre ranch in West Texas. Because of tax implications, the owner needed to exchange it for another property. Under the provisions of a 1031 Exchange in those days, a ranch had to be exchanged for a ranch. Ultimately the deal required five ranches changing hands.

All the buyers and sellers were gathered at the brokerage office for the closing. Former Governor Dolph Briscoe was one of the parties in the transaction, and he owned one of the ranches for about two minutes. The ranch had an eye-catching historic homestead on it; the brokerage team had commissioned someone to photograph it and hung a framed 2’x2’ image on the office wall.

According to Tom, Gov. Briscoe spied the photo and said, “I have a picture of every ranch I’ve ever owned in my office.” With that announcement, he took it down and took it home with him.

As part of the same deal, Martin and Tom dealt with Bill Donnell, an established, old-time rancher near Marathon. They were forewarned, “He doesn’t like real estate people.” Every time, they went out to the ranch they had listed, which Donnell had leased, they stopped by his office to notify him they were headed out.

When they left the ranch, they stopped back in and reported anything they found amiss. On one trip, they spotted a cow that bogged down at the edge of a tank and was in the process of trying to deliver a calf. The brothers left the showing and made a special trip to tell Donnell about the problem. He dispatched a cowboy to save the pair. The ranch hand was successful.

The land and the deals are great, but the people are the very best part

—MARTIN LEE

After the ordeal, Donnell gave them what Martin considers one of the highest compliments of his career. Donnell said, “You can use my name, and I’ll tell people that you are okay.”

Martin said, “The land and the deals are great, but the people are the very best part.”

The Changing Landscape

In 1962, Texas’ population was 10.1 million. Today, it’s 31.2 million—and growing. Martin has had a front row seat to a lot of changes.

Initially, production agriculture drove the ranch market. Now, it’s recreation and investment.

“Not too long ago, you could drive through West Texas and never see a high fence,” Tom said. “Now, you don’t have to drive far to see them.”

Early in the firm’s history, most buyers relied on loans to purchase property. In the last 15 years, the team estimates 80-90 percent of deals have been cash.

The business itself has gotten more complicated. In the past, successful brokers needed to know about land, livestock and a smattering about oil and gas. More often than not, handshakes could seal a deal. Today, brokers and agents need to know all those things along with wildlife management, habitat restoration, water rights and law, eminent domain, renewable energy and a lot more. Some transactions require several legal experts to ensure every loose end is tied up.

While all these changes have been significant, they pale in comparison to the impact of technology. Tom recalled that when he was an undergraduate at Sul Ross, the only computer he knew about filled up an entire room on the University of Texas campus. Now, our ubiquitous cell phones are more powerful than that behemoth.

“We had no idea about the technology that was coming out and what that would mean for our business,” Tom said.

The fax machine (and later the personal computer) was a revolution and a revelation. Prior to that, brokers and agents hand carried the necessary documents across Texas to get the appropriate signatures. Martin kept a plane at the ready so he could get to his buyers and sellers quickly. Sometimes, he’d drive through the night.

“I’d do whatever it took to get a deal done before somebody changed their mind,” Martin said. “You don’t want people changing their minds.”

Tom added, “And now you just push a button.”

These days, thanks to the information superhighway, they can find out what properties are for sale or have sold in any county. In the early years, acquiring that knowledge required a road trip on an actual highway and a lot of conversations.

Much to Tom’s delight, computer mapping is quick and relatively easy. It wasn’t always the case. Early in his career, he spent two weeks cutting and pasting geological maps together to create a consolidated map of a large ranch they were listing. The finished map was 10’ x 10’.

When they showed the property, they would fold and re-fold the map as they answered questions or highlighted features. Before every showing Tom reminded Martin that they could never let that map leave their hands.

At one showing, a potential buyer said, “Hey Martin, can I have that map?” Without hesitation, Martin handed it over.

“Let me say for the record, Martin’s generosity sparked his brother’s strong dislike,” said Tom, laughing. “Technology has just made so many things easier.”

The older generation of land professionals is quick to give credit to the younger generation of professionals, especially Lane Puckitt, for keeping them on the cutting edge. The firm was one of the first to embrace websites as a land marketing tool when they emerged. The combination of technology and experience is a potent one.

“History is one of the most valuable assets in real estate, but history by itself moves slowly,” Lane said. “History combined with technology is fast and allows you to make the best, most informed decisions.”

While the team at Lee, Lee & Puckitt has evolved to stay current with the changing industry and world, some things have—and will always— remain the same.

“We’ve recognized the blessing of acquiring knowledge and experience, so we’ll never quit learning,” Martin said. “And our faith in God keeps us straight with people, so we’ll never stop treating people right or relying on a power bigger than ourselves.”