Stacey Fine Homes Homes of Texas

About Stacey Fine HomesBy MASON LERNER

Sam Tavor arrived in Philadelphia in 1973 from Israel with $3,000 in his pocket and quickly went to work making $2 an hour as an electrician.

Last year his home building company, Stacey Fine Homes of Texas, generated $6 million in revenue.

A builder of million-dollar homes in Tanglewood, Memorial and West University, Tavor doesn't see things slowing down anytime soon.

His story illustrates how small businesses that stay within their means can become a success.

"You hear all the time about people living above their needs," said James Evans, the director of the University of Houston Small Business Development Center. ``The same principal applies in business. It takes a lot of discipline to operate within your means and to keep your profit margins."

And Tavor seems to have that discipline.

Fed up with the cold Philadelphia winters, he moved to Houston in 1979 and landed a job with an air-conditioning company for about six months before starting one of his own. He said that the contractors he worked for constantly asked him for advice when he was installing air-conditioning systems for them.

"Basically, I used to design the homes, and one day I decided why shouldn't I just start my own business?" Tavor said. "And I started building homes."

Tavor started by building a home and living in it. He sold that home for a profit and repeated the process twice. He always used the money he made to invest in his company. Today, Tavor builds about six or seven homes a year.

Preserving reputation

He said the biggest challenge he faces is making sure that every home he builds lives up to the reputation built by his previous projects.

"I am very hands-on," he said. "It's just hard work. You have to be on the job, supervise the job and making sure that it is done right."

"And don't spend the money. Invest it real estate. Invest it in your company," he added.

That strategy has given Tavor a distinct advantage over many other builders, because he can buy property on the spot with cash.

He borrows from a bank only to finance the construction phase of the project.

"I watch the market," he said. "I watch the neighborhood. That way, I know what is happening on just about every street. I know what's going up for sale. The minute something comes up on the computer, I go look at it, and if I like it, I buy it. For 25 years, I've invested everything I've made into more property."

Competitive edge

Evans said more small businesses should heed Tavor's advice.

He said Tavor's ability to pay for properties out of his own pocket gives him a distinct competitive edge. He said that this edge does more than just benefit him. It provides value to potential homebuyers and is attractive to lenders.

"He can always use his property as collateral to borrow money from the bank," he said. "Banks will be more than happy if all they have to cover is the construction cost. It normally only takes 90 days to put a home up. Then all he has to do is sell it, and he can pay the loan back."

Evans said Tavor's ability to finance his own real estate also benefits his customers because it allows him to take on a project immediately and finish it rapidly.

"He can start right away, rather than having to wait around to borrow the money to buy the land," he said. "This makes the whole process go much, much quicker."

Tavor said he has never wavered from his disciplined business plan because he remembers how cold the world was in Philadelphia.

"There is so much opportunity in this country, and I never took it for granted," he said. "I wake up every morning and smile about going to work."

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