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All Forum Posts by: Mason Moreland

Mason Moreland has started 1 posts and replied 191 times.

Post: Need opinion on a ranch property

Mason MorelandPosted
  • Specialist
  • Midland, TX
  • Posts 198
  • Votes 148

Aater, glad you brought this up and hopefully I can provide some useful information on wetlands issues as they pertain to development and real estate investment. First off, let me preface this with the facts that the follow is:

-My opinion based off of desktop observation and experience

- This is not based on a field survey which would be required to really give a definitive answer on if this feature is "potentially jurisdictional"

- I am giving this opinion in my capacity as a RE Investor, not in a professional capacity with my day job, although we can help folks with that!

Some background on me: ~8 years delineating, permitting disturbance and development in, and writing mitigation plans for wetlands in TX and the Gulf Coast region for several environmental firms, an energy company, blah blah blah. I've done it for a while, but there are some much more experienced folks out there for sure (30+ years!).

First, lets talk "wetlands". "Wetlands" are regulated on two levels: federal and state (typically, sometimes also on city/county levels in some areas). In Texas, all wetland regulation is delegated to the federal government. The EPA is responsible for this, but delegates those powers to the Army Corps of Engineers ("USACE"). USACE, through regional offices, makes all the permitting and regulatory decisions regarding wetlands on the federal level.

Since Texas only regulates "wetlands" at the federal level, we can ignore that for now.

Why is "wetlands" in quotations? Well, not all wetlands are under the jurisdiction of USACE. They have to have all of a set if certain criteria to: A) Actually be classified as a "wetland" and; B) also be considered "jurisdictional" waterbodies under the Clean Water Act and fall under USACE purview.

What constitutes a wetland to the feds? It must have all three wetland criteria: Wetland Soils, Wetland Vegetation, and Wetland Hydrology. You could do a week-long course on any one of those three topics, so I'll leave it at that. Hire a professional delineator!

How can you tell if you might have an issue on your hands before you go out and get a field wetland delineation that in this case could be $1,200-$5,000? Here is what I looked at in my desktop review.

First, look at the National Wetland Inventory Mapper ("NWI" Mapper). This shows a good aerial view of the US and classifies things as wetlands or waterbodies based on remote sensing data. The NWI classification means absolutely nothing from a regulatory perspective and is notoriously spotty in accuracy, but it's a good first hint that there might be something there to look at if it shows a feature. See the screen grab below, it says Aater's place is a riverine ecosystem. Ha! https://fwsprimary.wim.usgs.go...

Second, aerial imagery. Google earth is your friend. Especially that handy historical imagery tool. Go through all the historical imagery to see if there has been any standing water there. If there has been one of more years, good chance you might have the three criteria (soils, veg, hydrology) there to at least call it a wetland.

Third, topographic maps. If you know how to read topos, look one up and see if the property generally drains to your area of concern. Is it a marked/named stream/river/lake with a "blue line"? Does it appear to drain and stop on the property, or continue to drain away and connect, perhaps to another stream, river, or lake? This is important later.

Based on these, I'd guess Aater has more of an "erosional feature" than a water body or wetland on his hands. At worst, it's a non-adjacent wetland or an "ephemeral" stream, one which only has surface flow during or immediately after precipitation events.

So currently, there is a rule recently implemented under the Trump admin that clarified the definition of what kind of water bodies might be jurisdictional and provided many exemptions for agricultural use properties. It is currently in effect and, due to rule changes procedures, will take significant time for the Biden administration to undoubtedly undo. 

Under the current rules, "ephemeral" streams and non-adjacent wetlands are not considered jurisdictional. Because of that, I would guess that just about anything you did to develop on this feature would be legal until they change the rule back. Once that happens, it may fall into the ephemeral category and it would benefit you to have it looked at if you are going to alter or develop it. 

However, under the prior rules even if it is an ephemeral stream, it must also have some sort of downstream connection to another jurisdictional water body to be considered jurisdictional itself. It appears it may from aerial and topo maps. My gut still says this is likely an erosional feature lacking some of the criteria to qualify as an ephemeral stream though (can't say for sure without a field survey).

Even if it is a wetland, you can still develop it from a regulatory perspective. It would likely easily fall under Nationwide Permit 29 ("NWP" 29). These are a set of "permits" that are basically pre-established frameworks that allow certain activities. NWP 29 still requires a field delineation and a Pre-Construction Notification or "PCN" be submitted and approved by the regional USACE office and it must be under 1/2 acre. 

List of NWPs: https://usace.contentdm.oclc.o...

NWP 29: https://usace.contentdm.oclc.o...

From a non-professional standpoint, if you have any doubts at this point you should definitely seek out a professional. Wetland delineations for very large properties can get expensive, but for something like this it wouldn't be much more than other fees such as appraisal. Permitting services a little more.

In this case, I'd be much more concerned about the engineering and water/drainage control issues with developing here. If you build on it, you could essentially create a dam which may pond water on the northwest side, so consult an engineer before you develop to come up with a solution to divert flow around or underneath.

Whew, that's hard to condense.... Questions, anyone?

Post: Need opinion on a ranch property

Mason MorelandPosted
  • Specialist
  • Midland, TX
  • Posts 198
  • Votes 148

DM me some more info (coordinates and such) and I'd be happy to take a quick desktop look for you and elaborate more here to educate others if I can. I am a wetland delineator and specialize in Section 404 CWA permitting in my day job.

Post: Looking for investors to connect with in Midland / Odessa area

Mason MorelandPosted
  • Specialist
  • Midland, TX
  • Posts 198
  • Votes 148

Howdy from Midland.

Post: Lubbock TX anyone???

Mason MorelandPosted
  • Specialist
  • Midland, TX
  • Posts 198
  • Votes 148

Hey Douglas, we have not. Only buy-and-hold with minimal rehab. There are quite a few wholesalers in Lubbock and deals can be had if you put in the work or time. You might look up Lisa Victor at Keller-Williams there in Lubbock. Tell her Matt's brother mentioned her on BP. I believe she has done several flips there and her husband does the GC work.

Post: locations for new construction buy and hold

Mason MorelandPosted
  • Specialist
  • Midland, TX
  • Posts 198
  • Votes 148
Originally posted by @Vijay Nidumolu:

Don't let the crime stats freak you out with Lubbock. It is highly concentrated to certain parts of the city. East of Avenue Q is almost all C & D class properties and crime is high. Bleeds over some into petty crime (theft) around neighborhoods closer to campus. City is growing fast south and southwest towards Wolfforth (they have basically started to merge). Good neighborhoods all over the place though. We like to focus on properties that appeal to families, but do pick up some student renters as well. Check into @Matt Moreland and his KW team there, they are all investor focused realtors.

Post: Texas! Pros/Cons & Best Markets

Mason MorelandPosted
  • Specialist
  • Midland, TX
  • Posts 198
  • Votes 148

@Alex Grosvenor man good point, I always forget El Paso (not sure why!). Definitely worth a hard look there.

I agree on DFW in current environment. It's not that they don't exist, but there are few and competition is FIERCE from individuals and institutions. We got into the market in the early 90's through the early 00's and cashflow is good based on those purchase prices + refinancing at current rates. Always be looking to get into a market "cheap" or early haha!

Post: Texas! Pros/Cons & Best Markets

Mason MorelandPosted
  • Specialist
  • Midland, TX
  • Posts 198
  • Votes 148

@Dwelvin Morgan there are! One of the syndicators I am partnering with on syndicating development of wine grape vineyard specializes in Lubbock and other tertiary TX markets.


There was a TON of multifamily built in the last 10 years in Lubbock so there are lots of opportunities there. The older stuff is up for forced appreciation opportunities now (rehab+infill). We have analyzed several deals for 10-50 unit multifamily complexes there to do solo, without syndicating. Like I said, @Matt Moreland specializes specifically in multifamily and commercial properties in Lubbock, so he and his team are a great resource if you are interested in the LBK.

Post: Texas! Pros/Cons & Best Markets

Mason MorelandPosted
  • Specialist
  • Midland, TX
  • Posts 198
  • Votes 148

@Alexander Wehrmann Dallas you will be hard up to find one of those. Look in tertiary or quaternary markets (Abilene, Lubbock, Tyler, Beaumont, some of the coast towns, Permian Basin, Rio Grande Valley, Amarillo, etc).

@Shawn Ricehouse IM sent!

Post: Texas! Pros/Cons & Best Markets

Mason MorelandPosted
  • Specialist
  • Midland, TX
  • Posts 198
  • Votes 148

Also, @Matt Moreland and his partner Lisa Victor are investor specialized realtors in Lubbock if you decide that market interests you. He's my brother and we own and operate many of our units in Lubbock as well so he knows the market from the investor side extremely well.

Post: Texas! Pros/Cons & Best Markets

Mason MorelandPosted
  • Specialist
  • Midland, TX
  • Posts 198
  • Votes 148

Ok, got all the babies to sleep!

Permian (Midland/Odessa) is great for cashflow if you can get a good deal that works in times like now during an oil bust. The economy is 98% based on the price of oil here. Ours are doing so-so, with all but one full but rents are down about 25% or more.

Lubbock is great, decent cashflow, decent appreciation. Student housing/apartments are overbuilt there in my opinion. SFRs that target families and incidental students are our bread and butter there. Air BnB there is also doing really well.

Another infrequently talked about area is East TX. Look at Tyler, Lindale, and Whitehouse in that order. They have appreciated like CRAZY in the last year or so and just look at Indeed/Job boards. Places are hiring like crazy in the area and wages are rising. Land and homes are still (relatively) cheap in the area. I have no experience with long term rentals there so take that with a grain of salt.

Are you thinking A, B, C class properties? Single-family homes, townhomes/duplexes, small multifamily, or ?