29 March 2009
I received an e-mail recently requesting an interview. This was strange to me because first of all, I didn’t know that anyone actually read this blog. Secondly this was strange because I don’t think I am successful enough to have much to offer at this point in my investing career.
Anyway, I thought I’d share the interview with you and my answers. See below:
1. Tell us a little about yourself.
I am 28. I live in the Kansas City area. I am married with 2 children. I have a full-time job and keep myself incredibly busy rehabbing the house that we are living in as well as working on our investment property.
2. How did you get started in real estate?
My best friend is a Realtor and we both dreamed of owning numerous investment properties.
We spent about a year learning and dreaming and testing the waters, but finally decided that we needed to take the first major step and buy our first property.
3. How many properties did you look before your first deal?
Not sure, but dozens. We also made offers on several properties before purchasing our first one. One of the deals fell through during the final steps leading up to closing.
4. Tell me about your first real estate investment experience.
We are still experiencing that first one. We purchased a 4-plex that was vacant and needed what we though was minor rehab. That minor rehab ended up taking us months to accomplish.
We now have the building half-full and hope to get it filled and cash-flowing during the next month.
5. In your opinion, what is the most important lesson you’ve learned so far?
If you don’t have the time and desire to do all of the work yourself (or if your wives don’t have the desire for you to be gone all of the time), then make sure you have enough money to pay someone else to do everything for you. This includes rehab and property management, maintenance, etc.
6. Where did you get the down payment for the first rental property?
My business partner and I were very fortunate. I made a good amount of money flipping our first personal house and my partner has done very well as a real estate agent. So far, we have sunken over $30,000 of our own personal cash into this first project.
7. Do have any favorite real estate blogs you read daily?
8. What is your favorite real estate investment book(s)?
Can’t say that I remember the last book I read about real estate investing. It’s been a while. Although I don’t agree with everything in the book, it is still motivational to read classic books such as Rich Dad, Poor Dad by Robert Kiyosaki
9. Would you ever consider turnkey investment properties? Why or why not?
If I came to a point in my life when I was looking for security and guaranteed income, then maybe. Generally I consider a turnkey property to be low cash-flow. At this point in my life, I’m willing to take risks in order to get a higher cash-flow. For example, our current building is in a lower income area so there is potentially more risk for tenant issues, but the cash flow potential is outstanding.
10. Any advice for the first time real estate investor?
Learn, Learn, Learn… but some day you have to progress and actually do something. Also don’t jump into a deal just to get into something. Make sure that you have a good plan even if the worst were to happen. You don’t want your first investment to end up in foreclosure. This may cause you to never invest again and that could be one of the biggest disasters of your life.
Update (4/6/09): Sung Kim posted my interview to his site at http://reipond.com. Check it out. It looks like he has a good start for his site. I think I’m going to ask him to return the favor and answer the interview questions to be posted on this site as well.
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I really want to get into real estate as my Dad used to be in it so I am trying hard through investments to get my first lump of capital. I like your blog and am going to read up on lots of your posts for advice.