Tuesday, March 13, 2012
My interview is with my father Fritzner Galiothe. He buy and sales residential houses. He recently brought a house last summer and currently renting out a house, bought in the by area. I want to ask him what made him start in this business, how he likes it, what are the cons and pros of the business, and a couple of other things.
How did you get started in selling houses, and renting house? What made you think about this career path?
The first time I ever brought houses was in 1980s, around 1985. Living in California you have a lot of opportunity to buy and sale residents. I really just started buying houses for myself. Then I took classes at night for real estate. My first idea was to just do it as a side job, for a little extra money for the family. Because I still had a full time job during evening a nights, I went to classes during the day. When I recently stop working full time, I started to move more into real estate and now that is my main source of income.
You say that you are currently rented a house out, what are the pros and cons of rented out house?
When you rent an apartment, house, or building, you really are at a risk of who is living in you place. No matter what background check, credit check you do, you do not know the people who are living in your place. You will not really know how they are until they actually live there and you experience it yourself. Just because they pay rent on time, pay all the deposit and fees don’t mean they are going to be a good tenant either. They might break something in the house every week. I can remember a time I was renting out a house in Oakland, ca. it was a family that pay rent on time. Didn’t have no problem like that. But the neighbors will contact me, because they are family friends, and say they always have people walking in and out of the house at all time of night. They would smoke outside, they would have about 4 to 5 cars parked outside and so sometime in front of others house. The police would always be at the house also. All of the sudden the house has became a hotspot to the police. That became a problem. Then on the other hand I will have great tenants, quiet, the neighbors love them, but I wont get the rent until the 15 if I get it at all that month.
You said that you pick this path as a career after you stop working in your first career. If you can do it all over again, would you choose this as your first career to start off with?
Being in real estate is not the easiest thing in the world at all. You can’t really be in control of as much as you want to. When I first started my car I had (vladimir) in 1979 and (Marilyn) in 1982. So the little kids running around the house, you need a source of income on a consist basic. Now that you are in college and Marilyn and vlad is grown and been out of college for some years, I can take a little risk and I can afford a risk like this. Having a full time job, the more you work in hours the more you check will be. Real estate its on the market. When people are buying. If I would have done it and had some money save before the kids I think I could have done it. But if not I don’t think I would be still at it. Once it got slow I can see my wife telling me that we need money and I would change my job. So really I don’t know if I would be successful or not
As you know I am getting into this field of work. What is something you can tell me about real estate?
Real estate is something you either are going to love a lot, or it is going to eat you alive. But you have been around me and know what it is and was with me buying my last house. You have to be all in. you cant just do it half way and expect to became rich being lazy. Another thing is that put money away in you first you for taxes. Vacations anything just save when you first start. Because I know a lot of people who went into this business and wasn’t in it after a year once you had to pay taxes and didn’t save correctly. Because the government is not taking money out of your check. You need to be on top of that. But real estate has no top. You will be as big as you want to be and as hard as you work. So you are what you make yourself.