Monday, March 4, 2013
ERIC NASALROAD SUCCESSOR ENTREPRENEUR
Blog Post #1-Interview
By Salvador Garcia
Not all real estate activities are constrained to being a Realtor. A real estate entrepreneur focuses his/her efforts to improve real estate in hopes of increasing value for consumers. The gained value is seen as a benefit to the consumer allowing for a trade for the added value. A successor entrepreneur is an individual that purchases such opportunities with the ability of gaining capital or revenue through lease or sale of a property. Eric Nasalroad is an instructor for entrepreneurship at Fresno State University he is one entrepreneur that adds value to his portfolio by practicing such methods and below he shares his insight on real estate.
What is your background concerning real estate?
Investor: rehabber, portfolio owner.
What got you into real estate investing?
Statistics – I had read that many millionaires made their money in real estate.
Economics – limited supply of land…increasing demand…seemed like a no-brainer.
How did you fund your first investments?
I saved up money for a down payment.
How do you fund your current investments?
I save up money for down payments or I use a private lender for our rehabs.
How many homes have you worked on overall?
20 or so.
Were there any problems you've encountered in your investments?
Problems? Like…unexpected things? Yes. The only real problems come when dealing with local and state government, though. Everything is just a matter of doing what it takes to accomplish the goal. With government, it’s not that easy.
What have you learned from those problems?
There’s money to be made in specialty scenarios, but a person can make money in many types of real estate ventures.
What would you recommend for someone before considering investing into a property?
Know your numbers. Have at least 2 exit strategies. Make sure the property will cash flow if you keep it.
What resources would you recommend for someone that would have an interest in real estate investing?
Kiyosaki – the Real Book of Real Estate
Foreclosures.com (Alexis McGee)
What is your view on today’s current housing market?
Prices are up from six months ago
What do you use to keep up on recent market events?
Gazarian Center for real estate. MLS. Trade articles.
What are your future plans for investing in real estate?
To invest more.
How many homes are you currently working on?
None. But we are holding a small portfolio.
I currently have a property in Kansas and am interested in using it to leverage it for a loan to kick start my business. I have the option of selling the home or leveraging it to try to acquire an investor. I have decent credit but do not work, what steps would you recommend for me to take or do you have any advice?
If it were me, I would only take out as much money from the Kansas property that would keep the property cash flowing each month. You don’t want a chunk of money if you just have to pay back the Kansas deal each month. Rather, make it so you continue to cashflow in Kansas and take the loan money to work your next deal. I would also shore up some monthly income from a part-time job first. Real estate investing isn’t a full-time gig at first. You can take care of your first deals in your free time.
The ability to gain on investing in real estate is a great opportunity that I would like to inquire about more. The opportunity to gain on Eric Nasalroad’s insight in this area was very insightful. I currently have a property and see FIN 180 and this interview as a great resource to gain knowledge in this area of investing.
Special thanks to Eric Nasalroad for taking the time to share this information