This blog accompanies the text, Real Estate Analysis: Environments and Activities by Julian Diaz III and J. Andrew Hansz. Student are encouraged to post assignments and original research papers to this blog. Please contact firstname.lastname@example.org for posting rights or to add your program to the blog. Some blog posts and objective questions maybe considered for publication in a future edition of the text.
Monday, March 10, 2014
Informational Interview ( FIN 180 Blog Post #1)
Real Estate Investor, Entrepreneur, and Instructor
did you get started in this field?
My first purchase was a
tri-plex that I still own, but my dad had a rental when I was growing up, so I
began doing minor construction at an early age.
was your educational background?
MBA – Entrepreneurship –
Fresno State + some private real estate investing classes
are your major responsibilities?
I find the deals, analyze
them, make the purchase decisions, and run the projects (rehab). Ongoing,
day-to-day management is outsourced.
is the most rewarding aspect of your job, least rewarding?
Creating great homes for
people…being rewarded financially for it. Least rewarding – when a tenant
destroys a property…
might you change?
I might be more selective
about where I purchase properties. I’ve purchased great deals in bad
neighborhoods in the past…the headaches can outweigh the financial reward.
you choose this career again?
This is not a career for
me…it’s a business I run on the side.
is a “typical” day like for you?
I look at properties
every day. I get emails about any new MLS listings that fit my criteria. I
might drive by the best possibilities for investment. I also talk to my main
real estate agent every day or two to see what he sees in the market. If he
finds a deal before it is listed on the MLS, he calls me, and we typically
drive it and put an offer in before it goes to MLS.
obligations does your work put on you outside of the actual job?
Not sure how to answer
this. It’s not a job for me…it’s just what I do to invest money. I enjoy it. I
have to answer emails on weekends/vacations sometimes. I even have phone calls
to make/receive quite often. But – it doesn’t feel like work, so I don’t mind
it. Generally, the calls and e-mails take a few minutes to take care of, so
they don’t tie up too much time.
are some lifestyle considerations for this career?
You have to keep a lot of
cash. I’ve seen other investors spend their proceeds on new cars, fancy cabins,
etc., and then get into financial trouble because they run out of cash for the
business. So…we live pretty humbly compared to others in the field.
are some common entry-level positions in the field?
N/A – maybe a realtor.
kind of salary range and benefits are typical of an entry-level position in
Salary – as little or as
large as your business system allows. Benefits – same.
kind of an individual (skills and personality) is best suited for these
Must be good with
communication and with people. Also – must be very organized and have good
are the most important factors used when hiring?
When I hire someone,
integrity means more to me than anything else. I have to be able to trust the
people I hire. I can help people develop skills, but you can’t teach a person
to be moral. Also, I try to hire people who I know are really good
communicators – it eliminates a ton of problems.
is the best educational preparation for a career in this filed?
Get an entrepreneurship
degree and take classes in real estate investing.
classes and experiences would be most helpful to obtain while still in college?
See above – plus…work on
project at home, so you know a bit about construction. You don’t have to swing
a hammer when investing, but you should know about the work involved.
have you found to be a major weakness of new hires in this field?
is the future outlook for this career?
Great – real estate is
always a good business to be in…up or down markets.
are the areas of potential growth and decline?
If we start to deal with
“sprawl” in Fresno, we’ll have more opportunities for rehabbing.
do you see jobs changing in the future?
Same basic principles,
but they will require more entrepreneurial skills than anything else.