Tuesday, March 11, 2014

Informational Interview (Fin180 Blog Post#1)


Jacob Balfanz
Fin180

Interview1: John Balfanz is founder and owner of John Balfanz homes located in Bakersfield CA. He develops residential neighborhoods and builds homes. Started in 1989 the company has built over 1000 homes in the local area.

There is a saying that if you want to make one million in real estate you start with two million, do you agree or disagree?
Disagree. U can make a million with 30k. It takes time.

Are there things you do differently now when buying land than what you did when you bought your first piece of land?
I look for better properties that are easer to develop. Having oil on the land or backing up to major streets makes the process last longer.

What do you think are the best character traits to doing business in your field.
Build to the highest standard.  Strive to always please the client. 

Many developers went out of business in 08-09, why do you think that your company survived?    
I renegotiated debt and and saved enough cash to continue building.  

How do you feel the housing market will act in the next year?
It seems to be a little flat now but hopefully it will be steady during the remainder of the year.

If you could have done one thing differently over the years what would it be?
Try to buy when the market is down and resist buying a lot of land when times are good. 

How many times a year would you say you change your prices?  
I evaluate prices every month and try to get as much as I can.  Sell every home for maximum dollar. 

What factor(s) make you change your prices?  
If I feel there is strong demand for my homes I get very aggressive with raising prices.  If I get too aggressive and my homes don't sell I usually add some incentives to the home or lower the price.

Interview2: Evan Selander is a real estate salesperson for Landmark Properties. He is new to the profession and is starting out his career by branding himself and dealing with new clients.
  
How did you become involved in real estate?
My father is a real estate broker and told me a lot about real estate. During the summer after my sophomore year, I decided to get my real estate license. I eventually passed the necessary classes and the license test, and earned my license. I then joined Landmark Properties as a real estate salesperson.

There is a saying that if you want to make one million in real estate you start with two million, do you agree or disagree?
I started my real estate career with a couple hundred dollars. It doesn’t take much to be involved in real estate.

What do you think are the best character traits to doing business in your field?
I am Quick learning, practical, sociable, great-communicator, and attention to detail. Real estate is all about getting the deal done. You have to be sharp and creative with each buyer in order to get the job done.

How do you feel the housing market will act in the next year?
I can see it only going up. Right now, there are more houses sold then going on the market. This is going to provide listings with more and more serious offers, driving prices up. The change will not be too drastic, however it looks good for sellers.

Do you ever feel overwhelmed in your career?
At times, there are a lot of challenges with starting off as a salesperson. A lot of networking and marketing is involved in order to get clients. You can not make money without having clients to help buy or sell their house. It’s a bit overwhelming fighting for clients who are decades older than you, but it has its benefits.

What do you think would be the best opportunity for a low-income college graduate in the real estate market? 
The best opportunity is to start with an internship for a local brokerage. Get the feel for the industry, and then decide if you want to pursue a license in real estate.

How Do You Get Your Real Estate License?
In order to get your license, you need to first take three real estate classes: real estate principles, practice, and a real estate elective. After all three are passed, you apply for the license test. If you pass the test with a 70% or better, you can then send in the application for your license.

How do you make money as a salesperson?
You make money by selling a house or helping a seller find a buyer. You then make a commission based on a negotiated agreement. Commission commonly runs anywhere from 4-6% of a houses ending sales price.

What’s the most important part of real estate?
Location, location, location. Customer service and proper negotiation skills are also the key aspects of the deal.

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