What Not To Ask On a Job Interview

Hi Prospects & Friends,

I wanted to share a horrible employer interview experience I went though as an employer a few days ago, and recommend from my own experience not to try these tactics on a "Job Interview" with any employer who is younger than you. First I think this actually falls under age discrimination, but because it's not really focused on the "Employer" much and more on the "Employee", I honestly think that's why it's not really a big issue just yet to create a world wide category for it. So this is how my interview went as an employer. I recently had a female applicant come to my firm to want to possibly work for me. I was dressed professional on the interview, and was ready to let her in my office. The applicant who I will not reveal for protection purposes came in my office and immediately glanced around at everything and them "Zoomed" in on me. I requested her to sit down in a seat I provided her, and before I could even start the interview she ask me:

• How old are you?
• How are you able to afford a place like this for rent"? 
• Where are you getting the money to pay this rent?
• How much is this rent here and can you even afford this place?
• Who is A. Colette Harris Properties, LLC & Who is April C. Harris are they the same person?
• Who Are You?
• Are you even licensed?

To stop this interview from continuing to get out of hand, I immediately stepped in and said, "Ms." these questions have nothing to do with the interview, and that the interview is about the job she was applying for. I then explained to her I was the company and the owner, and that my company just didn't have my full name spelled in it, I then informed her I've been in my same office since 2011, and that how I pay my bills has nothing to do with her. This whole interview was bizarre, and I honestly didn't know how to engage with it anymore.  So I cut it short, and said what was required for the job, and told her to go and think on it. I realized the applicant was possibly asking me these questions because she was a "Baby Boomer" since she revealed she was retiring in a few months, and wanted to do real estate as a supplement. I did inform her that if she was uncomfortable with me being a younger boss & etc, then she had every right to go and apply at another firm. So my point is if you happen to have an employer who is much younger than you, that is advertising for a job you need, understand they didn't get where they're at from blowing off their money, or having a lack of education. It is very inappropriate to ask an "Employer" their age, if they are younger than you and if you're just uncomfortable with it, and won't indeed accept it, then don't proceed with the interview just to ask even more inappropriate questions. The whole bizarre thing about this interview was she didn't even know I was the company and the owner interviewing her, because she right away decided to attack me with inappropriate questions, and didn't let me reveal too her who I was. 

Never underestimate who is interviewing you & that it may just be the "Owner of the Company"

When I look at Reese Witherspoon & Jack Dorsey they are indeed my age, and I wonder if they ever get "Age Discrimination" with applicants who are older than them. Well either way I wasn't upset and learned alot from this interview. Maybe in the future the colleges will create a class in human resources, that explains how to approach a younger boss on a interview if you ever indeed have to face it someday.

Revitalization Metrics Applied To "Vacant Land Analysis"

Hi Prospects & Friends,

When we tend to look at "Revitalization" we only focus it on the metrics of homes, but one can apply "Revitalization" to vacant land also. Recently I bought 2 lots that were heavenly wooded, and now they have been pulled into the neighborhoods "Revitalization" metrics which have caused these lots too sky rocket in their values from what I paid for them, because of the developers building around it. If you carefully look at the picture you will see the wooded land, but you will also see across the street the land has been cleared for new development, on both sides of the wooded land homes are being built. Their are other owners in the wooded land also since these are individual parcels too that will reap these benefits also. So you don't get lost with my explaining in this post here are some clarifications:

• Individual Parcels- Are lots platted on the plat map as identifiers of the owners
• Plat Map- A map your local county assessor has identifying the neighborhoods boundaries and owners. You can trigger this online for free on their site since they attach it to your property
• Developers- Are companies who clear land to have it ready to be prepared for building of new construction
• Vacant Land- Is land that doesn't have a structure on it, but it does include trees
• Revitalization- Is where someone like a builder or developer come in to clear some vacant land, in an already older established neighborhood to make it more better quality and new again. They either tear down the older homes that are for sale, or clear land that is still available to push the older homes to skyrocket in value so these owners will sell. This method can become very tricky if the neighborhood doesn't already justify a good location or good rated schools. So because developers and builders already know this metric, they from the start tend to pick neighborhoods that will deliver these results instantly. 
• Builders- They build the structure on the land whether its a home or commercial property
• Built Out- No more land available to use for building, and if this occurs, and you just happen to have some wooded land in this neighborhood be prepared for developers and builders to offer you money for your wooded land since it's the only thing left that they have been "pushed to build on". If this does indeed occur, you don't have too sell your wooded land to these developers or builders. You can like me continue to watch it grow, and keep it for retirement and put a house on it yourself eventually to live in or just to rent out. 

Once the developments start to occur then any wooded land surrounding these new developments will go up in their value too. So to understand how to start with trying to benefit from wooded land as an investment ask these questions to yourself:

• Is the location near major roads or highways that are easy to get to like gas stations, stores, churches, schools, recreation, and employment?
• Is it near good rated schools or very good schools?
• Are the homes in their older than 70+ years old that will indeed need to be torn down and rebuilt eventually because of their age?

These are just some few questions I shared with you I apply, but every person is different and may have a better way in applying other metrics that work better for them. 

So in conclusion I'm planning to build on this land in the future once all the homes around it have been built to new from old and the neighborhood will have been "Built Out" again. I only decided to venture into wooded land recently, because with the way the market has been going, I wanted an investment that didn't really require much of my attention but still yield me good returns without putting in much effort, since I engage in other real estate activities. What I mean by needing little of my attention means this wooded land:

• Is wooded and I don't have to worry about cutting the grass which makes an expense. I only pay annual taxes, and their not much since I bought this land in my "investment parameter budget metrics"
• I don't have to check on it on-going because of it being rented. The only time I check on it is to see if more new development has occurred around it, then I run my numbers and use my i=v/r equations coupled with the gross rent multiplier. I go out to see the wooded land about once a month, and sometimes I may go about every 3 months just depends on what activity I find online that has triggered me to need to view it asap. Activity means in this case, if apparently an agent has listed a "wooded" lot for sale in my neighborhood, or the agent has listed a cleared lot saying "being prepared for newly built home", or the agent saying this "older home is ready for tear down to be newly built into a new home" All this can be worded different, but key is staying on it like as if it was a "rental investment", because if your careful and apply smart metrics you can indeed make a good future retirement out of just buying "wooded land" and later selling or rebuilding on it and renting it with its new home or just moving in it to live after its price has skyrocketed because of the "Revitalization". 

Remember key is to just be paying the annual taxes and nothing else on your wooded land. So if your wooded land happens to have more than annual taxes to retain it as an investment, then it would be wise to pass on it, I know I would since that is one of the alerts I have on my "Investment Parameter Budget" analysis. Your list can be whatever makes your budgeting for the land work, but their are some key metrics that one should apply when necessary to understand and this post touches up on some of them to get you started with your analyzations. I also apply no flood zone metric on my lots, which affects your value dramatically if indeed it has to be sold & its in a flood zone. So don't engage in buying wooded land if you fully don't understand how too, because owning wooded land you can't sell is even worse if you couple it will expenses you could of avoided by just carefully doing your research on it or just hiring an expert in this area of real estate. 

Merry Christmas & Happy New Year Everyone!

Real Estate Investing Equations

Hi Prospects & Friends,

Whether you are renting out your own place to the public or thinking about buying a rental property, you should take into consideration the investment risks of the property against the income you're receiving. One risk I use is the equation I=V/R, what this equation tells me is the cap rate, the income, and the value of the property, once I have the NOI or even the total annual income of the property after expenses which is NOI (net operating income) I can conclude if I want to buy or not. So to quickly sum all this up, the higher the cap rate the higher the risk of the property meaning what you're up against when trying to collect rent or sale it. The lower the cap rate the better chances the income will be produced on-going for the property which will generate a good value. Here is an example of this equation:

Location= A+

NOI= $15,000

Value= $125,000

So my cap rate is 12%, for me even though this property looks enticing because of the price & location I would pass on it, because later on that high cap rate will affect you too keep it stable with income, because of that high cap rate of 12%. Most non risky investors will pass on this property too, because of the high cap rate, and now you got a rental you can't sell coupled with a high cap rate. Here is another scenario:

Location C-

NOI= $15,000

Rate 6%

So in this case my value is $250,000, so I would pass on this property too, because yes the cap rate looks very good since its very low, but I would pass on the income because it doesn't make since to take home $1,250 per month as net pay on a property that is going to cost me $250,000 to buy it.

Another equation I like to use if I don't have the numbers for the I=V/R is I will use the GRM equation. This means gross rent multiplier, and to use this you have to have all the expenses coupled with the most recent comparable rent sale leased in the area of the property. Example would be:

Most recent comparable rent was: $1,050

Total Expenses: $650

Interest Rates are going for 6%-9% for your typical investment property

List prices generating median: $115,000

Sold Prices Median: $95,000

What this equation is telling me if I apply The GRM with the I=V/R this property is generating a cap rate between 4% & 5% and this is a really good investment to have long-term. So it looks like this:

GRM generated the numbers for the I=V/R so $4,800/$95,000= 5% cap rate. So understand how to use these 2 equations when using metrics to analyze rental properties, and you will be a "smart wise investor" for years to come. 

Merry Christy & Happy New Year To Everyone!