Rent Real EstateThe African-American Guide to Real Estate Investing
[Note: To follow is an excerpt of an interview with Ms. Larryette Kyle-DeBose, "The African-American Guide to Real Estate Investing." To listen to, or download the show archive MP3, go to www.IncomePropertyInvestmentTalk.com/091008.]
Mosca: How and why did you get started in real estate?
DeBose: I got started purchasing my first home in California back in the mid-70s and was a single mom at that time. An escrow agent and friend suggested that I purchase a home and in 30 days, with her help, I was a homeowner. If you’re going to be doing real estate, understand that real estate is a business. You need a team to get the financing, inspections, appraisals, and the rest of the process.
Mosca: When looking for deals, what do you suggest as a process?
DeBose: My advice is to sit down and decide what it is that you want to do. Start with goals to help determine what it is and where you need to go. Choose markets very carefully. Do your homework. Go to local planning departments. Follow the Super Wal-Mart because they have done massive research whenever they put a property somewhere. Wherever that is, it’s usually a growth area.
Mosca: What are your experiences with owning property in other locations?
DeBose: I have family handling my properties but you can also use property managers. You can find good ones and bad ones. Again, do your homework and use property managers. I have a whole chapter in the book about finding good tenants, too.
Mosca: Your book "The African American Guide to Real Estate Investing" is chock-full of information, knowledge that can help anyone, not just an African-American. Is that correct?
DeBose: I always like to clarify that. The reason that the book has the title is because my publisher is the largest African-American publisher of how-to books in the United States and that is his niche. The principles of real estate apply to every one.
Mosca: In chapter 2 is a reference to the importance of defining a farming area. Can you explain to us what a farming area is and why that’s important to real estate investing success?
DeBose: A farming area is geographic by zip code, city, or county, depending on demographics. Do your due diligence. Learn as much as possible about the area of real estate you’re ready to go into. Get a local mentor, teacher, or coach and alleviate any fear.
Mosca: In Chapter 4 you talk about the benefits of holding and using a property for rental income and the power of multifamily and owning apartment rentals. Can you talk more about this important decision making process?
DeBose: I keep going back to the planning process or setting down goals. If you go through that process completely you will know where you’re trying to go and when and how you need to purchase and dispose of properties. That is critical.
Mosca: In Chapter 6, you talk about the real estate "dream team." You mention REALTORS, lenders, appraisers, property managers but I love the fact that you added a mentor or a role model. Why a mentor?
DeBose: Success leaves clues. That’s where you want to go and that’s who you want to help you. Most mentors are anxious and willing to help someone reach their goals.
Mosca: What is the golden nugget for today?
DeBose: Now is an excellent time to purchase real estate and build your portfolio. Do it properly and get the help you need.