Note: In this world everyone needs someplace
to lay their head and that's why real
estate will never get played out as an
profession. With that said, I had some
questions about real estate and the process
as well as how and why it affects the
communities we live in. You know the deal.If
I can get some answers then we all can
so I talked to a young entrepreneur from
Generations Realty Group named Kamil Salter.
Here's what I got.
How did you get involved in Real Estate
and what has made you the success you
Salter of Generations Realty Group (GR)
I was introduced to Real Estate through
my father. Hearing about the additional
income that he was able to make seemed
interesting to me, but I wasn't one hundred
percent sold on being involved with Real
Estate. It wasn't until I came
home from college, and read, "Rich Dad's
Guide to Investing", and began what I
like to call my corporate enslavement
that I really had a burning desire to
figure this Real Estate thing out.
What's you role in the home buying process?
In the arena of Real Estate I wear many
hats, and one would be that of a Real
Estate Agent (REA). As a REA assisting
someone in purchasing a home, my role
would be to show the potential buyers
properties that fit their criteria.
So typically, I'll send them a list of
properties, they'll pick out the ones
that they like, I take them to see them,
and we place an offer on the property
that they are most interested in.
Once an offer is accepted, I assist them
with scheduling the appraisal and home
inspection, and reviewing the home inspection,
and finally I will go to settlement with
them where they seal the deal on their
What misconception(s) people often come
with when dealing with you and trying
to buy a home?
The biggest misconceptions that I come
across from communicating with individuals
buying homes is either individuals believing
that they cannot afford to buy a home,
or that it doesn't cost anything to buy
a home referring to the whole, "No Money
Down" phenomenon. Purchasing a
home can be a very affordable and simplistic
process. If you are renting, you
can pretty much afford a house.
There are so many banks, and mortgage
companies out there that want to assist
first time home buyers it's literally
impossible not to get a loan unless you
are just being lazy. All you have
to do is ask around, whether if its people
you know, or go to a bank, and ask fill
out an application, and you'll be able
to get a loan. As far as the whole
"No Money Down" phenomenon, yes it is
possible to buy a house with no money
down, but in a traditional purchase of
a home involving properties listed on
the market with real estate agents involved,
it's not likely that you will be able
to pull off a "No Money Down" deal.
I will say that it is highly likely that
in the purchase of your first home you
could potentially keep your out of pocket
expenses to around $2,000.00. Also,
when the phrase "No Money Down" is used
it can also be translated to mean "None
of Your Own Money Down". In instances
where you borrow down payments and/or
closing costs from friends, family, credit
cards, credit lines, the government, etc.
How does credit affect what the potential
buyer can do?
When applying for a mortgage, credit can
drastically affect the type of financing
options available to you. Low credit
scores may mean not being able to qualify
for 100% financing, high interest rates,
or simply not being approved. Whereas
higher credit scores will do the exact
opposite. There are special financing
programs out there that can assist with
low credit scores, such as FHA loans.
If you have questionable credit
I would recommend repairing it because
not only will repairing your credit simplify
the home buying process, but good credit
makes life easier. You can go to
for credit repair assistance. Another
option is to have a co-signer who has
a higher credit score than you that can
qualify for better financing options.
Have them purchase the home with you.
How easy is it to get a home and would
you say it's a buyer or seller's market?
Right now I would say it's a Seller's
market just because the interest rates
are still relatively low, so there are
more buyers than sellers because more
people can qualify for loans. Also,
because Real Estate investing is so popular
now, and everyone is looking to invest
in Real Estate it makes the seller's property
a hot commodity, so he or she can demand
a higher price from the market.
What should people look at before considering
buying a property? What do you look at?
When I purchase homes, I'm looking at
a home from an investment standpoint not
a home buying standpoint, which is two
totally different mindsets. So
when I'm looking at a home I'm looking
at the numbers because it's all a numbers
game. If I'm looking to potentially
rent this property, I'm figuring out the
monthly mortgage, insurance, and tax payments,
how much work the property will need to
make it rentable, and what kind of rent
can I get for the property. The
difference from the rents and the mortgage,
insurance, and taxes, and the amount of
repairs will help me determine my monthly
cash flow, and the monthly cash flow will
determine if decide to go ahead with the
purchase of the property. If I'm
looking to flip a property, I'm looking
at what the comparable properties in the
neighborhood are going for, or what they
have sold for, and how much it will cost
to make the property marketable.
The comparable sales from the area minus
the repairs and the offer I'm willing
to make on the property determine my profit,
and the amount of profit will determine
whether or not I will continue with the
purchase of the property.
Does someone have to take a class to become
a real estate agent and how much do they
To become a Real Estate Agent you need
60 hours of schooling on Real Estate Fundamentals,
and Real Estate Practices. These
course usually range anywhere from $300
to $500, and there are so many different
class schedules available that if you
want to be a Real Estate Agent the classes
will fit into your schedule. www.learnrealestate.com
is a school with classes with a number
of different scheduling options.
Ok, tell us about GRG Houses and any other
ventures you have going on?
Generations Realty Group, LLC is a company
formed between myself and my father to
acquire real estate with limited liability.
Basically, we pool our skills,
resources, networks, and knowledge to
build a company that can build up the
community, create passive income streams,
and in the future mentor individuals who
want learn how to invest in real estate.
For more info about us you can
go to www.grghouses.com
Do you think more can be done with some
abandon homes in most major cities to
help those less fortunate like the homeless?
Do you make an attempt to help low income
people in your dealing
I do believe that more can be done with
abandon homes in most major cities.
I know for a fact that there are number
of individuals who have the resources
to revitalize these properties.
The major problem at least in Philadelphia
is being able to obtain these properties.
I'm not an expert on acquiring
these types of properties, but I have
found that acquiring an abandon building
is not the simplest process. Even
though I have heard of the Philadelphia
Housing Authority www.pha.phila.gov
assisting non-home owners to acquire these
buildings. I believe in allowing
low-income individuals the opportunity
to live in respectable, and quality homes.
A number of my rental properties
are in low-income areas, and I like to
try to create a respectable environment
for all parties involved, so as long as
the property is treated with respect and
not negligence then I'm one of the first
people that will open my rental doors
What are the going percentages for services
(as of Feb 2006)? Does it depend on several
As far as purchasing a home these are
the statistics that I usually come across.
homes that are 100k and under you
usually will have to put down a maximum
costs on cash deals are around 5%
of the purchase price. When
a mortgage is involved your closing
costs can be around 8-10% of the price
of the home.
Inspections range from $275-400 (duplexes,
triplexes, etc. costs will vary)
$250-350 (duplexes, triplexes, etc.
costs will vary)
your home traditionally the cost is
6% of the sale the seller incurs.
sale of property in Philadelphia transfer
tax is 4% of sales price which is
usually split evenly between the buyer
and the seller. I usually include
this figure in my closing cost estimate.
Where can people go if they feel they
are being beat by the real estate people
(Is there some sort of fair policy commission
If an individual thinks that they have
been taken advantage of in a real estate
transaction by a real estate agent they
can go to www.dos.state.pa.us
and search for the PA Real Estate Commission
to find out how they can have their problem
Do you feel any responsibility to make
sure the homes you sell are well kept
and don't become an eyesore to the community?
I'm a firm believer in taking care of
my properties. By taking care of
my properties the renter enjoys their
home, the property is less likely to experience
any major malfunctions or repair costs,
the neighborhood has a better overall
look, when the neighborhood looks better,
properties increase in value faster because
the area is more desirable, and as a property
owner, I feel better when I can look be
proud of the appeal of something I own.
Do you have your own property and how's
that working for you? How long did it
take you to build the capital and what
are the advantages of being a landlord
and multiple home owner?
Currently, I have over five properties
that are a mixture of duplexes and single
family homes. First of all, there
are EXPENSES when dealing with your rental
properties, but overall I enjoy the monthly
passive residual income. I can
say that as long as you have systems in
place, and don't take shortcuts then the
rental business can be a very simplistic
business. Some of the benefits
of having a portfolio of real estate investment
properties are the following: Equity
– as the tenants pay the rent, you
are paying the mortgage, and every time
you do that you are paying down the principal,
so your net worth is increasing.
– Real Estate in general usually
appreciates 7% per year, so your asset
is worth more money over time.
Monthly Cash Flow
– Speaks for itself, but one way
to look at it using rental profits to
pay for certain expenses, such as car
notes, personal mortgages, etc.
first property I bought was with my father,
and I was living at home and working,
so I had some pretty good cash flow with
no major bills, so I was able to make
a substantial monthly payment to the property
owner to pay for the installment sale
that would allow us to purchase the house.
As far as saving for a house goes,
I'll say that I was taught to save at
least 10% of your income into at least
a separate bank account that pays interest
(PAY YOURSELF FIRST), and also make sure
that you DO NOT spend this money, and
you will be able to build up the down
payment money in no time. So whenever
I come into extra money, combined with
my savings, I would start looking to buy
Do you see any trends in the game as a
buyer, seller that you can highlight?
Some current trends I see in the Real
Estate market are buying properties where
there is speculation. For instance,
when it was announced that Donald Trump
was exercising his option on the Bud Building
then the Allegheny, Nicetown, Hunting
Park, North Philadelphia area exploded
with higher sales prices, and more hungry
buyers. Another popular trend in
Philadelphia right now is the Condominium
conversions going on all over the city.
It appears that there are so many
condos that are being built that I don't
know where all of these condo purchasers
are going to come from, so eventually
the prices of these condos will have to
drop. Also, flipping is and I believe
always will be a popular trend as long
as one can find good deals, have reliable
contractors, and a
Do you see more minorities moving out
of the city neighborhoods and more people
from the suburbs moving back into the
city? What are some reasons you hear and
do you think it's purposeful?
It does appear that lower income individuals
are being pushed to the outskirts of the
city while higher income individuals are
moving back in to heart of the city.
Some reasons that I believe this is happening
is because of the proximity to downtown
Philadelphia. People like to be
close to their jobs, and if they can eliminate
a forty-five minute to an hour commute
than why not move closer. Also,
because property and land on the outskirts
of downtown can usually be bought for
a reasonable price, developers are buying
up the houses and land and bringing the
suburban lifestyle to the city.
Also, people seem to like the sizes of
the homes surrounding center city, and
there's so much that can be done in these
homes to cater to someone's personal tastes.
I believe that this transition
will have a lot of pros and cons, but
hopefully the pros will exceed the cons.
If you could change one thing you could
change on either side of the game (or
each) what would it be?
In Philadelphia, the Landlord has the
bad guy image, and it seems that the landlord
is always guilty until proven innocent.
If the city was more receptive
to landlord's wishes, and more helpful
in assisting landlords with problem tenants
then life as a landlord would be so much
easier because most of the landlords are
good landlords who care about their properties,
and their businesses, but they can't operate
their businesses effectively because the
city has labeled them, "The Bad Guy."
Luckily there are organizations
out there like the HAPCO www.hapcoassoc.com
that is always fighting for landlords'
rights in Philadelphia, but it's still
not enough without the city's cooperation
Why does it take some communities get
rundown to the ground and remain like
that for years until a big redeveloper
or community corporation comes thru buys
up everything. (i.e. Temple and North
Philly, Penn and Drexel and University
City, etc, etc, etc)? Is it more the community
fault or the city for letting it get so
bad without a response?
Run down communities are a new phenomenon
to me because growing up in these communities
I never thought of them to be run down
until I started doing business in them.
I believe that communities get
run down because of negligence on the
part of the property owners, and on the
part of the city. It seems that
until money and/or politics get involved
the communities will not get better.
Unfortunately, a lot of property owners
in our city don't have pride in ownership,
so the neighborhoods get run down.
The city isn't paying any attention to
this process because in my opinion, they
don't stand to profit, or no one is running
for a position, so the neighborhoods deteriorate.
It's not until someone can make
some money such as Temple running out
of housing, and the need for student housing
which means the campus radius will be
extended, and housing and college amenities
need to be built, so money can be made,
and now the community looks better.
So, once again, in my opinion if there's
no money to be made, and if the property
owners practice neglect then the deterioration
of our cities' communities will be a continuous
cycle in different areas throughout the
Give us your Background? Education, Where
you are from etc?
My background is pretty simple. I was
born in California, lived in Philadelphia
from about the time I was one until I
was around seven. My family then
moved to Cheltenham, and I lived in Cheltenham
until I moved to Germantown a few years
ago. I have a bachelor's degree
in Accounting from North Carolina Agricultural
and Technical State University.
I have over four years experience in the
network marketing arena where I built
nationwide sales forces, and some of which
are still growing to this day.
I have some experience with Web Design,
and Information Technology. After
College I worked in Corporate America
for 16 months as an accountant.
Currently, I'm a Real Estate Agent, Real
Estate Investor, and my family has a CPA
firm, JSM Consulting Group, LLC, where
I work as an accountant.
What do you think about change (thinking
of course of GeoClan.com's slogan, Uploading
I think change is a good thing you just
have to be prepared for it. Everything
changes over time, so it's up to you to
continue to grow and aspire to your highest
potential. Stagnation is not a
good thing we see what happens to stagnated
water mold and fungus, so that leads me
to believe I always need to be moving,
learning, growing, experiencing, and aspiring
to higher levels, so that I can reach
all of the goals that I've set for myself,
and I can leave a legacy for my family,
so when I'm gone they won't have to start
from scratch like a lot of us had to.
more information please email Kamil at
or go to the website at www.grghouses.com
any comments about this article to firstname.lastname@example.org