Interview of Will Peoples by Mackensie Jimison – ENT 650

Entrepreneurial Finance Interview

Interview of Will Peoples (The Peoples Properties)

By: Mackensie Jimison – ENT 650

  1. What led you to become an entrepreneur in rental properties?

Seeing successful wealthy people it appeared as if a lot of them got their wealth from property ownership. I also heard that 90% of millionaires created their wealth through investing in real estate.


  1. How did you obtain funding for your first property?

I had another business The Peoples Clubs that was successful. I was able to pay off my first home relatively fast; I would put any and all extra money into those house payments.  After paying it off we decided to get a new home, rather than sell it and loose money (we bought in 2008 before the bubble burst) I decided to rent it out.   That is what got me started in property management.


  1. How did you get funding to expand your property inventory? Using income from the other properties to buy more?

I was able to loan from the bank to help buy extra properties, so I would save the money that I made from other properties and roll that into the down payment on future properties. For the past couple years I have been trying to buy another piece of property every year.


  1. Before purchasing a property do you determine how much return you will get from a property through financial assumptions? Or how do you estimate your amount of profit on each property?

Most definitely I try not to fall in love with a piece of property, instead I fall in love with the potential income I can make from that property.  I will do a financial analysis on any potential piece of property.  First while looking at the properties I will ask how much rent they generate, preferably through a rent roll or leases to verify what they are saying.  If those aren’t available I will look at comparable rentals nearby and see what they are asking.  Then after putting the all of numbers (down payment, interest rate, tax, and insurance) into an estimated payment calculator if it could potentially work I will dig deeper.  I will go ahead and get an exact quote for insurance, as well as ask for their financials to see what money they have had to spend on the properties. If there is enough income for me to justify the purchase I will go ahead and make an offer. 


  1. How do you determine the value of your company?

Honestly I don’t, with this business not being my primary source of income I am really not trying to make money right now but instead trying to solidify my retirement and be able to “retire” (really just retire from daily work to managing my properties.)  Properties are honestly not all that much work, at least not yet.  I typically only average about 5 hours of work per week on them.


  1. Do you have an exit strategy for harvesting? If so what is your exit strategy?

Not really I would like to be able to retire and live off the rent income these make, as long as they don’t become too much work I really don’t plan on selling them, if I were it would be long down the road as I am only 33 now.


  1. How do you advertise to potential renters?

Mostly through the Sylva Herald Classifieds, this has always been the best way for me and gets the most attention. I also have a website and will list them on craigslist when they are available.


  1. Do you ever have down times where properties are not rented and how do you make it through those times? Do your other properties incomes balance out that loss?

Yes however I have never had a place open for more than a month, typically within a month I am able to have it rented back out.


  1. What financial advice would you give someone who is also trying to start a rental property company?

Start small, for example the best advice I give people is when looking to buy your first house find something that can generate income, something with a mother in law suite, apartment, basement, etc.  Or buy a duplex or triplex live in one side and then rent the other side out.  That will reduce your payment and also allow you to start writing stuff off on your taxes. Always punch the numbers, don’t fall in love with a piece of property and make a bad decision.


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