Speaker 2: Hi friends, this is Vinny Chopra from here in Danville,
California, and you might be saying, Hey, Vinny, what are these over here?
You know, I wrote this book a few years back, Apartment Syndication
Made Easy, it became top seller.
I came from India with 7 in my pocket.
It says 500 million.
It's going to be 1 billion very soon, very soon.
I'm right at about 850, 900 million.
It's And then I'm ready for the next billion.
Actually, you will see that happening two billion in this book.
Also, the other book I wrote, which has been a very big
positivity has been my life.
Always, always.
I've been married 43 years with two children.
And the beauty is to be positive.
The mindset that can take you to all the places in the world.
And that's the book that also.
Became big, big seller.
My third book, Senior Assisted Living is coming.
So do yourself a favor, go ahead and click the link below to get free
copies, audio copies of these books, even printed copies of these books.
If you, I'm a print in means digital, if you can't afford it,
but I would highly recommend for you to get these or go to amazon.
com.
Just go to Amazon.
I got it in soft cover and hard cover.
In Kindle, in audio, also the Spanish version of this.
Oh, this book also.
So let's crush it, guys.
I know you can be successful.
I know you can do the kind of things that you want to do in life and have
the streams of income and know how to really, you know, educate yourself so
that you could become a strong, strong force in this world in real estate.
I know you can.
So take that step.
Don't just be on the sideline.
Take charge of your life.
Take charge of your education.
And he himself is going ahead and asking me if I may share my
screen real quick, please do.
Yeah.
Excellent.
See, that's the beauty of mastermind, sharing, collaborating.
So I think, you know what, if I were you gave him some number.
I remember you said 73, 000, or we were going to go to a hundred maximum,
but let's sit on it because the more you stay back, the more he's going
to say, Oh my gosh, Saurabh is the only interested party in my property.
So his terms will change, yeah.
Yeah.
He'll go down.
So I should wait for him?
I would say so.
You don't want to be pushy.
This, it's not going anywhere, right?
Even if somebody gets it and pays more, so what, but the good thing is I remember
now what you showed me your friend is managing it and the numbers he's
showing you the real numbers are pretty attractive numbers and it's worth 1.
7 or 1.
8 million with the new numbers.
You only showed me August, I think, and September, but
this time it's not worth that.
And he's trying to get the money.
Which will be worth a year from now with this new management company.
So there is a compromise.
Oh, this is a compromise and he needs to come to the grips of it.
Hey, this property is not worth that much.
Whatever appraisal he did, that's no good.
Appraisals are good for 90 days.
So you say, Hey, do appraisal now with whatever you have
occupancy and everything.
It's not going to, so please share.
Yeah.
That's the one I remember.
Yeah.
Look at that in August.
It was with the new numbers.
It was 1.
4 ish, but in September it came back down to 1.
2 because they did not make enough cash.
Yeah.
It was like 800 bucks for all those properties combined.
Plus he has these amount of taxes due, which he has not paid for.
Oh, wow.
Yes.
And I spoke with him like on a phone call, like on a video call as well.
I gave him all the details, but basically what he is asking for is,
so first of all, he's saying that taxes can be paid for one more year.
So that should be fine.
Okay.
But But he's okay.
He himself is saying I have an acute need of cash for the winter here.
If you know anyone in your network who's looking to do some private
lending, I'm not very comfortable with sharing because he's not doing
that great in terms of Not at all.
Not at all.
You don't want to give somebody who's thinking, an or private lending with
promissory note or anything guarantee because he may never pay back.
Yeah.
So he's, he said that he's looking for 250k and flexible.
I wanted some more information about him.
Like I'm not going to lend to him, but just looking to for this deal
as to what is his requirement.
So after that, he said after 250k, he actually came down.
really need something to get through the winter for his business, right?
So short term isn't off the table, but longer, the better
interest only preferred, right?
So which is a red flag and then could secure it with the six unit
building sooner, the better anywhere between 200 K to three 50 K.
Is what they're asking.
So if he's asking for 200 K, I know I can get probably the deal for this
particular building at one 75 ish K.
Because he's asking his low end is 200.
Can he's telling it to me?
Which means, yeah, but he wanted before.
200 and 200 I thought right or something or 400 and 400.
What was that?
200 now 200 later but then I told him that's not gonna happen because
your property is not worth it.
Got you.
So are you taking over the loan Saurabh or how is it helping?
Yeah so I'm thinking that I'll take over the loan the 1 million right 1.
22 million is the loan that they have.
I'm thinking.
If I can get this right, these are the 30 units, if I can even get it for 1.
45, right?
Or actually a little bit lesser.
I did some quick math somewhere over here.
Just give me.
I love your Excel sheets and you are master at it.
You can design and do so much projections so quickly.
Yeah.
It's not very clean right now, but I'll just quickly explain
balance on the mortgage rate, 1.
2 million, which he thinks that his LTV back then was 25%, right?
So this is what the bank valued the building at.
In 1.
63 million to your two, two and a half years ago, right?
NOI was still negative even back then.
Oh, because they've been using the same exact management company.
So we know that even if we go to the credit union right now, they should
be able to give at least two years.
Old value, right?
This is the property value that I've come up with this 25% equity.
And and then if we get each building, so there are five, six plexes, right?
. . He is asking for 310,000 per sixplex.
Which converts to 1.
55 million, right now, no, six, you said six of them, right?
Six times three is 18, five, five, five, six plexus, or five, five.
Okay.
Got it.
Yeah.
Five of them.
He's asking for 310k per sixplex, which converts to 1.
55k million, right?
And which means I need to give him 326k in down payment, which I'm not gonna do.
Which gives me an equity right now, if we have the same exact property value
that was valued by the credit union two years ago, it gives me an 81 K equity,
which is not that great, but I'm saying that I'm going to give you two 80 K or.
Sixplex, which converts to a 1.4 million value, which means I need
to give you 1 76 K instead of the 200 K that you're asking for, right?
, which converts to my equity, would be two 30.
2 31.
So this is what I'm thinking right now.
But I need to wait for this guy to come back to me.
I can't like go and say that.
Hey, like I'm Yeah.
And the only trouble I have is that the raised value you're taking two years
back and the market has gone downhill with the interest rates where they are.
And even though it's a fixed loan, I think, and what's the
percentage of the loan on this one?
Okay.
3.
7 percentage.
When is it expiring?
December 2026.
Oh, 2026.
So it's coming up here in two years, two years, almost two years, which
you will be able to do very well and refinance it, which is good.
But I'm just having he's stuck with that valuation.
How much will it cost If you know your friend, maybe know some appraiser to
do the real appraisal of this property and put it in his face, you pay for it.
Maybe it's a 750 or whatever.
But if you're really interested in going further.
Now that appraisal is going to really change his totally mind.
I'm telling you.
What about if the appraisal actually comes back at 1.
6 million?
At a higher.
Yeah.
No, it's good for you to know that too.
I like it.
I would rather I get an appraisal, which comes to 1.
631 to be truthful.
I just don't want to take this two years back appraisal.
What my thinking is you're looking at millions of dollars of the asset.
So it's well worth, to do the appraisal.
I would say if you're that interested in it by the thing I like is that your
friend is going to be managing it, who is local and he is going to take care of you.
You'll pay him good commission per month.
He will not, give you wrong, information.
So that's something I like.
I wouldn't like this property if you didn't have that element in it.
You're in San Francisco.
This is in Fargo, North Dakota.
And, how many times you want to fly there?
How many times?
Things just don't work out, unless you have a good property management company.
Very good.
We did well in Knoxville property because of property management
company and the right manager.
What?
Monica and I were discussing that, we bought for 12.
5 sold for 17.
4 in just two and a two years, two and a half years.
It was totally their hard work, not ours.
We used to meet only 10 minutes a week, by the way.
10 minutes, 1 o'clock, 1 10 meeting adjourned on the zoom.
Totally done 10 minutes.
She would have everything laid out everything.
And bum, and she was the only manager and the leaser, by the way, she was that good.
For 107 units.
Anyway, but I'm just saying that I think I like the fact your friend is
involved and he's a, but then it just tells me, I will say, wait until October.
Maybe those September numbers were very poor.
October might be even poorer.
And then November might purer because Christmas time and all, question is so
Rob, so with all of this how, what's your plan to stabilize the property?
Yeah, great question, Ricardo.
I would say like the idea is currently there are some vacancies in here.
Yeah, so as you can see, there are some vacancies in here.
We can fill this up currently it's at 84%.
Anything above 90 percent should be good enough for them.
This is one idea.
Plus even the rents currently are a little bit under ended right now.
So those rents are going to get Yeah.
So these leases are going to end once these leases keep ending, they're
going to keep increasing the rents.
And even the management has changed from the previous management, which had a
lot of expenses to the new management.
So that is also going to help increase the NOI.
So that's the idea, reduce the expenses, increase the income and increase the NOI.
Beautiful.
Awesome.
Good.
So what you're saying is get an appraisal done from a, from the same credit union
that loan to him, and then get that number and whatever the number comes, even if it
is at a higher number, we can negotiate based on cash flow, where we can say that,
hey, like the cash flow is going to be still negative, so we can't pay so much.
. So we should do something like that because I've run the cashflow
numbers as well over here, right?
Uhhuh , as you can see.
Even if we take capital expenditure, I've made the asset management fee zero, right?
And if I'm giving them 1.
4 million with something in down payment, let's say 15 percent in
down payment, which is 200 K, right?
13 percent in down payment.
Yeah.
So the cash flow, cash and cash return is zero.
So I can say that I'm not making any money right now.
This is the max that I can give you and what is remaining is
my equity, something like that.
Love it.
What you're doing is so great.
I think as we are doing case study, is it okay if I could share and
this will really help a lot also.
All of us at the meeting what we look for, right?
For the property.
So boy, it's not letting me what happened here.
Come on.
Okay.
Should I wait for this person or should I like say, because
he needs the money right now.
Like he's saying that he's looking for different options right now.
If he's funding, then this deal is gone
and he's looking for it for the winter because that's when his second business
is needs, needs some cash to get to know what is his second business.
Did you ask him?
It's like some bounty hunter or something.
Party.
I know.
He's trying to get money from you from this to put into
another sinking ship, maybe.
I don't know, . Okay.
This is the yeah.
Party rental games galore.
Party rental.
Oh, games.
Floor party rental.
And maybe because of the holiday season, it's the high time for
him to make rental money, yeah.
Oh yeah.
With the kids.
For the kids and things like that.
So that's his business.
Wow.
Okay.
Got it.
I think you should wait him out.
Cause he's desperate and get the terms that you want.
Wait him out.
Make sure whatever term it's on your term.
Cause he's desperate.
So true.
That's what I would say.
Wait a little bit.
Don't talk to him.
Let him call you again.
Maybe in a week's time, he'll call you, and then you could converse back up again.
And if he finds some, the, some source of funding meanwhile, because it's
winter already, it's almost there.
We are already in October 9th and I know he's looking for different things.
I know many times, we think that everything should go up
to, the deadlines and all that.
But many times we lose it if we are too fast.
I've come to know that.
I know what one deal I bought in Albion Apartments.
It took me three and a half months.
three and a half months to even put the LOI that got accepted and it was because
that the sellers had high expectations and Marcus and Milly chap had told them
this is worth this much the property.
And I was coming low balling it whenever I would send an LOI with a deadline.
They never responded it So so i'm saying that because patience is the
virtue, And I was able to get it at a good price 191 units 192 units I think
or something like that And we sold it at a much higher price, if we have a
little bit time right now Let's go here to sharing the screen I just wanted to
bring the, this is Pramod right here and Pramod is the guy who I coached him.
He reached out to me about a year back, one on one coaching.
I do that also now.
Let's see.
Can you hear it though?
Let's see here.
Probably not.
It's right there.
Share the computer sound.
Okay.
Are you there?
Okay.
Let's listen to it.
I'm very excited to have a great friend and a great human being.
Pramod Singh is here in the studio with me, and we're going
to talk about his successes.
He and I came to know about a year back maybe a year back Pramod, right?
And you had been doing Airbnb and also flipping homes, renovating, and you
really wanted to get into multifamily.
And I was so impressed how much desire you had and how much work ethics,
how great, all those things were.
And then you were able to move the needle.
I remember you were just every week progressing like crazy.
I said, he's going to be a superstar and you have proven
that way, so congratulations.
Yeah.
Tell me more about, so you're in the Chicago area.
Yeah.
So Pramod Singh and I'm based out of Chicago, north side of Chicago,
about 35 miles from the downtown area.
And I'm a local investor.
I call it myself.
I'm not out of state.
I try to, invest, within 30 or 40 miles radius from where I live, because I
still have, two growing children and I have a very exhaustive, W two job that
I, I have to spend a lot of time into.
With a little.
Time I still consider real estate as my side hustle, which I want to, I want to
make it my real story and go full time into real estate and quit my, corporate
career, which is what Going to be truly my, American dream at the end where I am.
I'm about 48 now.
And then I just wanted to retire before I hit 50.
So yes.
I'm really excited and to be on your podcast and because I know
you for more than a year now.
And since then I see a drastic change in my.
My approach of how I used to look at real estate before and how, you
energized me to to show the path that, any real estate, small or big, right?
It's the mindset and your attitude that will probably be more.
more important, to get any success, and not by the size of the real estate.
So that was something, I would have not believed that, I would be able to
pull through some of the bigger deals the one that we are currently doing.
So thank you.
No thanks to you you were so good in underwriting, you were so good in looking
at projections and you had really done some really good business plan that
impressed me so much because, and you did it with seller financing, with the
interest rates being so high, in this market, you were able to harness that.
All the special techniques to get that.
So share about that, the multifamily, of course you also
did before that some Airbnb homes.
I was so impressed how you bought them.
Maybe let's talk a little bit about Airbnb.
Then we'll talk about this beautiful multifamily with value add that
you're making it a beautiful thing.
Yeah.
So right now, currently we have I invested with my partner.
I have my own, two Airbnb and one with my partner.
So there are total three that we manage in house.
And the way I used to look at the real estate is that, with little
money that I can invest in, and I can really raise the value by adding value
to the property and then increasing the crack cash flow drastically.
So I used to buy houses which were between, three bedroom, one
bathroom, three bedroom, two bathroom, mid-size, single family homes, or
sometimes it was a duplex and very rarely some trap like triplexes.
And I used to rehab them well, and put some money to, to make it look nice.
Rented for a little higher rent than my comps, my competitive and in the area
where there are a lot of demands for blue collar people it's somewhere in a C
plus area or C minus area, C plus C minus areas, which is right in my backyard.
So that was a great area.
And when I started investing in there, so I realized that, there are not just the
opportunity for the long term, but also.
For some kind of, midterm and short term, just because I live in a place
which is very close to a naval base.
And then because of that, there are a lot of people who, kids who get graduated
from the Navy graduation and then they celebrate it and they want their families
to be, flying in and celebrated with them.
So for that, with that in basically, opened up an opportunity for bigger
size homes where a family come and celebrate the, it's a big milestone
for every individual and the kids.
So 80 percent of our customers are those people who are booking
just for the, Navy graduation.
So as long as you, if you are close to that, that bootcamp,
it's a good market to be in.
So I started looking into, some of the properties in that area
where the city was allowing Airbnb.
With that, I was able to find some of market properties at much cheaper
rate than the real comp were.
And I really did good rehab so that, it is very good Rehabs, I should say that.
Oh my gosh.
I don't know if you have some pictures.
I would love to audience Yeah.
That to you.
And so the two that we did, I did actually.
After refinance everything, I have zero dollar invested now.
It's not even, it's not even a single penny that is invested.
Everything got.
I was able to, cash out.
, I am leaving 25% or 30% equity on the property, right?
Yeah.
And plus these these houses are going for a monthly gross income on, not income,
I would say, but the gross revenue.
Revenue.
About 7,000 a month.
Six to 7,000 a month.
Wow.
So these properties are, yeah, so about 80, 84, 85k per year projection.
So 50 percent expense and PITI excluding everything is still very good decent
cash flow with zero dollar investing.
So I consider this is a product.
Congratulations.
Yes.
Definitely.
And, also with the time, the value of the home is going to increase.
Not only you're going to make cash flow, which you're going to get every month or
every year, but the value will increase.
And it's I'm paying off the principal, all of that.
So yeah, these are all added, which I'm not even considering, but yes,
it's very favorable investment for me.
I know in those two, Can you do cost segregation?
Because I, I interviewed yesterday, my very good friend, he's the CEO
and president of core solutions.
It's a cost segregation company.
They have saved 2 billion in taxes with a B.
And they have done my apartment studies too.
But I was wondering if Airbnb homes, because you're putting so
much renovation dollars and also furnishings, maybe there is a room to do.
Cost sec, that's an idea.
Absolutely.
And that was one of the reason why I asked my wife to become a real estate agent so
that a high paying W 2 employee income plus a real estate on the side, right?
We come into the bracket of, higher tax paying, right?
Yes.
And you cannot commingle the things between your W2 and real estate,
unless, until you either 8,000 eight, 800 hours in a 7 50, 7 50 or 800, yeah,
800 hours you spend, or you become a real estate agent or you do a B, right?
So these are the only three.
Three weeks with which you can probably, you can save a lot of, huge amount,
because then you can mix your negatives from the depreciation and everything.
You could combine them with your W2 income, because as a household,
if your husband, wife and wife is the real estate professional,
you both file taxes together.
You consider it as you speak professional, so that's it.
Yeah, that's what our plan is.
So that's how we are going to, I sit with my account.
I just, go do that cost segregation, the properties.
Yes.
And with with the vehicle and stuff like, 650 pound or something, more than that.
Yes.
You can write it off, right?
Yes, absolutely.
Yeah.
Maybe one day you'll buy a plane.
You could write up the whole plane.
Probably.
Why would I wait to buy for myself?
I would probably fly with you.
You
know, real estate is amazing.
And, we had recording this in 2024, October with the 50 basis points
cut, recently and tomorrow, I think we'll find out with the CPI report.
Also how the interest rates will take care.
But I think Fed is looking for a soft landing and the
soft landing will be to cut 0.
25 several times.
I think those good days are coming back again, which I love it, because
three years, It has been a very tough year in the monthly family, very tough
year, and I believe in this three years, if your number has been working
going forward, it definitely will.
Oh, it will work.
It will totally work if you're just conservative in our projections,
assumptions, and don't expect too high increases in rents.
Yes, exactly.
I think, the properties, some of the properties, which are in
foreclosures and things like that.
I'm already seeing, I had two properties come today, 8 million cut down, slashed
from the selling price, 8 million.
That really blew me away.
Then I'm looking at one over there in Nashville townhouses,
beautiful townhouses, and they have reduced the price also.
So there are certain people who are in a.
Jeopardy of selling.
But then there are other people, who are ready to buy.
I think it's time now.
You bet.
Yeah.
Yes.
No, fantastic.
Let me ask you about this seller financing deal that you were able to
buy for almost zero, what he done.
You're a master at it.
Yeah.
So it was back in December, 2023.
I got this.
Off market a broker reached out to me and he presented this deal to me.
And he said that, this is these are 78 unit in a university town which
is Urbana, which is about two and a half hours from where I live.
And I know that area because most of my friends or even my seniors, colleagues,
their kids have been to either that university or they're planning to go.
And a lot of Asian community, a lot of, even, white American and every
part of, demographic, demographics, they come from all the places.
So it's about 50, 000 capacity.
Wow.
Yes, it's a thousand enrollment.
That's huge.
That's huge campus there.
Okay.
I'm sorry.
Yeah, I think I hope you got something out of it guys if you did there was
the guy i'm refinancing the deals and he was there I had to catch that but
anything else he talked about here or You could just continue like that.
So we took over the mortgage from right there and there was about
400 something was his personal money or his private money.
400, 000.
So we took over everything and we said that, okay, so I'll continue to pay
you your monthly mortgage and we will rehab these units and we will rent it.
We will start collecting the rents and we will continue to collect.
We will close the final closing will happen in April of 2027 or before 2027.
I have, I am just, taking this property and taking it for a ride.
I'm just trying to make sure the property is rehabbed.
And it is rented nicely to a better community.
And then The higher rent as well, again, if you do a better rehab, tenants will
come and pay a little more then sure.
So that's the idea.
What we are working on right now is six, then, we go over all the renovations
had to work, everything he's using cost.
That was the existing one.
Cut down all of a sudden that company is just to let you know, he's estimated by
the seller was 6, 000 to 7, 500 a door.
Guess how much he spent 2, 220 per door so far.
The guy is genius.
He's just done all renovation under 200, 000.
Wow.
This is mind blowing to me.
Literally.
And it's, the units are, he's going to show me pictures and all that stuff.
But anyway, what I talk about towards the end of the interview is that
he bought it for only three, it'd be worth six and a half million
in just two years.
So that is a remarkable story, remarkable story.
I just wanted to share that, and the beauty is, we talked about
again, it just goes into all that.
So we'll just wrap it up.
that's all for this episode of the investor impact.
Stay tuned for the next episode and don't miss out on the opportunity to learn and
grow alongside this powerful inner circle.