Episode 122: Passive Investing Mindset. From Pharmacist to full time investor w/ Ketan Patel
In today’s show, Pancham interviews Ketan Patel – full-time real estate investor and a high performance real estate coach.
Ketan’s a living proof that success in business is not all about skills, it is also about the mindset and personal development. He took the switch to real estate investing when he realized his true passion and his way to continuously learn and feel alive!
Today, he has built a multi-million dollar rental portfolio, has raised over $10million for multifamily syndication business, and has been inspiring investors and providing the confidence that they need!
In this episode, you’ll hear his story of how he combined personal growth and his passive investing mindset to gain success. He’ll also share provoking thoughts that’ll certainly give you a push to make the jump and take opportunities.
Listen and enjoy the show!
Tune in to this show and enjoy!
- 1:19 – Pancham introduces Ketan to the show
- 2:36 – The transition from leaving pharmacy to where he is today
- 6:45 – On embracing his uncertainties to achieve growth
- 9:03 – Jumping in head first to fully understand what you want
- 15:09 – Educating yourself to grow your passive-investor mindset
- 18:27 – His latest uncomfortable yet inspiring projects
- 19:31 – Changing his emotional state through his morning routine
- 22:40 – Taking the Leap Round
- 22:40 – His single-family home as his first investment
- 22:54 – Overcoming his fear of losing money
- 23:47 – Why you should hire the right person for the job
- 24:35 – His lasting advice to real estate investors
- 25:27 – Where to get a copy of his report
3 Key Points:
- To be able to grow and to continuously learn – whether as a person or as an investor, you must be able to feel discomfort that comes with it and take a leap.
- We feel alive when we’re challenging ourselves. Thus, explore and find the things that make us challenged in order to not feel stuck in life.
- Ask yourself what your goals are and learn new skills that can lead you to more opportunities.
Get in Touch:
Welcome to The Gold Collar Investor podcast with your host Pancham Gupta. This podcast is dedicated to helping the high-paid professionals to break out of the Wall Street investments and create multiple income streams. Here’s your host, Pancham Gupta.
Hi there, I’m Robert Helms host of The Real Estate Guys radio program and if you want to have better results in your life you gotta put better ideas in your mind. You’re in the right place. You’re at The Gold Collar Investor podcast.
Pancham Gupta: Welcome to The Gold Collar Investor Podcast. This is your host, Pancham. Really appreciate you for tuning in today. Let’s get into today’s show. Tony Robbins says that success in life is 80% psychology and 20% mechanics. What you do doesn’t matter if you’re in the right mindset. Understanding the ways psychology can work for or against you will help you establish a healthier outlook and put you in the right mindset to execute your strategy. Today, we have a pharmacist turn full time investor and coach with us who lives and breathe this philosophy. We had a great conversation around what to do when someone feels stuck and also the mindset that is needed for investing passively. A bit about Ketan before we get into today’s show. Ketan is a high-performance coach who helps motivated real estate entrepreneurs create more income and impact by aligning their thoughts, emotions and actions. He has mastered the art of getting results by combining techniques from Tony Robbins, Wim Hof and Dr. Joe Dispenza. His unique program will give you the clarity, confidence and strategy you need to achieve your goals faster and create an edge. His achievements include earning an accelerated Doctor of Pharmacy degree while learning English, building a multimillion-dollar rental portfolio by starting from just $8,000 to raising over $10 million for his multifamily syndication business and growing a senior care business by a factor of three in just two years. Ketan, welcome to the show.
Ketan: Thank you, Pancham. I’m very excited.
Pancham Gupta: I am super excited about the show today. You know what, we’ve been trying to set this up for some time and I know the show is going to be great. We are going to dissect the elements of personal growth and some passive investing mindset that you need to be successful as a passive investor. So really excited for the show. So Ketan tell our listeners about your background, and more importantly, the person behind that background.
Ketan: Yeah, so you know, really quick, originally, I’m an immigrant from India, I got my Doctor of Pharmacy, and I just realized that for me, the personal development in growing passive investments in real estate just made more sense and was aligning more with my values. So, I did a complete transition there. And, you know, as a person, I’m very passionate about growth and development, whether it’s your personal mindset or investing mindset.
Pancham Gupta: Wow, that was jam packed. 30 seconds there. So, let’s break that down a little bit. So, you said you came here, and you got your degree in pharmacy, and you became a pharmacist, I believe, right. And so, tell us what happened after that. Are you completely out of it now? Or are you still doing it part time? Where are you at?
Ketan: Yeah, so I completely left pharmacy back in like 2015, about like six years ago. So, I started practicing pharmacy. It’s a very good paying job and everything but as I got deeper into the practice, I started realizing that my values of freedom and creativity and entrepreneurship wasn’t a good match. And at the end of the day, I wanted more than success. I wanted the fulfillment piece as well. And one day I asked myself, if they give me million dollars a year, and asked me drink as much coffee as you want to come to work when you want and leave, would I do the job? And my answer was an immediate no. It’s just like as a slow summer evening and then that really got me thinking about things and I got into my first real estate investment and the whole journey started into another direction.
Pancham Gupta: Wow. Okay, so basically, you were asking yourself, like, is this something that you want to do long term? Right? And the answer was, no, doesn’t matter what money in take a view?
Pancham Gupta: Right. Right. Very similar to my story resonates with me so much that I was going to New York City every day on the train, and I would ask myself, would I do this when I’m 50 years old? The answer was no. Then the next question was, why am I doing it now? So similar? That’s great. So now in 2015, you completely left that and you started. Did you have enough income at the time when you left it from your investments to kind of meet your expenses are you kind of took the leap of faith and completely left it and then you kind of create it here.
Ketan: Yeah. So originally, back in 2013, I started real estate investing, I started buying properties. So, my goal was that income to kind of replace half of my income or substantial income, so I could make this switch. But the process was going too slow. And I didn’t want it to spend more time, so I came up with a new strategy, I bought a senior care business, which I knew nothing about, which I had no money to buy, and I had all the student loan debt, but in you know, the business was going to provide the income. So that was my transition point where I was still working as a pharmacist part time for three, six months or so while this business, I was getting used to this business. And then I left pharmacy completely and started focusing on the senior care business.
Pancham Gupta: Right. So, you kind of dabbled into the separate business, which kind of started your income stream, and then you kind of left it. Yeah. Because you know, I get this question asked a lot. So that’s why I’m asking you like, did you have this income before you quit, or you kind of created it. So, in your case, you had it.
Ketan: So, it was like it was being created at the same time and it was a lot of uncertainty, because it’s a business I wasn’t familiar with. And I had bought business 100% with borrowed capital. So, I had the repayments, and a lot of things were going on. But I knew that there’s never a good time, there’s never a perfect time where things make sense. And sooner or later, we have to look into possibilities and embrace the uncertainties that come with it and make the jump.
Pancham Gupta: That’s absolutely right. So let me ask you, this is a good segue into the mindset. So, what kind of mindset did you have, at the time? It was really hard to leave a high paying job, in your case, being a pharmacist, right, to do something completely different, have 100% of the borrowed capital startup business, very uncertain whether it would work out or not? And still take the leap of faith and actually go in and do it. So, what was in your mindset when you made that decision that you want to just quit and go full time into whatever you’re doing?
Ketan: Yes. So, at that time, I knew that every moment in our business and life, we always have the choice to focus on what’s possible, the possibilities, or the limitations and the limitations would be, well, this is not the good time. I don’t know enough about this business. I don’t know if this is enough income to support me. What if this business fails in. Typically, the limitations are basically the negative bias of the mind, just mind trying to protect you, so to speak, whether it’s buying a real estate property, or making passive investment or buying a business, the flavor changes, but the core remains the same. And at that time, I was like, if I don’t make this decision today, when will I really make that decision, because tomorrow or a year later, there’s going to be another opportunity or possibility, but I’ll cling back to that limitation. So, it was very uncomfortable. And I knew that to learn something new to grow, we have to feel a little uncomfortable or be uncertain, so to speak. But from that growth, there are so many things that will come year to five from down the road, which we cannot see. So, it’s either believing the limiting story, the limiting narrative in kind of sticking with what we are doing and feeling comfortable and safe. Or the other option is let’s explore something and we were going to get challenged, we’ll learn something new. But overall, it’s just a route of possibility. So that was my mindset, how I was thinking when it was coming to making that choice.
Pancham Gupta: Got it. So, you know, let me ask you this question because I’ve been asked this question, I’m sure you might have asked, got asked this question a lot too. My listener who’s listening right now and they’re making good salary in their W2 job or small businesses, and they’re very passionate about what they’re doing. And in for some others, it’s just a means to an end, right. So, they’re making good money, but they feel stuck, some of them, right. What would you tell that one person who feels stuck in life on how can they get unstuck and create the life of their own dreams and, you know, assuming that they don’t know what they want to do, like, they know that they don’t want to do what they’re doing right now. But they don’t have a good understanding of let’s say, what is the ideal life? You know, work looks like for them.
Ketan: Pancham that’s a phenomenal question, right? That’s a question that I have been obsessed or I was obsessed in the past too. So, what I’ve come to realize it for a lot of people, or maybe applies to everyone. At the end of the day, when we are learning things, when we are exploring things, when we are trying out things, that’s when we feel alive, a.k.a growing, right. And that could be either in a financial sense and emotional sense, spiritual sense, business sense. But at the end of the day, when we are growing, we feel the moment. And that’s where what the happiness is, it’s just basically learning new things and doesn’t mean everything is gonna go well or according to over plan. So, the big thing is, when we have a job that we like, we are comfortable, when you keep doing the same things for 2,5,7 years, you are going to feel that stuckness because you are not learning new things, you are not challenging new things, you are not exploring ideas that you had that might have been little wild. Okay, what if I start this side project or do this. So, number one takeaway is to keep in mind that we have to be, you know, learning and growing. If we are not growing, then we are going to feel that stuck, that the juice is out even though the job is good, the money is good, everything’s well, and it feels strange. I’m making a lot of money, why am I not feeling that excitement, so to speak, right, which is what happened with the pharmacy was going but I knew that deep down inside, I’ve always loved doing business. For somebody else, it could be a volunteering thing or what not. So that’s the point number one. And point number two is in the beginning, you might not have that clarity on what is going to give you that fulfillment, what is going to get you unstuck, so to speak. So, my approach, I call it the clarity triangle, would be just to take the action, knowing the best you know, right now, just explore. And when you do those things, you’re going to get some feedback, you use that feedback to kind of get more clarity, and then it will go round and round. So, give you an example, before I use the real estate, I was trying to export aluminum metal, and then it didn’t work out, then I had an on-call pharmacy, business supporting other pharmacy that didn’t work out. But through all of those, I came to conclusion and got feedback, and I got into real estate. So, a lot of times people are waiting for that idea for that clarity so they could make the jump, but it actually works reverse. They got to make the jump, do the things, and then the clarity would come back.
Pancham Gupta: That is such an amazing advice. And the thing that you’re talking about, our talk about that so much that a lot of my listeners, they’re engineers and you know, we have this thing called analysis paralysis, like the analyze the situation so much that they get paralyzed sometimes, and you know, it’s all in the mind, and you have to take action, and I take this metaphor of driving on a foggy day, you don’t see the road ahead, but you do see the 10 feet in front of you, when you go the 10 feet, you see another 10 feet, you got 10 feet, you see next 10 feet. So that’s exactly what you’re talking about. Right? Like, really take the action and then some of the listeners if they don’t know what is really going to like to choose them or give them that excitement that they’re looking for, which will get them that fulfillment, I would say that what you’re talking about here is that, just go ahead and think about the things that excites them and try in that sector or whatever that thing is that take some action towards that, right?
Ketan: Absolutely. You said it perfectly just you know, find make a quick list of things that you are curious about, because curiosity is the step one, in when you follow on those things that curiosity could be developed into an interest and passion and so forth.
Pancham Gupta: Right. Cool. So let me switch gears and ask you about some of your failures. You mentioned already two of them. Is there any specific failure you can speak to that set you apart your later success?
Ketan: Okay, that’s a very good question. So definitely, you know, I had more failures than then we could count. So, another failure was more like not necessarily outright, but I realized that the more time and energy I spend into flipping homes, managing rentals, it just wasn’t my jam. They were profitable deals on paper, but they weren’t something that were really giving me that energy and some of the deals didn’t work out. But that was a good thing, because that gave me the opportunity to focus on my strengths, which is to educate investors, analyze sponsors and focus more on the passive multifamily instead of just the small flips in construction and things like that, which could be profitable, but overall, not really good mix for my passion, so to speak.
Pancham Gupta: Got it, got it. So, that’s great and I think this is a great segue into passive investor mindset. And majority of the listeners and the listeners listening right now, they are invested heavily in stock market, and then nothing wrong with that. And you have to have money in the stock market. And also, they get a lot of stock options. So, their income and also their net worth is tied to one asset class. What kind of advice would you talk about from the passive investor mindset, which I think you alluded to just now that you wanted to vet out the sponsors and vet out the investments and just do the passive investing? What advice would you have for people who are thinking like, you know, they want to get into passive investments, but just cannot find a way?
Ketan: Yeah. So that’s a great question because I do talk with investors on a daily basis that are, you know, they are not familiar with the real estate, syndication stocks. We get the concept, right, you look at some financials, and you could buy, you could sell it the minute later or right away pretty much right, the liquidity and all that. So, number one would be for people to get some education around this thing because a lot of times it’s just the overwhelming like, I don’t know about, you know, the taxation? And what if the economy goes this way? Or what if the occupancy drops? Would I lose all of my money? Is the market overheated? There’re so many things. So, the best answer is let me not do anything about it because it’s a completely new arena. So, number one thing I would suggest would be to just start educating yourself. That’s one thing. So, let’s say you educated yourself, maybe you read some books, listen to great shows, like this one, right. And after that, the next step would be thinking about long term, it’s not about making one or two investment. This is what I tell my investors in real estate and making good return. It’s never about that investment. It’s all about 2,4,5,10 years, what long term, you’re going to bring your portfolio not returns, but learning new investing skills, and about the asset class, it would set you off further for even more opportunities. So, if I had not bought that first single-family home, that was $106,000, I wouldn’t have been here learning about securities and investing into preferred equity and syndications and whatnot. So, the same way, for the listeners of the show, if they are heavily invested into stocks, if they learn in make that one investment, it might open up a new arena, and then they could explore at that pace. So, look at it that from the long-term perspective, look at it from the terms of education, and then the most important would be the diversification piece, of course, right?
Pancham Gupta: Got it. Cool. That’s a great advice that really the confused mind always says no, right? That’s what you’re talking about. Try to get educated, understand the benefit, and pros and cons of each of these investments. And once you’re educated, you would not be that confused, then the mind will say yes. So that’s great. You know, I want to ask you, Ketan, like two questions before we move on to the next part of the show. And my first question is like, what goals do you have right now that you’re most inspired by and uncomfortable at the same time that you’re working towards?
Ketan: Yeah. So, you know, the number one great question there. So, one goal is, you know, I am working on my YouTube channel, I’m growing that. So, you know, that makes me do things that are very different than what I’m used to. It’s not necessarily my skill set to learn about the video hooks and the outlines and things like that. And also group coaching clients. Again, I’m used to more one on one work. So, I’ve started group coaching last year. So, I’m working on expanding that facet. So that’s, that’s the one arena for the coaching business, and for the investment business, the uncomfortable pieces for me to bring on new sponsors on board, looking at new investment vehicles for myself and my investors, which is, you know, slightly different than what I’ve been doing
Pancham Gupta: I need to ask you about the YouTube channels, maybe offline. Alright, so my next question for you is, do you have a morning routine that you follow? If so, what is it and you think that it attributes to your success?
Ketan: Absolutely. I’m a big, big fan of morning routine and back in 2016, I used to have two-hour long routines and I played around with a lot of things. So, I went with Wim Hof, climbed the mountain with him and learned the breathing techniques. So, I use that. I’m actually going to a Dr. Joe Dispenza event for 3rd time weeklong retreat next week. So, I use these meditations. I use the Tony Robbins priming; I go to his events. So, I try to mix and match different things. But my goal with the morning routine is to feel a change in the state because at the end of the day, if your routine is 15 minutes long or 30 minutes long, or you’re doing gratitude journal, it could be whatever but the goal should be you must be feeling an emotional state change, because then from that change, you could make better decisions, you could just be in flow, you could focus on things you’re grateful for, and you want in your life, instead of focusing on the other part.
Pancham Gupta: How long is your routine now?
Ketan: Now it’s just, you know, 30 minutes, it depends, you know, it goes plus or minus, but I just make sure I do something before starting the workday.
Pancham Gupta: That’s awesome. That’s awesome. Thank you for sharing all of that Ketan. So, we’ll be back after this message… If you are an accredited investor and have been thinking about putting your money to work for you, then I have good news for you. I have created an investor club, which I call, The Gold Collar Investor Club. I will be putting together investing opportunities exclusively for the group. These are the opportunities where I have done the due diligence for you and will be investing my own money alongside you. If you are interested, please sign up on thegoldcollarinvestor.com/club. I repeat, thegoldcollarinvestor.com/club. I will reach out to schedule a 30-minute phone conversation to discuss your investing goals once you sign up. This can be a good opportunity to diversify and take some chips off the hands of Wall Street to produce some passive income. And in case you were wondering, what is an accredited investor, accredited investor is someone who has earned more than $200,000 as filing single, or more than $300,000 filing jointly for last two years. Another way to qualify as an accredited investor is if your total net worth is more than $1 million, excluding your personal home. It includes your stocks, 401k’s, IRAs, cars, etc. Just not the equity in your personal home. If this is you, I would highly encourage you to sign up…? So Ketan, let’s move on to the second part of the show which I call taking the leap round. I asked these four questions to every guest on my show. My first question for you is when was the first time you invested outside of Wall Street?
Ketan: Yeah, the first time was 2013. buying the real estate directly.
Pancham Gupta: That $106,000 single family house?
Pancham Gupta: Got it. Did you have any fears that you had to overcome when you first bought that house?
Ketan: Yeah, absolutely. The first thing is I had no money. So, I had to find two partners and even then, I had no money. So, I invested everything into a 401k, they did a match. And I pulled all that out. So, I was uncomfortable to you know, do that maneuver at that time.
Pancham Gupta: So how did you overcome?
Ketan: So, I knew at that time, the excitement in the possibility was so high, that fear just took the backseat. And I knew that I need to make this happen because if I hadn’t happened, I had been thinking about doing all that for two years, close to three years, so I was like, if I don’t do this thing, now nothing’s going to change and I refuse to keep living the same way and I need to create new possibilities, right.
Pancham Gupta: Awesome, man. Okay, so my third question for you is can you share with us one investment that did not go as expected?
Ketan: Yeah, it was, I had done a luxury single family development. And I had hired like a contractor on top of the regular contractor. And there were some missteps, oversights on my part in hiring the right person. And then I was not qualified necessarily to have the skill set to run the project. And, you know, COVID got into the mix as well. So eventually, that project went completely in opposite direction that what we had planned for,
Pancham Gupta:Okay, did you come out of that already? Or?
Ketan: Yes, last year, middle, it was like bring to completion.
Pancham Gupta: Got it. Cool. So, my last question for you is what is one piece of advice that you give to people who are thinking of investing in main street that is outside of Wall Street?
Ketan: Yeah. I would. I would tell them that definitely. It’s exciting and there are so many possibilities. So just keep thinking that, you know, if you do that there are so many good things that could come up and I’m not talking just the return perspective. I’m talking about you’re going to learn a new investment, recall the challenges all of those things, which means you’re going to grow as a person, which is going to bring you even more value rather than just diversifying and making the return. So always, you know, telling the investor look for everything else too on top of the returns that you’re going to get when you try mainstream right.
Pancham Gupta: Great. Thank you for that advice, Ketan. And this has been awesome. I know that you’ve put together a report for you know, Five Pillars of Peak Performance when it comes to active investing. If a listener who’s listening right now, they’re interested in getting that, how can they get it? And also tell us a little bit more about that report? Like what you have in that report?
Ketan: Yes. So, you know, from all of my experiences in education, I’ve realized The Five Pillars to peak performance, whether it’s a passive investor, active investor to get your game life in business to the next level, these are the fundamental things once you put into place, you will become unstoppable. And I have that report available at firstname.lastname@example.org and my name is K E T A N
Pancham Gupta: That’s great. Yeah, yeah, listener if you want that report to send an email to email@example.com and you’ll get that report, The Five Pillars of Peak Performance. Well, thank you, Ketan for your time here today. And you know, it’s been great.
Ketan: Pancham, thank you so much for the opportunity. Great to connect again.
Pancham Gupta: Thank you. Alright guys, thank you for tuning in today. And I hope you learn something from Ketan’s journey and if you really like to get his report too, email at firstname.lastname@example.org. Thanks for listening. I appreciate you. If you have questions email me at email@example.com. This is Pancham signing off. Until next time, take care.
Thank you for listening to The Gold Collar Investor Podcast. If you love what you’ve heard and you want more of Pancham Gupta, visit us at www.thegoldcollar investor.com and follow us on Facebook@thegoldcollarinvestor. The information on this podcast are opinions as always, please consult your own financial team before investing.