TGCI 191: Building a real-estate portfolio while working for Airbnb full-time!

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Episode 191: Building a real-estate portfolio while working for Airbnb full-time!

Copy of EP #18 - 2 Guests (1)

Summary

In today’s show, Pancham interviews Saket Jain – real estate investor, syndicator, business operations leader at Airbnb Headquarters, and founder and CEO of Impact Wealth Builders.

Saket has been succeeding with his single source of income and never imagined that he would be laid off from work. But when reality hits, he explores and discovers that there’s actually so much more out there and he is simply in the wrong crowd! With owning over 2000 units, he is now committed to aspire others to be the next generation of wealth builders!

Listen to this episode as he shares his victim-to-victor mindset, explores other potential jobs, and how Airbnb found him. He’ll also guide us and offer his advice to rookie and aspiring investors as he enlightens us with his journey to achieve financial freedom and the lessons he learned from his prior deals!

 

Listen and enjoy the show!

PanchamHeadshotTGCI
Pancham Gupta
Screen Shot 2022-05-23 at 1.14.19 PM
Saket Jain

Tune in to this show and enjoy!

Copy of Quote #00 - 1 Guest

Timestamped Shownotes:

  • 0:37 – Pancham introduces Saket to the show
  • 2:24 – How getting laid-off from work empowered his victor mindset
  • 6:25 – Exploring available opportunities and changing his own system
  • 10:32 – From investing in cash-flowing assets to using it as a tax-saving tool
  • 15:11 – On changing your perspective and leveraging your resources
  • 18:43 – Developing a relationship mindset on his multi-family deals
  • 23:17 – On doing long-term investment amidst the current market position
  • 30:48 – Taking the Leap Round
  • 30:48 – His first accidental investment outside of Wall Street
  • 31:20 – How he overcome trepidation and limiting beliefs
  • 33:09 – Why his first passive investment didn’t reach his expectations
  • 34:24 – Why investors should understand and learn about their fear
  • 37:27 – How you can connect with Saket

3 Key Points:

  1. You may not be able to avoid being laid off from your job, but you can be prepared for it by dedicating a little bit of your time to learning about other available opportunities.
  2. Don’t hesitate to invest in your education – whether through mentors, seminars, workshops, podcasts, and books – as it could help you build a strong foundation.
  3. When you’re starting out, it’s best to work with a syndicator and an operator who have a teacher mindset as they’ll help you build your knowledge, network, and your experience.

Get in Touch:

 

Read Full Transcript

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, this is Russell gray co-host of the real estate guys radio show, and you are listening to 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. My guest is Saket Jain. Saket is currently serving as a business operations leader at Airbnb headquarters. Prior to that, in his role as a business consultant Saket has worked with several Fortune 100 companies to define and operationalize their growth strategies. Saket is also a real estate investor, syndicated tech enthusiast and philanthropist. Saket Jain is the founder and CEO of Impact wealth builders. He has over 15 plus years of experience in real estate investing. Over the last five years socket has taken a particular interest in Class B, C multifamily apartments in markets that have strong fundamentals, along with his partners Saket has built a portfolio of over 2000 units totaling 200 million in assets across several US markets, the portfolio has consistently achieved double digit returns. Additionally, socket has committed his resources towards educating underprivileged kids, enabling them to join the next generation of wealth builders. Sacket earned his MBA at Columbia University and achieved his bachelor’s from IIT India. Hey, socket, welcome to the show, man. Hey, Pancham. Nice to meet you again. Very looking forward to that. Yeah, you know, super excited to have you on we never met personally, I would love to actually connect with you meet with you physically. I’m always looking forward to meeting a fellow investor who broke out of the Wall Street. Perfect. Absolutely. Absolutely. So, before we get started, are you ready to fire up my listener break out of Wall Street investments? Let’s go buddy. Let’s go. Let’s do it. Let’s do this. So Saket before we get started, why don’t you give a quick background, your background and, and more importantly, the person behind that background? Yeah, definitely. So, as we were talking just before the call Pancham, I currently work at Airbnb, I lead one of their business operations team. And after leading a successful career in tech, I started my journey in real estate. Because of an incident that happened to me I got downsized by my employer. And after a few months of stumbling to start wondering about reasons why, and the financial terrors, I flipped my script, my interior monologue went from, why me to why not me, and why not now. So, I flipped my switch from being a victim to Victor. And I’ve been trained like anyone else on your, on all your listeners, including yourself, been trained to work for myself, I have not been trained to work myself. But for someone else, I got my degree from IIT have an MBA from Columbia, I didn’t think anything can go wrong with my life. But it could a lot could go wrong when you have a single stream of income. And that’s really what led me to doing a real estate at the beginning, and then eventually moved into the multifamily space. I currently own over 2000 units across the southern belt of the United States. And now I want to help lead us to do the same. That’s awesome. You mentioned IIT. So, people who don’t know that’s Indian Institute of Technology, one of the very reputed schools in India, we say every school and every company makes one mistake and I was one of the, so you currently work for Airbnb, right? You said that you did your bachelor’s from India, you came here for your masters? Is that correct? I came here for work directly. And then eventually I got my MBA. Got it. So, you got your MBA. So, you’re working for a company and then you got your MBA from Columbia, and you started working in the tech. So, you mentioned something very interesting that you had this mindset of victim being a victim and you kind of became a victim or you wanted to be a victim. Right, right. So, talk to us about that mindset shift. Like what happened really like it was it because it was just that there was a downsizing that kind of created that like, or was it something more than that?

 

Jain Saket  

Yeah, the trigger for victim was really, I never thought I would ever get laid off. Like a pedigree. I have the experience I have. I knew of people who were laid off, but I never thought it would happen to me. Again. I think it’s a limited leaf of myself that or maybe a short-term thinking You know, denial. And when it happened, it shook me to the core shook me to the core, a lot of guilt, a lot of devastation, frustration, blaming somebody else for my own current situation. And I lived in that for about two to three months. And nothing was gonna change right now. Like, at one morning, I just woke up, and the switch flipped. I wish I knew how it flipped it and how I did it. So, I can help others to do the same. But I think it automatically I’m like, you know what, I got to take control of the situation I’m in currently. So, from where I was to, why is it happening to me to wear one arm now, as I’m thankful that it happened to me? Because if it didn’t happen, I wouldn’t have I wouldn’t have woken up. Right, exactly. So that’s what they say, right? Sometimes, when that event happened when the layoff happened, at that time, you were like, oh, my God, how can this happen to you? Right? This is the worst thing ever, and it can’t happen to me. And all those things come into play. And then now if I ask you, what was one event that changed your life, you will say for good? Would you say it’s that? I would say marriage and having kids as a as Trump’s that? But yes, that’s right there. Got it. My wife would kill me if I didn’t say that. All right, yeah, we won’t share this podcast with her. You got. So, you know, that’s very interesting. And you know, I really share that thought with you, when you have a pedigree of what you have, you know, going to IIT being graduate from, you know, Columbia University, you’re like, you know, you can’t be laid off like you have nothing can happen to you, right? Like it’s bulletproof resume. And now that happens, and now you kind of wake up and you kind of say, you know what, I want to be the victor. Like, what happens next? Like, did you just pick up real estate as your secondary thing? Like, what happened? Yeah, so for me, the path for me to find a solution was like everyone else, let me ask other people, right, what are they doing? I don’t know, I’ve never explored this area. So, there’s something else that I’m missing. There was nothing missing, I was just in the wrong crowd, right. Like everyone just think the same way no one had a plan B, or not only the plan beyond job, but everyone also accepted the fact that you know what, one day they may get laid off, or maybe they may not. And they’ll deal with it at that time. So, I had to change my ecosystem, I had to change how other people are doing it people beyond my circle. So, I had to go beyond finding mentors, books, podcasts, people like yourselves, your story in your book was very inspiring. Click when you start seeing their other people, their journey may not be same, but the destination is in the similar path, as you were looking for, started to draw inspirations for them. I looked at a bunch of different asset classes. And real estate just struck me we had we had a few rental properties before single families. And we’re kind of familiar with that. So, I understood that as the class the most, I think, I’m sure there are other asset classes that are equally good, if not better than real estate, I doubt it. But I’m sure they’re maybe I would never say never anymore. So that was my journey. I started to find mentors, I joined seminars, workshops, really invested in my own education. And I really think that that education has paid me far more than my MBA or my IT education. They have helped me develop a great foundation, but really investing in my own education by myself, finding my own teachers and students. And building that ecosystem is really, that was really the pivotal change. 

 

Pancham Gupta  

Got it. So, when you were laid off to your discovery, the journey there, you discovered yourself, your tribe, read the books and the podcasts and all that. Did you find or did you look for job during that period of discovery? Or were you just focus on that discovery of your tribe?  So the first three months I was crying? I was sad, I was crying. I was denial, then, you know, the five stages of grief. So, I think the first two to three months, I was just kind of like, I don’t know what to do next. Right? And in that time, I think I may have interviewed a few places. But I was not actively interviewing, I was not in a state of mind where anyone would have hired me. So, think once the switch flipped, I stopped looking. I’m like I need to and then the job found me. That was the best part of that. So, Airbnb found me in that timeframe when I was not looking to house.  Tell us about that. So, you were doing this discovery and how did the job find you? 

 

Jain Saket  

A Columbia alum was going on a pat leave, and they’re like, hey, do you want to explore this opportunity? I’m like, sure. There was just networking. We were talking about something completely different. And he’s like, why don’t you come to the Airbnb, I’ll show you the office. Never go to Airbnb office. If you’ve never been to one, you will get enticed. It’s like a candy store. Beautiful. Unfortunately, post pandemic, things have changed for pre pandemic. But I think I’ve probably said no to at least five other offers, just because I love the office. Where is that? The San Fran? 

 

Pancham Gupta  

San Fran Got it. Got it. Okay. So that’s pretty good, right? So powerful things happen when you when you have this positive frame of mind 

 

Jain Saket  

Exactly 

 

Pancham Gupta  

Attract towards you rather than the other way around. So, all right, this is cool. So now you did that, right, you got a job offer with Airbnb. And on this side, you’re doing so tell us about your real estate journey. From that point on now you focused on you decided that you want to do real estate, it’s all good. What happened next? 

 

Jain Saket  

Nothing. One of the major shifts in my thinking was beyond a that there is a world that exists outside of financial advisors and mutual funds. And I need to understand that world. And one of the other key decisions we made is cash flow versus net worth. I started looking at net worth in how many days my money is going to last versus how much money I have in bank. So how many days of freedom can I get through my passive income not to my active income, right, I started looking at things very differently, then I started looking for cash flow assets, you can make cash flow and dividend paying stocks as well. But I also wanted something that that is more resilient in terms of the market and doesn’t have the market volatility of days up and down. I am not the guy who can be a traitor, I know that I don’t know the emotions of steel. So that’s not for me. I’m not saying there’s anything against it. I’m sure there’s a path for someone there, but not for me. So, because we had some properties, we sold like everyone else, we took solace in the fact that our property is appreciated, not thinking about the cash flow. So, we switched it, we started selling off our existing real estate asset and moving more towards the cash flowing real estate assets. And very quickly, the passive income started to flow. So, we got hooked. And then when I joined Airbnb, I realized at some point, I mean, because gonna go public, so I had RSUs, which are going to be taxed as phantom taxes, because I may not even be able to, I won’t be able to sell them, but I still have to pay taxes on them. So, what do I need to do next? So that thinking that led me to I need to scale real estate that started as a cash flow eventually became a passion for tax saving mechanism as well. And I knew that I needed to build enough bonus depreciation and other mechanisms where I can minimize my tax implications on the Airbnb RSUs, which led me to I need to buy more. And like normal challenge. I got Freddie, Fannie it out. So, what do you do next? So, like I need to go multifamily. Right, the path just became from there. And I wish it happened sooner multifamily. It’s really the path to accelerate and safety. We now have over 2000 units; I would say 99% of them are multifamily. That’s awesome. Man. You mentioned a lot of things there that I just want to point out for the listeners that looks like it was talking about that he had RSUs restrictive stock units, which he can sell but they get taxed on the year whenever you get it right. So that tax money, he’s trying to save that from the depreciation, which is bonus depreciation. If you want to know more about that, you can actually tune into show number four, with Brandon Hall, he’s a CPA, you can go to the gold color investor.com forward slash show for to listen to all about depreciation, how it helps and how it kind of helped in the situation for Saket and saving all the money that he was paying in taxes for RSUs through this depreciation. And then you mentioned about you were fanning ferried out; can you explain for the audience what that means? Thank you. Sorry, sorry, it’s like a second nature to me. So, I didn’t even realize that we should break it down for your audience. So, what it means is a Fannie and Freddie loan is the cheapest loan that you can get for real estate. However, you cannot get more than I believe nine or 10, single family homes are not I shouldn’t say single family nine or nine or 10 residential units, which essentially mean you can go all the way up to quad plexes, which essentially means four units in a single building, you can go up to that time. So, at the max, what you can do is you can own close to 40 quad plexes beyond that, you will not be able to get that loan. So, in our case, we got Fannie Freddie out, which means we have enough real estate loans on our balance sheets that we would not have qualified to get any more single-family homes, and we would have to go commercial loan, which is more expensive. Now if one could debate, they’re better. That’s a different podcast punch him. But so that’s exactly what that means. 

 

Pancham Gupta  

Yeah, exactly. So, you know, when I started, you know, the people who have both husband and wife working. One tip there is that if you’re trying to go that route, if you can get loans just on one person’s name, if they can individually qualify, do not try to put both of them that way you have that way you can have more loans. And that’s what I did actually, in the beginning. So, let me ask you this socket, right? Anyone listening, right really getting inspired from your story. They’re not getting laid off. Now they’re kicking themselves. So, they should have gotten laid off. Because don’t do that. Don’t wait for that, that so exactly right. But they listen to your story. And they are thinking right now. And that can’t happen to them or her, you know, who’s over here? So, what advice would you have for someone who’s in your shoes? Not got laid. Like, you know, laid off yet? Or potentially may never get laid off? What advice would you give to them? 

 

Jain Saket  

So, I think the perspective that everyone needs to have, including myself, but I’ve done, I’m glad I do, but I don’t think you have to go through my process to get the perspective is that in life, anything can happen to anybody, right? So no, you can’t, you may or may not be able to prevent it. But you must be prepared for it. And one of the biggest challenges that everyone has is where’s the food on the table gonna come? What’s going to happen to my family. And if your listeners or anyone like me, which is a single source of income, my wife was a homemaker back then. So, I was completely I would have to start selling my net worth. So that network that I was banking on, but I’ve pretty much become zeroed out eventually, if I didn’t have the path forward, I in my heart, I knew I’ll find the job. But I think that that path of building your passive wealth, on your own terms, when you’re not distressed, is the best path. And the way to really do that is you have to decide as a family, how important is passive income to you? And what does that mean to you? In terms of expenses, right, financial freedom, is an important concept for our family. So, we had our number in mind, and we work towards that number. And that number became the goal. Instead of I need to have 20 million or 50 million 100 millionaires. That shifted from, hey, we need to have this much passive income. So, I think the for your listeners, I would say, have a perspective off while things are going well invest a little bit of time, you don’t have to stop everything that you’re doing. You don’t have to stop socializing. You may choose to socialize differently, that’s completely up to you. But you don’t have to make a lot of changes. People like Pancham and myself are available to help you on that path. And find people like us people, like people who are doing what you’re planning to do. It’s a lot punch them. And I have spent a lot of money, and a lot of time to build that knowledge to build that experience to build that network and build that ecosystem. Everyone can do it on their own. It doesn’t take smarts, it takes effort, persistence, and money. So that would be another thing I would say leverage the resources that are provided to you. Be time be it money, be resources. And last but not the least is a learner. Right? Anyone you interact with anyone you talk to in this world is in the investing world more specifically, outside of Wall Street. They’re more generous with what they know. If you ask them for help, they will share because it’s an abundant mindset, right? I’m gonna look at the trillions of dollars sitting invest in Wall Street. There’s enough money for everyone outside of Wall Street. So, if you can take even 20,30, 40% of that. That’s still enough for Pancham and I to share with others. Would you agree with that punch? Yeah, maybe you want it all? 

 

Pancham Gupta  

What would you do it so much money? I know. Right. So. All right. So Saket, right? That’s great. And now let’s switch gears. Right. Let’s talk about your first multifamily deal. You have these you got Fannie. Freddie, how can you want it to go into multifamily if you can share with us how you got into that? And if you can share some numbers, that’d be great, too. 

 

Jain Saket  

Yeah, definitely, definitely. So, my first deal, I started as a passive investor, because I wanted to make sure I knew what I was doing. So, I found I networked my way into some of the successful syndicators that I could get my hands on. Are they the best in the world? I had no idea. But that’s what I had available to me at that point. Right. So that was another probable thing is analysis paralysis. At some point, you must decide and move forward with it. So, my first deal was a deal in Houston. It was a portfolio deal of Canada when the numbers I was so far back. But that deal was my way to learn. Right? So, what I negotiated with these indicators, and you can be, I want to learn, I don’t want to just give you my money, I want to be as active as possible, without being liable to your investors. So, I attended every single meeting, I attended all the tours, I went everywhere that I needed to go to and that really showed me a lot of different things. Then I joined a syndication mentoring course, that brought me to the ecosystem where I got comfortable with underwriting, I got comfortable with the terminologies I got comfortable with building that network where I could depend on if I needed something. And from there fast forward, my first deal was, it was not the best deal. But I think it’s a good deal to talk about where you learn the most. Yeah, it was, it was an off-market deal that somebody made a system at forwarded to me, I spent close to five months on it. And I think I not I think I know I did everything, right. Because I wasn’t doing everything by myself, I was asking a lot of help. And everyone lends a hand to me, towards the end of the deal, our loan, which was a Freddie loan, and Fannie loan at that time, he got cut by $2.4 million, we had raised about $5 million, the deed was almost ready to close, our loan proceeds got cut, we had a decision. And the reason for that is the financials got changed a little bit, too nobody’s fault. And the deal materially changed at that point. So, it’s of a $70 million deal. It’s a portfolio deal, probably not the deal that I should started with. But that’s the deal I picked, looking back, but I’m glad I picked that. So, I you see a pattern there, I make a lot of mistakes, and then learn. What we did for that was there was a decision making at that point is, do we want to go forward with a deal? That is materially different to what we have talked to our investors about? Or do we take a step back and return all the money? Yeah, it was hard. It’s very hard. It was very hard. Because there was there’s always a selfish motive, right? Kind of like, oh, if I return all the money, what’s going to happen to my reputation? What’s going to happen to this? What’s going to happen to that? How am I going to make money, I’ll be a failure, right? Kind of the same emotions as I got laid off those emotions very familiar to me. So, I knew I knew exactly what to do. Like, you know, what, I take a step back, what is the right thing to do. And the right thing to do was given investors the money back, which we did, and I’m so glad I did that, because that makes me comfortable with the decisions I’m making and makes me comfortable thinking that I’m going for the right thing. But I want to make my investors’ money they need the way I promised them when I feel comfortable. If I don’t comfortable, we lost a lot of money on that deal, Close to close to 350K to $50,000. But that was a decision that we made consciously, to make sure that we do that. Since then. I think things have changed. We just closed one of our deals in Phoenix, there’s about 27 minutes that are perfect. When everything went through. We have another one in Tucson now. So, I think things are looking good. But you got to do the right thing. 

 

Pancham Gupta  

That’s awesome. I 100% agree, you must make those tough choices. And you know, they may seem very tough, like in the heat of the moment, right. But after the benefit of hindsight, you always feel that you did the right thing. 

 

Jain Saket  

Yeah, I think since then and our core values have become Relationships for Life, which is not going to happen if you don’t do the right thing on a transaction level. Yeah. micro steps. Yeah, instead of having a transactional mindset, you have the relationship mindset. Exactly. Exactly. Right. Well, I don’t think I don’t hope your investors have to lose 50k or get laid off. I think there are better ways to get to the point where I am. 

 

Pancham Gupta  

Of course, of course. All right. So cool. Let’s talk about that. Now, you mentioned you’re doing deals in Arizona, or some of the deals right now, given the environment, given the market, given the stock market tanking as we speak, we’re recording this in May of 28th. And this is Friday and reading this morning, the headlines on CNBC. They’re saying this should be the eighth losing week for Dow Jones. And that has not have happened since 1923. So about 100 years shot, you know, we are there right 2022. So, what’s your take? Right now, rates are rising. Is you seller buyer? Or are you waiting on sidelines? Like what are you doing? 

 

Jain Saket  

Sure. So, I think, look, there’s a reason why I picked real estate was the stock market doesn’t mean that one is right or wrong. It’s right for me. And I think it’s right for a lot of people was the liquidity in the stock market is the biggest reason why stock market fluctuates the way it does, because people are not making the decisions. rationally. They’re making the decisions emotionally, either through fear or through greed, not through education. Right. So that liquidity becomes a curse, I believe. But let’s go to the question that you’re asking. Right. So, I think it’s more a lot of the things are in flux in the economy in general right now with inflation going up with interest rates going high, with supply chain constrained and being constrained. And now the stock market crashing right. So, what is it an investor to do in a situation like that, and what are we doing personally? We’re really looking at asset classes and paths that we can weather the storm. The storm is going to eventually do Hear up, right? It’s a matter of time, is it a weeks, months or years? We just don’t know how much time will take but eventually clear. So, I think part of that is for us, it’s always longer-term thinking, our path, the things that we underwrite, which essentially means that things when we’re buying an asset, how do we value that asset is? Can we hold it for longer than five years? What would it take for us to do that? And then we consider those with certain projections now projections, as by definition, they’re projections. They’re not reality, if you had a crystal ball to understand what’s going to happen 10 years from today, I know bunch of will be sitting in a very different office. So, I think it’s we make our best judgment of what will listen to a lot of people who are smarter than us a lot of economists, they also don’t know it. When we look at all the data, we triangulate the data. And with that data, we understand and make some predictions about interest rates, about cap rates about which, cap rate is how the property is going to be valued at. Right. For us, we’re not afraid of interest rates going up. Because if we were, then we were playing the stock market volatility game, right? I think it’s just the way you buy an asset now changes the way you underwrite, your deals, changes, you have to project some capital raises, potentially in the future, you have to buy some rate caps that two years ago, you didn’t have to think about and rate cap for the uninitiated essentially means is, you’re locking in your variable interest rate, kind of like firearms, right? They have locked in your arms, they have a ceiling, that rate can go higher than that. So that is rate cap. And last, but not the least, we may or may not be able to see the rental increases that we were seeing over the last two to three years. If someone’s right under underwriting a deal at 10, 12, 15, 18% rent increase, which essentially means they’re going to increase the net operating income of the property because the rents are organically gonna grow. It may. I’m not saying it won’t, but we don’t consider that we’re looking at 3% raises, right? We’re looking at very, very conservative underwriting and conservative is a very fancy term, if you talk to syndicators so, please understand what that means for them. That’s really what we’re doing. We’re not sitting on the sidelines; we’re being careful in what we buy. We’re just looking at a lot more assets in I think, you know, what Warren Buffett said is, when the tide goes down, you’ll know who’s naked, so I’m not sure I’m naked, he was swimming naked, right. So, for us, it’s really the same thing. We’re betting on the jockeys, we’re betting on the operators to make sure that we’re partnering with the right folks who have an understanding, we’ve seen this world before. And they have the capital, they have the team, and they have the wherewithal and the business acumen to make sure that we can weather the storm in the future. 

 

Pancham Gupta  

That’s great. Well, thank you Saket. Before we move on to the last second part of the show, I have one last question for you. Sure. And that is so now what’s next? Are you thinking of continuing with your full-time gig? Are you plan to kind of, you know, say bye to that? It all depends. When are you releasing this podcast? That’s awesome.

 

Jain Saket  

So, I think that the path is for us to continue building the real estate portfolio. And when the time is right, there’s gonna come a time where working for somebody else full time may not make a whole lot of sense. Right? Because a variety of reasons freedom of time, freedom of money, freedom of plates, right with Airbnb, freedom of place, because you can work from wherever. But again, I don’t know how long that gig is gonna last for me, right? Like nothing is permanent. So really, I think the path is real estate, as multifamily. does continue to grow the passive income. Now along the way when the decision is right, we’ll make that decision. 

 

Pancham Gupta  

Got it. Cool. Good luck with that and we’ll be back after this message. Do you ever feel overwhelmed by the thought that you have no time after work and family time to learn about investing? Do you feel left behind that you are not putting your money to work for you? Do you want to create passive income, but you do not know where to start? If so, 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, 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? 

 

Jain Saket  

2003 When I got married with my wife, we thought we could live in a one-bedroom condo, we realized we couldn’t. So, it was it was an accidental investment. Did you kill the first person after you moved out? We still have it. Oh, wow. Love it. Where is that? It’s in DC. It’s actually DC suburb. Arlington. Arlington. Yeah, and that’s good market. Alright. So, my second question, did you have any fears that you had to overcome when you bought that first condo? First? No, because I was in the honeymoon phase. I want to impress my wife. But I think there are a lot of trepidations. Right, I’d like for you, I came into this country 2000. So, I’d only been there for three years, and the purchase value for the property was bigger than my dad had ever saved. Right. So that that concept was very scary. What am I doing? Am I ready for it? Because I didn’t come from a background where debt and I had my dad had never taken a debt embargo. That time you and I similar age growing up at that culture. That was a big taboo in India, right. So, I had to crossover a lot of biases, I wouldn’t call them fears, I think they were more limiting beliefs and biases, that this may not be the best thing to do. Now, I think when you’re in love with an asset or with a with a with a spouse or a partner, you do things crazy. And that’s exactly what we did. We ended up buying this. We’re like, you know what, let’s take a leap of faith. We both had stable jobs. We think we can pay this. Um, there was no concept of being laid off. So, we didn’t think anything could go wrong. Right. So that kind of that’s how we overcame off here. I think I’m glad we did. But looking back, I wish I thought about it differently. Cash flow, taxes, appreciation. I didn’t know anything. I didn’t even know what depreciation was. My CPA told me, hey, are you going to depreciate it? I’m like, should I? Like you should? I’m like, Sure, let’s do it. You know, everything. They say Everything is fair in love and war. You know, it was a war, but there was a lot of love. 

 

Pancham Gupta  

My third question for you, can you share with us one investment that did not go as expected? Would you say that was the one that you were referred to before where you lost? 

 

Jain Saket  

I think it was probably one investment that didn’t work was my first investment as a passive investor. And that didn’t work. Not because the operators were bad or good. I think it didn’t work because I didn’t know what I was expecting. So, my expectations are misaligned, right. As a newcomer, I’m like you, I’m seeing 9% 10% cash on cash. Of course, that was average cash on cash. And I completely didn’t even know what that meant. Right? So, I didn’t lose any money on that deal. I made money. So that’s a good thing. But I think the real lesson was the flaw of my understanding of what I’m expecting. So, I would tell your listeners that work with a syndicator and operator like Pancham is who has a teacher mindset, right? They are willing to teach you they’re willing to make sure that you’re looking at things correctly. And they’re looking to bring you along for the journey, rather than just a passive investor with the mailbox money. Got it. Cool. While you do these, and you learn, right, exactly. 

 

Pancham Gupta  

So, my last question for you is what is one piece of advice that you give to someone who is thinking of investing in Main Street that is outside of Wall Street? 

 

Jain Saket  

We’re on record, right. So, the question is, what is somebody still wants to invest in the media? 

 

Pancham Gupta  

Or thinking yeah, and they’ve not done it before, for example, and they’re just scared. 

 

Jain Saket  

Yeah. I think fear is good. Fear means that you would be very cautious. But understand your fear and understand your relationship with your fear is a fear coming from lack of education. is a fear coming from lack of unknown is a fear coming from a lack of clarity is a fear coming from? I just don’t know where to begin. These are good fears, all these are good fears. If the fear is coming from, I’m going to lose a ton of money. Right? So, if the fear is that that fear you must reevaluate, because look at what’s happening in the stock, what, two months or three maybe a year ago, nobody thought the stock market would go the direction it’s going right now. At that at that pace, right. So, the stock market is safer haven. No, not really, is real estate perfect. Not really, right. Everything is it’s up and down? Is every deal going to work the way it’s going to work? I’d be the first one to tell you know. So, one of the things is, you can go all in on the main street, or you can diversify, Rick, I would say is that, test it out, write test it out with some part of your portfolio 25-50-7500 whatever is right for you. I’m not the one to tell you what is right for people evaluate what is the money that you’re willing to play with at some point, go back to your stock market days, at some point somebody can move to your 401 K’s right? You didn’t know anything about 401k You didn’t know anything, anything about stock market. Just go back to that that same child mindset or student mindset that you thought it was the right thing to do. And use this apply the same mindset to real estate or any other asset class for investment. Main Street is where you will see people like myself and Pancham and others where we are putting our own money at line or putting our own reputation at line we’re putting our own investors to make sure that they understand what we’re doing and we’re willing to share all the information in the Wall Street you don’t necessarily know what’s happening behind the closed door you have no control you’ll never meet Tim Cook unless you put in billion dollars and then Apple will meet people like Pancham and I you can call us right it’s access to information access to things it’s much different now it may not be right for everybody. And make sure that I’m not saying everyone should jump in I would love for everyone to jump in but if you have to think about it personally what do you want to do? 

 

Pancham Gupta  

Right now, thank you I always say that you know confused mind always says no cry so just get educated and start looking like mature suggesting so we’re cool Saket this has been awesome. Thank you for your time here. If someone wants to reach out and connect with you, how can we do that? 

 

Jain Saket  

Yeah, I think LinkedIn is the best way to reach out to me if you search on Saket Jain on Airbnb LinkedIn will pop up that I didn’t realize that I was unique but I’m not there a lot of psyche gyms in the world now. So just correct me on that and if you want access to some of our resources, you can always send us an email at Saket@impactwealthbuilders.com That’s the company that we have started trying to help our investors get the money out of the Wall Street into the mainstream. 

 

Pancham Gupta  

That’s great. Thanks, Saket for your time. Thank you Pancham. I hope you really enjoyed this show with socket and if you’re in his shoes right now and thinking similar on the similar lines, do not hesitate to reach out to him and pick his brain on you know, whatever is going on the mindset and all that if you have any questions do not hesitate to reach out to me my email is p@thegoldcollarinvestor.com That’s P as in Paul @thegoldcollarinvestor.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 dot the gold collar investor.com And follow us on Facebook at the gold collar investor. The information on this podcast are opinions as always, please consult your own financial team before investing

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