TGCI 217: From MD to Enterpreneur with Dr. Pranay Parikh

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Episode 217: From MD to Enterpreneur with Dr. Pranay Parikh

Summary

In today’s show, Pancham interviews Dr. Pranay Parikh – a physician, civil entrepreneur, online host and creator, and president of the Ascent Equity Group. 

His unconventional journey to medicine helped him learn the skills to excel in entrepreneurship. Dr. Pranay helped hundreds of physicians launch their businesses with his online coaching. His goal is to help launch 10,000 physician-led businesses!

Is it possible to engage in real estate while having a full-time job? How did Dr. Pranay Parikh excel in entrepreneurship and real estate from being a full-time and dedicated physician? Listen as he shares how he got into real estate while working full-time and discover how it is a great way to create wealth.

Copy of EP #18 - 2 Guests
PanchamHeadshotTGCI
Pancham Gupta
Screen Shot 2023-01-05 at 10.32.07 AM-removebg-preview (1)
Dr. Pranay Parikh

Tune in to this show and enjoy!

Copy of Quote #00 - 1 Guest

Timestamped Shownotes:

  • 0:35 – Pancham introduces Dr. Pranay Parikh to the show
  • 1:49 – How he got into real estate from being a physician
  • 6:28 – Dr. Pranay’s advice for full-time workers and his passion for real estate
  • 11:11 – Three things syndication companies do
  • 15:10 – Psychological transition he had of shifting from the medical field to real estate
  • 18:38 – Why do doctors make great entrepreneurs?
  • 22:28 – Focusing on less Value-Add Real Estate
  • 25:43 – Importance of giving trust to the people you are working with
  • 29:15 – Overcoming his fear before buying a property
  • 30:49 – One investment he had that did not work out as expected
  • 31:51 – “Connect with trustworthy people and those who share the same goals and values.”
  • 32:24 – How can you connect with Dr. Pranay

3 Key Points:

  1. The chance of losing all of your money in real estate is low, so it is worth trying for people who want to explore this investment.
  2. Syndication companies do three things: Acquisitions, Asset Management, and Raising Money.
  3. In medicine, doctors are very conservative in the treatments they do, but in entrepreneurship, failure is part of the process.

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Read Full Transcript

(intro)

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.

 

Dave Zook

Hey, this is Dave Zook. I listen to Pancham at The Gold Collar Investor Podcast, and so should you.

 

Pancham Gupta

Welcome to The Gold Collar Investor Podcast. This is your host, Pancham. I really appreciate you for tuning in today. My guest is Dr. Pranay Parikh. He is a physician, co-founder, and president of Ascent Equity Group, a serial entrepreneur, online course creator, and the host of the MD to Entrepreneur Podcast. His unconventional journey to medicine helped him learn the skills to excel in entrepreneurship. He has helped launch a seven-figure online course by over 1.1 billion in real estate and helped hundreds of physicians launch their own business. His goal is to help launch 10,000 physician-led businesses.

 

(interview)

 

Pancham Gupta

Dr. Pranay, welcome to the show.

 

Dr. Pranay Parikh

Hey, thanks for having me.

 

Pancham Gupta

Before we get started, are you ready to fire up my listeners break out of Wall Street investments?

 

Dr. Pranay Parikh

Yeah, super excited, because this is my jam.

 

Pancham Gupta

Awesome, man. Awesome. Why don’t we start with your background, like how you got into what you’re doing now? I know you are a doctor. I don’t even know whether you practice it now or not, but you’re a doctor by your education. Tell us how you got into where you are now.

 

Dr. Pranay Parikh

Yeah, you know the traditional brown route, right? Becoming a doctor is what I did. I still practice, but it’s more of my side gig now. After I graduated residency and became a full-fledged doctor, I knew it was important what I did with my money, as much as how much I made it. You can make as much in the world like probably a lot of your investment bankers do. But if you have zero time to spend it or enjoy it, it’s not really that worthwhile. A lot of doctors put in a lot of money into their 401Ks, their IRAs, and all that stuff. That’s great. But you get to enjoy that 30 years from now. As a doctor, I’ve already waited 30 years to enjoy life.

 

Pancham Gupta

Yeah, you studied for 30 years, almost.

 

Dr. Pranay Parikh

So, I thought, let’s see where I can actually affect things. Wall Street seemed a little bit too difficult for me to understand. I thought, real estate, that’s something that I can figure out. My parents own some condos. I can buy something. Plus, eventually, I’m going to buy a house so I’m going to need to have those skills anyways. So, I bought a four-unit here in Los Angeles. Now I realized that I got super lucky. It was a great deal. It’s close to the water and Long Beach.

 

Pancham Gupta 

Wow.

 

Dr. Pranay Parikh

Yeah, and I spent hundreds of hours looking for my next one. I just couldn’t find it. Because in Los Angeles, you’re not only competing versus other investors — which there’s a lot — but you’re competing for people that want to buy a home to live in. They’re going to pay a lot more for that home than you are for an investment property.

 

So, I looked around and I found syndications or passive real estate, that I could give small bit of my returns but do 95% less work. Probably, 99% less work. At the time, there wasn’t a ton of education out there, like learning how to do it. It was a rich man’s investment vehicle.

 

My business partner, at the time, and I, we created an online course, mostly geared towards professionals to teach them how to find deals, invest in them. But after a couple of thousand people went through our course, a lot of them will come to us, and they’re like, “Yeah, now that we understand how to do things, we’re too busy. We’d rather spend time on our day job.” Why don’t we just all of us invest together? We can get better deals, better terms, and really be able to negotiate better. So, that’s how Ascent Equity Group was created. First, we did a very small piece of a very large deal. But over time, we’ve had so many people that we are able to do whole deals ourselves.

 

Pancham Gupta

That’s great. How long ago was it when you actually bought that four-unit in Long Beach?

 

Dr. Pranay Parikh

The four-unit in Long Beach was right after I graduated residency, a year after or so 2018.

 

Pancham Gupta

2018, you said?

 

Dr. Pranay Parikh

Mm-hmm.

 

Pancham Gupta

Okay. As of right now, it’s been four years. Is more of your time dedicated towards seeing patients or actually doing deals?

 

Dr. Pranay Parikh

Doing deals, yeah. There’s something powerful called real estate professional status, where you do more real estate than you do anything else. It’s material participation, so you can’t do it if you’re only in syndications. But because I have a syndication company, I’m actively involved in real estate. Then the depreciation, the negative paper losses that I’m getting on all of my properties, I can use that against my active income. That’s the holy grail of tax relief.

 

Pancham Gupta

Got it. All of that, the passion for real estate, teaching others, you got into these things. So, tell us about — people who are listening to this getting inspired from your story — just 2018, you were a resident. You actually bought something in Long Beach, a four-unit. Just fast forward four years where actually COVID happened, people were at home, and you’re able to set this business up where you’re investing in syndications. What suggestions would you have for someone who’s working a full time job and is, number one, thinking of either creating a side gig or quitting it full-time completely, and doing something else full time?

 

Dr. Pranay Parikh

I would look at what you’re passionate about. So, a very small percentage of people are actually passionate about real estate. Because real estate, as you said, it is a full-time job. It’s the way to do it properly. That’s actually why I didn’t keep buying properties, because I would have had to hire a team. You can’t just buy really one property. Honestly, I’d sell it if my wife would let me. But her family has owned a lot of real estate, so she enjoys being an owner. Plus, it’s passive for her because I do all the work on it.

 

I think syndications, passive real estate, makes sense for most people. It gives you extra income. I find that most people actually don’t want to quit their job. They say they want to quit their job. What they want to do is, they want to get rid of all the parts that they hate. Your eye bankers don’t want to work 80-hour weeks anymore. Your doctors don’t want to work nights; they don’t want to work weekends. So, if you’re able to make enough money on the side to cover that, then all of a sudden, your job seems pretty awesome. Maybe you don’t want to have to travel, or maybe you don’t want to do all this other stuff.

 

I intentionally passed up a promotion because it would have made more money, but it also would have taken up a lot more of my time. So, I was able to do that because I had income coming in from the side. But there are people that are ready to quit. I would still recommend looking at, seeing if there’s parts of your job that you can get rid of. They probably have goodness’ sakes, and then you could try it out. Maybe you can even take a sabbatical.

 

But for people that, I say, are burnt to a crisp, that they can’t handle another day, I think real estate, especially buying your own real estate, is a great way to create wealth. But really, you have to treat it like a job. I think a lot of people that are so burnt out, that another job, regardless of what it is, will bring them out as well. So, I suggest trying it out. You can go out and buy a condo. You can go out and buy a property. Or, you can work with us, and we’ll do the heavy lifting for you, which is nice.

 

Pancham Gupta

That’s great. Let me ask you this. For someone who doesn’t know what to do, your suggestion for them is to try it out and see if real estate is for them as a second thing, because millions of people have done it and have been successful at it.

 

Dr. Pranay Parikh

The nice thing is that the chance of you losing all of your money is very low in real estate. Actually, I bought some Peloton stock last year. It went down 10x. The chance of that happening in real estate is very low, because the property itself still has a lot of value. As long as you can ride it out — for example, in the ’80s, interest rates were in the teens: 15%, 16%, 17%. If you saw that interest rate right now, you’d be like, “Oh, man, that sucks.”

 

But think about if you owned all these properties in the ’80s, they’d be worth 4x right now. You could always refinance. So, the nice thing about real estate is that you can ride out anything that happens. Unlike the stocks, companies go up, companies go down. Granted if you invest in the total stock market, you should be okay over time. But individual stocks, there’s a lot of issues.

 

But individual properties, they’re fine. Places go down. Places go up. In Los Angeles, a lot of people were moving out in 2020 during COVID. Now a lot of people are moving back. Anyone that bought a property when people were moving out, and they knew big cities, people always want to live there. So, it’s only been two years, and now they’ve made a fortune from buying those properties.

 

Pancham Gupta

Yeah, I’m sure of the appreciation. I don’t know. I don’t track LA. But I do know Florida and a lot of parts in 2020, in some cases, tripled just in two years.

 

Dr. Pranay Parikh

Yeah, that’s active real estate. But the nice thing about passive real estate is, you don’t have to follow any of that stuff. Someone goes out and finds a property for you. They renovate it. They have professional leadership, people that are in the business for 30 years. That’s what we do. Because as a doctor, I’m too busy. I didn’t want to do any of that stuff. Had someone created this company back when I was looking for investments, I would have loved it. I wouldn’t have created it. Because to set the time, no one had done it the way I wanted to do it.

 

Pancham Gupta

Got it. Pranay, your company, do you asset manage them? Are you the operator, or do you work with many different operators on different asset classes?

 

Dr. Pranay Parikh

Great question. I think syndication companies, I think there are three things that they do. One, acquisitions. That means going out, finding the property, working with brokers. You really get to a lot of traveling and a lot of smoothing. It’s really learning to get to know people. If this was 10 years ago, I would have loved that. I love talking to people. But now I have a family, traveling is not so much. So, we don’t do acquisition.

 

The second is asset management, as you mentioned. After you buy the property, are you able to enact the business plan? I think that’s the most important. Some people, especially in the last couple of years, have been able to collide with buying a really nice property. Someone goes and buys them out. But starting now, asset management is super important. We do have asset management. We actually have a full asset management team.

 

Number three is raising money. That is something we also do. We do asset management, and we raise money. So, we partner with someone that does the acquisitions. That, we think, is working well. We are able to choose best in class. For example, in August, not that far ago, we got a deal that had a 2.9% interest rate when everyone else got sixes and sevens. Someone brought us that deal. Because we’re able to do the asset management, especially capital raising. Raising money, it’s really its own skill. Because communication, proper updates, transparency, and all that stuff, it’s not necessarily easy for people that are in real estate. As a doctor, I really just talk all day to people. People connect with our story.

 

Pancham Gupta

Got it. At your company, Ascend Equity Group, you do your own asset management and capital raising, like you said. I would add one more component to that, which is sourcing the lender and really getting a great debt as a number fourth piece, which is part of acquisition. But depending on the deal size, it can become—

 

Dr. Pranay Parikh

Yeah, it’s starting to become more and more important.

 

Pancham Gupta

Very important, yeah.

 

Dr. Pranay Parikh

The last couple of years, you could just slap any type of debt on a property, and not really worry about it. But now you’ve really got to hone in. Are you getting fixed debt? Are you getting a rate cap? What kind of debt are you getting? Because when I mentioned the chance of you going to zero is very low, a very, very small percentage, less than 1% chance, is because of the debt. So, it is very important to focus on that.

 

Pancham Gupta

Yeah, that’s great. The deal that you just mentioned about 2.9, assuming that was a loan assumption deal.

 

Dr. Pranay Parikh

Exactly, yep. Actually, 2022, we did two loan assumptions. So, we kind of saw what was happening in the mortgage market. So, we got 2.9 and 3.3, all fixed for long-term interest only. Because people bring us deals, we’re able to really cherry pick the ones that we feel are the strongest.

 

Pancham Gupta

Got it. Awesome. I want to ask you. Actually, I have two questions here. Number one, tell the listeners about how did you get to a point where you actually made that decision? You spent so much time studying being a doctor. Then you, I wouldn’t say, gave it up, but you’re focusing more time somewhere else, where you actually spent first 30 years studying about something. So, tell us about that transition mentally and psychologically. Was that easy for you? Was your family with you, or they were against you doing this? How was that transition like?

 

Dr. Pranay Parikh

Quick story. Imagine you have to get your appendix out, a very common surgery.

 

Pancham Gupta

Painful.

 

Dr. Pranay Parikh

Yeah, painful. Exactly. You have the choice of two surgeons. Surgeon number one has a big house, nice car, works six days a week for the past 20 years. You have surgeon number two who goes to the beach, spends half the day reading about surgery, goes to reading conferences, works about three days a week, and is financially free. He’s there because he enjoys surgery. Which surgeon would you want to take care of you?

 

Pancham Gupta

The second one.

 

Dr. Pranay Parikh

The other one. Right. I have a podcast, too, about helping. It’s called From MD to Entrepreneur, helping doctors become entrepreneurs, that I don’t want people to be out of medicine. We actually need more doctors, not less. But I want to help them craft the life they want. Same with anyone else, invest with us. The money is a tool to help you get the life you want. Or, maybe you already have the life at work you already want, but you want to spend more time on vacations. Maybe you want nicer vacations. Maybe you want to spend more time with your parents now that we’re getting older. So, that’s number one.

 

Number two is, I thought about it outside myself. What did I actually want in life? I want to create an impact, like all of us do — leave a legacy, especially in medicine. I was never one of those that did a lot of research. I wasn’t very good at it. My patients loved me, but it’s a one to one. I see the patients; they’re happy. They tell other people.

 

I thought, how can I make a larger impact? That is by helping doctors become financially free. Now if I help thousands of doctors, then I’m helping hundreds of thousands, if not millions, of patients. I’m helping make the world a better place. That’s really what I want to do. I want to leave this world a better place than when I came in real estate. Creating this company and helping people through that is how I make the biggest impact.

 

Pancham Gupta

Got it. Going back to that psychology question, you really did not double guess yourself? You did not have second thoughts or a hard, tough — decision making was easy for you.

 

Dr. Pranay Parikh

I still have a foot in. So, I still do about 100 hours of medicine, but it’s flexible. It goes up, it goes down. My partner does about two shifts a month. That’s good for him. My other partner does two shifts, one to two shifts every other month. So, we all practice in our own way. I probably need to cut down a little bit more just because of everything else I have going on. But I still like it. Actually, I like it more. I think all this other stuff makes me a better doctor, because I’ve learned a lot of these skills that they just don’t have time to teach you in medicine.

 

Pancham Gupta

Got it. That’s great. This is a good segue into my second question. You mentioned that you have a podcast. From MD to Entrepreneurs, right? Let’s talk about that. You talked about why do doctors make great entrepreneurs. Let’s talk about it. I really have doctors on this podcast. I’ve had a fair share, but I would say probably less than five. If anyone is listening who’s a doctor, what would you say to them?

 

Dr. Pranay Parikh

I think that shared experience that we’ve all gone through. Residency is tough — just to get into medical school, to get into residency, to have that singular goal, and to be able to achieve it. Especially people who have done it in India, for example, you’re not competing versus hundreds of thousands. You’re competing versus millions to get into medical school. To be able to have that persistence, resilience, diligence, to go to that goal. Also, we, on a regular basis, we’re problem solvers. If someone comes up to us and is like, “Hey, my head hurts,” we have to go through a million different things that can go wrong. We have to be able to get the story out of them. We have to be able to synthesize it. We have to work with a team. There’re nurses, there’s techs, there’s other doctors. We have to manage the whole process. I think a lot of that — including the problem solving, being able to lead a team, being resilient — I think that’s all naturally makes you a good entrepreneur.

 

But on the other end, we’re perfectionists. Back in med school, in pre-med, they told you not to take a class unless you get an A. So, we’re very risk averse. 95% survival rate for surgery sucks. Would you want to do a surgery that is 95%? No, you want it to be like 99.9999.

 

Pancham Gupta

As a patient, I don’t want to.

 

Dr. Pranay Parikh

In medicine, you want your doctors to be very risk averse, right? So, really conservative in terms of the medicine and treatments, and stuff they do. But in entrepreneurship, failure is part of the process. You can’t succeed without failing a lot, like a lot a lot. So, we have to re-train our brains. I know a lot of your listeners, they’re high achievers, and they probably haven’t failed in a while. That might be a good question. When were you wrong? When have you done something, and you haven’t failed or had a setback? If it’s been a while, maybe it’s time to try something new. Because when you’re really pushing yourself, that’s when you grow.

 

Pancham Gupta

That’s exactly right. As doctors or engineers, you’re an A student. You don’t want to fail; you want to always have high grades. Failure is considered a disappointment. Like Robert Kiyosaki famously says, entrepreneurs work together. But that’s called cheating in school. So, it’s a completely different mindset. So, that’s great. Let’s talk about now your side of the business, and we’ll then move on to the second part of the show. You do mainly primarily multifamily. Is that right?

 

Dr. Pranay Parikh

Yeah, we have a pretty narrow lane that we’re in. We do multifamily. That means we buy big apartment complexes. Because no matter what happens in the economy, people are going to need a place to live, right?

 

Pancham Gupta

Right.

 

Dr. Pranay Parikh

Right now, you’re seeing the issues with hotels. You’re seeing the issue with offices. You’re also seeing the issue with retail. A lot of people are not wanting to go to grocery stores. I personally get a lot of my stuff delivered to me All of those, they change according to trends. It’s hard to know what’s going to happen long term. Like I said, you want to be able to hold something for a long term in case something goes wrong.

 

Pancham Gupta

Exactly. Right. Do you have any criteria?

 

Dr. Pranay Parikh

Sorry?

 

Pancham Gupta

Do you have any criteria? Sorry to cut you off. On what kind? I know you said big. But is there a certain range, certain vantage, certain value add stuff you look at?

 

Dr. Pranay Parikh

Yeah, so we do value add. Lately, we’re looking at less value add, because people are not willing to pay as much. For granite counters or stainless steel appliances, people aren’t seeing the value. So, it’s really important. That’s why we partner with people. Because we want them to be boots on the ground. We just can’t be everywhere at once. Our team runs very lean. We’re able to pass a lot of those savings to our investors.

 

So, we’re looking at newer than 1970s, class B. So, not the nicest apartment, but not the most beat up. Kind of in the middle, often called the Goldilocks class, and then light value add. Changing stuff that people care about — floors, painting the cabinets, maybe adding a dog park, or making the pool a little bit nicer, that kind of stuff.

 

We focus on places. I know you just moved to Florida. We do a lot of Florida, places that are tax efficient. So, Texas, Florida, Arizona, Oklahoma. Despite me living in California, no one else really wants to pay California taxes.

 

Pancham Gupta

That’s right. Is there any certain kind of return that you offer to your investors?

 

Dr. Pranay Parikh

We’ve been fortunate. The couple of deals last couple of years have been in the high teens. But I think now with the interest rates, it’s going to go into the mid-teens. But when the stock and bond market is down 25%, I think any one of us would take a 15% return.

 

Pancham Gupta

So, that’s what you do. Do you offer them certain pref during the life of the property? What kind of splits your offer?

 

Dr. Pranay Parikh

Yes, it depends on the deal.

 

Pancham Gupta

Okay. So, you don’t have a set.

 

Dr. Pranay Parikh

No, it’s somewhere between 8 and 10 prefs. Preferred return means you get the first money that’s coming out of the property. We think that it’s important because that’s what you get for taking the risk and not having control in the property. So, you put the first money in, you get the first money out. So, we think that’s very fair. What we do for the split, we look at it backwards. We say, “Hey, with all this deal in this underwriting, we think the investors should get a 15 or a 16 or a 17 IRR.” Then we figure out what the split looks like to make that up.

 

Pancham Gupta

Got it. Awesome. Anything else that investors should know while you’re on the podcast? I know, of course, you have your website. What’s your website?

 

Dr. Pranay Parikh

Yeah, it’s ascentequitygroup.com. You’ll see a picture of me right in the middle.

 

Pancham Gupta

Okay. Awesome. Anything else you want to add before we move on to the second part of the show?

 

Dr. Pranay Parikh

Yeah, so, the last couple years — really since 2012 but a little bit more in the last couple years — you’ve heard of a lot of syndication companies, and crowd funding and stuff. Everyone has made a lot of money, which is great. But I think now, given the interest rates and how difficult supply chain, all the stuff that’s going on in the world, it’s really important to be able to trust the people that you’re working with.

 

Don’t just throw a dart and invest with whoever. Get on the phone with them. Do your communication styles match? Are they just trying to get your money, or are they really able and willing to explain the process with you? Our team really focuses on education. Our goal is to just get people into good deals, even if they’re not ours. So, really take some time. This isn’t just like a mutual fund, or you just buy a bunch of VTI. It’s a private deal. It’s important that you spend a little bit of time. The nice thing is, it’s all front-loaded. A couple of hours, and you’re invested for years. So, the time that you’re required, it’s very minimal. But it is all front-loaded.

 

Pancham Gupta

Awesome. Great. Thank you, Pranay, for that. We’ll be back after this quick message.

 

(break)

 

Do you ever feel overwhelmed by the thought that you have no time after work and found no 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 for Accredited Investors. I will be putting together investing opportunities exclusively for this group. These are the opportunities where I have done my part of 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 cash flow.

 

In case you are wondering what is an accredited investor, an accredited investor is someone who has earned more than $200,000 as filing single or more than $300,000 filing jointly for the 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, 401Ks, IRAs, cars, et cetera—just not the equity in your personal home. If this is you, I would highly encourage you to sign up.

 

(interview)

 

Pancham Gupta

So, let’s move on to the second part of the show, which I call Taking the Leap Round. I ask 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?

 

Dr. Pranay Parikh

Pretty much, right away. That first four-unit that I bought, yeah.

 

Pancham Gupta

Okay. That’s the one, the Long Beach four-unit. Okay. Got it. By the way, do you still have it?

 

Dr. Pranay Parikh

I do, yeah. It’s pretty steady. It’s steady. I’ve been getting about 3% to 5% return every year, cash on cash. But it’s been growing about $100,000 in appreciation per year. So, it’s a lot of locked-in value there.

 

Pancham Gupta

Got it. Awesome. Did you have any fears? Obviously, we’re looking when you bought that four-unit deal. Did you have any kind of fears that you had to overcome before buying that?

 

Dr. Pranay Parikh

Yeah, all types of fears. I never owned a real estate before. I went on an inspection, and I didn’t know anything. One of the competitive advantages that I had was, my sister-in-law was a real estate agent. There’s a lot of concern that a real estate agent is taking advantage of you. Because their goal and your goal don’t necessarily align.

 

For example, their goal is to get the property sold. That’s how they get paid. So, if you want to get a $5,000 cut, and that endangers the sale, they’re going to try to convince you otherwise. It’s not necessarily everyone, but it’s incentives. Whatever you incentivize is what people are going to focus on.

 

I had an agent, a real estate agent, that I trusted fully. That was a big advantage. So, we went to the final inspection. She’s like, “Oh, did you see this? Did you see that?” I was like, “No idea what I’m looking at.” But you’d figured it out. Like I said, the chance of potentially maybe you did poorly, I would have lost 5% or 10%. But I would have learned so much along the process, that my next property would have been doing well. The cost of education — if I would have tried to get a master’s degree or something in real estate, it would have cost what? $30, $40, $50,000. So, this is practical advice that you got to just go and do it, and learn.

 

Pancham Gupta

Awesome. My third question for you: can you share with us one investment that did not go as expected?

 

Dr. Pranay Parikh

I invested in this private REIT, which was a student housing and 24-hour fitness.

 

Pancham Gupta

Was that before the pandemic?

 

Dr. Pranay Parikh

This was before the pandemic. It was killing it. It was a 12% return, cash on cash, year on year. I was like, this is great. I reinvest all my dividends. Yeah, this is awesome. Then COVID happened, and people stopped going into the gym. Students stopped going to school. I had to liquidate. My shares lost 70% value.

 

Pancham Gupta

Okay. So, you got like $.30 on the dollar, basically.

 

Dr. Pranay Parikh

Yeah.

 

Pancham Gupta

I mean, COVID is one thing that no one could have predicted. But the bright side is that multifamily did even better than it would have, otherwise. Awesome. My last question for you is, what is one piece of advice would you give to someone who’s thinking of investing in Main Street that is outside of Wall Street?

 

Dr. Pranay Parikh

Connect with someone. Connect with us. Connect with someone else that really can help you through the process. It took me a lot of years to figure out what I know. I’m still learning every day. But connect with someone that you think is trustworthy, that shares your goals and values, and they’ll be able to point you to some more, and stay well-diversified.

 

Pancham Gupta

Awesome. Great advice. Well, thank you, Pranay, for your time. How can people connect with you? I know you mentioned your website. What’s the best way?

 

Dr. Pranay Parikh

Yeah, on our website, we have a newsletter where we talk about what’s going on. Also, if you join that, you could get access to all our deals, future deals. It’s at ascentequitygroup.com. You’ll see a button that says ‘get started.’ Also, if you’re interested in learning more about entrepreneurship and just what I’m doing, you can check me on Apple or Spotify. It’s called From MD to Entrepreneur.

 

Pancham Gupta

Awesome. We’ll put all of those links in the show notes. Thank you so much for your time here.

 

Dr. Pranay Parikh

Yeah, thanks. I appreciate it.

 

Pancham Gupta

Thanks for tuning in today and listening to Dr. Pranay’s advice and his story. If you have questions, do not hesitate to email them to me at p@thegoldcollarinvestor.com. This is Pancham, signing off. Until next time, take care.

 

(outro)

 

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.thegoldcollarinvestor.com and follow us on Facebook @thegoldcollarinvestor. The information on this podcast are opinions. As always, please consult your own financial team before investing.

Copy of EP #18 - 2 Guests

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