BP Podcast 155: From 0 to 200+ Real Estate Deals in 5 Years

Blog BiggerPockets Real Estate PodcastBiggerPockets Podcast 155: From Zero to 200+ Deals in Five Years with Sharad Mehta

Boom! Prepare to be blown away by this unbelievable interview with an investor who’s gone from nothing to more than 200 deals in just five years! You’ll learn how Sharad was able to find great deals, finance those deals, and build an investment portfolio that continues to grow no matter where lives or travels in the world. This show is one of the most humorous and most enlightening shows ever recorded on the BiggerPockets Podcast, so why are you still reading this? Listen to the show!

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In This Episode We Cover:

The story behind the $5,000 scholarship cheque
How Sharad’s love for saving money led him to buy his first property
Why he values bigger goals in life
The importance of focusing on the things that matter
The details of his first investment property
How he figured out what he wanted to do as real estate investor
How to start out without any formal education in real estate
Whether you should buy inexpensive properties or not
What A, B, and C-properties are
Why he invests in his area now
The importance of talking to local people to get a feel for the market
How he bought $65,000 worth of property with just $17,000 cash
How Sharad uses his time to find and analyze deals
A call simulation that’ll teach you how to achieve the bottom line
How to keep a good relationship with an agent
How many deals he has done
Sharad’s views on turnkey properties
The benefit of having 48 properties for rental free and clear
How he keeps his real estate business as simple as possible
Sharad’s role within his business
How his business works and how he automates it
How to trust your contractors
How to get discounts from Home Depot
And SO much more!

Links from the Show

Books Mentioned in this Show

The Millionaire Real Estate Investor by Gary Keller
The Book on Rental Property Investing by Brandon Turner
The Book on Investing with No or Low Money Down by Brandon Turner
Start Something That Matters by Blake Mycoskie
Elon Musk: Biography of a Self-Made Visionary, Entrepreneur and Billionaire by B Storm

Tweetable Topics:

“You have to make some sacrifices to achieve bigger goals in life.” (Tweet This!)
“If you are motivated enough, you will get anything done — no matter what.” (Tweet This!)
“It all comes down to numbers. If the numbers make sense, I’ll buy it.” (Tweet This!)

Connect with Sharad

http://traffic.libsyn.com/bpradio/bpp-155.mp3

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By BiggerPockets Real Estate Podcast

Real strategies that work for real people seeking to build wealth through real estate investments. Co-hosted by Brandon Turner and David Greene, this podcast provides actionable advice from investo...
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88 Replies

Paul Hector Investor from Seattle, wa

Replied over 4 years ago

Hello Sharad, Great show and Happy New Year to you! I like your idea about maximizing the ROI on your time. From this perspective when does obtaining a real estate license generate greatest value for a real estate investor investing locally? When would it make sense for a real estate investor focused on markets outside his state? Thank you.

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Hi Paul, Thank you and Happy New Year to you too!! I think you will need to look at your time and opportunity cost of your time. If you are currently making $100/hr, but can make $150/hr being a real estate agent, then it makes sense. I don’t have my real estate license because I never got around to getting my license but if you have the time to get it, it would help you getting started. It gives you access to MLS. Looking at markets outside your local area depends on returns you can get in your local market vs other markets. You have to look at not just the rate of return but also the time effort it takes with turnkey vs local investing. If you are short on time and money to invest in your local area, then it makes sense to start exploring some other markets. Thanks and Best Regards, Sharad

Rahul Bhattacharya from Dallas, Texas

Replied over 4 years ago

Hello Sharad, Super impressive Amazing. I got a lot of motivation after listening to you. Thanks Rahul

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Hi Rahul, Thank you for the kind words. I am very happy to hear that you found the podcast helpful. If there is anything I can help you with, please do not hesitate to contact me. Sharad

Patrick Donley Investor from Columbus, Ohio

Replied over 4 years ago

I really enjoyed this! Sharad’s opening story was great. I took away at least 10 actionable ideas from the interview and love the idea of using a smartphone to discuss issues with my contractors/employees so I don’t have to haul my ass to the property to make decisions. Having a “Why?” is huge and an important point. A guy named Simon Sinek has an excellent Ted talk around this issue and how great companies start with the why of what they are doing. Love that Sharad is using his success in real estate to help others. Also, reading biographies as he mentioned is super inspiring. I’m currently reading Titan about John D. Rockefeller and highly recommend it. Thanks Sharad, Brandon, and Josh! Patrick

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Thank you, Patrick. I am glad you enjoyed it and it makes me very happy to know that you were able to learn something of value from it. Happy New Year and best wishes in your future success!! Sharad

Linval T. Investor from Bay Shore, New York

Replied over 4 years ago

Hello Sharad, I am really impressed with your methodical approach to bargaining, managing time and money, building relationships, taking action, a dependable philanthropist and having a sense of humor. My 1 hr 12 was not wasted tonight, as I certainly added some of your tips to my tool bag. Thanks for sharing your real life REI experiences and I look forward to future exchanges in the forums.

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Hi Linval, Thank you so much for your kind words. I really appreciate them. Happy New Year and best wishes in your future success!! Sharad

William Gillette Investor from Spokane, Washington

Replied over 4 years ago

Another amazing podcast !!!!! Sharad i really learned some new concepts tonight. Typically i hear how people leverage all there properties, it was nice to hear your thoughts on why you don’t. I also enjoyed your thoughts on building relationships. HAPPY NEW YEAR !!!!!!

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Hi William, Thank you for your kind words. I really appreciate them. Building my portfolio free and clear has worked out for what I am looking to do. I understand that I can purchase 4-5x times more properties if I choose to leverage, but I am comfortable with building my portfolio free and clear. It keeps my goal very focused within real estate and provides me time to focus on my other businesses. Happy New Year and best wishes for your future success!! Regards, Sharad

Tom Graffius from Arlington, Texas

Replied over 4 years ago

Hello Sharad, seeing as how you have so many properties free and clear, what are your thoughts about owner financing some of those properties? Wouldn’t there be a lot less headaches as apposed to rentals?

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Hello Tom, Happy New Year!! I have thought about doing rent to own with some properties down the road, but at this point headache factor from rentals hasn’t been bad enough for me to make that call. There are headaches in rentals but it’s not as bad or as often as sometimes people make it out to be. There are headaches in all kind of businesses and real estate is no different. People sometimes expect rentals to be 100% passive which is being over optimistic. What kind of investing do you do? Sharad

Donald Capwell Rental Property Investor from COLORADO SPRINGS, CO

Replied over 4 years ago

Now I want to be American Indian!!! Wonderfully entertaining and informative show! Thank you…

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Hi Donald, Thank you! I am glad you found it entertaining and informative. Best wishes for your future success. Regards, Sharad

Pancham G. Investor from Jericho, NY

Replied over 4 years ago

Hey Sharad, First of all, a great show and happy new year to you! I totally cracked up on your story about american indian. When I first came from India and i was filling out the college application, I had an exact same question and guess what my answer was!!!! 🙂 To this date, I see people making the same mistake. LOL. Great show. Thanks, pancham

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Hi Pancham, I am glad you enjoyed the show. Happy New Year to you too!! I am sure I wasn’t the first or the last person to make that mistake..lol..There are tons of other funny situations I found myself in because of language barrier. What got you into real estate investing? Thank you for your kind words. Regards, Sharad

Muhammad Rizwan from Morton Grove, Illinois

Replied over 4 years ago

Thanks for sharing great information. I found many similarities since I have accounting background and worked 6 years at Abbott. Indiana lake county is always under my radar but seems little economical depress area. Can i have quick phone conversation or ask few questions through personnal message. Can I ask you couple of question? What’s your properties ave. Vacancy rate and what’s your ROI on rental properties?

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Hi Muhammad, Thank you!! There are some great areas in Lake County, Indiana and I have been focusing on those areas. Sure, please feel free to call me on my cell whenever you are available and we can talk more. My cell phone number is under my profile. Look forward to talking to a fellow Abbott Accountant. Regards, Sharad

Venkat B. from San Jose, California

Replied over 4 years ago

Hi Sharad, Great podcast and wonderful tips. Awesome job on reaching your goals. I really appreciate your “12 for 1” giving back program to those who needs help in education. Thanks for sharing your strategies with BP community.

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Hi Venkat, Thank you so much for your kind words. I really appreciate it. Regards, Sharad

Jesse Peña from Charlotte, NC

Replied over 4 years ago

Hi Sharad, Happy New Year! Wow, what a great Podcast! I really enjoyed your opening story American Indian it was very entertaining. I joined BiggerPockets 12/24/2015 Christmas Eve. I’m brand new to Real Estate Investing I am interested in 2-4 Units Multifamily to begin as my first investment in 2016. Thank you and future success, Jesse

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Hi Jesse, Thank you for your kind words. I really appreciate it. If there is anything I can help you with, please do not hesitate to contact me. Regards, Sharad

Nathan G. Real Estate Broker from Cody, WY

Replied over 4 years ago

Sharad, I enjoyed the podcast and especially enjoyed hearing that you are willing to give back to those less fortunate! I am a real estate agent, currently a property manager with 210 rentals for about 100 owners. I am a really good property manager, which pays the bills, but all my hard work tends to benefit the owners more than myself. To that end, I want to start building my own portfolio of buy-and-hold investments. I have two goals: work only for myself doing what I love and help those less fortunate. My problem is location and cash. I live in a small Wyoming town of 9,000 where the median price of a single-family home is $225,000. The last 4-plex to sell (I sold it) went for $300,000. There’s not enough inexpensive inventory to build a portfolio and the ROI is pretty low compared the national average. I need to find a market outside of my state. My second problem is cash. We aren’t poor, but I probably won’t have more than $20 – $30,000 to invest annually. Bigger Pockets is clearly a great resource for information and I am starting to read up on both these issues. I’m even considering buying one of Brandon’s books! But if you have any advice to share about how either of these, I would love to hear it.

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Hi Nathan, Thank you for your kind words. I am very happy to hear that you enjoyed the podcast! I respect your goal of helping those less fortunate. What are the rents on the 4-plexes you are selling for $300k? Can you try to find a distressed home and wholesale or flip to build up your inventory of rental properties? A lot of investors I know started out by wholesaling few properties to flipping then they moved onto building a rental portfolio, so is taking that same route an option for you? If not, then I will compare the the ROI that you can get in your local market vs out of state market and see if investing out of state makes sense for your situation. I live in California but I am actively investing in Indiana market because of the high cost of entry in CA market. If there is anything else I can help you with, please do not hesitate to contact me. Regards, Sharad

Nathan G. Real Estate Broker from Cody, WY

Replied over 4 years ago

I’m in the same boat as you are in California. The median price of a SFR is $225 and rent is only $1,200 – $1,400. A four-plex sells for $275 – $300 and rent income is $2,400. It looks to me like I could buy five or more good home in Gary, Indiana for under $200,000 and make 3-4 times as much. Being a small market with a lot of money, we didn’t see many foreclosures. I’ve known guys that flip but they don’t do it often because the prices are too high. I would be much better off looking in another market.

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Hi Nathan, California market is super expensive. I live in Carlsbad, CA and I totally see why it is very tough to pull trigger on investment real estate here. But I wouldn’t invest in different market just because the prices are cheaper. For example, Gary you can find houses for $5-$10k, but they come with so many headaches that it isn’t worth it even if someone gave away the house for free. Regards, Sharad

Mark Gee Rental Property Investor from Red Bank, NJ

Replied over 4 years ago

Hi Sharad, Great podcast. Thank you for educating me on your amazing path in real estate investing. I took a lot from it and have already set up my Home Depot receipts to forward to my bookkeeper. Quick question: how do you hold title to all those properties? Are they all in different LLCs? I have 12 properties right now and I’ll be leaving my regular job to concentrate full time on REI in a few months. Happy 2016 to you and your family! Mark

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Hi Mark, Thank you for your kind words. I am very happy to hear that you found the podcast helpful and were able to find some practical tips from it. I have some properties in LLCs, but I am looking to transfer all properties to separate Land Trusts and will have my LLC as the beneficiary. If there is anything else I can help you with, please do not hesitate to contact me. Happy New Year to you and your family too!! Sharad

Kyle Doney Flipper/Rehabber from Golden, CO

Replied over 4 years ago

Can you elaborate on moving the properties into separate land trusts?

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Sure. So I have set up separate Land Trust for each of my properties. My LLC is the beneficiary and I am the Trustee of the each Land Trust. For new properties, I am just purchasing them under Land Trust, but for the ones I own in LLC, I am doing a Quit Claim Deed to transfer from LLC to Land Trust. Please let me know if you have any follow up questions. Regards, Sharad

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Frank Smith

Replied over 4 years ago

Sharad, I enjoyed your discussion. It was one of the best for it reflected a conscious financial approach. I think many RE investors lack diversification and approach risk carelessly through leverage. I have many Indian American friends, but no American Indians, unfortunately. All are very successful people. Best, F

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Hi Frank, Thank you for your kind words. I really appreciate it. There are so many paths in real estate to be successful, but I believe the key is to figure out what works best with the factors you have available (time and money) and also the approach that best fits your personality and life style. You can call me your American Indian friend. After all, I was an American Indian for good 9 months or so 🙂 Best wishes, Sharad

Frank Smith

Replied over 4 years ago

Sharad, After some tangible research in the Chitown metro areas, I would like to explore NW Ind. Can you recommend a good realtor in NW Indiana or a REIA in the area? Thanks! Frank

Sachin Acharya from Dubai , Dubai

Replied over 4 years ago

@Sharad Mehta Wow!!! I appreciate the fact that you take the time to respond to people. It does take some effort to make and maintain relationships. And you demonstrate that. I was listening to the podcast, and within 30 minutes into it, I sent you an invite to connect. And before I finished listening to the podcast, we have exchanged a few messages already and have made plans on meeting here on the other side of the planet very soon. Also here on the show notes, not a single message has been posted here that you haven’t personally replied to. Question for you, Sharad. Can you please walk us through the beginning of your real estate career? You mentioned that you and your wife saved up and bought your first rental property for cash. How long was that after you decided that you wanted to make it big in real estate? Did it accelerate your savings as you move towards a goal? Thanks Sachin Acharya

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Hi Sachin, Thank you for your kind words, man. I am very honored to be on BP Podcast and very touched by the fact that people have enjoyed my story and have found the information helpful. People are taking time to send me messages/email and it would be rude of me it I didn’t personally reply to each message. I am usually not as good about getting back to people, but today is Sunday and I am just sitting at home reading a book after a weekend in Las Vegas celebrating New Years so I am replying to messages as they are coming in 🙂 To give you a little bit more background about myself, I graduated in Aug 2005 and started my job in Sept 2005. My starting salary was $47,000. My net worth ($2,000) from credit card debt I had from student loans. The first thing I did was pay off CC and then I helped my parents purchase a property in India. While I was in school, my family had suffered a major business loss and had to sell the house. Owning your home is a major source of pride in India and my parents were living in a rental house, so I wanted to helped them with purchasing a house. My wife moved to US in Dec 2005. We had been in long distance relationship for 5 years so it was good to finally be in the same city. My wife graduated from college Fall 2007 and that’s when we really started saving. Since my wife graduated, we have lived on lower of the two incomes. We try to be very diligent about it. The first car I bought was a $1,000 beat up after I started working when my friends bought a new car or a nice used luxury car. We saved and paid for our own wedding in 2009 and bought our first primary residence (Condo) in Feb 2010. Bought the first investment property from the cash savings in Aug 2010. Bought the second property in Sept 2010. After I got both of them fixed up and rented them out, a bulb went off and I thought I could do it at a large scale and make something big out of it. We still live on the lower of the two incomes and save and reinvest the other income. And definitely our savings has accelerated over the years as we keep reinvesting our savings. Please let me know if you have any follow up questions. Thanks and Best Regards, Sharad

Sachin Acharya from Dubai , Dubai

Replied over 4 years ago

Thanks for the details Sharad. That’s very inspiring. I love the strategy of living off the lower of the two incomes and saving/re-investing the higher one. See you in Dubai soon. Cheers Sachin Acharya

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Thank you, Sachin. I couldn’t have done what I have done without the support of my wife, so I am very grateful to be with a partner who is on the same page when it comes to financial goals. I look forward to meeting you in Dubai soon. Regards, Sharad

Eric Bilderback Real Estate Agent from Sisters, OR

Replied over 4 years ago

Great podcast, however listening to Josh say that people who have their mattress and box springs directly on the floor are a little rough hurt me a little bit. I should change my profile pic to one with me in a wife beater tank top.

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Thank you, Eric. Glad you enjoyed it.

Andrew Syrios Residential Real Estate Investor from Kansas City, MO

Replied over 4 years ago

Fantastic podcast! Very impressive work Sharad!

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Thank you, Andrew. I am glad you enjoyed the podcast.

Adam Curry Real Estate Agent from Cincinnati, OH

Replied over 4 years ago

Sharad, Amazing podcast! Loved every minute of it, and I took a lot away from it. I’m a licensed agent in Cincinnati, OH and just came across a situation I thought you might be able to lend some advice on. I’ve got an agent in my office that just landed a 72 investment property portfolio from an investor that’s selling off everything. They are looking at selling to “groups” of investors now to minimize the work. My question to you is, do you know of any other ways to get into contact with buyers like ones you spoke of that buy from either overseas or across the country in bulk? Thanks for any info, and again, great podcast and amazing work over the past few years! -Adam

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Hi Adam, Thank you, man. I am so happy that you found it helpful. Have you thought about listing it in MLS under commercial deals as a package? I would also contact some of the most active agents in your area and ask them if they have any contacts with overseas or out of state investor groups. Contact some NY and CA agents also and spread the word and offer them a referral fee to help sell you as a package. There are a lot of investors from China, Australia, HK, and Singapore buying in US, so I would try to connect with some agents from each country and pitch them the deal to see if they have any investors. Also, try reaching out to some hedgefunds and promote it at all local REIAs. You might not find one buyer for all properties in local REIA, but may be you will find 5-6 buyers who will take all the properties. Regards, Sharad

Adam Curry Real Estate Agent from Cincinnati, OH

Replied over 4 years ago

So, I probably wasn’t clear with this. I don’t have the listings, an agent in my office does. Once you talked about working with out of state buyers and investing groups it set a light bulb off in my head. Thanks again Sharad! I’ll give this a shot. Might touch base back here if I need any other guidance.

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Hi Adam, I apologize for any misunderstanding. Best wishes with this deal and future success. Sharad

Gianni Laverde Investor from Corona, NY

Replied over 4 years ago

Sharad, Yours is a great story about motivation and taking action to achieve that end goal. It’s very inspirational. You definitely went Fast Track. Also, it’s Very admirable your way of giving back to children back in India. Thanks for sharing your journey GIanni

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Hi Glanni, Thank you for your kind words. I am so happy that you found the podcast useful. I have been extremely fortunate in my life to be in the position that I am thanks to my family and if I can do something for someone who isn’t as fortunate, nothing would make me happier. Best wishes for your future success. Sharad

Don Alberts from Frankfort, Illinois

Replied over 4 years ago

Shared,thank you for all your energy and wisdom. Happy 2016. Don

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Don, Thank you so much. Best wishes for 2016 success. I sincerely hope 2016 is your most successful year ever!! Sharad

Meghan Reed Investor from West Suffield, Connecticut

Replied over 4 years ago

Sharad, that was a great podcast. It was so motivating to hear all that you’ve achieved in 5 short years! I love that you give back such a large amount for every deal to children’s education in India. Though I’m not sure why you chose India since you’re an American Indian and all. 🙂

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Hi Meghan, Thank you for your kind words. I am so glad that you enjoyed the podcast. I am extremely fortunate to be in a position to be able to give back to someone who needs it more than I do. You raise a very good point about why I am betraying my American Indian heritage..lol.. Best wishes for your future success. Sharad

Kory Thaut Investor from West Linn, Oregon

Replied over 4 years ago

That was amazingly entertaining and educational. I haven’t laughed that hard in a long time. I was driving in the snow during the college application part and nearly swerved off the road laughing so hard. Thanks, Sharad!

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Hi Kory, So glad that you found the podcast entertaining and educational. When I think back on that time, it cracks me up. Glad you got a good laugh out of it too. Best wishes for your future success. Sharad

Bryan Dalton Investor from Belmont, North Carolina

Replied over 4 years ago

Tax Lein clouds Title for 4o years Correct ? That is why no borrowed money?

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Hi Bryan, Not sure I understand your question. Can you please elaborate? Regards, Sharad

Hersh M. Engineer from Carlsbad/San Diego

Replied over 4 years ago

Hi Sharad, Great podcast. So what would your advice be for newbies to RE who want to ramp up fast like you on holding free and clear properties using buy and hold strategy only (no flips, rehab, etc)? Maybe a few bullet points. Because it is very rare it seems to hold so many properties free and clear in such a short time. Thanks!

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Hi Hersh, I can only tell you what I did and how I grew my portfolio. 1) I saved religiously. Since we both started working full-time, we have lived on lower of two incomes and still do that to this day and we save and invest the higher income. 2) Since I decided to keep my properties free and clear, I became focused on increasing my income and saving and investing more and more. 3) I found below market properties and just kept adding them to my portfolio. Please let me know if you have any other questions or anything specific that you would like to ask and I will be more than happy to answer that. Regards, Sharad

Amine E. Investor from Edmond, Oklahoma

Replied over 4 years ago

Great podcast Sharad. Very inspiring! There many rules of thumps when purchasing buy and hold properties. i.e: 70% minus repairs, 50% rule , 2% rule. Which one do you go by if any? Would you buy a house for 48K ( purchase and rehab) that rents for $850 in class C neighborhood? Thanks

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Hi Amine, I am so glad that you found the podcast useful. I really appreciate your kind words. In my area, I wouldn’t pay $48k for a C property that only rents for $850/mo. I have on average paid $40k for C properties and I get minimum $1,500/mo rent for that money spent. Regards, Sharad

ANuraag M. Investor from Tracy, California

Replied over 4 years ago

Sharad. Congratulations on your success and the excellent podcast. Like you, I came to USA as a foreign student and almost checked on the American Indian check-box. Maybe I should have 🙂 I had a question about giving the sellers agent an extra 1% commission. I was wondering how you do this. I have heard of sellers giving an extra 1% commission to the buyers agent, but never the other way around. Is this something you add in the contract and then gets disclosed to the seller (just like dual agency). Or is your arrangement with the sellers agent a separate document. Thanks

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Hi Anuraag, Thank you for your kind words, man. So glad that you enjoyed the podcast. hahaha, I know few other students who went through the same thought of American Indiana. In most cases when I know it is a great deal, then I work directly with the listing agent. Last year, I acquired 4-5 properties this way when there were multiple offers on the property and I worked with listing agent and I was able to get the deals. You can always offer a bonus to sellers agent if the deal goes through. I hope that answers your question. Regards, From one American Indian to another 🙂

Jen Faulkner from Peoria, Illinois

Replied over 4 years ago

Hi, Sharad! When you mentioned that you like to make $1,000 for every $40k or $50k that you spend in purchase, do you mean actual $1,000 rent or $1,000 in net profit after other expenses, including property tax, etc.?

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Hi Jen, I was talking about gross $1,000 rent for every $40-$50k spent. I would love to do net $1,000 though 🙂 Best Regards, Sharad

Alicia Chang Real Estate Agent from Dallas, TX

Replied over 4 years ago

Hi Sharad, I was really inspired by your podcast episode! Thank you for all of the actionable advice you gave us listeners. one thing you mentioned has stuck in my mind, a week later: your tactic of contacting the listing agent without representation of your own. Did you find this risky, since you don’t have a real estate license, correct? I’m really tempted to try this myself and have had the experience of buying 2 homes for myself so far (not as investments), but are there any pitfalls that we should watch out for when we’re acting as our own real estate agent? Thanks again for the great show!

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Hi Alicia, Thank you for your kind words. So glad that you found the podcast useful. No, listings agent have to be licensed before they can list the house. Have you run into the issue where someone not licensed has listed a house? When you contact the listing agent directly, they act as both your agent and the seller’s agent. It is quite common. Please let me know if there is anything else I can help you with. Regards, Sharad

Alicia Chang Real Estate Agent from Dallas, TX

Replied over 4 years ago

Hi Sharad, Thank you for your reply . I didn’t realize that a listing agent could also act as the buyer’s agent simultaneously. I appreciate the clarification. Thanks again. Also, your website looks great!

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Hi Alicia, You’re most welcome. If there is anything else I can help you with, please do not hesitate to contact me. Best wishes for your future success. Regards, Sharad

Sid Yanamala Real Estate Agent from Charlotte, NC

Replied over 4 years ago

Sharad, I love that American Indian story you told in this podcast. I used to think in the same way when I came here in 2005 and until I came to know about them after couple of years. Your story is inspiring and good to hear that you are spending part of your earnings towards schooling of children. Keep it up. Regards, Sid

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Hi Sid, lol. I have received messages from so many other people from India who thought they were American Indians. Thank you for your kind words, man. I truly appreciate them. I am so glad that you found the podcast useful. Best Regards, Sharad

Andy S. from Fresno, California

Replied over 4 years ago

Hi Sharad, Great job on the podcast! Definitely my favorite podcast so far–very funny and informative. My wife and I are investors from CA and our goal is primarily cash flow. Would you recommend someone new to go out of state or to find something closer to home. Cash flow is obviously tough here in California, but speaking to some the BP members from my area (Central Valley), its still doable, but obviously not as great as the Midwest. What’s your thought on that?

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Hi Andy, I am so glad that you enjoyed the podcast. Since you found my podcast the favorite so far, please stop listening to any further podcasts 🙂 Honestly, I would start out looking closer to home to see what kind of returns you can get and then compare those returns with out of state returns. If the numbers are within 2%, then I would invest closer to home, but if the difference is bigger than I would look further into out of state investing. Keep in mind to factor in your travel cost for out of state investing when you are calculating your returns to be very comparable. Please let me know if you have any further questions. Thanks again for your kind words. Best Regards, Sharad

Anthony Hidalgo Account Manager from Boynton Beach, Fl

Replied over 4 years ago

Hey Sharad, It is great to hear a fellow Baruch Alumni have such great success in Real Estate. What did you major in? I am from the class of 2010 and have been working in the city since but to move to Florida at some point in the next few years. It was a very entertaining podcast and great to hear your strategy. I am sure I will listen to this podcast again! regards,

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Hi Anthony, So great a see a fellow Baruch Alumni on BP. I majored in Accounting. I graduated in 2005 and moved to IL the day after. What’s your major? I am glad you enjoyed the podcast. If there is anything I can help you with, please do not hesitate to contact me. Regards, Sharad

Tanner Gish Real Estate Investor from Whittier, California

Replied over 4 years ago

Hey Sherad, Thank you so much for your podcast last month- hands down, the most helpful, and inspiring, one of 2016! I hope they keep bringing you back, and you can be a repeat podcast host with the likes of Ben Leybovich and Brian Burke! I had a question about how you analyze your deals. Do you have a Rehab Estimator Spreadsheet, and a Deal Analysis Spreadsheet, that you use? If so, is it something you can share with the BP community? I’m curious to see your approach, to compare to others like J Scott. Thanks! -Tanner

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Hi Tanner, Thank you for your wonderful words. I am so glad that you enjoyed the podcast. I don’t use any Rehab Estimate Spreadsheet. Honestly, I do back of the napkin calculation sometimes but most of the times, I just run the numbers in my head. I guess having an Accounting degree helps. But for me I have very simple criteria. I need to make a certain rental return as a percentage of the total cost and if the numbers work, I move forward. This is assuming the deal is in preferred location. Hope that helps. If there is anything else I can help with, please do not hesitate to contact me. Regards, Sharad

Sachin Acharya from Dubai , Dubai

Replied over 4 years ago

Hi Sharad Do you mind sharing with us what that number is for you and how it has evolved over the years? Thanks Sachin Acharya

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Hi Sachin, You are asking for my secret sauce..lol, so here it is.. When I first started out, it used to be 36% gross annual rental return or above at a minimum. The best one I purchased gave me 65% gross rental return. That’s $22,800 gross annual rent on a $35,000 purchase. I still own that property. Over the years, I have moved to B areas and I am looking for over 18% gross return depending on neighborhood. If you have any other questions, please feel free to ask. FYI, I will be in Dubai this Saturday for one day. Regards, Sharad

Sachin Acharya from Dubai , Dubai

Replied over 4 years ago

I wish I had the emoticons here like WhatsApp I would have used the one with eyes popping out… 36% and 65%…!!! Either these properties are in Mars or you are a master negotiator. Since you are in Dubai just for a day I guess it would be best to meet you at the airport as you arrive so that your schedule is not disturbed. PM me your flight details if that’s ok with you.

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Hi Sachin, I am sorry buddy I wasn’t able to connect with you while I was in Dubai. It was only for a day and had few meetings planned. Next time I am there, I will be sure to meet you. I loved Dubai. there is so much development going on it is unbelievable. Never seen anything like that. Actually, I remembered buying property and paying $6,000 for it and it was rented for $600/mo. The tenant stayed a year and paid $7,200 over 12 months. That’s 120% return for the year. The tenant moved out from the move to one of my bigger houses. After tenant moved out, I spent $8,000 fixing up the place and now I get $800/mo rent for it, so now my return is 69%. Sharad

Venkata Sathish kumar kadiyala from Fremont, California

Replied over 4 years ago

Hey Sarad, Thanks for excellent podcast, One thing you touched me is sponsoring education for poor people for education in India, most of country’s has good govt provided education, We do have good education but its only for who has access for money, good job man. My background, I am working in IT for 10+ years in India and brought 2 houses in Bangalore, recently 2 years back moved to US , We (me and my wife) both are working in CA(bayarea) obliviously in IT 🙁 ,Now i am seriously thinking to start investing but in CA no way to invest due to higher cost for rental properties. any guidance is appreciated on investment .

Sharad M. from Carlsbad, CA

Replied over 4 years ago

Hi Venkata, Thank you for your kind words, man. I appreciate it. Please feel free to send me a PM and I can discuss further with you about investing out of town and help you with anything I can. Look forward to speaking with you soon. Regards, Sharad

Gangadhar Uppalapati from Charlotte, North Carolina

Replied over 4 years ago

hi Sharad, great podcast & inspiring story ! I’m a newbie to REI , would love to be a long-term student of yours. currently I’m living in Charlotte, NC & would like to act on closing my 1st deal, a multi-family rental one. Can you please advise me if I can find good/great deals in Charlotte, NC compared to Atlanta, GA? All over the internet, somehow I’m seeing ATL ranks better over CLT w.r.t bargains, appreciations, long-term prospects. I’ve put my questions & profile in detail here: https://www.biggerpockets.com/forums/81/topics/290349-charlotte-nc-or-atlanta-ga-for-a-1st-time-investor-of-rentals If you may have a few minutes free time, can you please go thru my post & offer your valuable inputs, please? thanks in advance, Gangadhar

Niraj S. from Cumming, Georgia

Replied about 4 years ago

Hello Sharad! I just joined Bigger Pockets recently to start learning about real estate investing and specifically Multi Family Units. After watching your podcast, i was extremely motivated. Whats funny is that i am also from Tanzania currently living in the Raleigh area. I was living in SoCal for a while and was just in Carlsbad not too long ago. I usually come down to Carlsbad every now and then for work trips and would love to meet you in person. I would be honored to talk to you and get advice on getting started. Thanks again for a wonderful podcast! Regards, Niraj

Vikram Sharma from North Brunswick, NJ

Replied almost 4 years ago

Hi Sharad, I am new to Bigger Pockets and getting into REI and watched your podcast today. You are an inspiration !! Your idea of giving back to the society is truly noble. Good Luck with your future endeavors !! Regards Vikram

Don Spafford Investor from Idaho Falls, ID

Replied almost 3 years ago

Very amazing and inspiring podcast! This is one that should be a requirement for new BP members to get motivated. I love this guy and what her’s doing.

Keith Boldon Investor from Cheshire, Connecticut

Replied almost 3 years ago

Hi Sharad, Excellent podcast!! Was wondering if you had any words of wisdom on how to manage a rehab as an out of state investor? Would you advise hiring a project manager? Regards, Keith

Lena M. from Bay Area

Replied about 1 year ago

Hi @Sharad M. Just finished listening to your podcast. Your story cracked me up and inspired me at the same time. I like how you give back to your community through education. Those who benefited from it will always remember your generosity. I am new at BP and just starting to invest out of state. I hope to listen to another great podcast from you in the future.

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BiggerPockets Podcast 155: From Zero to 200+ Deals in Five Years with Sharad Mehta

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In This Episode We Cover:

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