All Forum Posts by: Pancham G.

Thanks @CJ M.! Appreciate your comments.

It’s been about 7 years since I read the life changing book “Cashflow Quadrant” by Robert Kiyosaki and after 14 amazing years, I quit my full-time job!

This post has been a long overdue. I have been meaning to post this on BP for so long. I thought, what is a better way to start the new decade on BP with this post being the first of the decade! 

BP is the place where I started my journey about 5-6 years ago. I have bought and sold multiple properties through BP. One such property, I still own and made it to the "post of the week" on BP. You can check it out here if you are curious: https://www.biggerpockets.com/forums/223/topics/236786-how-we-made-5000-on-two-weekends-ie-4-nights-on-a-135k-condo

I had a high paying job in NYC that I quit after several years of investing in apartment complexes in my spare time. My first full day without a W2 job was on July 4th, 2019 (Independence Day). It just happened to pan out that way for my exit and never planned for it but I am glad it happened that way. Anyhow, I decided to turn my hobby and passion w/ real-estate into a full-time business to help others build wealth away from Wall-St. Going forward, I will be focusing my time on the following two things:

1) Syndications: Putting together investment opportunities for people to invest for the cashflow and have their money work for them.

2) Education: I launched a podcast to help high-paid professionals on personal finance.

I started with smaller properties in my local area. Slowly, I expanded into 5 different states with SFRs, duplexes, triplexes. It also included one airbnb rental. Then slowly over time I realized that even though this is so much fun and I was spending day and night on this stuff, it is not scalable. I went with the route of syndications. Since then, I have sold most of my portfolio.

It's been about 6 months since I left my FT job. I am so grateful for BP nation & real-estate. I owe it to BP for all the knowledge, relationships, investments and a community of like minded individuals. This has given me the ability to spend time the way I want. Thank you everyone who has helped me along this journey.

With Gratitude,
Pancham

@Yonah Weiss great thread...

@Brandon Turner and @Joshua Dorkin for creating this amazing platform to educate others.

Some of the great deals that i bought from marketplace.

@Thomas Rutkowski for explaining life insurance related things to me.

@Brian Adams great inspirational multifamily related posts.

Numerous content on the forums...

Thanks @Danny Randazzo & @Chris Salerno for the shout out. 

@Adrian Bonilla.. sure, we can connect... 

This is because RE is a relationship business. People don't invest by just looking at the ad on FB. Some do but not the majority as backed by this stat.

@Shane Boyle great goal! House hacking is one of the best ways to get started. Thanks @Danny Randazzo for the mention. You are more than welcome to our meetup in NYC. Let me know. 

LOL!!!! I did not even know you are on this platform. I tried doing @Jillian and it didn't show up your name :). I did mention that you are the "TOP syndication" attorney :). It was a great presentation though.

@Charlotte Dunford - we have not used crowdfunding platforms for our raise. I can share a statistic with you that I heard from one of the top syndication attorney. 

So, after going through the edgar database which tracks all the Reg D filings, they found out that 93% of all the filings are 506(b) i.e. you need to have a pre-exisiting relationship with your investors and that you cannot advertise. 

This is a very revealing statistics. When crowdsourcing came into existence, everyone thought that its going to be awesome and to some extent, it is. However, real estate is a relationship business. People usually invest with people who they trust. So, 506(c) i.e. advertising to the masses doesn't work as well as it was initially thought to be.

Investment Info:

Large multi-family (5+ units) commercial investment investment in Charlotte.

Purchase price: $2,000,000
Cash invested: $281,000
Sale price: $3,000,000

We sold last month our completely turned around multifamily building that we bought in 2017. This was our first syndicated deal but our second complete cycle!

We raised capital from family and friends.

What made you interested in investing in this type of deal?

We love multifamily real-estate and also love the Charlotte NC market.

We were fortunate to be able to raise the capital and get great returns for our investors. Also, we improved tenant quality quite a bit and made this a great place to live for tenants.

How did you find this deal and how did you negotiate it?

We found this deal off-market.

How did you finance this deal?

Syndicated our deal and got Freddie mac SBL loan.

How did you add value to the deal?

We did the following things to the property:
1) Fixed the structural issues on the few buildings. We estimated about 50K but spent 100K.
2) Renovated a bunch of units.
3) Built trenches around the buildings to get rid of the water issues in the crawl spaces.
4) Changed all the roofs.
5) Got the laundry in house.
6) Built a shed in the back for the supplies.

What was the outcome?

Outcome was great turnaround of the property.

Lessons learned? Challenges?

Always estimate on the higher side!

@Elliot Juarez - feel free to reach out. @Danny Randazzo - thanks for the mention.

Investing in NYC is not everyone's cup of tea but it can be done. Like Scott mentioned, it would depend on what your goals are and what are you trying to achieve.