Multifamily & Making The World Better

Intro
Hi, my name is Rod Khleif, and I’m the host of “The Lifetime Cashflow Through Real Estate Investing” podcast. And every week, I interview Multifamily Rock Stars and we talk about how they build incredible wealth for themselves and their families through multifamily properties. So hit the “Like” and “Subscribe” buttons and get notified every Monday when a new episode comes out. Let’s get to it.

Rod
Welcome back to Multifamily Rock Stars. So as you guys know, this is where we interview people that are just flat-out crushing it in this business. And we give you the inside scoop as to how multifamily investors are creating incredible success, not just in their businesses, but in their lives as well. And as always, I’ve got Mark, my co-host, Mark Nagy, who’s the director of my massive action team for my Warriors on the call with us today. Mark, hey, buddy.

Mark
Hey, Rod, happy to be here. Glad to see we got another Californian on the episode today.

Rod
Yes, we do. His name is Bharat Kona, and Bharat lives in California, yes. He’s a very recent Warrior. He’s only been in the pro– I’ll let him tell you, actually. But welcome to the show, brother. Good to see you here again. In fact, we just saw you this last weekend at our Warrior-only event here in Sarasota. We had, I don’t know, somewhere between 260 and 300 Warriors here, and it was great to see you, my friend.

Bharat
Thanks, Rod. Hi, Mark. Excited to be on this show and looking forward to talking about my journey.

Rod
Sure. Well, why don’t you start with your journey? Let’s hear it. Let’s hear about, you know, what you did before real estate. You know, just a high-level– briefly, you know, what you did and why multifamily? I think that’s an important question. So bring us to current.

Bharat
Absolutely. I was born and raised in India. My mom was a homemaker, dad was in the military. We were a typical middle-class family and education was a high priority at home. So as a kid, I spent most of my time on academics and did nothing else. So I went to engineering college and came to the US for grad school. And I attended the University of South Florida in Tampa and graduated with Masters in Engineering. Then I wanted to go West and work in tech and moved to Silicon Valley, worked as a software engineer. And after a few years, I wanted to change. I did not want to be an engineer any longer. So I attended Santa Clara University for the MBA program while pursuing a full-time job. And that enabled me to get into a management role within the tech industry. And since then, over the last 20 years, I worked in startups to midsize to enterprises as well as a large services firm. And I had a fulfilling time working for these companies, leading global teams to create next-generation products and leading large programs. And all throughout my career, I’ve been in data analytics. This helped me to be very comfortable with numbers, understanding KPIs, data analysis, and deriving insights.

Rod
Yeah. No, for sure. No question. In fact, a very large subsection of our Warrior program is people from the IT space. So, you know, it’s definitely a big chunk of our Warriors. And of course, I’m fascinated by it. There are so many incredible things happening in that space with AI and everything right now. It’s just extraordinary what’s possible. In fact, we’re exploring that the next– when I come back from Japan in a couple of weeks. That’s one of the things I’ve told my team to stay on top of things. We absolutely need to be exploring all these different AI websites and the tools and the capabilities that are out there because they’re just, frankly, they’re incredible. Well, listen, let me ask you this. So you went through the Dot-com Bubble, yes?

Bharat
Yes.

Rod
Tell me how that was. Tell me what happened with that.

Bharat
Yes, it happened early in my career and I was a software engineer. The equity markets were pretty volatile, but they would go up more and most of the days. And the startups were getting funded with just product ideas. It was just crazy times. And my stock portfolio was growing every month and naively I thought I could retire in a few years as everything looked so rosy. Then the bubble burst and I landed on the ground with a loud turn and my portfolio went on by more than 95%.

Rod
Oh, my God. Wow.

Bharat
It was a lesson learned, and that experience stayed with me over the years. And I started seeing signs of it over the last few years as the stock market started appreciating considerably. And my personal stock portfolio also started going up. I started getting nervous. I didn’t want to have the same experience. So I started asking friends about alternative investments for diversification. A couple of friends recommended multifamily. So I started reading about it, attended meetups, joined webinars, and I literally started talking to as many people as I could. I joined a local boot camp and learned all aspects of it, then teamed up with a few of the students and got onto my first multifamily.

Rod
Nice.

Mark
So is that what led you to real estate then was just something more stable and losing a lot in the volatility of the stock market?

Bharat
Yes. I didn’t want it to put all my money in just stocks. I wanted to go beyond that. And I found multifamily to be more stable within the other asset classes, within the real estate. And it could perform very well during the housing crash in ’08 and also perform very well during the pandemic years. It provides cash flow or returns, depreciation to offset taxes, in addition to diversification.

Rod
Yeah. I noticed looking at your bio here, I didn’t realize you’re an LP, Limited Partner in over 4,000 units in the south and the southwest.

Mark
Wow.

Rod
So you’ve been playing around with this for a little while. And I know, you know, when you joined the Warrior program, you already had 300 units as a General Partner, which actually is a little unusual, you know, as it relates to our Warrior program because very often we get people that have just done some flipping, done some wholesaling, own some single families or some small multifamily. But the fact that you had 300 units is a little unusual. So, first, let’s talk about how did you hear about me, and then what made you decide to join our program?

Bharat
Sure. Just like you Rod, I follow Tony Robbins. And I’ve been to his seminars, read his books, and listened to his podcast. A good friend of mine who is in real estate and follows Tony Robbins, told me some time ago that you’re Tony Robbins in real estate. Rod combines motivation and real estate coaching and talks a lot about service. That attracted me to you. And the Warrior program is for multiple reasons, I get to learn from you directly. You’re an inspiration to me.

Rod
Thank you.

Bharat
And your coaches are hands-on operators who have extensive experience in this asset class and know the market trends. And the Warriors come from all parts of this country, so I can get to connect and collaborate with some of them to get into new markets and grow.

Rod
I think you saw that this last weekend with hundreds of Warriors.

Bharat
Yes.

Rod
And that was pretty extraordinary, wasn’t it?

Bharat
It was actually.

Rod
Yes.

Bharat
I met people from all over this country, from the Northeast to the West.

Rod
One of the things we do at that event is we force networking and we make the people that are a little uncomfortable and even a little introverted, we force them to meet. And we did something a little different where we had you actually meet by region. So you’re around people that live near you. But, you know, that’s pretty interesting. So you joined because you got exposed to my ecosystem and you wanted to connect with people all over the country. And yeah, definitely the Tony Robbins piece. But I love that you said that, you know, we teach people to serve. And, you know, I remember when– at the event, I think it was when we had some panelists on stage and we asked, how many of you do something to make the world a better place, philanthropically? And every single one of them raised their hands. I’m like, holy cow, this is just extraordinary that you know, we’re not just teaching people how to build wealth for themselves and their family, legacy, wealth, but we’re also teaching and inspiring people to make the world a better place. So I’m so blown away by that.

Mark
Yeah. So I have to ask because obviously, I get this question all the time. And you being in California, I know you’ve invested all over the country with other people. And I get this question so often about the nuts and bolts of people living in California or New York or whatever is like, what can I bring to a team since I’m not there in that market? So how have you gone about building your team, doing deals in other states, and what do you bring to the table living in California on those deals?

Rod
Good question.

Bharat
Sure. I partnered with the students for my first boot camp, and some of them had a single-family in KC Metro. But it was the first multifamily deal for all of us, actually. So we identified skills across the team and divided the response for this as for each individual skill and everything.

Rod
Good.

Bharat
And being in California, I bring my skills in capital raising, underwriting, and as well as after that during the acquisitions and after that, financial analysis, asset management, and investor relation during the ownership.

Rod
So you’re doing soup to nuts. You’re helping with every aspect of the business.

Bharat
Yes.

Rod
And one of the things we see as a group evolves, as a team evolves, these roles become really more specific and more separated where people are totally focused on their strengths, especially as the portfolio grows and the teams get larger. But yes, when you start, you may very well wear multiple hats. And of course, your skill set in the analytical side of the business. And I’m guessing operationally, I’m sure you had– you managed people in your experience in IT. All of that comes into play. And just so you guys listening understand that there are a lot of different hats in this multifamily business. Of course, there’s underwriting. You need to analyze these deals. There’s relationship building with brokers, with investors, and ongoing relationships with those people. And of course, there’s asset management. And for that piece of the business, you need to have some management experience or some construction experience or, you know, even project management experience. And so, there are a lot of different places you can hang your hat in this business. You said it perfectly, Bharat, when everybody is playing to their strengths, first of all, they love what they do, okay, so work is play and they’re really not working that hard because they love it. If they’re doing what they’re strong and they love it. And as importantly there, if they’re doing what they love, they’re passionate about it. And with that passion, they have the ability to influence people because people want to be around people that are passionate. So it’s really important, guys, as you get into this, yes, you need to shore up some of your weaknesses, but don’t focus on weaknesses. Focus on strengths, hire, align, or partner for your weaknesses, and success is inevitable.

Mark
Yeah. For people that don’t know, maybe people that aren’t in IT, just people in general that have no real estate experience and have no idea where to start. Bharat, where do you think people should start in terms of maybe their education or where they should start learning? Just in general, people that have no idea where to go. Where do you think maybe they should get started, you know, learning this business or a particular topic even?

Bharat
I can relate to my own journey.

Mark
Yeah, please.

Bharat
I would say start slow, start slow. Be patient. Everyone has their journey at their own pace. Some go fast, some slow. Read as much as you can. There’s very good content online. Read books, attend meetups, attend seminars, and talk to experts in the industry. And learn as much as you can before getting out of the first deal. Don’t rush, don’t rush anything. And identify your skills and strengths early in your career, you know. And don’t get influenced by others, especially like the number of doors and all of that, which I think is not the right criteria. How much the property is appreciated and the value added to your investors is the important criteria, in my opinion.

Rod
Sure. Or the cash flow created. Sure. No question. You know, and the reason that we talk about doors a lot is because those other things take a good bit of work to quantify. But, you know, if you’re buying right and you buy an asset and you’ve got a certain number of doors, without question, you’ve got equity number one. And typically, as soon as those investors are paid back, you’re going to have cash flow at the very latest. But I agree with you completely. Unfortunately, it’s just the easiest, quickest way to measure what’s happening. And so what’s next for you, buddy? I mean, you joined the Warrior program. I know you likely made some incredible connections. Do you know where you’re going to buy or where you’re targeting next?

Bharat
Absolutely. I’m so glad that I joined the Warrior program. And these guys are passionate and committed people. They’re coming from all backgrounds and different parts of the country. My personal goal is to get into new markets. I’m looking in Ohio, I’m looking in Florida, and I’m actually also expanding in KC Metro.

Rod
Nice. Nice.

Bharat
Those are the markets I’m looking at right now.

Rod
Yeah. We’re in Ohio and Florida. Several markets in Ohio and Florida as well. Well, listen, guys, I know you’ve heard him mention the Warrior program. If you have an interest in applying to our Warrior program, text the word “crush” to “72345”. Again, text “crush” to “72345” to apply. And, you know, we look you over and you look us over. And if we feel it’s a fit and you do, then we’re off to the races. I will tell you, some pretty extraordinary things are happening in our environment. I get goosebumps when I think about it and I see what’s happening, like what we went through this last weekend, connecting and the success of my Warriors is just off the hook. I mean, it’s just incredible how well they’re doing.

Bharat
Yes.

Rod
But yeah, thank you. So, Bharat, you know, you mentioned service. I’m just curious, in your life, what you do to make the world a better place, and, you know, really what you’re passionate about outside of multifamily, you know. If that’s your family, if it’s philanthropic, whatever it is, I’d love to hear about that.

Bharat
There are a couple of things I’m very passionate. In recent years. I’ve been sharing and coaching about personal finance and the strong need for diversification. I talk about going beyond stocks and bonds into other asset classes, especially multifamily. I even started blogging about this in recent months. And talking about service, it has been an important part of my life since my early years. And I strongly believe that the privileged should support the less privileged. And as Tony says, that service is an important aspect of life, and how this can make it more fulfilling.

Rod
Sure.

Bharat
Personally, I’ve been focused on supporting education for underprivileged children. And I strongly believe that education is a great leveler. And if you provide quality education to an underprivileged children, it can make them successful and independent as compared to a life of poverty and dependency and others.

Rod
Oh, that’s fantastic. Are you doing it in India? Is that where your focus is or domestically or where are you doing it?

Bharat
Both here and as well as in India. And I’ve been part of a few philanthrophic and I’ve donated money to local communities, to social nonprofits here and as well as in India. This is my why, Rod. That’s my why.

Rod
That’s beautiful.

Bharat
And I’ve been a part of a social nonprofit called Vibha, which supports underprivileged children in the US and India. It’s a 30-year-old organization and it worked with more than 300 organizations and supported over three million children.

Rod
What is the name of that organization again? Could you say it and spell it, please?

Bharat
Sure. Vibha. It’s Vibha.

Rod
Okay.

Bharat
You can go to the website, “vibha.org”.

Rod
Thank you.

Rod
And personally, my role has been to bring sponsorships in the Bay Area, San Francisco Bay Area. I’m also part of the head of the running program, which prepares individuals for half marathons and full marathons. And I run a few half-marathons to raise money for the same cause. It’s been a great journey and very fulfilling.

Rod
I love that. You know, let me add to service. You know, when you live to serve, you are truly fulfilled. And those that serve end up becoming really some of the most successful people I’ve ever seen. We did a hall of fame for our Warriors in Denver. We’ll do it again in Orlando at our next live boot camp. And we picked ten Warriors that really were extraordinary. And we did a PowerPoint slide for each one of them when we gave them their awards. And every single one of them does something extraordinary like you do Bharat, you know. And one of them built schools in India, actually, Dinesh, I’m sure you met him at the Warrior event. And of course, Eric does all sorts of things for veterans’ suicide, veterans’ homelessness. You saw him at the event as well. And, you know, then people doing things for human trafficking and all these really important causes. And it’s just so rewarding to see because, guys, you know, what you give, you get back. And I tell the story of the epiphany that I had you know being totally focused on myself for 40 years and then running across Tony and finding out he fed families. And now we’ve fed over 130,000 children in the last few years. You know, Tony Robbins calls it the science of achievement versus the art of fulfillment.

Bharat
A fulfillment.

Rod
Achievements is science. I mean, if you pick your vehicle and you learn it, get the blueprint, get the map, like come to one of my boot camps, and that’s exactly what you’ll get, then you just have to go do it, right? That’s a science. There’s no secret sauce. You know, we teach you what to do. You just have to go do it. But fulfillment is an art. Okay? You’ve got to figure out what juices you. You know, for me, it’s children. Obviously, for you, Bharat, it’s children as well. Maybe for you listening, it’s the homeless or animals or the environment or the elderly, whatever it is, pick what that is and give back right now. And if you’re listening and you’re like, okay, well, you guys have money, you can do it, and you don’t have money, you can give of your time. Okay? And I’m going to tell you, when you do, the money comes faster. That’s just the way God of the universe works. Whatever you give, you get back. Do you agree with me, Bharat?

Bharat
Absolutely. Yeah. That’s exactly how the universe works.

Rod
That’s it.

Bharat
Give and serve others and the universe will reward you with it. More of [inaudible]

Rod
Yeah. I just did one of my own your power clips about connection. And, you know, one of the things I said in there is whatever you give, you get. If you want love, you give love. You want happiness, you give happiness. You want money, you give money or give of your time. It comes back a hundredfold. It’s just the way it works. Well, listen, my friend, I really appreciate you coming on the show. It’s a real treat to see you again this soon, right after the event. And, you know, I can’t wait to see where you’re at a year from now. We’re going to circle back to you and see what you’ve accomplished because I know it’ll be extraordinary. And you’re a real value– you know, really appreciate the value you’re going to bring to our Warrior group because of really where you’re coming from. And I think that’s a pretty pervasive mindset and approach that we see in our Warriors is coming at it from that service-based living to serve environment. So thank you for coming on.

Bharat
Absolutely. Thanks for having me. And I’m excited for the– what I’ll be accomplishing in the next year or two.

Rod
I’m excited for you. Mark, it’s good to see you, my friend, and we will talk soon.

Mark
Thanks, guys. Thanks, Bharat.

Outro
So one other quick thing. We encounter so many people that are, frankly, frustrated. They’re looking in the mirror and they’re frustrated that they haven’t been able to escape the rat race. They haven’t been able to build cash flow to the point where they’re able to have financial and time freedom with their families. And maybe they see other people buying real estate and creating incredible cash flow and they think well, it’s just scary. You know, buying apartments is intimidating. And I get it. See, that’s why we created our Warrior Mentorship Program. They’re our coaching students and they’ve had extraordinary results. My students, I’ve been teaching about five years and they own upwards of 140,000 units now that we know of, right? And we feel like it’s just getting going. Now, we’re looking to grow this group and really take it to the next level and honestly believe that the greatest transfer of wealth could be upon us right now with this current economic environment. Everything’s going on sale. So we’re looking for people who want to follow a proven framework, really like a blueprint or a map, literally step by step. And then they’re able to leverage our systems and our incredible network to raise money and equity to find deals and close those deals and build partnerships really nationwide. So if you’re interested in finding out more about how you can become more in our incredible network and take advantage of the unbelievable opportunities that are upon us, you can apply to my Warrior Mentorship Program by texting the word “CRUSH” to “72345”, or you can go to “MentorWithRod.com” and what we’ll do is we’ll set up a call so you can check us out and we can check you out and see if it’s a fit. Now, again, you can go to “MentorWithRod.com” or text the word “CRUSH” to “72345” to apply, and we will speak soon.