Ep #723

Starting Multifamily From Nothing

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Anchal & his wife Shruti Dwivedi have been doing real estate investment while working full-time jobs and raising two kids.

Anchal did his post-graduation in Electronics from IIT New Delhi and joined an IT job as a Software Engineer and was promoted to various roles in the corporate ladder in Fortune 500 Investment banking companies in 25 years of his experience.

Shruti did her post-graduation from the University of Denver in Computer Science and worked as a Sr. Product Manager in a healthcare company.

Here’s some of the topics we covered:

  • Getting Over The Random Hurdles
  • The 2022 Recession
  • Getting The Correct People On Your Team
  • Deciding What You Want and Going To Get After it

To find out more about partnering or investing in a multifamily deal: Text Partner to 72345 or email Partner@RodKhleif.com

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Full Transcript Below

Rod
Hi. My name is Rod Khleif, and I’m the host of “The Lifetime Cash Flow Through Real Estate Investing” podcast. And every week, I interview Multifamily Rock Stars, and we talk about how they built incredible wealth for themselves and their families through multifamily properties. So hit the “Like” and “Subscribe” buttons to 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 know, this is where we interview people that are just flat out crushing it in this business. And we show you guys the inside scoop into how multifamily investors are creating massive success in their businesses and, of course, in their lives. And as always, I’ve got my co-host, who’s the director of our massive action team for my Warrior Coaching Program, mentorship program. Mark Nagy on the call. Mark, what’s up, brother?

Mark
Well, I’m always excited to see some familiar faces, a little under two years later, and I think this is going to be a good episode on just how much they’ve actually done in less than two years.

Rod
Pretty astounding. Yeah. Pretty astounding.

Mark
Yes.

Rod
I was just looking at them, I’m like, holy cow. We got Anchal and Shruti Dwivedi on today who are just beautiful people, period. But they joined the Warrior program– well, I’ll have them tell you that. I don’t remember, actually, but I think it’s only a couple of years ago, and they’re in 2300 doors as limited partners. They’re general partners and joint venture partners in 569, they’ve got another 379, most of them being developed a 92 key short-term rental hotels. I’m not even sure where to start with you guys. Welcome to the show, guys.

Anchal
Thank you so much, Rod. And we are a big fan of your podcast, and we are glad to be here.

Rod
Thank you. So why don’t you take a moment and just give us a little background on your real estate journey, you know, when you’ve really started doing real estate, and then, I think–okay, I see it on your notes here. You joined the Warrior program in June of 2020. So, it’s literally just right over a month over two years. So, talk about your real estate journey. Let me have you tell us.

Anchal
Sure, Rod. So I did my post-graduation in electronics from IIT Delhi, which is one of the most renowned colleges in India, and joined as a software engineer, IT job and was promoted to various roles on the corporate ladder in Fortune 500 companies. And I have 25 years of experience in this. We have two teenage daughters, Anika and Myra, who are actively involved in sports. We are the founder and partner of Goldstone Capital Ventures. We started single-family real estate investment in 2013 and have been passively investing in commercial assets since 2017. I started listening to your podcast in 2019, and we made up our minds to jump into real estate right after that. We joined the Warrior program in June of 2020, right at the start of the Covid 19. That helped us a lot because we got a lot of time to commute and we were able to set up our business that way. In the last two years, we have invested in over 2300 doors as a limited partner in seven different deals. We are currently a general partner and joint venture in 569 doors and have 379 units in progress. That includes 184 units, new construction apartment projects in North Carolina, and 90 plus key short-term rental hotels in Virginia. Our primary focus is North Carolina, Virginia, Florida, and Texas. Other than multifamily, we love doing triathlons and we have done several Iron Man races.

Rod
Wow.

Anchal
We also enjoy traveling with kids and giving back to the community.

Rod
That’s beautiful. That’s beautiful. And I know, you know, it’s a theme in our Warriors of people giving back and doing charitable work and you guys are no exception, which is just fantastic. Now, when you joined our program, what were you looking for? I mean you’ve done a little single-family, is that right? Just a little bit–

Anchal
Yes.

Rod
Yeah. Okay.

Anchal
Yes. So we have been investing in stocks for quite some time now, but we found out that stocks and ETFs they fluctuate wildly during the day. Once you invest in it, you have to pay attention to how the market is going up and down. You will not enjoy the gains until you sell the stock at a profit. The dividend, if there is any, is very, very less compared to the cash flow that we get in multifamily investment. Then we slowly started investing in single-family and found out it’s a good investment but it’s not scalable. Then after listening to your podcast we joined the Warrior program and then we started investing in multifamily. You know, we found out the cash flow is one of the big parts of it. We can get cash flow started a month after acquisition, leveraging, cash out, refinance, and forced appreciation. With all these measures you can get a massive return on real estate.

Rod
Yeah.

Anchal
So, while we were going through your modules in the Warrior program and also going through the 90 days action plan with our coach at that time, we thought the best way to get started is to invest as an LP. That way looking at underwriting and investor presentation, we have learned a lot about how these are structured and presented. In our very first deal, how we entered is we actually brought the at-risk money on the table and that way we became a GP and that gave us a very good insight on the deal, how it is structured and underwritten.

Rod
Yeah.

Shruti
And just to add to what just Anchal said, I think the Warrior program was the best decision to do it. Just because the way you have the processes set up like you know, and the way that you guys provide the help at every step is just phenomenal, you know.

Rod
Oh, thank you.

Shruti
You just never think that you are alone during this journey. You have this huge army behind you who is supporting you. And you know, so like that was the best thing. So, truly enjoyed the Warrior program.

Rod
Oh, thank you for that. So did you do these deals with other Warriors or outside– was it mostly with other warriors? Some outside would just tell me. I’m just curious.

Anchal
Yeah. The majority of deals are with Warriors.

Rod
Okay.

Anchal
There are a few deals outside Warriors as well.

Rod
Sure. Sure.

Mark
Just for you two guys, how did you guys decide as a couple what role each of you should play as, you know, husband and wife in the whole multifamily business?

Rod
Good question.

Mark
How do you guys figure that out?

Rod
Good question.

Shruti
So I think people are looking for like complementary skills, right? Like, you know, just everybody has some skills to offer. So I have been very extroverted all the time. I’m good in the relationship and talking. And Anchal is very analytical. Right? He’s very financial. So we just kind of team-up that way, you know. So I’m always making the, you know, broken relationship, talking to people for the raising money and things like that. And while he’s doing, you know, a lot, like dive in into the underwriting and finance and all that, so yeah, this is how we made up, you know. We decided to go.

Rod
Nice. Nice. Now, you probably knew that immediately going in. Have things evolved at all since you’ve started doing some deals?

Anchal
Yeah, when we started we were all wearing multiple hats. Right. So from underwriting to capital raising, asset management, everything. But as our focus is wide and what we have looked at is, you know, how to specialize in certain areas. So Warrior program always helped me. Like Shruti said I am an introvert, basically. So Warrior– the high-performance coaching and all these coachings that you have offered gave me a very good exposure to public speaking, how to talk to people, and be open in that regard. Right?

Rod
Which is hard. That was hard for me too. So that helped with that. That’s awesome, man. And I’m so pleased to hear that because that’s very hard. Sorry, I cut you off. Please finish your thought. I’m sorry.

Anchal
No, that’s fine. So, on the other hand, I mean, my introvert trait actually always helped me to make deeper connections one on one. So, when I talk to investors or brokers, or property managers, I can make a deeper connection, and that way they’ll remember me. That’s the [inaudible]

Rod
That’s the big plus with being introverted is you listen better. You’re actively listening, and you’re not thinking about– like me as an extrovert, think about what I’m going to say in the next sent– while you’re trying to get your point across, which is just one of my biggest failings in life. Well, that’s awesome. Now, you guys have your two teenagers, you still have your full-time jobs, and you still have this incredible real estate machine going. Yes?

Shruti
Yes.

Rod
It’s fantastic. So how do you manage the time so that you still have time– I mean, I see your posts on social media, you spend a lot of time doing your freaking running or your Iron Man stuff, which is incredible, and spend a lot of time together. I see the vacations. How do you manage all that?

Anchal
Well, time management is one aspect that, you know, we always try to master it and we actually block time for each and everything. So for my W-2, I have most of my team in Europe, so I finished a lot of my W-2 work in the morning while working in their time zone and then keeping time aside in the afternoon for multifamily where, you know, Shruti help with a lot of activities, you know, with kids and, you know, raising the kids is very, very difficult. Right? So, she did a lot of other things and helped me with that. Yeah.

Shruti
Yeah, I think– and just to add, you know, like the priorities, right? Like, every day is different, so your priorities for every day should be different for you. And you have to have a balance in your life. You know, you cannot just be focused on one thing. Family is important, as your future is important, as your present is important. So you have to have a good balance in your life, you know, so you can enjoy every–

Rod
Relationship with each other, relationship with your kids, all of that. Yeah, love it.

Shruti
Absolutely.

Rod
Everything. Yeah.

Mark
I’m a big believer in that as well. Right? And you guys talk about the triathlons. I want to sidebar into that for a second because I’m a huge believer that when you’re healthy and your body is right and everything else is right, your mind is also right and you do well in every aspect of your life. How do you guys think that mindset and the whole health and fitness, how do you think that’s impacted all these other areas in your life and your business?

Shruti
I think that plays a huge role. I mean, being healthy plays a huge role, you know. As they say, like, in a healthy body, a healthy mind. It definitely gives you lots of energy and a clear thought process. And doing these races and challenging yourself, you know, to just do something extraordinary, it just, you know, infuse this motivation in you. And all these things just keep us very grounded, you know. It doesn’t matter, like, what success we achieve we are still grounded. And I would say to anybody, like, health is the top most thing, you know. People should be very, you know, focusing or like finding time to be healthy and, you know, while you achieving your dreams.

Rod
I’ve been hitting it really hard, getting ready for the boot camp, you know because it’s brutal for me for three days. But I started this Keto thing, which I’m proud to say, I’ve lost 7lbs already, just in like a week and a half. Couldn’t believe it. And I feel great. So I’m really kind of impressed by the whole concept of this Keto thing. Well, let me ask you this, guys, as you were getting into the business, did you have any epiphanies? Any like, aha, okay, now I get it. Any moments like that? I’m sure you had several but anything come to mind when I asked the question.

Anchal
Yeah, we have looked at the syndication portal and, you know, there are a lot of reports it generates. And I found out that, you know, we have raised close to six million in our last few deals in North Carolina, which was really amazing because coming from that background where we didn’t know anything about multifamily in last two years. And looking at that makes us feel so good about how much we have learned from this program and where we came. It’s very, very–

Rod
So, you were surprised by your ability to raise a big chunk of money like that. Is that what I’m hearing? I just want to make sure I’m hearing what you’re saying.

Anchal
Exactly. Yeah, exactly.

Rod
Okay.

Anchal
I mean, at the start of the program, we had no idea that we could even raise 50K.

Rod
Right. Right. No, that’s awesome. That’s absolutely awesome. By the way, guys, those of you listening, if you have an interest in our Warrior program, you know, just apply. All you do is text the word “crush” to “72345” and we’ll set up a call. And I promise you, you’ll leave that call better than you went on it, whether we work together or not. But that’s what you do. That’s how you apply. You just text the word “crush” to “72345”. So let me ask you another question here, guys. Did you have any setbacks? You know, I call them seminars. I won’t ask specifically if you had any failures, but do you have any setbacks that happened in this journey like we all do and what did you learn or gain from that experience?

Anchal
So we have not been in business long enough to witness everything, you know.

Rod
Okay. Of course.

Anchal
But every deal we have done is near and dear to us and with every deal, there is a problem that comes every now and then. Every day we wake up, there are problems. As long as you are a good problem solver every day, I think that’s good. Our main aim is to preserve our investors’ money and then grow it.

Rod
Yeah, for sure.

Mark
While we’re talking about negative things or problems, I guess while we’re here, let’s talk about a potential recession. Right? I want to bring it up. I know everybody’s thinking about it and so, you know, I think we want to talk about it. I don’t know if anything’s changed for you guys, but what advice would you give to the listeners that are maybe afraid of that word or afraid of the recession that, you know, appears to be coming up here in the housing market?

Anchal
Yeah. There are always opportunities and this is going to bring us a lot of deals in the market. And Rod says, you know, there’ll be a lot of deals. So this is the right time to get into the market. And again, this is a team sport, you cannot play solo, find a team, or leverage their experience. You know, use the word we. You know, whenever you talk to brokers, property managers, or lenders, use the word we. We have, you know, these many deals, we have closed these many loans. Also, you’ll get a huge lift when you have a mentor and coach. They have done it several times. They can tell you where you can go wrong. What’s the best way to do this and invest as an LP if you’re not ready for GP.

Rod
Yeah.

Anchal
But I think this is the right time to get into multifamily.

Rod
I couldn’t agree more. Opportunity is knocking and the worse the recession is, the more opportunity will be there. And so, I couldn’t agree more. So, you know, you guys are both leaders, and what is a characteristic that you believe every leader should possess?

Shruti
I would say more listening, definitely, you know. Always going with the team’s decision. It’s just not about one person.

Rod
Yeah.

Shruti
So, some of the, you know, and this is where it comes and always looking ahead in the game, you know, not just present. So this is what leaders do. You have to believe in yourself, you have to believe in the team and you have to go with the team decision and always looking for, you know, further. You know, like in a life, like how this is going to play, you know, certain things. Yes. that’s all [inaudible]

Rod
Anchal, anything else?

Anchal
And building the right team is everything. I mean, you have to have all team members as motivated team members. If they have a complementary skill set, they can help each other. I would recommend they know every segment of the syndication whether acquisition or asset management or capital raising, although they’ll be specialized in doing only one part of the work. As an introvert, you know, and a leader, what I believe is, you know, bringing everybody’s best in front of others. That’s the main thing.

Rod
Bringing everyone. Yeah, see, and what you just said is so critical because if everyone on the team is doing their best, obviously because you guys– you’ve agreed on a mission, you’ve agreed on a goal and you’ve set a plan for that. But if everybody’s playing to their strengths, first of all, everybody’s happy. They’re doing what they enjoy because that’s what they’re strong in, you know, and they’ll be passionate about it so they’ll be able to influence people. And you never work another day in your life because again, you’re doing what you enjoy, and boy, when you get that kind of a team put together, success is just a foregone conclusion. So, love it. Love it.

Mark
I want to throw in one more thing on that as well, just because I was– and I’ll give a little life hack tip for the listeners also here, a good part of being a leader is making sure that people can express problems and things that they have issues with rather than in an environment where they’re just yes men and they say yes to everything. You want to create an environment where people can say, oh, I have a problem here, I have a problem there. The only reason I bring that up is because great YouTube channel, a quick little life hack called “Productivity Game”. I don’t know if either of you guys have heard of this, but what they do is they take books, they read the entire book and they do like a ten-minute YouTube video summarizing the entire book.

Rod
Book summary. Love it.

Mark
Yeah. So you consume knowledge so much faster. And that’s one thing I got from that book.

Rod
I like it. That’s smart they did it on YouTube. I know they’ve had, you know, written versions of that which are very powerful, but that’s awesome.

Mark
Well, they also have that if you want to download PDFs, I think you can download a PDF from the channel as well if you subscribe. But anyways, I know you guys mentioned the whole LP thing. You obviously talked about single-family that you guys had done before. If you were to go back before you had done any real estate, knowing what you know now, would you change anything? Would you still start with single, do an LP, then do GP? Would you go straight into GP? What would you change, if anything on that journey if you could go back?

Anchal
Well, I always wish, and I tell the truth is, is that, you know, I wish I would have started this very early in my life and that’s the regret I have. I would have gone doing much bigger deals from the onset. If I didn’t have work W-2, I would have done it on a totally different level.

Rod
And you’d be able to bring Rod on your jet when you go places, you know, and all that. So, what’s the why that’s driving all these guys? What is the why that’s driving all this? I mean, I think I know, but I’d like to hear you say it.

Shruti
Sure. I think it’s more like, you know, those close people, family. So it’s ultimately for kids, it’s for their better life and also for us is the time freedom. Right?

Rod
Yeah.

Shruti
Real estate doesn’t mean that you’re going to work less, probably going to work more than what you do in W-2.

Rod
Right.

Shruti
But hey, you are the one who decides when. So, it’s the time freedom, you know, and that’s what I think the main nugget that I’m chasing, you know, for and financial freedom, you know, and all those things. Do you want to add anything?

Anchal
Yeah, so we have fitness goals, we have business goals, we have life goals. We would like to do more and more races and for that, we need more time. You know, we need to go [inaudible]

Rod
Training. Training takes time.

Shruti
Yes, it does, a lot.

Anchal
Training takes a lot of time, yeah. And we want to go and see the entire world and that will take also time. Right? And the business goal, we need to move this business, you know, forward. So all these things we can only achieve by having a time freedom. So that’s our main motive, to have a time freedom.

Rod
Love it. Love it.

Anchal
Not like nine to five every day.

Rod
So if you were to talk to the people that are listening or watching, that have not taken action on their dreams yet, that have not– you know, that know they want to do this business but they haven’t pulled the trigger on anything, what might you say to them?

Anchal
I would say the best thing is to go and get a mentor and coach. That will give a huge lift and you can do it ten times much, much faster. They have done it several times, you know, the coaches have done it several times, they can tell you what can go wrong, what’s the best way to do it. Learning is only a part of it, but also the mindset is very, very important and that’s what you teach Rod in your program. And that has given us so much lift in our business and that helped us really in a big way.

Rod
Oh, thank you.

Anchal
And then other things I would say is to network and connect with as many people as you can. Go to conferences, meet up, you never know who you’re going to do deals with.

Rod
Yeah. Anything to add, Shruti?

Shruti
Yeah, just saying like you know, people are just sometimes afraid or they underestimate their ability. So, you know, they have to believe in themselves and they have to start somewhere, you know. There is no perfect day, there is no perfect deal. You have to start somewhere, you know. And that’s where you’re going to take action. And that’s an action you need to do, you know. And you will be closing the deals very soon.

Rod
Yeah, well, listen, it’s a treat to see you guys. I’ll see you again here next weekend. Really excited about that and great to see your smiling faces. And I had no idea that you had taken this as far as you had. I’m super proud of you and impressed. So, wonderful to have you on adding value. And we’ll see you soon.

Shruti
Thank you so much, Rod. And we are truly honored to be on your podcast. So thank you so much. Thank you, Mark.

Anchal
Thank you, Rod, and thank you, Mark.

Mark
Thank you, guys.

Rod
Bye.

Outro
Rod, I know a lot of our listeners are wanting to take their multifamily investing business to the next level. Now, I know you’ve been hard at work helping our Warrior students do just that using our “ACT’ methodology, which is Awareness, Close, and Transform. Can you explain to the listeners how they can get our help?

Rod
You bet. Guys, we’ve been going non-stop for three years building an amazing community of like-minded people, and our coaching students which we call our Warriors, have had extraordinary results. They’ve purchased thousands and thousands of units, and last year we did over 1000 units with our students. And we’re looking to grow this group and take it to the next level. We’re looking for people who want to follow a proven framework that’s really step by step and then leverage our systems and network to raise equity, to find and close deals, and to build partnerships nationwide. Now, our Warrior community is finding success in any market cycle. So if you’re interested in finding out more about how you can become more of our incredible network and take advantage of the incredible opportunities that are coming very soon, apply to work with us at “MentorWithRod.com” or text “CRUSH” to “72345” and we’ll set up a call so you can check us out and we can check you out. That’s “MentorWithRod.com” or text “CRUSH” to “72345′.

 

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