In this interview, I have a conversation with a pharmacist who ventured into real estate coaching where we discuss how he got into real estate coaching in the first place. He says that when he was a pharmacist, he started buying properties on the site like single families, three-unit and he built a little portfolio on the side and he started creating passive income which was his goal. His eventual goal was to have enough passive income to quit pharmacy then he said to himself that it was comfortable thinking to wait till you have something and then do the jump. It wasn’t really going to work out for him, then he jumped into the apartment syndication and started raising more money, he has done flips, luxury ground-up developments around Boston, and what happened in doing all this, he met his mentor, his coach, and went to self-development world with Tony Robbins. He met with Wim Hof to climb the mountain in 20 Degrees Fahrenheit, meditation retreats, and his goal of doing this initially was to get better at real estate because he knew from day one that the information is out there but why are some people successful and others are not. He realized that he loves that way too much and as much as he enjoyed real estate, he also enjoyed the coaching aspect from which he took some formal training from Tony Robbins organization, then working with his coach, and the experiences he combined all that stuff together and he slowly transitioned into coaching.
To listen to Ketan Patel’s Alchemist Nation Real Estate Podcast on Anchor: #74 Alchemist Nation Real Estate Podcast – Raising 10 Million Dollars With Ketan Patel
I ask Ketan what was his first real estate big deal, where was it and how did it look like. He says that with his partners he knew that he was more focused on raising capital, building relationships with investors because he also realized that before he started syndication, he had a breakthrough moment that it doesn’t matter if you’re trying to flip properties or buy commercial properties or buy rental portfolios, all real estate gets bottlenecked by capital at the end of the day. There so much you could invest, even if you invest $50K of saving every year worth of saving every year, what’s gonna happen is that you have to wait every year. He knew that he had to get that part figure out and he loved educating investors, so he started with that pitch and approached the right partners that were good at finding and underwriting the apartment complex and they were doing the heavy lighting on that side, so he didn’t have to worry about it. So his first deal was back in 2017 which was a 230/240 unit deal in Dallas-Fort Worth Metropolitan Area.
I tell him that syndication is a great way to raise capital, a great way to scale if you’re looking to get a lot of units, a lot of property, have a huge impact, so I ask him how many people are in his general partnership, what percentages stay with general partners and what percentages are sold out to investors. He says that in terms of general partners with others, it is 10 – 14 percent but it depends on how they have structured it because he doesn’t want to be locked down to a particular deal like he doesn’t need to be part of every deal if he doesn’t like it for some reason or he likes traveling a lot. He wants that freedom and not to be locked down to something. As further as the investor split goes, they do a 70 30 up to a certain Internal Rate of Return (IRR) and 50 50.
I further ask Ketan where he sees himself in the next 2 or 3 years with Covid-19 going away or if it remains, how does he see himself operating. In terms of capital raising business, all the sponsors are adjusting their underwriting and he is studying it every carefully and he is doing it very cautiously because he has no need to really raise since he has a rental portfolio and a passive income falling through which he is grateful for that puts him in a great position not to actively do the deals to run the business,. On the coaching side of it, he is developing proprietary programs and tools for real estate entrepreneurs because they realized that so much of the mindset gets into the way, the fear, the limiting belief, not having the clarity, not having the strategy that is good for you and your business and your strength, those are the things that really excite him and that is where he has been putting more focus, putting together a book, then working on some stage assignments and speaking engagements.
Ketan offers 3 pieces of advice to younger Ketan on how to succeed.
1) – Where you need to be, you need to be there with a crowd. If I wanted to be here, I should have started hanging out with real estate millionaires.
2) – Take bigger and bigger risks because he shouldn’t have waited to make all those jumps.
3) – For those interested in real estate should be committed for results to be bigger.
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