In this episode of the Alchemist Nation Real Estate Podcast, I talk to Real Estate Flipper Syed Khan who is one of my fastest, growing students of the mentorship that came earlier in the year and just exploded. I wanted to know how Syed got into real estate in the first place. He says that it all started back in 2011 though his real estate career started in 2016. He wants to take us a step back to when he graduated in 2011 and after, that he worked for a corporate company that is still employed with and it is a great company to work for. He started as an intern over there and then he was hired as a full-time internal auditor because they didn’t have an internal audit department. So it was essentially him and other people that had to start in that department and in the first year when he was hired, he and the other two people saved the company almost $ 10 to $ 15 million because they didn’t build the customers at that point. Towards the end of the year, he had his performance review because they did a phenomenal job and every year there is a performance review with his manager. He goes in that performance review thinking that he saved the company 15 million dollars, deserving some sort of decent pay raise. Out of the 15 million dollars, he had saved the company, he was raised from $ 37K a year to $ 40K a year. After getting such a raise of $ 3K for what he did for the company, he realized that something wasn’t right and he had to hustle and figure out something on his own otherwise he wasn’t going to be able to do what he wants to do in his life.
To listen to Syed Khan’s Alchemist Nation Real Estate Podcast on Anchor: #99 Burnt Down Fire House Real Estate Flipper Syed Khan Tells How He Started In This Niche
Syed further narrates that he lost his inventory of shoes from India to Amazon and it was one of the snowstorms in the basement where he was watching tv and he was on his laptop where he stumbled upon bigger pockets’ Brandon Turner with his free webinar and Brandon was like you can start flipping with other people’s money. He didn’t know what it really meant because he had been doing all his businesses with his own money, all the salaries that he has been getting were being invested in his own businesses. Initially, he thought you needed thousands of dollars to get started in real estate but that wasn’t true. Yes, you need money but it doesn’t have to be necessary for your money. He built a lot of credibility from his friends and family, and they knew who really he was, worked very hard, and was passionate about what he does. He did his first deal with his partner Muhammed and at the time of doing it, he had $ 4K and his partner $ 13K in their bank accounts, then they raised another $ 20K from a good friend of his that he went to college with. He then started calling different banks to fund the deal that he actually found on bigger pockets. His first deal was on bigger pockets which was also an off-market deal. Every single lender said no, every bank said no and they kept telling him that he had no experience and he told them that if they don’t give him a chance, how was he going to get the experience they needed. He finally went to a builder friend of his in Worcester where he called the bank that he has been actually working with for the last 10 years and he was like he would step in if anything hadn’t gone right with the project. This is where it all started with him and his partner Muhammad working a full-time job working in the same company and they used to come back home, change and do the whole thing. He didn’t know what they were supposed to do in terms of general contractors, sub-contractors because he just wanted to do the project. He was like he wanted to buy a project and that was the only way to do it meaning that he had to do the work by himself because the people he had been networking with are what they have been doing.
One of the unique things about Syed is that he specializes in a really difficult type of property which is burnt down houses. I wanted to know how he got involved and what is the reason that he still does them. He says that it was actually a fluke because he wanted to take a property down that was completely burned in Worcester and he knew that he could put a triplex on it. He ended by buying it $ 50,000 with his own cash and when he went to the building department, zoning department and they told him that he could put 3 units as longs he could improve the road. He loves them because it is pretty much a brand new property for something you picked up so cheaply because no one wants such properties.
Syed offers 3 pieces of advice to 20-year-old Syed on how to get where he is faster, happier, and wealthier.
1) – Start earning money from whatever it is and invest that money
2) – Start something.
3) – Take care of your family and have respect for it because they will be there for you.
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