WealthGenius Podcast
WealthGenius Podcast
From Riches to Rags to Riches: Unlocking Real Estate Success and Creating a Multi-Million Dollar Portfolio
Meet Ishan and Sid, two experienced real estate investors, who initially came to Canada in 2013 with an interesting background of Riches to Rags to Riches story emphasizing that the journey is more important than the destination having seen a lot.
Sid currently is currently a coach with Wealth Genius! They initially started their journey in real estate with $20,000 in their RRSP and have currently grown their portfolio to multi-millions of dollars portfolio. The most current stint was converting a 5-unit building to an 8-unit building by buying the prospect with creative financing with none of their own money and completing a Full BRRRR increasing the value of the building from 800k to 3 million dollars! Owning the building for FREE!
Their track record of success, coupled with their work ethic and strategic mindset positions them as reliable partners for anyone seeking collaboration in the real estate market.
Ishan and Sid’s curiosity to learn and invest in mentorships and networking makes them valuable assets to any investment endeavor. So, sit back, enjoy the show, and make sure to connect with them!
Instagram :
Ishan.khobare - https://www.instagram.com/ishan.khobare/
Kidyounot_Sid - https://www.instagram.com/kidyounot_sid/
Khobare.capital - https://www.instagram.com/khobare.capital/
Facebook :
Ishan Khobare - https://www.facebook.com/ishan.k.22
Siddharth Khobare - https://www.facebook.com/siddharth.khobare
Youtube :
Khobare Capital - Youtube - Khobare Capital
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SPEAKERS
Ishan Khobare, Carl Richards, Alfonso Cuadra, Sid Khobare
Alfonso Cuadra 00:05
Welcome to The WealthGenius Podcast! The WealthGenius Podcast: strategies for multifamily real estate investing, mindset, community success. The WealthGenius Podcast with your host, The Godfather of Real Estate, Alfonso Cuadra, who has expansive experience in business and massive success as a real estate investor, The WealthGenius Podcast. Let's dive in to today's episode.
Ishan Khobare 00:32
Ready to roll? Ishan & Sid, the brothers. My brothers from another mother. Everyone's here, the gang is here, the team is here. We got the little godfather. We got you guys. Thank you for coming.
Ishan Khobare 00:49
The pleasure is all ours.
Alfonso Cuadra 00:50
I mean, you guys are inspirational people. I watch you guys online. You've done so many things. By the way, let's start with online. Like, how did you start building this presence? Like, I see that- when I meet people, they're like, "Oh, I've been watching Sid and Ishan online. I don't know if it's specificly Instagram or where's the biggest audience following from?
Ishan Khobare 01:12
I believe it's Instagram. Yeah, that's where our generation got more attracted to us. So Instagram it is. Yeah. When I started my real estate journey, it was more about documenting and helping others also because I was in good graces of someone else who was guiding me. So he was like, "make a two minute intro video and introduce yourself." I practiced that 10 times. 10 times!
Sid Khobare 01:37
I was really bad I practiced 100 times. He's like, "Dude, it's been two hours. What are you doing?" I've got to get it in one shot! So scared!
Ishan Khobare 01:45
So, so that's why we just started-
Alfonso Cuadra 01:47
But you guys seem like naturals. It's inspiring. And I know a lot of people are following you. So you guys are leaders even within your own community. Right. And you know, it looks like you you're naturals. We wouldn't know that. You know? So let's, let's start where you are right now. So, portfolio. What do you got going on? What is the real estate look like for you guys?
Sid Khobare 02:07
I think we are at 15 units. $5 million portfolio size. Right now we are hunting for our next big multifamily deal.
Alfonso Cuadra 02:15
Yeah.
Sid Khobare 02:16
That's what we are looking for. And we are looking big multifamily.
Alfonso Cuadra 02:19
And how did you get involved with real estate? Like you got $5 million in real estate, like, is that what you wanted to do? We've had this conversation before. You guys came from India? Like, is that what you wanted to do when you were a kid? Like how did this passion for real estate, where did that come from?
Sid Khobare 02:35
Yeah, I think like when we, when we were born, we're like multimillionaires, we had like three cars, five maids, four drivers, like life was good. And then from that, we went to like nothing like-
Alfonso Cuadra 02:46
Wow!
Sid Khobare 02:46
It's like Christmas and I'm like, "Hey, can I get a present? but hey we don't have money to eat food.
Alfonso Cuadra 02:52
Wow!
Sid Khobare 02:53
So when you see that contrast, and it's easy to go from broke to rich, but it's very tough to go from rich to broke. And that kind of set the fire in us that there is no other purpose in life than to be successful.
Alfonso Cuadra 03:08
Really interesting story. Because people usually have rags to riches story. You know, they don't have riches to rags story, right? It's kind of interesting, because you actually had a taste, you had a taste of what wealth was. And it was taken away from you. I grew up, you know, broke all my life. I can't compare. I thought it's like my life was normal. Right? So that's pretty interesting.
Sid Khobare 03:33
Yeah and just to add to that, this really helped us because when people start making money, they lose it. And they're like spending on all sorts of wild stuff that they don't really need. And they get carried away. For us, it was like, "Okay, we're just back to where we were."
Sid Khobare 03:49
But now the bar is higher, the goal is higher. That $1 value is not success for me, where I want to be the person I want to become, person that we want to become is success.
Alfonso Cuadra 03:49
Yeah.
Alfonso Cuadra 04:01
Wow. And so you guys are in India, and how did you even come up with this idea to come to Canada.
Sid Khobare 04:09
So we knew that we needed to go abroad, to be able to be that person that can make change in our families, and multiple people's life. And we knew we wanted to go abroad, we needed to go abroad. So my mother, she had this one property, a single mother, she had this one property by herself. She leveraged that house to send Ishan abroad and then eight months later, she leveraged the same property to send me abroad. So-
Ishan Khobare 04:39
Two times!
Sid Khobare 04:40
Yes so-
Ishan Khobare 04:40
Same property two times!
Alfonso Cuadra 04:42
Wow!
Sid Khobare 04:43
And now here we are, we're like okay, we have only the certain amount of money to study and to get our stuff done and there is no chance of failure so when your backed against the wall, this is like rocket fuel. There's only one way up. So we hustled hard we got got education and got our master's in computer science and electronics and then came to Toronto got a really good IT job, got our permanent residency and paid off all the debt back home and the mom's home is free. And then we were like wow *exhale*
Alfonso Cuadra 05:17
How many years was this?
Ishan Khobare 05:19
I came in 2013, December.
Alfonso Cuadra 05:21
And what did you have your bags? Like, December like did you even have a coat at this point?
Ishan Khobare 05:25
Nothing, nothing. So, so there's a there's a company called Woodland in India. That is like the go-to coats and all that. When I got here, my friend tells me "Brother this is not gonna fly over here." Okay, now do I spend the money which I don't have buying some fancy Canada Goose? I go to valley village buy this Addidas jacket for $8 I still remember that. And I was like, "Bro this is heaven. You get things for cheap over here I can survive! Like cool. Okay, I can buy stuff over here."
Alfonso Cuadra 05:52
Yeah.
Ishan Khobare 05:53
So yeah, that's when we got to Canada. 2013 completed Master's in a year and a half or so. 2015-ish, I started a job. And he started a job in 2016-ish.
Sid Khobare 06:02
Once we were done with all the debts we were like, for the first time in our life because like even back home after 10th grade, we never stayed at home. So we are always you know, out in the wild finding our way there is no comfort. You're out of the cocoon. There is no concept of cocoon. So for the first time-
Ishan Khobare 06:17
Yes, so yes. This is very important what he's trying to emphasize here. Comfort. We have not had that kind of comfort. There's always a tingling feeling under the seat, like there's always something on the go. What's next? What's next? What's next? There's no comfort. So once we got comfortable.
Sid Khobare 06:33
That was the first time when we have like really good paying IT jobs. All our debts are clear.
Alfonso Cuadra 06:39
Life is good!
Sid Khobare 06:40
Life is good. And like I don't know, why does this feel so different.
Ishan Khobare 06:44
Yeah!
Sid Khobare 06:45
My brother goes like, "Yo, let's go do a Euro trip." And that was the first time we traveled in our life. Like, and we went to Euro we blew 20 grand and 20 grand in two weeks.
Sid Khobare 06:56
40k.
Alfonso Cuadra 06:56
40k?
Ishan Khobare 06:57
40K.
Sid Khobare 06:57
In two weeks.
Alfonso Cuadra 06:57
Okay, where did you go?
Sid Khobare 07:00
Like we went like six, seven countries in Euro like in two weeks-
Alfonso Cuadra 07:03
Okay, so you traveled around?
Ishan Khobare 07:04
Yes.
Alfonso Cuadra 07:05
Yeah, I can see that. Yeah, you got Hotels. Yeah, yeah.
Ishan Khobare 07:08
Fancy, fancy. There's this music festival. For all the dance lovers electro dance music festival in Belgium; Tomorrowland. People from 92 countries come together. 200,000 people in unison dancing together. That was my dream in 2010. Watching this video, and here we are in 2019 doing that. But that was also not the trigger point. The trigger point was when we were flying back from Barcelona to Toronto, the flight is seven to nine hours.
Alfonso Cuadra 07:35
So hold on a second.
Ishan Khobare 07:36
Yes.
Alfonso Cuadra 07:37
You've gone through these festivals. You've gone to all of these countries, you've had this amazing trip. And then you're flying back home.
Ishan Khobare 07:44
Yes, Lisbon, Amsterdam, Brussels, Barcelona one week, and then flying back from Barcelona. Seven hours, there was not a dull moment in seven hours. I was constantly talking, like one of your bootcamp sessions with him, and there's the aisle seat. And I'm just telling him this is not fair. This is not fair. At the time of my life. Two weeks gone. Money gone. I didn't even get to see my parents. Like what, like, come on.
Sid Khobare 08:10
So I gotta do something to make this good job. After taxes, you don't have anything. And then you just get two weeks of vacation a year. And any and every saving that you have, you're going to blow it to go on a vacation. And that also you have to make a conscious decision. Are you going to go back home and see your parents after so many years? Or are you going to go and actually explore the world. And when you come back, you're broken. You're like, that was life. This is not life. And we realize like, wow, I am literally living the dream of my parents where they are like, you have a six figure job. You're working in Microsoft, this, that, jazz and you're so successful. And I'm like, "No. Like, I don't feel successful."
Alfonso Cuadra 08:51
I can't even go to Europe for two weeks.
Sid Khobare 08:52
Yeah, yeah.
Alfonso Cuadra 08:53
Yeah.
Ishan Khobare 08:54
Yeah. If I go there, then I'm like-
Sid Khobare 08:56
Come home, broke. Thats the worst part.
Alfonso Cuadra 09:00
Yeah, yeah.
Ishan Khobare 09:01
That kind of triggered us like we got to find a way. Now suddenly, the tingling sensation under the seat started coming up. Okay, we got to find something now.
Alfonso Cuadra 09:09
So what was the first thing that you did?
Ishan Khobare 09:11
I stopped going to any parties after that. After Friday, I came back home after office. I look forward to sleeping waking up on a Saturday morning, going to the gym, setting my mind tone right, going to a park or something, taking a book with a bedspread. And just like have some water or something and just read a book. Early Retirement Extreme. You try to read that book. You don't understand shit in the first time. Excuse my language. Sorry about that. But just like the curiosity to learn these things, going to events to boot camps, suiting up on a Sunday morning. And I'm like, "I don't know what's gonna go on. But I know this one dude in real estate or this one lady who I look up to. She's over there. She's coming all the way from Windsor, Hamilton, Ottawa to Toronto. I gotta be there." And I go there. And just like soak in.
Alfonso Cuadra 10:01
So, so you're going to real estate events, and what are you doing?
Sid Khobare 10:05
I'm still partying.
Alfonso Cuadra 10:09
So he's upset that he came back from Europe, he's got no money. And he's like, I'm never doing this again, I'll wait til like, I can come do it like and have the money, but you're like, "No, I'm gonna keep going."
Sid Khobare 10:20
I'm like, "I like your idea. But I just got this happiness. Like, I don't want to lose this again, we have to struggle." And that was the mindset in that moment.
Alfonso Cuadra 10:29
Yeah, yeah.
Sid Khobare 10:30
Flip second decision. And I really didn't want to do any of this. So I would drop him to the event in the morning, and hang out with my friends, go see my girlfriend and come and pick him up in the evening and do it all over again on Sunday, but I would never come in.
Alfonso Cuadra 10:43
Yeah, so you're saying you can do your little penny pinching. You can do all this. I'm gonna still continue. And so like, how did you convince your brother to like, how did you get him to get involved in real estate?
Ishan Khobare 11:00
They say that action speaks louder than words. So we always respected each other's privacy and our thoughts. And we give space for each other. And I was doing me he was doing him, whatever it was. And then he was like, "Alright, fine. Let's go to one of your events."
Sid Khobare 11:16
So, so what happened was, we were living downtown Toronto living our wonderful life, you know? And our office was in Mississauga. And we had one car. So we drive to Mississauga and back. It was a Tuesday. So that is where I got caught. If it's a weekend, I'll be good. But this was a Tuesday, and now I'm in Mississauga. And he's like, we got to go to London for a meet up. And I'm like, "How do I go back? I have to take an Uber sit two hours in traffic, not even my own car?" I'm like, "I might as well just like go with Ishan and see what happens. Like who cares?" So yeah, I was just happened to be stuck with him in a car on the way to a meet-up.
Alfonso Cuadra 11:50
What are you thinking at this moment? Your brother was getting all this knowledge?
Ishan Khobare 11:54
Yes.
Alfonso Cuadra 11:54
You're obviously- (you) know, it's inspiring you it's the right path. You know, it's the right path for you. But your brother's not on board. So it's almost like, it's like you guys are growing apart? You know? And now your brother is going to come into this. Was it like when you parked there you said "oh, I'm just going to come in?" Or did you- were you saying "I'm just going to come in with you."
Sid Khobare 12:13
No, I was like in Mississauga I could take an Uber back be stuck in the drive I might as well just hang out with you. And it's a free ticket.
Ishan Khobare 12:16
Yeah.
Sid Khobare 12:16
So I'm like "who cares?"
Alfonso Cuadra 12:20
So what are you thinking? He's going to be exposed to the same information that you have been exposed to?
Ishan Khobare 12:26
Great. I'm just grateful. I'm just happy! Someone's going to drive me back home at least. That's what I'm thinking. That's my honest answer.
Alfonso Cuadra 12:34
Yeah, yeah, yeah.
Ishan Khobare 12:34
The first thing because I don't know what he's going to feel about it. Or I'm not even pushing him to get in because I know that this is my path. I'm going to follow my path.
Alfonso Cuadra 12:43
Yeah.
Ishan Khobare 12:43
If he wants to join on this path, let's do it together. That's why, like always respect each other's privacy, because then we flourish in our direction.
Alfonso Cuadra 12:51
Yeah, yeah.
Ishan Khobare 12:51
And if we meet we meet, right?
Alfonso Cuadra 12:52
Yes.
Sid Khobare 12:53
Yeah.
Alfonso Cuadra 12:53
Nice.
Sid Khobare 12:53
And until then, to be honest, I always thought, that it was a scam. And that day, that fine day, I'm sitting there, there were three speakers. And one of them just hit a chord in me somewhere, which I was like, "Dude, that guy can do it." I was so able to relate to him. And I was like, "He just flipped a switch in my brain." And now like, "I'm all in."
Alfonso Cuadra 13:18
When do you say this to your brother? Because you're still thinking he wants to go party. He's just there at a convenience. When is it like, "bro, I'm in!"
Sid Khobare 13:27
On the drive back. Like-
Ishan Khobare 13:29
I was happy.
Sid Khobare 13:30
We are quite entrepreneurial. We have like my mom, my dad, they are like businessman, and businesswoman. And we've seen the kind of money you make and the fulfillment you have, and the freedom that comes with it. And you know, no matter how much you do in a job, you will never get that. So we respected that. And we wanted that. And this was the first time I found a way. I always knew I'm gonna be a millionaire. I just didn't know how. And when. And for the first time in my life, I'm like, "I know a way and it's real, and it's not a scam. Someone did it and I can relate to him. I can do it." On the way back. I'm like, "bro, I'm in. Let's do everything together."
Alfonso Cuadra 14:08
Wow, that's inspiring.
Sid Khobare 14:09
I want to know what he was thinking at that time.
Alfonso Cuadra 14:11
Yeah what were you thinking?
Ishan Khobare 14:13
I was just happy that time. Honestly, I was just happy finally came to the same path. I'm just happy now. I'm very happy.
Alfonso Cuadra 14:20
So what do you guys do now? What's the first thing that you do?
Ishan Khobare 14:24
After that?
Alfonso Cuadra 14:24
Yeah, you're like on the way home like what you start looking at real estate together?
Ishan Khobare 14:28
Yes, yes!
Alfonso Cuadra 14:28
You know what, what-
Ishan Khobare 14:29
We called our landlord in Windsor, where we did our Master's. He has 10 or 20 houses this Chinese landlord and I remember he was a database guy back in the day. So he connected with me on the database terms in software terms. I'm like, "Dude, I want to buy all your 10 houses. Let's meet." We go meet him. We try to understand how to, you know, talk to people and this and that. Now we are newbies. We are penny pinching for a few dollars. And we are Indians. We are smart. Also cheap. Cheap is the word?
Sid Khobare 15:00
Smart!
Ishan Khobare 15:01
Smart. All right. At that time I understood that in everything if you want to accelerate your life and you really want that you need a mentor. Found a mentor that time. And this mentor was, that time not looking for- He didn't have a program or something. But I love this guy. And I told him like, listen, I will provide you value at whatever level you want, like anything, I can film your videos, I can do some documentation. So we used to meet on a weekend, at Starbucks and we used to create a little Rolodex, like I used to call all- property managers of Windsor, plumbers, electricians, junk removal, and everyone and just create this data set and see him talk to other realtors or their property sellers. And I'm helping them what whatever I can. And he's like, "alright, that's cool, free help. That's amazing. And someone's hungry. Perfect." And that guy helped us negotiate a deal. And then we wholesaled our first deal. We didn't even know. We wholesaled it for free. Because-
Sid Khobare 16:00
First deal. We wholesaled it for free.
Ishan Khobare 16:01
For free. For free.
Alfonso Cuadra 16:01
What do you mean? You just gave away a deal?
Ishan Khobare 16:03
Yeah.
Sid Khobare 16:04
Yeah, yeah. Pretty much. So we got it under contract. Like the numbers didn't work for us. But the deal is, like it's lucrative. Long term vision is great for that deal. It's really good location. And through our mentor's network, someone wanted it. But it was already like, "oh, kinda over paying, but there was value in it. So they're like, "I can buy it. But I cannot, you know, pay you on top" We're like, "fine, dude." It's all about relationship.
Ishan Khobare 16:31
Yeah It didn't just fit our strategy when we were getting started. But it would fit someone else's strategy who was trying to look for another investment property. And now my mentor was like, "Okay, fine. I'll help one of my folks, JV partners or something." Now, I could ask him for some money. But my parents taught me this one thing. And during Diwali or Christmas, he used to give these gold coins to his friends. I'm like, "Goddamn, why are you giving gold coins away? Like, I don't know, like, who would give a gold coin?" He's like, business is not done on the table. At the business table, in the business meeting, this is where businesses done; relationships. You build relationships. So building relationships is very deep rooted in us. Because we have seen the highs we've seen the lows. That has humbled us. So we don't go for the money. We go for the- something bigger than that. We're going for the experience. If I can make you feel amazing right now, like feel fulfillment. Right? And if I can make you feel that, then it's like, we are just creating these elements of, you know, like memories. And yeah, that's what I would say. So, giving it for free was not a problem. Because we were learning from him, which was priceless.
Sid Khobare 17:40
It was priceless.
Ishan Khobare 17:40
Oh my god!
Sid Khobare 17:41
Because that accelerated our growth like-
Sid Khobare 17:43
Crazy! Like crazy.
Ishan Khobare 17:43
Crazy!
Ishan Khobare 17:44
Do you want to say what happened next?
Sid Khobare 17:46
Oh no. You go ahead.
Ishan Khobare 17:47
So we wholesale that deal. Then we asked the guy "okay, Mr. Landlord, my friend, what are you selling next?" "I sell after one year, because I don't want to get so much tax." I was like, "Cool. Why don't we see the property?" We saw the property we locked it up for next year closing. I haven't bought a single property and I bought a property with closing of next year already. And then I go the next property I buy at 5% down deal. I didn't even see the property.
Ishan Khobare 18:17
Off market.
Sid Khobare 18:17
Off market.
Ishan Khobare 18:18
I just bought it.
Sid Khobare 18:18
Didn't even see.
Sid Khobare 18:19
Bought it. Closed it. After five days we have gone and seen the property actually. But the numbers worked. And it was- location was great. There was value in it.
Ishan Khobare 18:28
But we did a lot of homework before that.
Sid Khobare 18:29
Absolutely.
Ishan Khobare 18:30
We lost so many deals.
Sid Khobare 18:31
We lost so many deals on that-
Ishan Khobare 18:31
We were like, "Why is life not fair? Why some rich guy with the big bag getting that property? Like this is not fair."
Alfonso Cuadra 18:37
This is in the height of the market. Right? It's 2021?
Sid Khobare 18:40
This is uh-
Ishan Khobare 18:41
2020.
Sid Khobare 18:41
COVID 2020. Covid hit, we are on a buying spree.
Alfonso Cuadra 18:44
Yeah, yeah, yeah. I love that.
Sid Khobare 18:46
Yeah.
Alfonso Cuadra 18:46
You know, my favorite deal that you guys did?
Ishan Khobare 18:48
Yes.
Alfonso Cuadra 18:49
Was your conversion.
Ishan Khobare 18:50
Yes.
Ishan Khobare 18:51
Yes.
Alfonso Cuadra 18:51
You know?
Alfonso Cuadra 18:52
I love that. And I know that, like we spent the majority of our coaching together just talking about that deal. And everything that you- all the plumbing issues and the things that you know, so let's go back to the beginning of that, because I think there's a lot of value there. Okay. How did you find the deal?
Ishan Khobare 19:10
Wholesaling.
Alfonso Cuadra 19:11
Yeah.
Ishan Khobare 19:11
We found the deal.
Alfonso Cuadra 19:12
You bought it off a wholesaler? You were- you put out some-
Sid Khobare 19:15
No, no. So, we- at this point in our stage of real estate in one and a half, we realized everything starts with the deal. It's not about the money. Everything starts with the deal. So we started wholesaling ourselves.
Alfonso Cuadra 19:25
Yeah, so you started putting out like flyers, yellow letters, and-
Sid Khobare 19:28
This was our first wholesale deal and we have never walked a multifamily building. We were walking a multifamily building.
Ishan Khobare 19:31
Yes. Yes.
Alfonso Cuadra 19:35
So it was a five unit.
Ishan Khobare 19:36
Yes.
Alfonso Cuadra 19:37
And did you have a vision to turn it into an eight?
Ishan Khobare 19:41
No.
Alfonso Cuadra 19:41
You're like, "oh, this is a decent five."
Sid Khobare 19:43
Yeah, and the numbers are great.
Alfonso Cuadra 19:45
Yeah.
Sid Khobare 19:45
We can easily BRRRR it out.
Ishan Khobare 19:46
Yeah.
Alfonso Cuadra 19:47
So you put it under contract?
Ishan Khobare 19:48
Yes.
Sid Khobare 19:49
Yes.
Alfonso Cuadra 19:49
Your vision is to turn over-
Ishan Khobare 19:52
Correct.
Alfonso Cuadra 19:52
All of these units.
Ishan Khobare 19:53
Yes.
Alfonso Cuadra 19:54
And then just BRRRR it out. So tell me before you close that five units. How did you feel?
Sid Khobare 20:01
There was a lot of emotions to be honest-
Ishan Khobare 20:02
Yes. Oh my god.
Sid Khobare 20:02
Because we locked it up. And we got an appraisal and the appraisal came for 960. And we had it for 800. So we're like 8- 810. And we're like, "Dude, you have 150k on the buy." This has never happened ever. And this is our first wholesale deal.
Alfonso Cuadra 20:03
Yeah.
Sid Khobare 20:03
First multifamily deal.
Alfonso Cuadra 20:18
Yeah.
Sid Khobare 20:18
And we don't even know how to work multifamily. We're like wow!
Ishan Khobare 20:20
Perfect, perfect clickbait!
Sid Khobare 20:22
Yeah.
Ishan Khobare 20:23
"150,000 in the first wholesale deal."
Sid Khobare 20:24
And that time we were like, "we should just wholesale this out and make 160 G's." And at that time, we are like, so tempted. But we saw our peers excel their portfolio by getting into multis, and we're like, "this is the right way to go." And this is our backyard. And this is such a stellar deal. I mean, we cannot lose with this. And this would be an amazing start to our journey in multifamily. So we are like, "we're gonna close on this." And we had no idea where the money will come from. Because after buying 3-4 properties, yeah, like run out of all the money we had.
Ishan Khobare 20:57
Within one year, we have bought four properties started with what?
Sid Khobare 21:01
Yeah, so-
Ishan Khobare 21:01
$10,000 in each account, buying four properties, like I don't know how he bought these properties, you need another podcast for that. Like, but for sure we don't have money right now. And we have this amazing deal under contract. The only sensible decision that makes right now is to wholesale it, get money. Again, our roots go for the big one. Now we are like, "Oh my god, I can't let it go."
Sid Khobare 21:24
But by that time we would have been we were exposed to a bit of private lending.
Ishan Khobare 21:29
Yes.
Sid Khobare 21:29
So we were like "Oh, the numbers are great, we could possibly get private lending." We found a fine gentleman who financed it 100% because there was so much money on the buy. So there was 0% downpayment coming from us. And we closed on that property.
Alfonso Cuadra 21:35
And so at what point do you guys pivot and say, "wait a minute, we're going to add three more units here." You know, like- at what- because you now- you own the thing.
Ishan Khobare 21:54
Correct.
Alfonso Cuadra 21:54
You're now gonna go renovate the thing. And then at some point, you're like, "Whoa, let's drop another 500k here."
Sid Khobare 22:01
The money that we don't have.
Alfonso Cuadra 22:03
And so where- where did this idea come from?
Sid Khobare 22:05
So when we got in, we did Cash for Keys, we spent some money on doing Cash for Keys and the value of the property just accelerated like crazy just by getting it empty. And we're like, I don't even want to do the renos because I made another $150,000 by spending, like maybe 20 by emptying the building, and I'm like, "Okay." That was a long weekend, we're sitting in the parking lot, the buildings getting empty, everyone's moving out and something hit. And this is the first time we are able to actually walk all the units together.
Ishan Khobare 22:32
Everything's empty.
Sid Khobare 22:32
And understanding the layout of the property because this is not a purpose-built, right? And we're like "Dude, these units are massive, humongous." It's like townhouse sized units.
Alfonso Cuadra 22:33
Yeah.
Sid Khobare 22:34
So it's like, why would you live in my building, which is a five Plex and pay the townhouse rent, when you can actually rent a townhouse. So there is a cap to the rent I can get from those humongous units. And by that time in our journey, we had gotten a taste of Airbnb.
Ishan Khobare 22:54
Proof of concept.
Sid Khobare 22:55
STR.
Sid Khobare 22:55
So we are like "you don't need a humongous unit to make money you just need a-" We were making more than two grand stable every month from a basement 400 square feet each studio unit .That's Toronto rents from a studio in Cambridge. Not even a one bedroom.
Ishan Khobare 22:55
Proof of concept.
Ishan Khobare 23:10
So we have proof of concept of one year of implementation of this idea.
Alfonso Cuadra 23:11
Yeah.
Ishan Khobare 23:14
And, and Cambridge demographics was catering towards lot of marriage venues and lots of marriage happening. So people wanted a place to stay instead of a hotel you can have like cooking and all that stuff. But the marriage did not have as much because COVID happened. So what happened was we understood there a lot of people coming here in there just to live in a studio unit. Right? And we're like, "If we can make $2,000 in 2020 from a 400 square feet basement? Why can't we have more of these instead of a big gigantic three bedroom unit, I showed you the picture of the billiards table in our bedroom. And then we were like, Okay, we should make more of the small ones, which would actually cater to the public. We should make it more efficient and charge the maximum and try to attract that niche kind of audience which would cater to that kind of, you know, uplift, the gentrify the area as well. Right?
Sid Khobare 24:07
Yeah.
Alfonso Cuadra 24:07
So you decided to turn five into eight. Right?
Sid Khobare 24:12
Brand new eight.
Alfonso Cuadra 24:12
Brand new. So you got a brand new- brand new building pretty much.
Sid Khobare 24:15
Yes. Everything's brand new.
Alfonso Cuadra 24:16
How much you pay?
Sid Khobare 24:18
800K to purchase it.
Alfonso Cuadra 24:19
800k. What was total reno all in?
Sid Khobare 24:22
A million?
Alfonso Cuadra 24:24
'Bout a million bucks.
Sid Khobare 24:24
Yeah.
Alfonso Cuadra 24:25
Yeah. What is it worth today?
Sid Khobare 24:27
Today, it's worth a whopping 3 million dollars.
Alfonso Cuadra 24:30
Whoooo! The Godfathers happy!
Sid Khobare 24:34
I remember hopping on that call with you talking about this and you're like, "did the appraisal come in?" And you're like, "how much is the value? And we said it's $3 million. And you're like, "what is the mortgage you have on this?" We're like "1.7, 1.8" And you go like," Oh, welcome to the millionaire's club."
Alfonso Cuadra 24:56
How did it feel?
Ishan Khobare 24:57
Sexy, sexy, sexy! Oh my god!
Sid Khobare 25:00
That's how I became an "overnight millionaire. Overnight"
Ishan Khobare 25:01
Oh my god. It didn't even hit me until you told us. Like, I'm like, "Oh, we have some $1 million dollars there, okay. We made 1 million!"
Alfonso Cuadra 25:10
That's a really inspiring story, guys, I know you have a lot of wisdom. So let's tap into that wisdom, what are some tips that you can offer, you know, maybe two or three tips that you can offer someone watching right now, maybe they haven't done their first deal? Maybe they're about to do their first deal. Or maybe they want to, but they don't know what to do.
Sid Khobare 25:30
It's about picking a direction and starting to walk in it. It does not matter how quickly you have so many units, or how many properties you have, or how much money you make. I can assure you, whatever goal you'll set for yourself right now, five years down the line, you'll be looking back and you're like, "I wish I would have dreamed bigger, because I'm killing it." They'll always be an imposter syndrome part of you, which will always, like stop you or hinder you or even stop you from believing in yourself. You have to believe in yourself and you have to give it your all. And as long as you're walking the walk, every day, if you do what you're supposed to do you're a rock star. It does not matter how many units you close on, how much money you have, none of that matters. You take massive action every day. And as long as you do it, you're a rock star. But that rock star validity is only for a day. Get up again tomorrow, and do it again and feel like a f***in' rockstar.
Alfonso Cuadra 26:30
You don't want to be one hit wonder.
Ishan Khobare 26:32
Not at all, not at all.
Alfonso Cuadra 26:34
Okay, good. Good.
Ishan Khobare 26:35
I would say like mentor. Mentor, always mentor. Yeah, I have been achieving so many things. It's always good graces of God, or maybe some human being in terms of God, coming to your life and helping you. And that's what I feel a mentor is, right? Truly like it can be your father, it can be your relative, it can be your neighbor, whoever it doesn't matter. Every day everything someone is making your life easier. Now this mentor people think like, okay, this new age thing of like, you know, mentor is this and they're selling that and this, no noone's selling nothing. What do you want? You go get it. What do you think is the right way to get it, you just do it. Try the hard way. And then you will be like, "Ah, I should have spent this money or invested this money on someone." Someone can make the way easier. So I think mentor is very important and the thing which he's saying "rent is due every day."
Alfonso Cuadra 27:27
Yeah, I love it. Quotes! Leave us with the quote that it has inspired you the most.
Sid Khobare 27:32
"I see no better life purpose than to perish- perish in achieving the great and impossible."
Alfonso Cuadra 27:40
Ishan?
Ishan Khobare 27:42
I cannot think of any great quote than what he said just now. But I found a revelation this weekend. And I was talking to multiple people on the outside while the bootcamp was going on. And I was trying to understand why do I want to you know, always try to go through the hard life. And then I found my "why" when you told your "why". And it was it was resonating so much. And then I was like, "God damn. Yeah, that is my why.". I want to grow with everyone. I don't want anyone to not have food that night. I don't want anyone to not, like feel like maybe there was a little one more jacket or cloth so that I could just go to sleep because I can't go to sleep because I'm feeling cold. Like like that feeling-
Sid Khobare 28:28
Or feel left out.
Ishan Khobare 28:29
Yeah, the feeling of being left out because of the journey of high to low. There was someone helping me. But then the nights when no one was helping me. I was crying myself to sleep. Just with God alone. I was thinking like, never ever should this happen with anyone else. Anyone else! Yeah. And that hit, hit home for me. And that's what I want to do is like, just like, grow with everyone. Yeah, that's what I would like to say.
Alfonso Cuadra 28:56
Beautiful! Guys, you're gonna' inspire a lot of people. Keep pushing, keep doing what you're doing. How can they- people reach out to you?
Ishan Khobare 29:05
People can reach out to us via Facebook, Instagram. And I would say the best way is the human live interaction like what we're doing right now. So you could find me on a weekend where could they find us, Sid?
Sid Khobare 29:19
They will find us at the WealthGenius boot camp!
Ishan Khobare 29:21
Let's go, let's go.
Sid Khobare 29:22
You can find us at every WealthGenius boot camp.
Ishan Khobare 29:25
Or sometimes partying at some place. Sometimes.
Sid Khobare 29:28
Sometimes!
Alfonso Cuadra 29:29
If you go to a music festival, you may find Sid and Ishan.
Ishan Khobare 29:33
Thank you.
Alfonso Cuadra 29:34
Thank you so much. Thank you for coming. Alfonso loves you. Alfonso loves you! And we'll see you guys at the top. Woooh!
Carl Richards 29:43
Thanks for listening to The WealthGenius Podcast if you have a question or comment about something you heard today, reach out to The Godfather via social media or email him anytime. All that information is in the show notes. And of course don't forget to subscribe so you never miss an episode of The WealthGenius Podcast. The WealthGenius Podcast until next time see you at the top.