YFP REI 21: Setting Your Mindset for Success with Ketan Patel

Setting Your Mindset for Success with Ketan Patel

Ketan Patel discusses mindset and an overview of syndication in real estate.

About Today’s Guest

Ketan is a Pharmacist turned into a High Performance Real Estate Coach that helps motivated real estate entrepreneurs create more income and impact by aligning their mindset, strategy and execution. He has mastered the art of getting results by combining techniques from Tony Robbins, Wim Hof, & Dr. Joe Dispenza. His achievements include earning an accelerated Doctor of Pharmacy Degree (while Learning English), Building a Multi-Million Dollar Rental portfolio by starting from $8k, Raising Over $10 Million for his multifamily syndication business and growing a senior care business by 3x in just 2 years.

Episode Summary

Even though it is the cornerstone to success, mindset is often overlooked. We do not realize how much our limiting beliefs are holding us back from getting started in real estate or taking the next step. Ketan Patel, a pharmacist, turned full-time real estate investor and High-Performance Real Estate Coach, looks to help his clients overcome the thoughts that hold them back so that they can flourish. In this episode, we hear about Ketan’s journey from pharmacy to real estate, where he talks about why we need to reframe risk. Ketan explains how individuals struggling with mindset can overcome those obstacles and shares insight for building confidence in real estate investing. Rather than thinking about what we might lose, if we consider what we can gain, taking bold action becomes easier. Ketan shares the innovative way he funded his first deal, and he also talks about multifamily syndication, a great way to passively invest in real estate. The conversation touches on the power of mindset, where Ketan offers insights into how he’s worked on his. Ketan shares the value of being grateful for what you have and why you have to find joy beyond the numbers. Ketan truly embodies the idea that mindset matters.

Key Points From This Episode

• Get to know today’s guest, Ketan Patel.
• Hear details about Ketan’s pharmacy journey and his subsequent transition into real estate.
• How Ketan moved into real estate; it wasn’t all at once.
• Insights into Ketan’s first deal and the creative way he managed to get funds for it.
• Why Ketan believes that there is no such thing as a risk: you always win something.
• How mindset influences your outlook and frames the way you see things.
• Typical roadblocks Ketan that helps his clients overcome.
• At some point, you have to ask yourself why you are truly not making the decision to jump into real estate.
• Where Ketan’s first deal opportunity came from.
• Confidence comes after action, not the other way around.
• A look at what syndication is, how this structure works, and the partners involved in deals.
• Who can participate in syndication and whether or not you need to be an accredited investor.
• What Ketan is currently working toward; it’s more than just the numbers.
• Finding the balance between wanting more and living in the moment.
• Final questions to end the show.

Highlights

“I realized that with real estate, you have a lot of flexibility. You could do a flip, you could partner with someone, invest passively, you could buy a small rental, you don’t have to quit your job day one.” — Ketan Patel [0:06:45]

“It doesn’t really matter what business you do and what your strategies are. At the end of the day, the thoughts, the beliefs, the emotions you have, they determine so much about your success and things like that. Instead of just focusing on the knowledge, the technical aspects, they are important, but they’re not as important.” — Ketan Patel [0:10:12]

“You can’t postpone happiness and joy and everything for the future. I got to start living it now regardless if I have that or not.” — Ketan Patel [0:30:15]

“We [pharmacists] don’t give ourselves credit of what’s really possible for us.” — Ketan Patel [0:32:44]

Links Mentioned in Today’s Episode

• Join the YFP Real Estate Investing Facebook Group
• Ketan Patel Coaching: Results Coaching
• Mukhi Capital
• The Complete Guide to Buying and Selling Apartment Buildings by Steve Berges
• Ketan Patel Coaching
• Ketan Patel Coaching: Capital Raising Pro
• Apply for a Results Coaching Session with Ketan
• YFP Real Estate Investing

Episode Transcript

[00:00:08] NH: Hello, and welcome to the Your Financial Pharmacist, Real Estate Investing Podcast, a show all about empowering pharmacists to achieve financial freedom through real estate investing. I’m Nate Hedrick, and each week, my cohost, David Bright, and I explore stories from pharmacists all over the country who are achieving their real estate goals, while maintaining a meaningful career in pharmacy. Whether you’re a first-time investor, or a seasoned pro, we’re here to provide education and inspiration about the world of real estate.

Please note, this podcast is intended for educational purposes only, and should not be considered financial or investment advice.

[INTRODUCTION]

[00:00:42] NH: Hey, David, how are you?

[00:00:43] DB: Hey, good. Thanks, man. How you doing?

[00:00:45] NH: Things are good. Things are great. I know we’ve been talking a couple times here in recent past and I finally got, for those that have been following along, I finally got the rental assistance to come through on one of the tenants that we have that wasn’t able to pay during COVID, and went through a number of issues with the state. So, like a $6,000 check coming for all the past due rent, which is pretty fun. So that should be neat. What about you? I saw you post a new project on Facebook, right? You’ve got something going on?

[00:01:10] DB: Yeah, we’ve got a new flip project and one of the things that I tend to do is, like change nothing about the recipe from foot to foot. We’d have so much agreeable gray that we have painted inside all these wrenches. The blueprint for the cosmetics is, like always the same and what we do. But this house is the first one in a long time where we needed to do something about the exterior. It needed to be repainted anyway, and so, we’re thinking, “Well shoot, I can’t do agreeable gray on the outside of this house. I need some help in a paint color.” So, it was fun. I posted something on the YFP Real Estate Investing Facebook group and immediately got some responses that helped to guide that which was really helpful. So, I appreciate those that chimed in on helping me with paint colors.

[00:01:55] NH: I know my wife was looking at it, too. She’s like, “I kind of like the blue.” And I’m like, “I think you need to see it in real life and then you would know like how blue this house is.”

[00:02:04] DB: Yeah, it was like a sunglass kind of blue. It was an intense, intense blue. So yeah.

[00:02:09] NH: I love that idea of just leveraging others and bringing others expertise. I mean, we’re not going to know everything and sometimes it just takes that extra outside person to kind of take a look at it and give you that good opinion. So, love the Facebook group for that. Make sure you check that out if you haven’t already.

Today, actually, again, we’re speaking with someone that does just that, leveraging the skills of others. We’re talking with Ketan Patel. KP for some. Really interesting individual. KP and I connected, gosh, it was over a year ago now, the first time we started chatting. He runs a coaching service. He runs a syndication for real estate investing. He was a pharmacist, no longer works as a pharmacist, but still is a pharmacist, and just all around really, really interesting guy with an amazing, amazing mindset. So, I’m really excited for us to bring his story to the interview today.

This one was a bit unique. I know, David, we had to fly without you for this interview, unfortunately. But I still had your questions and your ideas flowing through me as you’re talking to him. So, it was an overall great interview.

[00:03:08] DB: I’m definitely bummed I wasn’t able to be there. I got a chance to listen to the recording and as it’s going through the editing process and getting ready for posting, so I got a chance to listen to the interview, and there’s so much in there that’s good. I know that we’ve talked here and there throughout different podcasts and mindset. He talks just a lot about the mindset and things there. And one of the other pieces that he gets into is syndications, which I think is one more way for passive real estate investment that’s not talked about as much, but I think could be a good option for some pharmacists.

[00:03:41] NH: Yeah, we talked about what makes an accredited investor. We talked about how syndication works, how you can be a limited partner or a general partner. We look through things like, again, like you said, passive investments and what that looks like and how you can get into more active investments like we’ve been talking about on other past shows. So overall, some new concepts and then touching on some of the old which is great.

[00:04:01] DB: I like to what he talks about about mindset and limiting beliefs in getting started. We’ve had several people come on, and especially in those final infusion questions, talk about just getting started, that seems to be a real common theme of just get started, just do something. And I think that KP takes it to the next level with how do you learn from some of that? How do you get your mind ready for those opportunities so that you’re ready to go and to go in with some confidence and boldness in that. I think that can be really helpful for people that are trying to take that plunge into real estate.

[00:04:35] NH: If you stick it for the whole episode, the last point that KP makes is really a good one. So, definitely recommend going to the end, listening to what he talks about in terms of how that mindset can be so important now, and then rewind and listen to it again, because it’ll get you through your week. It’s a good stuff. So, hope you guys enjoy the interview and looking forward to what’s next. Again, hope to see many of you on the Facebook group so we can have more great conversations about house colors and everything in between. So, take care, everybody.

[INTERVIEW]

[00:05:01] NH: Hey, Ketan, welcome to the show.

[00:05:04] KP: I’m very excited to be here today, Nate. Thank you.

[00:05:05] NH: Yeah, it’s great to have you. We’ve talked before you and I in months past and recently you reached out and I was like, “Oh, we got to make sure we get him back on the show. He’s just an inspirational guy.” So, I’m really pumped to have you here today.

[00:05:18] KP: I’m very excited as well and thank you for the opportunity to be on your show.

[00:05:22] NH: Absolutely. So, why don’t we just dive right in. Why don’t you start off, tell us a little bit about your story, especially your pharmacy story, and then why you pivoted into real estate and we can start diving into all the great stuff that you’ve been up to.

[00:05:32] KP: Yeah, so really quick, originally, I’m an immigrant from India. I came here when I was 19, not really speaking English. At that time, I wanted to pursue pharmacy. So, I went to pharmacy school, graduated, I’m working retail, and it was okay. But a part of me wasn’t thrilled because at heart, I’m just an entrepreneur, and my values of freedom and creativity and taking risk. Innovation wasn’t really the good fit for a staff pharmacist role.

So, I realized, “Do I really want to do this?” Yes, I’m comfortable. You have those handcuffs, golden handcuffs, so to speak. I’m comfortable everything’s paying out. But I’m not really, truly feeling alive. I need to figure out an exit strategy, so to speak.

[00:06:21] NH: I know some of our audience can resonate with that. A lot of people out there are loving their pharmacy career, looking to supplement with real estate. But there are others who might be sitting there thinking, “Look, I’m in this and it’s not the only thing I want to be doing.” Or, “It’s not the thing I want to be doing for 20 more years, and so how can I plan ahead for that?” So that’s great. You started to shift into real estate, what did that look like? Did you have background in real estate? What made you go that direction?

[00:06:45] KP: I realized that with real estate, you have a lot of flexibility. You could do a flip, you could partner with someone invest passively, you could buy a small rental, you don’t have to quit your job day one, versus some of the businesses, they are more and more resource intensive. So, I like that aspect of real estate investing and I had no background in real estate, but I just went to Barnes and Noble and I’m like, everything that’s on real estate investing, let me just start reading it. I’m sure I learned something, and I’ll get an idea on what I need to do next.

[00:07:19] NH: That’s incredible. I mean, to come over, again at 19, very limited English to dive into pharmacy school alone is an accomplishment. And then to say, “You know what, I can do something else too.” And just that serial entrepreneur, I can sense that in you, I think that’s really, really awesome. So, then you start off in real estate investing, talk to us a little bit that first deal. What did that look like?

[00:07:39] KP: That’s funny story and a great question. The first deal was $106,000 deal. I only needed $25,000, which is not a huge amount. But at that time, I had no money. So, I convinced two other pharmacist friends to go in with me at 8,000 apiece. So now, I have to come up with 8,000, which was still a challenge. So, I opened a 401(k) and I started working a little more. And all that money, I put in 401(k), my employer was doing a match, and I was able to take a loan out against it. That’s how I got that first $8,000 to buy that property.

[00:08:16] NH: That’s awesome. There are some people sitting here probably driving their cars or sitting in their office like cringing, like, “Ah, you took such a big risk on yourself.” But like, you felt good about doing that. I mean, talk to us a little about that. That was something that you were okay with.

[00:08:28] KP: Yeah. So, after that, I realized and I’ve taken so many more risk, the biggest risk actually is not taking the risk. Because we feel fearful, what if I lose the money in this deal? What if this plan doesn’t work out? Et cetera, et cetera. But in reality, there is no such thing as a loss, there’s always a gain. So, even if you lose money, you learn that this strategy didn’t work, or you learn something about yourself that, “Okay, next time, I need to have better partners”, or “Next time, I need to be good with numbers.” And then what happens it’s an evolution of your experience and understanding. Eventually you’ll make it right. But if you never start and don’t have that courage – you have that courage in yourself to take the first two steps, then we are stuck, we are same where we were two years, four years ago.

[00:09:16] NH: That’s a super important point. Because I think you’re right, a lot of people look at it like, “Wow, if I do this, this is it. I’m either going to succeed or I’m going to fail and my life is over.” It’s not that extreme, right? There’s a happy medium, especially if you’re a new pharmacist or early in your career, you have years and years and years to make up that difference. So, jumping in with that mindset of this is not pass or fail, this is learned no matter what, and hopefully it goes well and if not, we’ll learn from that too.

Mindset is something we’ve touched on in the show. We’ve not really dug deeply on, and so I think that’s something I want to make sure we focus on today. So, talk to me a little bit about what makes mindset so important for becoming a successful real estate investor?

[00:09:59] KP: Yeah, absolutely. So, whether it’s real estate investing, and when I quit my pharmacy job, I was actually running a senior care business, which I knew nothing about, which has nothing to do with real estate. But I came to realize that it doesn’t really matter what business you do and what your strategies are. At the end of the day, the thoughts, the beliefs, the emotions you have, they determine so much about your success and things like that. Instead of just focusing on the knowledge, the technical aspects, they are important, but they’re not as important.

So, for example, let’s just say you just have a fear deep down of failure. Now, with that fear of failure, you could have the best investing opportunities. You have read all the books, you have done all the research, you’re not going to pull that trigger, and you’re not going to move forward or you just have some kind of limiting belief that, “Hey, I spent all this money on this education. Should I be really leaving this field earlier? What if it doesn’t work out?” So, mindset, which is, clarity, fears, limiting beliefs, your thoughts, emotions, all these things really, really like shaped you, give you the motivation, or take away the motivation to actually take action and make change in your business and life.

[00:11:13] NH: Yeah, something you said I think is so important there, is that I’ve spent this money investing it in pharmacy, it feels like now I’m stuck. I have to do it. I’ve talked to other pharmacists who they get into the field, and they love certain aspects of it. But it may not be the right fit for them any longer. Or it might not be the thing they want to do 50 hours out of the week. So, do you talk to others like that? Maybe not just pharmacists, like physicians as well, or other medical professionals, where they get into it and they feel stuck, because those loans are there, because they spent all the time and the effort. I mean, is that common for you?

[00:11:45] KP: Yes, I have a lot of my investor clients that are doctors and pharmacists. So, it’s very common that a bunch of things, some of them are very, very happy with their career, they just want to like learn, “Hey, I don’t want to depend on 401(k).” Some folks, they have outgrown their position, right? Maybe they were passionate at some point about pharmacy or medicine, but now they have changed as a person, and they want to do something else. The term for that is called sunk cost fallacy or something like that, where I feel like, “Oh”, and I felt that too. I’m like, I have loans in six figures, student loans, and I’m leaving pharmacy in like three years or four years. But I realize that’s just a limited thinking. Again, it’s a limited belief trying to take control over you.

[00:12:30] NH: Yeah, that’s awesome. So, what are some of those roadblocks that you run into? I can think of some of my own and we can get there in a second. But like, what are some of the typical roadblocks that you run into with a client that either as a coaching client or an investor that you work with, that you have to help them get over?

[00:12:42] KP: One big thing is the fear. So, for example, let’s talk about real quick, if I had not bought that $106,000 house, I wouldn’t have created a multimillion dollar rental portfolio. I wouldn’t have jumped into replacing with passive income and a bunch of other things. So, I tell the investors the same thing. Your first or second investment, it’s not necessarily about making all the money whether you make 5% or 50%, it’s not as relevant. The important part is you actually experience something and knowing that there’s a possibility there. Because after that, you’re going to start seeing more opportunities, investment with your friends, or in your email, and slowly you’ll be drawn to there and some of my investors started buying their own flips. Some of them started investing in other business and other transactions, not with me.

But the point is the very initial roadblock, if you haven’t invested or if you are going extremely slow is just that fear. If it’s just hard to quantify, but it’s just a feeling of I don’t know what to do, what if what if this doesn’t work? What if market goes in? You know what, you do your research and knowledge and being cautious. Yes, those are important things. But it’s easy for us as pharmacists to be analytical. We are analytical, so we go into little analysis paralysis, so to speak.

[00:14:05] NH: That was my problem. When I first started out, it was easy to read and read and read and there was always one more book, one more podcast to listen to and I was kind of waiting, waiting for that moment where I felt like okay, now I’m a real estate investor. Now I can go buy a house and that was never going to happen. What would you say to somebody like that who may be in my shoes from years ago before buying that first property who is having that feeling of like, “I just need to do more reading before I can feel comfortable?”

[00:14:31] KP: I’ve went through that as well. I’ve looked at dozens and dozens of flips, and I wasn’t able to pull the trigger in my early days. Like you mentioned, I’m reading more books and a certain point, you just have to develop that discernment in yourself that why am I not moving forward? Asking yourself this question. Why am I not moving forward and being genuine with yourself? Is it because I truly lack some information or I don’t understand the concept? Or I’m fearful? A lot of times we don’t want to admit that to ourselves. It’s like I don’t want to and I said to myself, “You know what, I have done a lot of research. I’ve read a lot of books. I’ve talked to a lot of agents. Here, the challenges that I’m not showing the courage. I have the courage, but I’m just not demonstrating it, which would be to buy this property.” And you know what, it is going to be – it might be a little uneasy feeling, we really don’t know the outcome. That’s just the way life in business and real estate work. There is uncertainty. If everything was certain and planned, the fun, the excitement will be gone from life as well, right?

[00:15:40] NH: It’s a great point. It’s something that I think talking with other individuals who have done this can really help with. I know for me, talking to other investors, talking to people that made that plunge, talking to people like yourself, that really helped me make that first move, because then that fear doesn’t feel so crippling when you’ve seen somebody else that’s done it, and they don’t have anything different than I have in terms of the education and resources and access. They just had the spunk to go actually and do it, which is really important.

So, one of the things that I love, and one of the core tenants of your coaching service is that you really want to limit that fear and belief. I think one of the things that we often see people say is like, “Well, I don’t know the heck I’m doing. I can’t do this. I’ve never done it, so I can’t do it.” Was there a deal, besides that first one, were there other deals or maybe even like you bought your business, you didn’t know what to do. How did you overcome that? How did you set your mindset to kind of embrace that?

[00:16:30] KP: Yeah, so that was a very challenging time. Because at that time, I was thinking about doing an MBA, and I realized, “Why go to school again? Let me buy a business I know nothing about. That will be my MBA, if I turn that business around.” Also, if I wait to keep buying rental properties to replace my pharmacist income, it will take me another five years, which I don’t have, I don’t want to do this.

So, the accelerated pace was the senior care opportunity. And it helped. It all worked out eventually. On one hand, we always, always have that possibility or that option. But we also have the limitation. For example, “Hey, I have all these student loans.” I didn’t even had money to actually buy that business on top of all this. But I realized the important question is, “Am I going after what I want and the possibilities and growth and future, or I’m just more rehearsing from the past?” Something didn’t work out, or I’m just a pharmacist, I don’t know much about business or whatever that story that we are telling ourselves.

So, I would say, to answer your question, is the awareness, developing that awareness because everyone’s different. For someone, it’s just fear. For someone, “Hey, I’m ready. I’m ready to move on with my life. But I just don’t have the strategy. What do I really do?”

[00:17:54] NH: Yeah, that imposter syndrome is real, where you’re like, “I’m just a pharmacist, that’s the only thing I can do. I’m barely that. I’m not a good pharmacist. I’m not a good whatever.” You can always look at other people who have done it, and think, “Well, I’m never going to be like that person. I’m just me, I can’t do that big thing.” Again, like you said, if you can identify that and start to work past that, that’s when you’re going to find that success.

[00:18:12] KP: Hundred percent. Yes.

[00:18:14] NH: I’m curious too, where did that business opportunity come from? The potential to buy that. Was that again, a friend, a network? Did you go out and look for that? I’m curious about that.

[00:18:22] KP: Yeah. So, I had that clarity that, okay, I want to leave pharmacy, real estate is great and developing on the side, what do I do? Let me buy a business with certain amount of numbers that make sense for me. So, I had that clarity, and it needs to be somewhere in healthcare related domain, needs to be somewhere in my state. So, with those guiding principles, it became easy. I started talking to brokers and doing Google search and going on business listings, and whatever. That’s where I found this listing, which was, in the area was residing and then I started doing more research and going into it.

[00:19:01] NH: That’s awesome. So, it’s not like, again, I think some people assume, “Well, he just got lucky. The perfect opportunity just fell into his lap.” It’s like, no, you actually stepped back and you started looking at, “Well, what do I want to do with this? What are my goals?” Having that, writing it down, just really starting to feel those things out, and then going out and trying to achieve that and it wasn’t perfect process. It wasn’t like you immediately know who to go to buy a business. You didn’t have to. It just came down to these are my goals, I’m going to go out and find that.

[00:19:26] KP: Yeah, absolutely. And to that point, we have the illusion that once we are confident, we take the action. But it actually works reverse. You take the action, then you become confident. Confidence is a byproduct of taking action and not the other way around.

[00:19:42] NH: I love that. That’s awesome. I think, like, you just gave me a flashback to when my first daughter was born and I had no idea what I was doing like to be a dad. But once I was in the middle of it, I didn’t have the option. I had to take action and then I became more confident at it. So that’s kind of a perfect example of that. It’s awesome. So, then you bought the business, that’s been rolling. You did real estate, and so now you run both a coaching service as well as a capital generating business for investor syndication. Can you talk to us a little bit about that?

[00:20:08] KP: Yeah. So, originally when I grew my rental portfolio and all that in, I realized that when we are happy in a way when we are growing, right? It’s not about getting to a certain point. It’s increasing our understanding of ourselves and our business and the world. So, for me, that rental portfolio, I realized the time and energy I’m putting to buy a three-unit, five-unit buildings is very limited. And I had friends and family started reaching out, and they started investing with me, but there’s only so much I could do.

So, I realized the next step was syndication, getting into bigger building. So first, I could scale things and second, I could help more people as well. And then also, I realized through trial and error, that I am not necessarily the active landlord, if you give me a hammer, I might break things instead of fixing it. I just don’t have that skill set. It doesn’t excite me necessarily to really take, but I get excited about educating people and analyzing deals and numbers and market. So, I’m like, “Let me start pivoting my strategy.” I didn’t know about all this when I was starting. But this is the beauty. When you take an action, you get some feedback, and you use that feedback to increase your clarity.

So, that’s how I started the investing business. As I was doing all this, part of my time was going with Wim Hof, climbing mountain, Tony Robbins and Dr. Joe Dispenza meditation because I also realized that finances are a big piece in life but they are not everything either. At the end of the day, the way we think, feel and act determines the quality of our life and business and everything. So, let me start learning that. I had some great coaches and mentors that really helped me expand and support me a lot. And then from all that, I started diving into the high-performance coaching. My goal is just whatever really, you’re curious about, let that curiosity let you lead. It might not logically make sense, but just keep going in that direction and that’s what I’ve been doing.

[00:22:12] NH: I love it. Two things I want come back to you because I think you said a lot of awesome stuff. So, syndication, maybe for just for our audience, like define what that looks like. What does a syndication deal? How does that work?

[00:22:21] KP: Yeah, so, syndication is basically we have general partners and limited partners. Limited partners are basically investors. They are writing the check. General partners or group of general partners are buying the building, making the strategy, managing the management company, getting the loan, putting it all together.

So, what we are doing is the investors are leveraging the experience and expertise of general partner to make an investment, and general partners are leveraging their skill sets, and also leveraging the investor capital. Most general partners do invest a little bit into the deal as well. So, together as a group, you could buy bigger assets $20, $30, $40 million, because it’s a whole group versus buying something by yourself. And then the main facet of syndication is general partners being active, limited partners, more learning and more passive. They don’t need to do anything, pick up any tenant phone calls or anything like that.

[00:23:19] NH: So, if I’m a pharmacist, and I have, again, let’s use an extreme example, I have $100,000 to invest, I find someone like yourself, someone who’s going to be a general partner that wants to go out and buy a 500-unit apartment complex. I would give you my $100,000 what do I get for that, basically?

[00:23:35] KP: Yeah, generally, what happens typically in the multifamily apartment complex arena, is you make money two ways. Number one, is the cash flow from the property that comes. Typically, in the apartment space, 7% to 8% is like a general average, it could be 6, it could be 9, depending on the deal market and strategy. So, you make that 7% to 8%, while the property’s being pulled on to for a year or two, or three or four. But in value, our strategy, what we are doing is we are changing the income of the property. We are renovating the units, putting a dog park, carport. So overall, the income of the apartment complex goes up because it’s treated as a business, then somebody would pay a little higher amount. So that on the back end, you might be making another 6% to 16% on top. So overall, your returns would be from 13 to like 20 or 22. We just exited a deal that we were able to do 25, but again, there’s so many things that go into it.

But the general idea is that you invest, you get that cash flow and also keep in mind your taxes are deferred because of depreciation and all that, so you’re going to pay taxes later on. So, this way you have more capital coming back to you to reinvest and grow your wealth and things like that.

[00:24:57] NH: So a great way for someone that does not want to be in knee deep in real estate but wants to reap the benefits of doing that would be to find someone like yourself or find another syndication that might work with that value add, looking for ways to purchase properties where you can really start to boost the income of that so that overall your returns are going to be better than average.

[00:25:16] KP: Absolutely. So, for some pharmacists who feel the passive route, they could educate themselves about all this, and then do it and you know what, after that, they feel it, “Oh, I like it. I want to do it another time”. Or, “You know what, maybe I could get a couple of friends together and I want to try my hands on a small building.” But the options like start opening up from there.

[00:25:36] NH: Typically, do you have to be an accredited investor to participate in syndication, and again, for our audience and an accredited investor is to find a couple of ways, but basically, either a yearly income over $200,000, for an individual for the last two years, $300,000 for a married couple, or a net worth over a million dollars, not including your primary home. But again, back to you KP, does that have to be an accredited investor to participate in that?

[00:26:00] KP: First of all, great job on that definition. Thanks for doing the definition. So, it depends how the offering is made. The offerings I participate, most of them are 506(c), for Charlie. For that you have to be accredited, but there are some call 506(b), for boy. For that you don’t need to be accredited. There are certain stipulations on the C could be advertised to public, the B, you need to have a relationship. But the industry trend has been moving more towards accredited and most of – a lot of opportunities are pretty much for accredited. Because these are securities that have a degree of risk. So, the SEC government wants to make sure that whoever’s investing understands it well, and actually could bear the risk and things like that.

[00:26:48] NH: That’s great. Like you said, and alluded to, it’s not just these big deals that you have to be looking at. You could look at another $106,000 in a single-family home with three of your buds and like that is a really early way to partner up and not have to worry about some of those bigger scale things. I think that’s the takeaway there, for sure.

[00:27:04] KP: Absolutely. The opportunities are endless, whether you do syndication, whether you find another pharmacist that’s great at buying deals, and you loan your money temporarily, you will earn some interest on it. Or there’s so many ways. The bottom line is asking yourself, you know, what is possible for me and how can I do? Instead of feeling I don’t know what to do, or the limitation mindset, so to speak.

[00:27:30] NH: It’s great stuff. So KP, one of the things you mentioned early on, was that your goal was financial independence, and actually, you hit that, right? You were there?

[00:27:37] KP: Yeah. I am blessed and grateful that I don’t have to necessarily raise capital, or do coaching, if I don’t feel like it. So, I love this freedom aspect. So that way, I could just pick and choose projects and things I want to spend my time on.

[00:27:53] NH: That’s incredible. So, what’s next for you then? I think a lot of people talk about I want to get to that FI number. I got to get to this FI feeling. But what’s next for you then?

[00:28:01] KP: Yeah, so I realize that the more you get into all these things, the more you change as a person and then my matrix, rather than being number focused is more on a week goes by, did I feel excited, passionate, grateful, connection, love, happiness? If not, does it really matter how much money I’m making, or not? So, like changing the criteria of how I’m measuring my life and things like that.

For me, I’m just making frameworks around these mindset concepts and the goal is to eventually, the next step would be to come up with the video course or writing material, so I could support more people, because there’s only so many people, I could coach one on one. But it gives me a great opportunity to develop these concepts and put it together. So that’s something I’m working towards a little more and also just more traveling and all that.

[00:28:56] NH: I love that. I think that’s something that, especially over the last year, with everything going on the pandemic, for me, I’ll take a personal note. It has become more evident than just going out and trying to get these numbers to work and making the most money that you can at this thing, even if you’ve not reached that FI number yet, there’s always room for us to step back and say, “Well, is there more ways to feel grateful, to feel happy, to feel content with what I’m doing and not worrying about the numbers all the time?” So, I think that’s really important feedback and something that whenever I talk to you, I feel like I get that passion back for that. That’s really cool.

[00:29:25] KP: Because there’s a trap that most people are not aware of, is what happens is your mind is so good at this, the moment you think that you know what, hypothetically I’m a pharmacist, if I have $50,000 coming without lifting a finger in passive income, I’m going to be set. I guarantee you you’re going to get there and sooner or later in a week or a month or three months, you would forget that. Your mind immediately goes, “Yeah, well, but 50,000 that doesn’t mean much.” Now you want 200 and nothing wrong with wanting more in desiring and passionate. I have a very subtle point. But then what happens is we get dragged into that cycle instead of just being aware that, okay, I want to do all that, but at the same time you can’t postpone happiness and joy and everything for future. I got to start living it now regardless if I have that or not.

[00:30:20] NH: Super important. That’s such a great message. I hope everybody goes back and listen to that again. Because if you take nothing else away from this interview, that alone is my favorite point so far. So great stuff.

Well, KP, I want to jump over to our final infusion questions. These are three questions we ask every guest on the show, get your take. The first one is what’s one tangible strategy that someone can use to make sure that investing works hand in hand with their career as a pharmacist?

[00:30:42] KP: Yeah, I would say investing with their career, the best thing would be just taking that one hour a week, away from everything, from their job, family, shutting the phone, and really, really going deep and asking yourself, what do I really need to do? Where am I failing? What do I need to change? That self-reflection, deepening the awareness, because otherwise, you could make the investment, you’re making return, you’ll be back to square one. The busyness of life. So, kind of extracting yourself out of it and that’s something I did for years and years, and it works like magic.

All you need is one hour. Ask yourself these serious questions. What am I really focusing my energy on? What do I need to do to make that investment? Do I need to find someone? Do I need to learn a concept? And asking better questions will give you better answers. Week by week by week, you’ll make that progress. You know what, it’s okay, if it takes a year, but at least you’ll be making progress.

[00:31:42] NH: I love that. It’s so easy to get lost in just getting the next thing done and being able to step back and reflect on, “Okay, well, what’s the overarching goal? What do I need to be aware of?” That’s great advice. Awesome. So then, question number two, is what’s one resource that has been most helpful to you in your real estate journey, whether that’s a book, a podcast, a person, an author?

[00:32:00] KP: I like the Steve Burgess guide to complete investing or complete apartment buying or something like that. So, it’s an older book, but it’s a 300-page book that really goes in about start to finish, negotiating deals and looking at numbers and all of that stuff. So, I highly recommend for somebody who’s looking for that technical information on investing in that kind of stuff.

[00:32:22] NH: That’s a great one, and that one that we’ve heard on the show before, so thanks. That’s awesome. And then question number three, what’s one piece of advice you’d give to a pharmacist that is contemplating a start in real estate investing?

[00:32:31] KP: I would just say do it. And I would say you might not be even aware of, you know, I feel like pharmacists. The schooling, there’s so much, but I feel like we don’t give ourselves credit of what’s really possible for us, and maybe that’s buying the property, maybe that’s running a business, whatever it is. But I would just say, focus more on your possibility and start getting involved in however way you can. If you don’t have the capital to invest. Okay, join a meetup group, just spend some time. Just keep taking a little actions.

[00:33:08] NH: It’s great. Well, I really appreciate you being on the show today, KP. I think you’ve brought a ton of knowledge to our audience. Before I let you go, where can people find you if they want to reach out?

[00:33:16] KP: Yeah, sure. So, you could go to my website, ketanpatel.com. I have resources for people who are actively involved and you could hit the button, “Contact Me” regarding my other website, if you’re looking to invest. Or if you’re someone that’s like, “Hey, you know what I’m at that point where I think I really need to move things”, happy to do a discovery session for your audience for free, they could hit “Take Action”, fill the form, and I’ll talk with them.

[00:33:46] NH: We’ll make sure to put that in the show notes. I definitely encourage people to check that out. So, Ketan, again, really appreciate you being here today. It’s been an awesome conversation and I hope we have you back on the show sometime in the future.

[00:33:56] KP: Thank you so much for the opportunity. I’m very grateful to share the message with fellow pharmacists and the tribe and the community. So, thank you.

[00:34:05] NH: Awesome, take care.

[OUTRO]

[00:34:08] TU: Thanks so much for joining us for the YFP Real Estate Investing Podcast. If you liked what you heard on today’s episode, please leave us a review and subscribe to the show, so you never miss an episode. If you have a question, know someone who would make a good guest for the show, or want to connect with Nate and David, head over to yfprealestate.com or join the growing YFP Real Estate Investing Facebook group. See you next time.

[END]

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