HARSH REALITY Of India's Real Estate REVEALED By @rk.ravikewalramani | RESTLESS 17

in a in Mumbai 5 six s property over there get paid like 6% commission 6% commission all right you cannot open your own brokerage house till you do not pass an exam it's a six months exam that you have to give in the US to become a real estate agent once you become a real estate agent you have to work for 3 years with a real estate with a brokerage house oh damn 3 years to work for a brokerage house once you have finished your three years of uh working some sort of an internship or a residency finish that with that then only you can go and open your brokerage house three and a half correct today we have a second generation real estate agent somebody who has been into this industry for decades Ravi also famously known as RK Realtors on Instagram and YouTube with more than 500,000 subscribers came on the podcast and discussed everything that you need to do a diploma in real [Applause] [Music] estate [Music] I have seen with real estate agents the good one is that they have this swag in them like know they're desperate or they're like oh we working for you they're very entrepreneurial in that sense is what I've seen and I really look up to the personality in terms of hospitality you you would like to be like wow I would like to be like you know I would like to learn this so giving you some context one month ago I met I was meeting a real estate agent for my friend's office this guy came up in a full suit full end to endend suit we all of us thought uh and then he took us to a lot of offices officers and we found him a little arrogant but at the same time there was good positives to his personalities uh good parts negative to they but good parts his personalities and you asked him also ke boss what is this suit and all that and he's like that's how the agent business Works what's your take on this like agents are like trained to be like hospitable or like have a swaggy personality out there I don't think anyone is trained to be it has to come naturally you these these people that you must have met they will be in uh ipcs uh they're called uh International Property Consultants or or there's another IPC also which I forgot there's so many you know abbreviations of all of these things um or they could be one of those uh which are all over India uh they are required to wear a suit that is in their job description so even if it is scotching heat outside because that is the uh that is the portrayal that they have to do to the client because it could be a high-end property it could be a much bigger space maybe it's a 4,000 5,000 ft monthly rental would be some 15 lakhs so when they are dealing with these and these ipcs they deal with a lot of corporates so they themselves come in suits now um that is maybe the thing that they have to do but I don't see that see at the end of the day my staff my people you know they dress decently shirt P that's fine what a person is dressing as is irrelevant as long as the information that he's giving and as long as the service that he's giving is is correct is right and he is to The Mark with all of those things they have their mandatory they have their own systems that that's how they want to operate but swag and everything else it's it's January December J we can wear a suit we can wear a coat it's not Delhi where you know you have ample of time to wear coats so right yeah I mean value I always believe in value my staff has just recently closed a deal uh for a property which is uh some 3,000 ft carpet area and lower parel for 7 and a half lakhs monthly rent that's a decent size 7 into 12 84 and it's an international company moving from uh out of the country coming to Mumbai and setting up as a financial company setting their base up over here so they don't have any problem in fact they became so fans such big fans of him that you know you only work with us for the residence we don't want you and he's a simple guy wearing a shirt and a pant that's it but he does a good job at explaining a property shortlisting the property for the client and showing him what he wants to see and what is his requirement not a littleit it's called tagging so every broker tries to go about saying basically you know how you brand a cow with an Android that's not how we operate soer he was he will call up few of the developers they have some inventory and he will call up some private owners who have some properties which match your requirement which don't match your requirement so what he will do is he will show you the ones that match your requirement also and he will show you the ones that don't match your requirement just in the in the flip case that you might see that property through some other broker so what they will do is they will take your profile they will send it to the owner they will send it to the developer and then the developer will have to once you show the property to to the to the client got it got it that is the mentality at the end of the day the owner very clearly says so it is a futile way of thinking and it is a futile operation only waste of absolute waste of time true so you focus on a client and you give him the service that you want but at least that person will remember you he did not show me properties got it I want to talk about the business model and I want to then compare it with the platforms as well and also the impact that it has happened on your businesses so first of all how does we all know how does agents make money like for example I took a rent I paid him one month's rent that is one way of doing it right second is that if I'm buying this property via like agent he helped me Scout or let's say I'm buying a 5 property he showed me 10 properties I chose one he'll get like a 1 2 3% whatever on that these are the two business model that's it or is there like a addition to this to the outside world no it's pretty much summed up that's it yeah it's pretty simple it's a it's a very simple scenario the intricacies that happen between that H that that now coming to that how do you deal with people who see your property that you show them and then go to the guards and ask them Kush this happens all the time and it doesn't matter what brand you are you could be the biggest of the brands you could be the worst of the be panala it will happen to you it will happen to me it still happens to me and it will happen in the future also this is an unregulated Market you can't hold anyone accountable for anything if you are the kind of person who wants to go and Associate yourself with the Watchman and get the deal done more power to you I don't want to associate with you because you are not a client and even if you are a client you are not of my caliber you are beneath me I will not deal with you I Will Not Shake Hands with you and when I say Beneath You beneath me I don't mean money I don't don't mean cast I don't mean Creed I don't mean any of that I just mean that my mentality and your mentality my way of thinking and your way of thinking do not match you do what you want to do more power to you that's it that's just a simple thing you know sir good luck with your uh uh with your purchase with your search I'm not going to get involved simple there is one gentleman um he I'll just give a specific example there was a gentleman a doctor went and saw a property in a South Mumbai uh South Mumbai project all right the same thing he saw everything he specifically saw the video and he came I want to see this property we showed him everything time lapsed um 90 days uh happened there's a tagging system it's a 90 days time limited kind of a thing 90 days passed or 60 days passed um on the 70th or the 70th first date my associate who manages South Mumbai called me up and told me BR through no problem sir how can you be like this you know it's our business it's a big property it's a 8 9 CR property how can you lose you know we lose 2% commission like it's okay it doesn't matter focus on the person who gives you respect who wants your help who wants to tap into your expertise if he is smart enough to buy all of this on his own go he went through another broker that's fine maybe the broker gave him some uh incentive something he must have given him some incentive and maybe he went with him that's fine cut short 30 days later he calls up my associate my associate did nothing and he told me sir do I write a message to him and I do I speak out my mind no no need to talk to him about anything you have no knowledge of this even if you have knowledge of it do not disclose anything it's fine let it be 30 days later he calls up my associate and he tells my associate um uh I'm looking for a property I finalized something but it didn't go through and he told him the reason why I did not do is did not close that deal is because one of the points that you had mentioned that particular Community had a water problem m where water was not available 24 hours and they used to get water from tankers so he my associate had told that doctor that sir everything is good this is the only negative he came back to my associate and said the only reason why I didn't buy it is because of you because you mentioned to me that this is a problem and I verified it with others who actually stay in the building and they said yes this is a issue that we face on a daily basis now water is a basic necessity correct the reason why he came back to us was because of we were open we were straightforward and we did not hide anything from him we gave him the positives and the negatives and that's what I try to inculcate in everyone who works for me when he called my associate my associate told him sir I appreciate you calling me up and telling me but my experience with you last time was not positive I showed you the property I explained everything I spent my time energy and effort we get paid later on for our time energy and effort for our knowledge and experience and intelligence he said yes I understand that and I will not do it forthcoming coming onwards cut short again two weeks later my associate calls me up and tells me sir what same property other broker through M he's not committed to you let him go the last thing you want to do is you close the deal with this guy and later on he comes and troubles you and he comes again and again nagging to you about associate concentrate on people who value you who respect you and who want to work with you I would rather do one deal in a year with one guy who respects me then do 20 deals with podcast as well that's our business is not 100% similar but there's similarity in this and I ask this question because this happen in our business as well a lot of the times because we not poaching part but like let's say I as a agency will go to a brand and pitch a Creator we'll do the Creative creative things we pit a six months thing we'll tell them 2 months later 3 months later if you tell the Creator that okay we are pitching this either the Creator will go to the brand directly or the brand will go to the Creator directly okay them similar thing and they'll close the deal and then we later know we'll see the video directly live yeah that's what uh that's what uh I can say your name yeah that's what Lisa and uh dro the gang over there were also telling me the same thing a lot of times when we get these inquiries it's like uh we don't want to disclose the brand it don't work but I've realized every second person we don't want to disclose the brand we don't want to disclose the brand correct this only it's like in your perspective it's like we don't want to disclose the location basically equivalent to that yeah so example I have fail saves in in place I do have a qualification process uh I don't know whether it's applicable in your business or not but I do have a whole process in place where I if someone sees a video then they want to see the property they'll be like a lot of Brokers follow me a lot of clients follow me a lot of genuine clients as well as people who just want get information so they will just message sometimes I feel okay this guy is asking me a lot of relevant questions this guy is either a broker or this guy stays in that building or is around that building so first I asked some qualifying questions to them and then um if I feel comfortable I give them the details of the property but the first and foremost thing that I make everyone do is fill a form as a Google form that I ask everyone to fill if you are coming looking for a property step one check mark that is my first step of qualification genuine Cent logically speaking and if I am taking efforts to help you and you are not helping me back in the processes that I have then I don't want to work with you w i it's a very simple thing and this logic has been with me since day one work with few people work with good quality people and much better that way correct so that is the first step that we do to qualify the clients then the second step is picking up the phone and talking to to them then the third step is uh getting them for inspections then the whole process starts the qualification process start uh ends when they actually come to see the property that is the first step but in your case it's very difficult because there are Brands and every it's like what is what do you think is a solution in your field um I mean in this particular problem it's usually uh you have to have that repo with the Creator sorted like uh if ethically you are putting in your time money and energy and resources to pitch to a brand uh what we do usually is that we'll speak to the Creator we'll tell them boss these are the four five brand that we think should align with the you tell us who should P obviously you like red direct towards so that's the usual I think everybody follow do you if you if you get U but even if you say bypass if someone if any Creator bypasses you then what do you do in the beginning of the journey now it's like it's you get used to it so it's it's it's then like a filtering category because they don't unlike your business are is repetitive so with the creator also so if the Creator does it once then they don't see that in the long term they're losing out on so many Brands going yeah shortterm thinking nonsense exactly soorry happened then you take them back sometimes you do sometimes you don't ex so they know like they put in the efforts and then they get dejected so they get like pissed off which is fair I feel so so do you get creators who are when they get approached directly on their uh social media messages and everything do they direct that to you yeah so yeah I do want to talk about the lessons Daka daa and daa which you have mentioned I want to talk about that as well okay what what do you want to know about that so why why are you written particular these three words and what has experience mean with this and the business core three lessons which aligns with them Daka daa and daa yeah when I start it'll start with Daka yeah uh Daka and DOA basically both are together but little apart when I started real estate I had no idea so I'll give you a backdrop this is after the US this is after the US so I'll give you a backdrop uh grad Gru out of nmims college uh not nms NM College from in 2000 then the moment I did my bcom from there I went to the US I was there in the US for 11 years I came back my father passed away in 2009 he was a real estate investor he used to invest in properties with developers and then collateral flat once he passed away in 2009 I decided to move back to India took me two years to move back to India so in 2011 I moved back Lock Stock Barrel everything uh when I was younger I used to go for all site visits with my father and I used to see him talk and negotiate with people yeah once you know occasions they were rare occasions but they were very impactful occasions at that point of time that's the intonation that I was talking about impactful so uh um so I when I moved back for 4 months I did nothing I didn't know know what to do a lot of people had a lot of advice for me you should do this you should do that blah blah blah eventually I thought you know what I want to get into brokerage I want to get into real estate my father has left me a legacy of of things that I can build on correct so I thought I had no idea of any concepts of brokerage I didn't have any friends who are into brokerage all my friends are all h and Ultra the first conversation that I had with someone was broker he told me that property I had a requirement property plus one now this plus one concept means I'm a broker he's a broker but he doesn't have the property and doesn't know the property but he knows someone else so there are three Brokers involved and I asked him what is plus one a plus one and he hung up the phone he hung up the phone he's to that time I realized he the people in here are not open to people coming in yeah not open to people coming in they're not open to educating someone letting someone know what is the whole thing now if that guy at that point of time would have taken a minute to explain to me the concept of plus one I would have been a fan for him like CH he took the time effort to explain to me so let me work with him and I had a genuine client within my circle only then lot of times you go to the owners you talk to them they will call you they will make you run around left and right the buyers will make you say so that is the Daka part in Mumbai at 35° 40° that time I used to roam around in a motorcycle I had a car but for me convenience wise getting to give the service being before the client comes making sure everything is is correctly poised for them to see I used to be there 10 15 minutes earlier show go on a motorcycle in 35 I've got sunburns on my arms from that day lot of people said we'll come didn't come lot of people used to come down owner is waiting upstairs you to pick up the phone and tell them so that is the daaka part going deal is done you go to the buyer you go to the seller and you say sir again go the next day then again you go back again to the to the client then a week 10 days 20 days a month later when they realize that this guy is not going to let us go that is the Daka part time commitment fulfill have straightforward pattern that okay this person is going to pay me on this time and he's committing to it what commitment so that is the Daka part the DOA part is a Le a level A Step Above This where the work is done everything is done and then they come and say or license agreement so and they outright straight looking into your eyes will tell you and what are you going to do at that point of time you can't go to the police there is no association there is no written agreement there is nothing it's all verbal what are you supposed to do at that point of time you're supposed to say okay take the money and walk out that is the DOA part for from the real estate broker aspect our world is the wild wild vest anyone can get up shoot anyone and run away on his horse and no no don't know where he is it's a it's a very it's it's a very unorganized a very dirty world of the broker and developers are there and this is all across the board developers will do it the best of the best developers will do it the worst of the worst developers will do it uh everyone if they think they can get away with it they will do it till date despite having a fan follower and despite having a uh you know a YouTube channel and a name and a brand and everything still people do it still there has been four months 5 months 6 months down the road when I have to pick up the phone and I have to say Sir agreement registration 80% payment 90% and after that it is extremely dejected like you mentioned you know your team does all the hard work gets everything done and then suddenly One Fine Day it this absolute radio silence you know you don't know between the between the Creator and the and the company and then suddenly one find day boom you wake up and you are so upset and you're so dejected right yet you have to brush that aside and move forward so that is the DOA part or H the the developer field is is is getting organized with rera the uh the the government is getting involved we as agents all right now we as agents also have to register with rera all right that's fine now coming September we have to do a course where we are supposed to sit down and give an examination and everything else for every associate that is involved in the real estate industry that's fine that's a good thing but what is the protection we are getting as Brokers zero responsibili in a resale agreement in a resale property 1% is done come up with terms and conditions come up with a list of things that you have to work the entire world is organized in real estate you go to any of the developed Nations you go to us UK Australia New Zealand you go anywhere in the world you have a a structure for The Brokerage part also where the broker also getting REM remated for the work that he's done and if he's not getting remunerated the results the the decisions come within 30 60 90 days so there is fear in the back of the mind I cannot I cannot negate on this I can't uh go against my word or my agreement so from the broker's aspect also there has to be a fixed remuneration that the government has to come in and say as a broker you get paid 1% you get paid 2% this is the bare minimum and it has to be documented so when it is coming from the government the broker will also feel confidence and say Sir this is the government mandated and then if that broker decides to work without signing them then it's up to him then it's his fault agreed yeah so that is the that is the DOA part I went too long uh good yeah the third part daa yeah without blessings forces of nature working towards you you cannot accomplish anything you need the blessings of your parents you need the blessings of God and you need spirituality or whatever the forces an angel that has to look after you to get that but that should not be an excuse for you to uh blame someone you know your hard work has to go with hard work you need your luck you need your blessings so with me I still think that my father is up there and the reason why I'm able to do what I'm doing doing is because of his blessings because somewhere in this universe he's up there looking at me down and saying son you're doing things the blessings is like the icing on the cake that's what I believe and there's no you can't do a contract with any clients beforehand of doing a deal yeah I do you do I do I do Soul mandates with them so I so in the form that we we send you know so if you are a buyer if you're looking for a property we make you fill a form all right if you're a seller we make you fill a form once you fill the form we in the form it's it's clearly mentioned are you okay with a soul mandate and it explains what a soul mandate is then when they say yes the team picks up the phone and calls them up you've said yes for a soul mandate um we have an agreement that you have to sign all right it's a Time dated agreement time limited agreement for 3 months 6 months whatever the owner is comfortable with but minimum 90 days is what we need and we make them sign the soul mandate we make them sign it put their uh uh photo over there and we make two original copies one goes to him one comes to me and all the terms and conditions are mentioned right over there so we make a person sign if he says that you know your word and your signature has to match if you are not putting it on signature and you're not signing on paper then your word has zero value to me and I tell this to them we will work as normal Brokers as we work Soul sign then I'm going to hold you to your word and I will put that and if they don't agree with that then I will do what I have to do you know so that also shows the intent of the person now how genuine he is if a person is saying and I want you only to do it he has faith in me my full team will go Gango on that property or on that buyo we know that that we are going to get an x amount of comage from this gentleman or lady in 90 days in 180 days so we work hard for that yeah and we don't care if you have to associate with two other Brokers three other Brokers get the deal done that's it check mark is better than you know 100% and have you never thought about like building a platform because you have so many leads both from all around the buyers sellers Brokers coming in so we not thought platform lead Vis you know there are so many platforms right now who apparently like no broker and all those platforms and wherein you just pay a subscription fee and then you can see all the listed places my question is why have they not been able to disrupt the segment uh and number two why they have why they never have good properties with them it's always with the agents it's never with them it's you tried it like a couple of years ago it's never works never used it again so so you have two questions the first question is listing why haven't I listed or why haven't I used them why haven't they able to disrupt the they came to disrupt right this they disrupted in the beginning they did yes in 2011 12 13 when online properties were where this 99 Acres magic bricks housing.com all of these guys came they they did disrupt it to a certain level where owners were going directly in hting their properties and we as Brokers could go and source that out all right they were also getting access to the buyers directly so there was a certain amount of disruption over there but you have to change with times now it's 12 years down the road things have completely moved on and changed that platform has become just like every other platform has become overp populated it is filled with Gunk I used to advertise on all of these platforms I have stopped using all of them mhm because the leads that come are number one that leads that are coming are like just click click click click click click click every person has that lead once again the quality is is not up to my level number one um the properties that are listed over there everybody has that property so you as a buyer me as a broker now you are a person looking for a three-bedroom apartment or a office space if 10 different people are offering you the same property you will get irritated or you will be like prop offer this owner is desperate to sell or this is the only property which is available but you usually inclined to think by this guy is very desperate to sell that is why everyone is offering me for seller be frustrated and then it becomes like a Basi cake nobody wants it and second was by the all the good properties are with you guys but you all the good properties no no there is another reason all the good properties are with Brokers because Brokers have a relationship with the owners AB there are a certain set of people who do not want to disclose their personal home address or their home information out in the public it's a very private thing someone's home or someone's office is a very private thing this is very true in the case of shops if a shop is already operating and the say it's a restaurant the restaurant is is operating his place and he's been there for the last 20 years his he wants to retire and he just wants to collect rent on the equity that he's built for the last two three decades on that restaurant and he wants to give it up with all the licenses which is very difficult to get if he puts that out in the open his staff will run away they'll run away that's detrimental to his business when he'll get a client what condition what not he doesn't know then in the market the name will get spread so there will be other people also who will be coming and saying so the natural human tendency to think is negative not the fact that I want to retire and I'm done with it I can't do this anymore my kids are done everything is is done and I'm all alone and my kids have nothing to do with the restaurant so this person wants to deal with one or two people he wants to qualify the person who's coming to see the property so he does it in a very um strategic way he does it in a very um a streamline way where not every Tom Dick and Harry can come and sit over there so that is another that's a way of thinking then another way is if you have a residential apartment you don't want your your wife is there your two children are there you don't want strangers walking into the house without knowing who they are you know and in know in Mumbai five six seven property so there are whole set of people also so these are the things that you qualify you don't see this from the other end I see this from my end my staff sees it from this end weekend there are some people like can I experience a night over at this house owner sometimes what you know motivated to sell we'll give you an opportunity he wants to feel the vibe now okay pay me some money you talking now you walk you walk the walk you know what is that saying in the US yeah you know uh walks Money Talks so that's that's the way you do it there are a lot of people who do this and this these are the set of people that I like to work with that's that's that's my take on it no it's it's a very ground level reality uh and in a way you also mentioned why these guys don't work the platforms don't so why don't you build a platform which has these things cleared I'm in the process I'm in the process of uh of building an app nice I have a whole fiveyear uh uh phase-wise launching of it so I'm in talks with a company which is in Bangalore about uh setting up an app an app which is something which is completely different and it's all in my head I'm not disclos this in fact when I get disclose it to the person also I told them this is only between you and me this is not going on anywhere and I wrote that in the email and I took an acknowledgement from them on email that you're not not going to disclose this to anyone else this is some sort of an NDA yeah so they agreed to that and coincident he's a friend of mine also it's time see every person has a learning curve I've had a decade of learning curve I have put thousands and thousands of hours in this field in in walk in going to property seeing properties till date I even go to see properties if if people think that you know I don't do it anymore and I'm just sitting comfortably so I I still do it and I still am going to do it as long as I can do it so it's time for a person to capitalize on that experience that I have had and to build on that and to decimate that not decimate that distribute that information to the people who work for me okay this these are the mistakes that I've done don't make the same mistakes if you make the same mistakes then you are going to suffer got it and what did you study in Us by the way what did you do for 11 years in the US I went to an Institute called geological Institute of America okay it's in carb California I was there from October 26 2000 [Music] till I think for a year I was there I was there till November not November I was there till September of 2020 September of 2001 so for a year almost a year I was there I studied I'm a graduate gemologist as well as a wax casting and a wax carving expert that's what I studied over there Jew I used to grade diamonds I used to cre diamonds and I was very good at it I used to love doing it I used to get lost in the diamonds and then next I worked with the jewelry store I worked with the jewelry store in uh in New Jersey South Jersey I worked in a new you have these people that's the bad side then there is another set of brokers who will show the they're they're not educated they will show the property they will do the whole process they might not understand the English and the legal language of it but they will guide you and they will explain to you normal normal normal they know the process that is the second set of people the third set of people are these educated Brokers at a higher level who understand everything who know everything and they will have these select few good properties they'll come in their car they'll come in proper shirts pants suits so there are disparity we all get categorized as Dal as agent but it will happen and as far as becoming a millionaire it takes a lot of time effort energy to invest in real estate and to stay in real estate and to stay invested in real estate for a longer period of time you will make your money but it'll take time previous generations the 80s '90s and the 2000s they saw a boom they saw 5x 10x 100x improvements you can't expect that now correct true you can expect a certain Improvement but you can't expect such a big Improvement anymore so those people have made their Millions as compared to the West because it's a structured Market because of the way they operate they see that returns but so many times you know1 million property sold for 45 million because it's been in the market for three 3 years two years there are no takers so that also happens over over there appreciation you become millionaires but the property should have that value in it also there are rehabs the way the Mumbai market is and the way the foreign market is they operate differently over there you get loans at 2% 3% 6% now I have friends in the US who have bought at 4 and a half% at 2 and a half% on interest 8% interest you're going to pay it is such a disparity so it's very difficult to make that and to have that balls to go ahead and invest in real estate uh even as a broker it's it's very the quantums are too big and it's not supporting the system is not supporting the investment it's supporting the end user got what are the modes of this business according to you uh relationships relationship so majority of my business comes from Word of Mouth from references Word of Mouth yeah from Word of Mouth from walk-in from uh Walkin I have a shop which is a ground floor shop so we have walk-in clients um now social media has played a huge part in it because it's opened up the entire world for for us for me but still at the end of the day a person is going to give you a property worth crores he's going to judge you he's going to see whether you are worthy of giving your property or not so that is that that is always going to be there but references the first deal that I ever did was an 8 88,000 rupees monthly rental in carest I had done that guy that owner is still my client he works with only two Brokers I'm one of them for a property which is just over five cror he wants to sell it now so it's just over five crores no matter what we tried for whatever reason asking price 95,000 it went 25,000 rupees above the asking price because of the way we marketed it there were seven offers on that property seven offers unheard of I was I was surprised myself so there is some power to social media but there is literally no barrier the only barrier which government is put is the eror you become a agent now with the education that you have to do actually personally have to sit down and see it time is running out for me on that so I have to personally see over there but that is the only barrier that I'm aware of then starting in the beginning if you want to start your business you don't have any properties you have to go to your family friends and you to tell them that I've started even they won't give you the properties in the beginning I'll give you this opportunity but they will give preference to someone else got experience yeah then getting getting properties getting buyers is is a challenge you can circumvent that challenge a challenge with the technology that is there with you so if you're looking for properties go to the classified page in times of India pick up the phone go visit the property speak to the owner tell him I'm new but I'm trying so you have marketing challenges you can start off with uh with these portals these online portals of uh property portals 99 magic and so and so forth you can you can start off with these you can take the listings and put the listings and wait for people to come in you can do cold calling you can take some database and you can you know do some cold calling with people like I have a property I'm looking ground level hustle basically ground level on the ground that is the hustle that you have to do there is one gentleman I know uh young guy he's my friend's younger brother he did a deal he said I'm going to get into real estate right he he locked out the first deal he did was some 12 CR property he sold in bkc he got 2% commission so he got 24 lakhs yeah yeah for the next one year he did nothing beginner's luck this is true beginner's luck I was sitting at home once day hanging out with my friends we having a nice chill beer he walks in because I had some work with he walked in to drop some paperwork or something or the other I looked at him and I said by why do you look so frustrated and he poured his heart out to me there my my friends are sitting right there I'm sitting on the dining table with him over there my friends are just hanging out and drinking and uh I'm sitting down over there for the first five minutes 10 minutes I'm listening to him crib and cry like shant I poured him a chilled beer I told him you have a beer now and talk your heart out he discussed everything possible in the world and at the end of the day I told him you are an educated MBA Finance graduate go back to that world your brother lives in the US ask him to get you a job in the US go there you are a refined guy you do not belong in this unrefined world you are not you are you are a saltwater fish and you are trying to survive in a fresh water get out and go there nice he listened and he's now successful he now manages some thousand crores worth of portfolio of people in the US no here here in in India so how for for a noob out there who wants to get into real estate not from a this is a 23y Old Gentleman and this is a 44 year old gentleman I understand the lingo knew is a newbie I understand that so but still thank God I know otherwise I would have asked he was like you asked me what's a mo I was like hold on one second I know what a mo is after reading all of those uh you know fairy tales so thank God I knew but yeah Noob how Market not from a agent perspective but from a investor perspective like imagine me I want to put in money in real estate not from a you know emotional perspective but from a financial perspective of how I can multiply it M like I I'll give you couple of contexts um so I remember it's is few years ago I was a kid only and my I met a agent only and that guy was telling sir that was that he gave my dad which I still remember that he was selling it's called multiplication of properties I got a new concept which is ke if you have 50 lakhs you can buy 5 hour of 10 lakhs each take a rest of U the money from the bank as a loan and put under rent and then et and then over and above you have to pay pay that so that way you have five properties and over like five years 7even years depending upon your financial capability you can have five houses and then again follow the first concept of multip yeah it doesn't work in India no it doesn't work in Mumbai to I can tell you 100% it doesn't work it will not work in in Mumbai you are setting yourself up for disaster us it's a very once again see the mortgage rates 8% 8 and a half% do 2% 3 4% 4% inflation you can still do that see the the the disparity comes in the rental income that you get and the value of the property and I'll get to the investment part how you can get to investment but foreign countries model repli I'm just saying number wise I'm just throwing a number interest $4,000 is what you paying interest annually correct which is $400 $3,000 $350 a month correct is your interest charge take your Emi which includes your uh principal as well as your interest you get 15 years 20 years 25 years 30 years loans over there okay now $350 say you have a 30-year loan on it at $350 your rent over there is $800 so not not only are you making money right there and there if you have expenses if you have any kind of a additional uh $400 is what you're making per month 450 450 if you if you are anart if you if you have a condo so condos have this HOAs uh associations over at $800 $1,100 ,000 current you're still in the positive now you can take that additional cash flow and you can invest in another property then you multiply one two 2 three three five whatever you can multiply that now if you buy a property of one CR over here you're paying 8 lakh rupees annually your interest 8 lakh rupees if you're paying interest this makes no Financial sense only you see a lot of these uh people and I will talk about that later um but uh so Financial sense is not there when it comes to an apartment if you want to make money in real estate first of all your time frame should be minimum 10 years minimum 10 years is what you should be looking at that's a lot yeah you're 23 when you're 33 but 10 years will pass by and you will not even realize it you'll look at this video this conversation you'll be like so you will realize and then at that point of like so if you are looking at real estate you have to look at it as a long-term thing you can't be looking at it within a 12 months 24 months or a 36 months right if you're looking at it at a short term then you have to go in at a very early stage where the risks are really really really high yeah but the rewards are also very high I'll come to this so uh land invest you have to go in land which is in a area where developing for example I'll tell you I am very gang Gango about panil reason why I am Gango about panil is I love the word Gango by the way too much fun why it's like an ' 80s '90s word or something no I don't know just sounds cool okay so gangho is means I'm very uh uh I'm positive and I'm passionate about the fact that panil is a very good location it's a micro City all the infrastructure that is all the new infrastructure is going in that direction excuse me bless you to infrastructure karjat panil and that certain belt of all the suburbs you have the trans Harbor Link Road you have have the highways that are building you have train systems that are building over there and all of this getting connected from South Mumbai to pville so the property rates over there will increase they are increasing right now also correct there are people who go correct because for people to travel from pille to shivi and then from shivi to South Mumbai anywhere of South Mumbai is going to be like 20 minutes 30 minutes so that in itself is going to improve the entire demographics of that area so if you plan to buy land if you plan to buy an apartment depending on whatever is your budget go and buy example car bandra Santa Cruz this place where you sitting in 40 years ago was a jungle M this was entire thing was kardi bkc was a kardi during my childhood days 25 years ago there used to be a drive-in theater which you could see from the highway on the left hand side when you're going towards San none of the roads existed it was all mangroves now that area is buzzing with bkc when you go to the malls in bkc you're going to see a lot of the mosquitoes over there have you ever been to there you yeah yeah so you will see tons of mosquitoes M those mosquitoes are the original inhabitants of bkc there it is Ah that's a fly but they are the original inhabitants yeah so uh and in the last 10 years itself if you go to see 2011 I used to go to the diamond you have no parking over and I'm talking about 2011 2012 this is 11 years ago precisely brings me to the same point 10 years ago if you would have invested over there nobody wanted to go there but now B it's an entire ecosystem in itself correct and people come in there is an entry barrier over there you cannot enter you have to be a registered broker internally you have to buy and sell Town Diamond B BP H that entire block so real you have to be in the long run if you have the capital then you use that Capital wisely land is finite correct you can grow vertically as much as you want at that point of time flat and you can make all of that make your money your construction cost 50% Revenue sharing you take a corpus you take some money and saying that this is my security in case you back out you take Bank guarantees you take many things so all of those things matter I'll give you another example my friend in 2002 he had bought a flat in juu a four bedroom apartment one apartment per floow in juu TDR building for 25 lakhs AB so this is this is the value car bandra Santa Cruz plots a 800 square yard plot you would have got for 4 lakhs 5 lakhs that same property now is selling at 8 lakh rupees a square yard 8 lakh rupees a square yard where he bought 5 lakh rupees 800 square yards so the growth is exponential now the person who's staying over there and he says that you know what he has two options he wants to sell it he can sell it outright 1,000 square yards 8 lakhs of square yards 800 80 crores he can sell it like this or he can get a developer and he can tell the developer you make a building FL that developer will still make money at 55,000 to 65,000 rupees per square fet if he gets 800 into 2 bare minimum 2.7 2.35 soard which is if you multiply by 9 which will be roughly about 14,000 ft if the develop if the developer gets 50% of that 7,000 squ ft at at 50 crores at 50,000 Rupees which is the bare basic he's making 35 crores right there 75 are 35 35 crores he's making minus the expenses and everything else you'll have a 20% 30% margin over there and if he's a very well reputed developer then he will be able to sell it at 70 75,000 rupees per square feet also and the the owner he doesn't have to leave the place the plot owner he still continues staying over there his he has four flats over there now he stays in one apartment he stays in one four-bedroom and the remaining three four bedrooms he rents out at say 2.5 lakhs so he's making 7 and a half lakh rupees per month free that is the power of land that is the power of real estate this is how you can build on real estate over decades it's generational it is not mom is still there us can my friend is in Canada and his brother is in the US right they make their money they're happy over there they used to have a plot in juu gulmar they give it to a developer developer made the whole prop three units they have one for his mother one for the each Brothers he gets two and a half lakh rupees monthly rent over there for this 4bedroom flat that's his third generation back in the 80s that is the that is the beauty of real estate so if you want to invest you have to think longterm you cannot think shortterm all right thank you so much for doing thisk you pleas speaking we have something for you nice what is this this is Bombay Sweet Shop Bombay Sweet [Applause] [Music] [Applause] [Music] [Applause] [Music] Shop

Channel: Ayush Shukla

Views: 488,213

Keywords: RESTLESS, RESTLESS Ayush Shukla, Ayush Shukla, podcast, business, Ravi Kewalramani, RK Mumbai Realtors, RK Mumbai Realtors Bunglow, RK Mumbai Realtors Lonavala, RK Mumbai, House, Home, Buying House, Renting House, Buying VS Renting, Buying VS Renting Home, Money, Wealth, Rich

Id: fJIizW7IBro

Length: 62min 16sec (3736 seconds)

Published: Fri Jun 02 2023