Multifamily Senior Living with Vinney Chopra | Commercial Real Estate Pro Network

Vinney Chopra  0:00 

And my senior livings are also going very well. Because what we do is we do all land development things, the ordinance changes and everything. And that gets us the land very cheap. We buy them. But by the time we have done through all the permitting, it’s increased in value by three times already, because we have gotten the permits now to build a senior assisted living. And then the good part is, by the time we are done building it, we start getting residents said, we have 29 residents already given deposits, to move into our apartment complex, brand new. It’s being built right now. So it’s a 2022 construction with everything brand new. And then we have very less deferred maintenance. And there is zero delinquency in this apartment complex because it’s a need driven and, you know, we have to look at the residence they have to show us three years of rent, because usually people stay three years in our facilities.

Announcer  1:11  

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J Darrin Gross  1:30  

Welcome to Commercial Real Estate Pro Networks, CRE PN Radio. Thanks for joining us. My name is J. Darrin Gross. This is a podcast focused on commercial real estate investment and risk management strategies. Weekly we have conversations with commercial real estate investors and professionals who provide their experience and insight to help you grow your real estate portfolio. 

Today, my guest is Vinney Chopra. Vinney is a multifamily syndicator, Senior Living care facility developer, an author, a podcast host, a mentor, family man, he’s a lot of good things. And in just a minute we’re going to speak with any about the opportunities in multifamily and senior living. 

But first, a quick reminder, if you like our show, CRE PN Radio, there are a couple things you can do to help us out. You can like, share and subscribe. And while you’re there, we appreciate you leaving a comment. We’d love to hear from our listeners. Also, if you want to see how handsome Our guests are, be sure to check out our YouTube channel. You can find us on YouTube at commercial real estate pro network. And while you’re there, please subscribe. Without on Welcome back returning guests popular Yes, my friend, Vinnie. Welcome back to CRE PN Radio.

Vinney Chopra  2:52  

Thank you. Thank you, Darrin, it’s such a pleasure to be back there with you, brother, I maybe during COVID We didn’t get together did.

J Darrin Gross  3:00  

We did once or twice. But it’s I mean, it’s I know we’ve talked at least once a year, but I know that it’s been a long time. And it’s time to catch up and see what you’re doing. I know you’ve been I know you’ve been busy, busy, busy. I’ve met some of your your students here locally. Yes. And I know that you’ve been busy selling and buying so it’s a good time to good time to catch up.

Vinney Chopra  3:31  

You know, it really is I mean, you know, many times we feel what the market is doing a market is doing but she got to take action and you know, sell some assets at the peak and buy some in good markets and develop some and you know, I’d love to share what’s happening with me. Yeah.

J Darrin Gross  3:50  

Yeah. Why don’t you start to you know, tell us what’s what’s been going on here last year. So

Vinney Chopra  3:58  

When COVID hit 2020 We always have managed through the zoom and through remotely and everything, meeting with our investors and so on. So that’s when I got more even heavily into senior assisted living developments and I did five syndications one after the other and raised almost $27 million to get this ground up. structions projects and started them in Florida and Virginia. And they are being built in everything. So that’s something that I also bought a hotel with my another partner Hilton Garden Inn, which happened before COVID. Actually, oh my gosh, turn, we closed the deal on December 31 2019. What a perfect timing is it? And then in 2020 to 2020, about April, we said, oh, my gosh, our occupancy has gone down to 22%. And we were ready to pay a mortgage of 15,000. Each partner, you know, because it’s a pretty big deal. Anyway, but then the office staff of the hospitals, three hospitals, nurses and doctors chose our hotel to live in, what, what is the probability of that happening? Look at that. And then our peanuts became millions, because we went from a 6 million we purchased in an auction this hotel, and we are selling it in just three months back, this is 2022. For 11,000,008 50, we are selling, doubling the money doubling the money in that one year, which is very good. And my senior livings are also going very well. Because what we do is we do all land development things, the ordinance changes and everything. And that gets us the land very cheap, we buy them. But by the time we have done to all the permitting, it’s increased in value by three times already. Because we have gotten the permits now to build a senior assisted living, we could sell that land, but we build ourselves with our own GC CINAHL. And my partner has been doing it for over 10 years. So that’s exciting. And then we build it in nine to 12 months, the whole thing. 66,000 square feet to 77,000 square feet of one story with 88 units, add ADA to 93 units, but we are not using any elevators or anything. Because these are 80 years, 200 years, you know, after age group of our residents, seniors who are living in our communities, right? It’s Hampton manor.co is our brand Hampton Manor. And that’s what is exciting. So we are building in Florida, in Virginia, in Michigan, and in in St. Louis. Right, Missouri. And then the good part is, by the time we are done building it, we start getting residents in like the Punta Gorda deal. I’m opening up like April 1, let’s say right, it’s February. So April 1, oh, April Fool’s Day. But we have 29 residents already given deposits, to move into our apartment complex, brand new, it’s being built right now. So it’s a 2022 construction, with everything brand new. And then we have very less deferred maintenance. And there is zero delinquency in this apartment complex, because it’s a need driven. And, you know, we have to look at the residents, they have to show us three years of rent, because usually people stay three years in our facilities. You know, they go to memory care, dementia, you know, which is also part of our division, or they get very sick, then they go to hospice, and they go to rehab centers and all that. So, so this is a new market for me, but it’s very, very satisfying bear market because it’s apartment at its core, but it’s got the, the that feeling of helping and giving the dignity of living for our seniors, you know,

J Darrin Gross  9:02  

That’s awesome. So you mentioned the three years of rent up front, is that do they give it to you up front? No. Show you they have that?

Vinney Chopra  9:12  

Sure. Just the proof just to prove it. Yeah, yeah. But they only pay month by month by month, you know? Yeah, yeah. No, we don’t take any money upfront, and they don’t have to pay us any money to live in the community either. I know there are other 55 Plus and independent living, you know, places like in California where I live, where you have to pay 300,000 tries to get in to even get in exactly yeah. But in our case states not. Right.

J Darrin Gross  9:41  

No, I know that model has changed quite a bit. And I’m guessing it’s kind of territorial where some places are still away and others are more of that but I would I would guess that the the model you’ve got there where it’s more of just like a rent is probably a more agreeable to If people unless the community is something that, that just got a reputation everybody wants in and that’s some sort of historical model kind of thing like that. So, okay, so you, you you’ve built, how many of the senior care facilities do you have is it’s a five, or how many?

Vinney Chopra  10:15  

Oh, no, actually, my partner has built over 30. But together five. Okay, I’ve got nine more on the books. So I’ve got 14 coming up here.

J Darrin Gross  10:27  

And are the five up and in running now?

Vinney Chopra  10:30  

I’ve been in the construction phase. 

J Darrin Gross  10:33  

Okay. Gotcha, gotcha. So your April one is your opening of the

Vinney Chopra  10:37  

first one in Punta, Florida. Right. Right.

J Darrin Gross  10:41  

That’s exciting stuff. I mean, that’s, that’s been a couple of years in the works here with Yes, yes. And a little different timeframe with the construction timeline, as opposed to closing on an asset you

Vinney Chopra  10:53  

Already built already built? Right? You know, I’ve been chasing C B, B minus B plus A minus all this time, right? You know, but the exciting part is that, you know, I’m not going after working class, I’m still buying multifamily buy. I just bought in Tennessee. I’m buying some more in Florida. But those are 70 million 80 million daily dollar deals. But these ones are brand new, constructed within 17 million.  What? 17 million 18 million, I’m able to build these apartment complexes brand new for seniors.

J Darrin Gross  11:31  

Yeah, no, that’s, that’s exciting. And I just like the multiple as you’re saying, like, from the time you guys buy the land to when you get the permits, you’ve tripled the value of the land. I mean, and that’s just that’s it land. That’s, that’s impressive. And, you know, it’s funny, because I’ve talked with other developers and stuff have come to recognize that, you know, the original value add. Strategy was developing, right? And when you start a piece of land, and you add value to it, and you totally know more valuable. Well, your hotel sounds like you really, that that one sounds like the one that you really got away with. I mean, not not got away with what really, from I mean, you bought it, I’m assuming it was a fully operational hotel and COVID Yes. And yes, and was occupancy down, like almost nothing, then

Vinney Chopra  12:22  

20 22% I think 22% Still, the weekend traffic was there in that town, some big, big business traffic, you’re right. But then we also had a pip in they call it capital improvements in hotels as Pip. And then we were able to change the roof and put some little bit money into it, then we doubled our price, you know, so we are selling it. And we are buying some more actually, I was over there in Gatlinburg, where dolly wood is there. And that’s the number two spot in the whole USA. We had a lot of people come there, you know, for vacation and everything. After Disney World. That’s number two spot and people drive up there. So lots of hotels have 97% occupancy is what they’re looking at different different locations, you know, and then storage units, what when he is getting into storage.

J Darrin Gross  13:16  

 Storage too? Oh my gosh,

Vinney Chopra  13:19  

You know, Vinney is always looking for different ways, right? So I do have my main heart is with multifamily, which I’ll be keep on buying a minus, or, you know, B plus assets, of course, but the compression of the cap rate has really got me thinking, you know, in the year and a half or so, because the C Class B class and a class, the compression of all these cap rates, it comes so close together, that, you know, people are asking a lot more money for their assets. Let’s call a spade a spade, you know, I mean, the deal I borrowed I’m included in that, by the way. The 2020. I bought a deal in Austin, Texas, turn 308 units, right, because my Melbourne property was I’m collecting 98% rents from the engineers. So my engineering mind says Vinnie, where are the other engineers going? Austin, Texas. So I go there, and I come into bested final on a deal with 15 other bidders. And the listing broker knows me what he says Vinnie, I know you. I said, Hi, Michael. How are you? He know, he says I sold you that Country Club property. Nine years back. You were the easiest guy to work with. I said, Michael, I’m so appreciative what you’re saying. When he’s back with more money. Literally, he told the sellers and we had meetings and all they awarded us the deal. My partner and I had Because 34,000,000,007 50 We paid for 308 units in near to the domain in Austin, unheard of totally got a loan from Freddie Mac at 2.69%. What $22 million loan at 2.69. And the broker friend of mine just called me few months back in December, he says, and he’s the president of a brokerage house, very big one. He says, Vinnie, your property’s worth 58 million today.

J Darrin Gross  15:33  

Oh, my God,

Vinney Chopra  15:34  

Oh my gosh, from 35 million from September of 2020. And this is now January of 2022. So he told me in December in about a year or so, the property went so high. So it’s just mind blowing. Mind blowing?

J Darrin Gross  15:53  

You You are definitely the hits, man. I mean, you’ve got the hits. You’ve got, I mean, everything you’ve everything you’ve done. I mean, you know, I think it’s interesting, you know, the the post crash? I mean, you know, everything’s been going up. And there have been plenty of conversations I’ve had with people talking about, you know, are we in the late ending, or whatever. And, yeah, and I keep talking with people that talk about just the data supports the demand for housing, you know, and like you said, if you’re, you found your Melbourne property and the engineers and the demand, and you recommend where and where are the other engineers going? As long as you’re in that? You’re in the the demand? Yes, yes, he gets the key to it. And, you know, the other question, I’m curious, how do you how do you view the cap compression? I mean, you you mentioned the fact that you’re, it makes you question, you know, what is it should do, you know, should stay in should get out, I think but I’ve come to recognize a compressed cap means that there’s Demand. And demand means that there’s somebody behind you waiting, there’s somebody wants that property, there’s somebody wants to be in that market, as opposed to if you get out and it’s a higher cap rate, he may not have so much demand behind you trying to get what you’ve got. Tell me a little bit about your How do you view it,

Vinney Chopra  17:17  

I would love to love to mention it, you know, what you’re seeing is so right bit compression of the cap rate, the value of the property has gone up, even the C Class C plus a b minus people are getting so high price, the demand is there, supplies limited, right? Supplies limited demand is there and people can get cheap money. See, that’s the other part in the whole equation, the mod gauge, you could get afford a bigger board gauge with bridge loans and other stuff. So the money is so cheap. But the thing is, it’s the syndicators are in trouble. Because if your cap rate is, let’s say 3.10, and your mod gauge is that 3.5, then where is the, you know, cash flow for the for the for the for the investors. So a lot of syndicators are raising money from what I see in the packets from the investors and then making it as a heat play, and give the same money back as cash flow. I don’t know if it’s a Ponzi scheme or what it is, you know.

J Darrin Gross  18:26  

So you’re saying they’re raising more capital than they need to get the deal. But that gives them reserves so they could maintain the yield that they promised?

Vinney Chopra  18:35  

Yeah, exactly. And then put value add, and then maybe in a year or two years, the property operations will start giving the kind of returns, you know, so I saw that coming in the last two years. It’s been tough for me to purchase anything, by the way. I only bought one deal last year in 2021. In the multifamily space, right. Then I tended towards senior living more, because I can build everything in 1314 15 million. And it’s a brand new building. And for senior side of the operation, the rents are much higher than the regular rent because we take care of the hotel, I mean restaurant, right? It’s a cook to order three meals and snacks. It’s got, you know, the movie theater, it’s got Spa Salon, it’s got caregiving, prescription medicine, all that stuff. But we charge 4300 Starting as compared to 1300 in a regular apartment. So my $17 million deal brand new is giving us 4 million revenue. So that’s where the differences so can get much high cap rate for building brand new apartments in assisted living. So that’s something engineering mind. I’ve been trying to put this all in equation together. Now my goal is $2 billion in this decade to construct 2 million. 2 billion Yeah, 2 billion. Yeah,

J Darrin Gross  20:10  

you’re on a good pace. That’s for sure. So So tell me, you know, we you you started in multifamily actually go way back, you started single family then you went to multifamily syndication, Senior Living hotel. And now storage, what was the appeal of the storage,

Vinney Chopra  20:30  

storage, I mean space, I’ve looked into it quite a bit, it’s very, very good. Multi, it’s a multi unit two, if you look at it without tenants tenants up there, but they just come they put their own lock on the storage unit, you know, it says shutter and four walls that solid is very little different maintenance. And it’s totally automated through cameras and everything. And through the software, they get the lock, log in, you know, to go into the gate. And then once they are inside the storage unit, they are able to go to their storage and do this stuff and everything. So the cost of operating the Self Storage Unit is so low. And not only that, more and more I’m doing the research, every zip code has many storage units, you could just say self storage and put the zip code, you will not even believe there are so many because within three miles, everybody, I think how many, four out of 610 families maybe need storage units. And we like abundance, we were to buy stuff and stuff and stuff. And you know, then, you know, move people move and things like storage has been especially very big market and very high good cap rates and everything good returns, you can increase noi i, you know, one of my students actually he’s doing so well. He left his IT job. For storage units, he learned the business in multifamily and raising money. And now he’s big time into storage units. So you know, and that’s where I’m also, you know, I’ll be buying everything. Again, my diversified Fund, which is right now $50 million fund, it’s got four prongs to it. What that means is I buy already built apartments, I do the Senior Living ground ups, I also buy already built senior living by us into fully operational, we buy those also by hotels and storage units. So anybody who gives me quarter million dollars, same money is buying all these things. So they love it because it mitigates the risk, because all these asset classes are there, and also different locations.

J Darrin Gross  22:58  

So you’ve definitely kind of muted the risk there by doing that. So So let’s looking forward here many I know when we first talked or talked about almost two years ago, and COVID, we just started and kind of the crystal ball was, you know, ever nobody knew specifically but it was always a question of, you know, vacancy rates at proved not to be an issue with multifamily. With all the money that’s been printed and all of the the demand and just the you know, the capital out there the seeking return be do you see any kind of a softening? Concern? I mean, is there I am, you’re an engineer data man.

Vinney Chopra  23:52  

The thing is, we are losing, you know, dollars losing power by putting so much pumping of the money in 2020. By the way, we put I think there was one statistic we put what 60% of the the, you know, meant produce so many trillions of dollars in just 2020 and 2021. To give out to all these people, right? Inflation is at 6.5%. Right now, government is trying to, I think there will be some upward pressure to the interest rate. It is going to be up we’ll be probably in April, I hear point two, five, maybe another one in October. So that is going to put downward pressure on to the valuation because as the interest rate rises, you can afford less of the product. Mortgage is going to go up. Some people were into breach lending, and a lot of people have gone that route in the last couple of years because they can get 80% rather than 70% which the other Fannie Freddie Mac’s were giving a lot of people have gone into bridge lending but then the bridge people will be also looking into How the whole equation is going to work, you know, with these people who are bought to 80%, if the occupancy goes down, we are very close to defaults, you know, as compared to as compared to 60%. You know, LTV, right, so I see a downward pressure coming, you know, but the thing is, you got to be very, very articulate and do assumptions very conservatively, because the rents may not increase that much either. Because if the inflation is high, people have less money, because they’re buying, you know, stuff and eating and gas and everything more money is going there. So they won’t be able to give the higher rents. So, the rent increase will be also very, it may be only 1% increase, or 2% increase, unless you are buying with a big, big gap in the rent differential, you know, already with the value add. So, I think in the crystal ball, nobody’s got a crystal ball. I don’t either, but I really see that the millennials have been taught but three Millennials big time. One is millennial. Yeah, tsunamis, 3d tsunamis, I should have said, one is millennial 74 million of us, you know, Z that may or may senior, you know, but they are the ones who like portability. And they don’t like to buy homes. So the renter, we will becoming a renter nation again, there are so many articles in globe Street in Fortune Magazine, in Forbes magazine, where there is a pent up demand for rents. Immigration tsunami is another one. Because you know, our birth rate is so low in USA, the immigration kind of helps a lot, you know, it’s going to be 441 million population in the next 3040 years. But where is that going to come from, is from immigration, birth, and then seniors, which is 10,000 Baby Boomers turning 65 Every day, until 2020 31 or 2033 10,000, every day getting into senior writers. So that’s 100 million will be seniors in America, never ever before that has happened. So there is a pent up demand for housing for senior living see. So those three tsunamis are going to continue boosting our pressure into rentals. And of course, you know, downsizing by the baby boomers, that’s going to affect also because more single family will be available of course. And then I don’t know about industrial also will be on a good spur up because we have warehouses and all opening up, you know, industrial strip shopping centers are downsizing. We know that very much. Office space is downsizing, but storage units and you know, our I just I have gone. Oh, can you hear me? Okay, from there? Okay, okay. Okay. I usually I do through my microphone. Yes. I had another meeting before this one. So

J Darrin Gross  28:22  

Are you have you looked at any industrial? Is anything you’ve looked at? 

Vinney Chopra  28:25  

No, no, no, I will not be in that. Yeah, I wouldn’t be I think I like to stay the course in multifamily. I love the hotels because it’s multifamily. And you can, you know, look at people have to pay at the counter to stay in the room, you know, and so forth. Storage Unit is also multi family kind of thing, because each one resident owns that space storage unit. And that way, so I’ll stay in the conventional job workers, you know, our multifamily, but I’m loving the retirement communities now. So in other words, I don’t have to change jobs, jobs, jobs where Amazon is gonna open up. Now I can look for demographical numbers, where people want to retire in serene locations with lakes and golf courses and everything. So I’m looking for a piece of land in the neighborhoods where there are no jobs. i That’s why I’m in Florida, and I’ll be in Arizona, all the states because people really need to retire near to their grandchildren. That’s what we are finding. Even from the north cold country. They are moving to their, you know, children and grandchildren so that they could come and celebrate birthdays and, you know, meet with them at the assisted living. That’s the frame. I mean, I’m not into the 55 plus communities or golf courses or condominiums. I’m not in the rehab centers or nursing homes. That’s a business in itself, you know, very big medical equipments and all. I’m only in the safe environment, right in the middle, independent assisted living and memory care. We need no doctors, and only one nurse. And then one chef one, you know, helper, Chef, Deputy chef, we call it and then activities director and all that stuff.

J Darrin Gross  30:26  

No. Well, I love the the mix and you know all the success you’ve had and just thank you to be able to take things full cycle I’ll be interested to next time we speak more about how your your senior living, you know, actually to have residents and see what you’ve learned there. Although I’m guessing you’re probably pretty, pretty attuned to that based on your partner having been there so long.

Vinney Chopra  30:54  

We are we are and very vertically integrated. In our senior living side also, like ours in the multifamily. We have color in a soul, so many assets. So we have dwindled down in our manpower there in multifamily. We had 135 people full time working in my company, you know, but now, what we are doing is before even the Senior Living opens, during we hired the executive director and leasing agents. So my Punta Gorda, I have 29 deposits already, what 29 seniors who have given me deposit, as soon as I open the door in two months from today, they’ll be coming inside. And I’m going to breakeven, within four months or so I’ll breakeven because, yeah,

J Darrin Gross  31:48  

That’s fabulous. Any new construction, the capital improvements, I mean, you’re, there’s no deferred maintenance or anything 

Vinney Chopra  31:56  

Zero deferred and all brand new appliances, all brand new flooring, brand new roof brand new parking lot. So that saves a lot of money. And then it’s a plus plus luxury living, which I built it from scratch 2022 model. So if I were to buy an asset to give me $4 million revenue, in multifamily, right 4 million to 5 million, let’s say, I may have to pay 40 to 50 million, for a plus plus, I may have to pay 100 million, by the way, you know, 100 million for that asset, which is built brand new, which will give me 5 million revenues. But in this one, I can build it for 17 million to 18 million, and have that revenue of 5 million. big it’s a big equation change.

J Darrin Gross  32:50  

Yeah.

Vinney Chopra  32:54  

And it saved for for my, my investors, you know, and now the investors are coming Ultra Rich into my fault. We have 430 investors right now. But then the ultra rich are putting 1 million, 1 million, 1 million, 1 million. So in other words, they don’t need cash flow at all. Generally, that’s the beauty of it. So they’re saying we don’t keep the ordinary income, cash flow, you know, which a lot of people pay monthly, and quarterly say I don’t need it, because I’m at 50% bracket, if they give me seven and a half percent, half is gone in the taxes. So just give me capital gain. In three years, when you have done, you know, stay semi stabilized your ground up construction, it’s dirt first year, second year, we build it, and third year we stabilize it, right. So they say just give us the lump sum, or even give us a 1031 option. So I love it, I that’s the key is to just get the money right here. After we have all the permits, and we have a construction loan. And then we gave it two and a half, three years 60% return, let’s say and they can take 60% on that million that 600,000 You know, or they could say Vinnie, put my 1.6 million into your next project 1031 Then they never have to pay tax and we can take it over and over and over again. So it’s a very beautiful model that I have, you know, device now, you know, I’ve been designed it so that people can make 2x Even 2.5x quickly within six years investing in brand new buildings see?

J Darrin Gross  34:42  

Yeah, yeah. What is a million your minimum investment in that or is it No,

Vinney Chopra  34:47  

no, no, no, no Ultra Rich, we are giving 2.5 250,500 or 1 million. So those are my three levels now. In the ground constructions

J Darrin Gross  34:59  

Gottcha. And isn’t that your is that your way of doing those in more returning capital games? Or is it just on the the million plus people, they’re saying I would I don’t want anything just, I mean, okay,

Vinney Chopra  35:11  

Even 500,000 people to they say, really, I don’t need to 20,000 you know, each quarter or whatever, right? They say if we can just give you the money, and you show us the progress of everything, you know, that what we have done so far and everything, then in 2.5 to three years, we’ll be able to cash them out, we call them, it’s cashing out, right? You get your full money back, plus the return because we’ll be getting a new loan. See, construction loan is paid out V five, 

J Darrin Gross  35:42  

Okay. That’s that’s the event that’s giving you that opportunity. Yeah, that’s construction loan, then you’ve got a completed, completed building with occupancy, too. So you’ve got now your occupancy. So you can show revenue. Noi, and you can you can do like just a conventional.

Vinney Chopra  36:00  

Exactly, exactly. Yeah, it’s like, building 17 million, it’s worth 24 million. So this is 7 million increase, as I start putting, you know, my tenants in there, and residents, you know, yeah, yeah,

J Darrin Gross  36:14  

Right. Now, and in the like said the monthly rents, I mean, the the cap rate, that’s pretty impressive compared to, like you said, how big of a property you’d have to buy in order to get that same kind of level of rents. So totally, totally, definitely impressive stuff. Hey, Vinnie, if we could, I like to ask everybody about risk? And you’ve answered this question multiple times? Yes, I’m kind of curious if if given just your recent experience, in kind of how you’ve changed from, you know, asset classes, or you’ve expanded, I don’t know, you haven’t changed, you’ve just, you’ve added additional asset classes. But I’m wondering if there’s not something that you can, you can look at across the spectrum of what you’ve, you know, what you’ve invested in and just identify what you consider to be the biggest risk, you know, of just the current marketplace? Or, or let me ask you this, what do you see, is the BIGGEST RISK that you face in this marketplace? And just kind of the near future, as you, you know, work with your your investors and trying to totally coach steward for their money?

 

Vinney Chopra  37:29  

 

Totally, you know, I’m so glad you’re asking that. I’ve raised like, close to 200 million or so. But you’re right, investors want to save money? What if when you die, you know, or something happens to you, right? What what’s the risk involved in that, and then when I took the key man’s insurance, and then our daughter is in it, now, she’ll step up as President, my wife is also injured, our legal, you know, team and everybody, our accounting department itself, the other parties, you know, during the properties we buy, so there is insurance to be gotten at every point of the property, the loss of income insurance, those are the risks also, if some burning, you know, something fire comes, are like that. So, that is other risk. The other risk, which I got hacked, you know, I think I’d like to mention, is the cybersecurity risk. And that’s a big one nowadays, you know, with everything going through, through the computers and everything. So, you know, there are so many different directors, insurance risk is another one. You know, the big thing is contractors who work with us to do capex jobs and everything, we try to save money, but it’s not worth saving money, unless we want to make sure contractors are well bonded in also have, like, you know, millions of dollars of insurance, right, you know, when they come to work at our assets? I don’t know if that’s the question, you were really posing, the biggest risk I find is that you want to do legal way to raise money, and then take care of the investment of the investors. They know, fiduciary responsibilities the right. So as a CEO, I definitely have always felt each asset I bought, I bought 37 Now or something, you know, and I’m on the loan on all 37 Not too many GPS, you know, cold GPS or anything, I don’t believe in that. Maybe just three I have done it, you know, and then with my partner integration now, you know, like that, but other 27 or eight, I was the only person but, you know, the key thing is, you got to mitigate the risk for investors and mitigate the risk for the well being of your company. So you are in the right business. You are there, you know, Because insurance, it’s an investment, I always look at it as an investment. It’s not an expense, because I had lawsuits of $3 million $4 million lawsuits, which I, because of insurance, I walked away with giving zero money, zero money, and they settle the mediated and all that stuff. You know, so when you are in a business entrepreneur, like me and anybody, there are risks involved in people suing you and other stuff like that. So I always feel insurance is an investment, you know, yeah.

 

J Darrin Gross  40:41  

 

No, I appreciate you sharing that. And I think that, you know, oftentimes the the focus is how to make money on the, you know, the buy and the sell and, and all that and, and the insurance gets looked at is, is more of a just an expense. I mean, one thing as opposed to the protection, you know, it messes up your noi if you have too much or you know, too much insurance expense. So, but the flip side, like you said, is it there’s, you know, the protection you get, and, and when you are facing a claim, that’s when you know, you’ve got some good insurance, so appreciate it, too. So true. So Vinnie, where can listeners go if they’d like to learn more connect with you?

 

Vinney Chopra  41:23  

 

Oh, my gosh, you know, I’ve got a really great promotion going on right now. I’m so glad you know, I wrote that book, apartment syndication Made Easy, which really helped me a lot to raise money. And I’m giving this book free, by the way to everybody listening or watching as you could go to Vinnie chopra.com That’s my website www. Vinny just like the word v i n e, why not smile, don’t put smile in there but Vinnie chopra.com and slash free book slash free book and I also have Academy I’m also have a $50,000,000.05 or six C fund where I can talk about it and everything it say, you know, for accredited investors only. You know, if you’d like to invest with me, you could come there also, you know, invest with me yes, go to Vinnie Chopra slash invest. Or if you would like to, to learn from me, which I mastermind actually at four o’clock, I have a very good guest speaker, real estate attorney or no CPA coming to my mastermind. I’ve hundreds of students who are doing millions of dollars, I’m so happy, you know, who have taken my teachings. And now they’re doing 200 $300 million portfolios within two years, within two years and three years. It’s amazing. It’s amazing. And it’s not me. It’s them. It’s totally them. I tell them. I say I knew you when you join my academy. You were a mover and shaker. And you know, they’re doing very well.

J Darrin Gross  42:59  

It’s great. They were very, I can’t say thanks enough for taking the time to get to connect and talk. It’s always great to hear from you and talk with you. Thank you. Looking forward to it again soon.

 

Vinney Chopra  43:13  

 

Totally Darrin and if you’re in Florida, love to invite you, brother. You come to Punta Gorda, or Cape Coral on purchasing that one Palm Bay, Sebastian or Carla? I mean, Venice coming you name it. We are all over here. 

 

J Darrin Gross  43:30  

 

We will talk because I got some travels coming up some pesky.

 

Vinney Chopra  43:36  

Thank you. Thanks. All right. 

J Darrin Gross  43:38  

For our listeners. If you liked this episode, don’t forget to like, share and subscribe. Remember, the more you know, the more you grow? That’s all we’ve got this week. Until next time, thanks for listening to Commercial Real Estate Pro Networks. CRE PN Radio.

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