Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Mohit Madaan

Mohit Madaan has started 15 posts and replied 155 times.

Post: Bridging the gap in different countries (US & India)

Mohit MadaanPosted
  • Investor
  • Stockton, CA
  • Posts 167
  • Votes 49
Originally posted by @Gautam Venkatesan:

@Mohit Madaan  - "guaranteed", "no risk" and investments do not mix well :)

Fair enough, but in a general sense, when we place money in our Savings/Money market account that 1% is called "Guaranteed" return and thats what i was referring to. The normal interest paid out in savings/Money market accounts in India is around 9-10%

Add foreign currency fluctuations and it will be hard to get 9% in my opinion.

The foreign currency fluctuation can go either way, so i am thinking there has to be some sort of stop loss. I will give you an example

Say on Jan 1 2015 investor John invests $1000 in US company. The current exchange rate is $1 = 63.50. So the American company wires Rs 63500 to India company, invest that for a year with 10% return and now the Indian company has Rs 69,850 (more if you compound it quarterly or monthly) under John's account. Now, when its time to send the funds back, Indian company wires Rs 69.850 (Technically $11,00) but could be less or more depending upon the current exchange rate on Jan 1 2016. If we put a cap on stop loss and say every time dollar fluctuates vs inr by more than 2% the investment must be pulled back so for the time money was invested, its at least puling 8%.

Oh and by the way, once you do get a certain size portfolio the currency exchange cost goes away because you hold funds in both countries and try to balance it out instead of exchanging so often.

At the end of the day, i don't have all the peaces of the puzzle together, i am just a fellow investor trying to see if there is a potential. Will keep the thread posted with updates on my research and updates on the event my buddy is holding in march.

Post: Bridging the gap in different countries (US & India)

Mohit MadaanPosted
  • Investor
  • Stockton, CA
  • Posts 167
  • Votes 49
Originally posted by @Crystal Smith:

We used to do business in India (unrelated to real estate)  Most of the business was in New Delhi & Bangalore setting up technical facilities, which required acquiring/leasing commercial spaces.  

To start with, i have a 12,000 Sq feet building for lease in Gurgaon area, in the heart of IT industry. Don't hesitate to call me, if you ever need any space on lease, 3000 sq feet each floor.

Some questions:  

  • Would the investment in the Indian company be in $ or rupees?  i.e. would they convert the $ to rupees.  I assume the 9% return you refer to is in rupee's.  What would the return be after the exchange rate?

The way, i assume this will work is. You as an American invest in a US company and that company as a sister firm in India, they convert the USD to INR and invest/lend INR to/in Indian banks. Assuming at the time you transfer funds to USD to INR and INR to USD the exchange rate is same, you only loose less than quarter percentage in currency conversion.

  • The Indian gov't had certain rules that made it almost impossible for foreign companies to take $ out of the country.  Part of the policy to grow the country.  What are the rules for pulling money out of the deals;  i.e. out of the country? 

That is true and thats really why most of the foreign companies have very hard time pulling these deals in India but i hear there is a work around and a Indian company can bring in dollar from foreign company and send it back when they want to.

Post: Bridging the gap in different countries (US & India)

Mohit MadaanPosted
  • Investor
  • Stockton, CA
  • Posts 167
  • Votes 49

Hey there fellow investors,
Since i belong to two different markets (US & India), its very very difficult for me ignore some differences the way these markets operates. For starters, 1 to 2% Rent  of property value is pretty normal in US market as compare to 0.25% rent of property value in Indian market.  After some numbers crunching and other factors, this has started to make somewhat sense to me but here is a difference i feel can be a huge opportunity.

The interest rate difference

We all know, US currently is at its all time low interest rate on mortgages and well everything else but even when the market is normal, this is significantly lower than the Indian market. I recently bought a home and my mortgage is at 10.35% Fixed (excellent credit and lowest rate possible). Not to mention, the Private money loans goes anywhere between 20 to 36%. Now, this is not just mortgage rates, the difference can be seen on any type of lending in India. Typical, savings account, money market accounts are offering around 9% rate without a problem with most of the banks. Imagine, how our fellow Americans will feel if they found a way to make 9% on their life savings.

While, i have been trying to wrap my head around all this and find a creative way to make money a good friend of mine told me they did a lot more research into this and are now launching a campaign where they are attractive Indian Americans living in America to invest in India. The expected return is 8% for the Americans with much safer market and no overlooking of properties required and almost null holding cost. This friend of mine is actually launching a road show and expo type of thing in March in 5 US metros with top 50 real estate companies of India promising return to these Americans. I am kinda excited to see how it goes.

My point is, shouldn't there be a way to have Americans invest in a US company with say a guaranteed return of 6% and invest that money in India and make 9% at least with no risk taking? Well, just been thinking and whats better place to discuss money than bigger pockets, please let me know know your opinion and i will keep this thread updated with my research and update on the campaign my friend is going to run in March.

Post: Newbie in Livermore, CA

Mohit MadaanPosted
  • Investor
  • Stockton, CA
  • Posts 167
  • Votes 49

Welcome to BP @Chris Siegler I am looking at SFRs in central valley myself. If any deal comes my way that i can't make work, i will make sure to send you the info and wouldn't looking at anything that you reject :)

Good luck

Post: New member from Santa Barbara, CA

Mohit MadaanPosted
  • Investor
  • Stockton, CA
  • Posts 167
  • Votes 49

Hello @Brian G. I am currently exploring stockton market and looking to invest in SFRs and also looking into mobile homes. Let me know next time you come over, we can meet for a coffee.

Post: would you partner with some one who is cheating on his wife?

Mohit MadaanPosted
  • Investor
  • Stockton, CA
  • Posts 167
  • Votes 49

@James Wise  i would stay out of personal affairs too but its one of those things, that tells you about the partner as a person. Just like, i am not you wouldn't partner with some one who is a drug dealer and human trafficker.

@Scott Nipp  I feel the same way and somewhat convinced that i am going to stay away from the deal, we will see. The term "good father" was used because the child and his wife has no idea about his "affair". So as far as his parenting goes, he is doing everything a parent should do.

The fact that you understand, my motivation to do the deal is because its good deal and profitable for both of us is only reason i am even talking about it, and the doubt i have is because if **** hits the fan, is he gonna be fair with me when he can't be honest with his wife?

@Account Closed  The wife isn't aware of cheating and i agree, sometimes people can be in a bad marriage but very ethical in other relations such as work, business.

@Daren H.  i really think as far as this deal, it will go fine as its very straight forward. The moral issue and all this comes in place just incase something goes unexpected, how will be act then. You know the situations when you really want all parties to be fair?

@Bradley Bogdan  i trust him Brad and i don't consider him bad person either. The only thing is, what if? you know what if, that one situation where you are at a mercy of ethics and not contracts.

@Karen Margrave  Point noted, but i can't throw that friendship away just like that. Why? I don't know. Its a bad spot to be in.

Anyways, thanks for the responses guys. I will update the thread if and when there is progress in the deal. Very excited generally about the business these days.

Post: would you partner with some one who is cheating on his wife?

Mohit MadaanPosted
  • Investor
  • Stockton, CA
  • Posts 167
  • Votes 49

I am so glad that you guys see the dilemma i am stuck in as we don't both share same moral mindset.

Post: would you partner with some one who is cheating on his wife?

Mohit MadaanPosted
  • Investor
  • Stockton, CA
  • Posts 167
  • Votes 49

This is probably not a 100% real estate question but more of psychology question i guess. So here is the deal, one of my very good friend is going through a rough marriage and lately he is been involved in an affair with another women for about 6 months now. We talk about all kind of stuff, we golf together and we very good friendship. Recently, i found this property for about half a million dollars that i want to buy and i am trying to avoid bank loan at any cost (some personal planning). I spoke with this friend about the deal and he is also interested to fund 50% of it and be a 50% partner.

To me personally, marriage is a most important relation in the world and i feel if he can cheat on his wife, why would be hesitate cheating on me in business? Am i being too careful? By the way, he is a great guy, very successful in his business (not real estate) and is a good father of a 2 year old.

Post: Free list for fellow members to generate leads

Mohit MadaanPosted
  • Investor
  • Stockton, CA
  • Posts 167
  • Votes 49
Originally posted by @David P.:

@Deadrick Colbert and @Ramon Jenkins I'm still in line too, but we get what we pay for eh?  I even offered to help facilitate the process, however not even a reply.  I'm disappointed and not waiting around; worth the money to just buy the list.  Besides, I bet the leads will be stale once you do get the list and could proved more of a disappointment and hopefully not a waste of money by doing mailings from that list.  

I'm not making any strong argument either way...  

- Dave

 I am sorry you feel that way but i wish you spoke with some members who got the list before assuming things. Here is the list of members who got the lists and i would love to hear from them about the quality.

@Zaid R.78,417 records

@Joe Stafford  642,906 records with very extensive filters

@Brie Schmidt 297,813 records

@Anna Gaylord 657,105 records

@Imad Mohammadi 30,009 records

This is an exact same list which most of the people here buy from infousa.com and listsource, datausa.com etc only difference is, i am not charging.

lets not forget list is only 25% of any marketing campaign, other 75% is right marketing efforts and obviously closers.

Anyways i will be very active on the thread now and provide everybody as promised and will make some calls to the people that got the list before i left for this trip.

Post: Free list for fellow members to generate leads

Mohit MadaanPosted
  • Investor
  • Stockton, CA
  • Posts 167
  • Votes 49

Sorry guys, i went to Philippines for a month for a new call center project and had absolutely zero time to sit behind computer and run queries. I am delivering everybody's list as promised, sometimes this week.

I will post regular update on this thread.

Oh and the data do get updated every quarter so the delay worked out well for people who haven't received the lists because it got updated while i was away.