All Forum Posts by: Ujwal Velagapudi

I quit my job 2 years ago, after 5 years in the corporate world. I'll keep it simple, it comes down to your mindset & principles for what you want & why you wish to leave the W2 life. 

My principle: freedom > $$

So even though I left a nice six figure job, and turned down a 35% bump from another employer (remote job, before remote was commonplace) literally a week after resigning, it was the principle of the matter that made me walk away. I chose my freedom to do whatever (pursue my businesses), so no matter how much $$ anyone threw at me I wasn't going to turn around ever again. Also, I knew that any W2 job is worth pennies in relative to the potential of what I could do with the increased time to invest into other businesses. Also nothing is as valuable as the time I got to myself to do whatever I wish. 

So I think having a strong inner principle that you can lean on when things are tough, feeling gloomy, or other jobs seem tempting, can help drive you back to what it is that you truly want for yourself. 

You can do a lot without college. College simply gave me a ticket (degree) for my next opportunity (job). Aside from the social element, it did little. But there wasn't much of an alternative that would've been accepted, to get into a well paying job at 22. 

I think we're in a different world today. If I was 17, and interested in RE, wanting significant passive income by the time I was 30 I would do the following as an alternate to school:

- Get a job in the RE world. Work for a property mgt. company, work to help an investor find deals, manage listings, anything. 

- Get your RE license & work as an agent as well.

- Accrue money and buy your first property, get into it with little/no money, house hack, etc. 

- Join a TON of groups. Be active on forums, groups, meetup events, etc. and network like crazy with a bunch of people that are ambitious, successful, etc. and try to add some value to them. This is planting seeds for the long haul, and trying to replicate the network aspect that college can provide.

- Never stop learning. But instead of a ton of useless classes like in college, take things that are important to you. Some, but not all the classes you should take: accounting, economics, writing/copy, communications, public speaking, etc. These don't have to be at a college, there are plenty of online programs or groups. Constantly be taking a class or two at all times. 

If you are very motivated and driven, you will surely rise, doesn't matter the path you take. For most, I still think some form of a degree, either community college/100% online, is still beneficial. If you go for college, I think any old degree is fine if you know that you will not be working at a job that requires that particular degree, and if you know you'll be working in RE full time. 

Do a zoom call. Driver's license. Web search of him, his business, asset, etc. 

Are you more weary of him, the individual, the validity of the note he is selling, terms, or the actual asset behind the note?

Wow, all great tips! I usually left this to the inspectors, but it seems like an easy thing to add to a walk-through routine that can save time down the line. Definitely going to add this, need to be more astute about this aspect from the start. 

I do touch on the major physical elements of course (roof, electrical, plumbing, hvac, cosmetics), but I know my inspectors can do a much better job. I tend to focus more on the intangibles like the seller, neighbors, tenants, why certain things are operating in such a manner, general city/neighborhood feel, etc. I have a chat with tenants, talk to neighbors, get lunch/dinner nearby, go walk to a store close by, etc. 

With a first property, if possible, I would try to self-manage. If it's not possible, then definitely thoroughly vetting the next PM, after you've reviewed all your lessons learned and vet the new PM in accordance to that. I'm sure you can find some good interview questions as well for a new PM. if you're looking for something passive, on par (sort of) with stocks, then I would consider investing into a syndicate with a good sponsor where you can get your feet wet, learn, reap most advantages of RE, but in a done-for-you setup. 

Done right, which there are a million ways to do, it can and is an excellent avenue for many with its passivity, tax benefits, appreciation, and ability to use leverage.

For me the biggest difference is in the asset fundamentally. Real estate has a tangible value, there is real equity. Stocks, I don't believe do. But I wouldn't compare real estate to stocks, I think stocks compare more accurately with investing in small companies. Stocks trade with so many external variables in play, versus buying a small business is more black and white. Buying a real estate business could be comparable, and with all the advantages of RE, I think it would be best to get over that initial hump you're facing of finding the right PM, getting the property stabilized and cash flowing. 

I'm sure there will be an aha moment when you haven't visited the property, called your PM, or even thought about the property for months and yet you still keep accruing more $$ in your bank!

I love long term leases, but not with everyone. All comes down to the neighborhood, asset type, and external conditions. In my commercial buildings I'd like to do 3+ years with month to month after, but usually re-up another few years before lease term ends. 

Apartments, I would do 12 or 24 month leases, depending on the applicant's requirement. The longer assurance is nice.

However, as you've pointed out, it's a bit different today. I would go with month-to-month right now, but that's my personal preference as I value flexibility over incremental revenue. 

What city/state is this in? That is interesting, but I would think a private lending route as well. Is getting a job within your specialty something you can do relatively soon (,6 mos.)? If so, you could find a bridge loan partner or lender, let's say 6-12 mos., and then you refinance once you get a job secured. Banking on the fact that a tenant(s) will pay the mortgage and living cost might be a risky endeavor as well, without another income source (stable one, like a job), so I'd be extra cautious in underwriting the deals you find. 

Do you mean investing in opportunities that arise as a result of properties where tenants have been evicted? Like a property that hasn't had a chunk of tenants paying for months, finally evicted, and now the landlord is in the red on the mortgage & looking to sell? I think that could be an opportunity, but these evictions are so backed up it'll still take some time for them to trickle through, many months. If you're asking in general, you'll find everyone is split on that. I am still waiting for what happens on Nov. 3rd, and for other external variables to subside since it's not a normal situation we're in. 

I think TX will be one of the few states where even a downturn in the US market wouldn't impact the state/city levels as much. There is still quite a bit of growth. The migration has been happening for the past decade, but more at an individual level with a few companies as well. If there is a major push from companies themselves to relocate to TX, then that'll be a major impact to the local markets. 

I invested in commercial retail, which I knew absolutely nothing about. The only thing that made sense were the numbers. Lots of learning, mistakes, headaches, etc. along the way, but I would do the same thing all over again for that experience. If you have the ability to do a house-hack, that can be a great option.