The Entrepreneur DNA - The Power of Community that Built a Billion-Dollar Network | Veena Jetti | EP 28

Episode Date: July 8, 2024

Today I sit down with Veena Jetti, a leading expert in multifamily real estate with over a billion dollars in transactions. We discuss the importance of networking through flying first class and joining high-end gyms, emphasizing how these environments can lead to valuable connections. Veena shares her journey from corporate real estate to multifamily investments, highlighting the power of mindset, community, and leveraging other people's money (OPM) for success. She provides actionable advice for aspiring real estate investors, stressing the need to show up, cultivate the right mindset, and actively engage in supportive communities. --- Connect with Veena! Instagram - @veenajetti Multifi Family - www.multifinow.com

Hey guys, Justin Colby here. If you're liking The Entrepreneur DNA and you have an interest in real estate, I'd encourage you to go over to the Science of Flipping podcast and start checking some of those episodes out. I've been doing it now for over 11 years and we have over 400 episodes.

So if you have any interest at all in real estate investing, whether it's single family flips or apartment rentals, go over to the Science of Flipping and check out some episodes on that podcast on Apple and Spotify as well. See you over there. What is up, Entrepreneur DNA family? I have an incredible guest. I've been trying to get her on this show for some time. Miss Veena Jetty is here. What is happening? Hi, I'm so excited to do this. It's been so long that we've been planning.

Yeah. Finally, we're here. If you do not know. Veena Jetty, you need to make sure you go follow her on all platforms. She's done over a billion dollars worth of real estate transactions in the multifamily space. She's someone I look up to. She's coaching me even off camera about what I'm doing. This is going to be a fun episode. Make sure you stay tuned for this whole episode. Yes, thank you. So what is your handle on social media so everyone can find you?

Veena Jetty. V-E-E-N-A-J-E-T-T-I. Super easy. I love it. Yes. So we're going to get to real estate. But first, let's talk about first class flights. Okay.

Yes. I have been what I thought the only voice to say everyone should be flying first class if you are a business owner of any sort. Yes. And I have my reasons. Yeah. You obviously agree as I was just watching you were hanging out with a little famous guy, a little Jeezy. Yes.

Which was super cool. So how did you meet him? I was flying on a flight from, I was going from Vegas to Austin because I was speaking at both of those events. And I normally, I hate the bulkhead seat. Do you like the bulkhead? No. I hate it. I don't like it.

I want to like put my stuff bulkhead seat. Do you like the bulkhead? No. I hate it. I don't like it. I want to put my stuff under the seat. I want the second flip down where I can put my tablet so I can be on my computer while I'm listening to whatever. Do people like bulkhead seats? Are there people? Some people do. Some people are like, I only want bulkhead. I'm like, I never want it.

I'm like a 2D kind of gal. I'm in. Do you like aisle or do you like window? Aisle. Aisle all day? And the reason I want aisle, it's actually a little bit sinister okay i because rosie my mind you want to see people walking by you no no i don't care about that i what i want is i want to control the person next to me whether they're gonna get up or not yeah so i like being in the aisle because i can force

them to sit there and talk to me and most people don't want to bother you to take a pee. Right. So it's great. This is like, I know it's like so twisted. Right. But that's why I want it because I want to maximize my time talking to the person next to me. Yeah. And so, yeah, I was on a flight from Vegas to Austin and I'm in the bulkhead, but I in the aisle so i'm like okay whatever sure in my life

is really hard yeah right this is way for a problem so hard i know this is like one percenter problem is really so i'm sitting there and then my seatmate's not there so i'm kind of panicking because i'm like oh my gosh i'm gonna be all by myself on this flight yeah all by myself with the other 180 people here yeah i still like be in my own thoughts and that's a scary place right so then right before the doors close this guy walks on and he sits down next to me i'm like oh good but he comes on with these like big headphones yeah do you know i'm talking about like those of course huge ones that like don't talk to me headphones yeah and i'm like oh it's not going down yeah yeah oh no it is going

down it's just like you're like oh you're not getting away you're not getting what you think you're getting at yes so i like tap him on the shoulder and like excuse me and he's like he looks at me and i'm like you know like take your headphones off so he like takes one off he's like yeah i'm like so what's your name what do you do i didn't know who he was that's awesome um and so he's like what do you do and he's know who he was that's awesome um and so he's like what do you do and he's like oh you know i'm in entertainment like how people who are actually successful at the thing they do they're like they're like low-key yeah they're low-key because they don't have to be right high-key so we go okay amazing i'm a multi-family investor and this is

what i do and then you know we just start and he, we trade Instagram still does not click for me. I'm an idiot. And so I'm like, okay, good job. And then I was this, tell me why I said this to a platinum artist. I go, we're getting off the plane. I'm like, okay, what are your favorite songs of yours? And he's like, oh, it's hard for me. She's like, just pick, even give me three.

And he's like, okay's hard for me she's like just pick even give me three and he's like okay put on and um soul survivor and he's like i don't know about the third but those two are definitely my top fave i was like oh okay i was like you know there was a song when i was in college with this name soul survivor and i was like it was this guy Akon and I didn't say like Akon featuring Young Jeezy but I was like it was by Akon but is this so he's like yes that's me and I'm like did he give you his like real

name Jay yeah he called himself Jay yeah got it Jay Jenkins and so he's like I'm like okay yeah it was this song he's like yes and I'm like yes yeah and he's like, I'm like, okay. Yeah. It was a song. He's like, yes. And I'm like, yes. Yeah. And he's like, yes.

And I was like, oh, okay. This is too good. I'm like getting off the plate. And I was like, oh, I'll give you a stream. This man has like millions of streams a day. Yeah, yeah, yeah. I'm going to give you a stream and be your friend uh but yeah that's no that's how we met and we became like besties after you literally are backstage with some and

like how do you take that conversation from an awkward initial conversation I'm sure it rounded off well but like yeah then to like hey if you're town, I want to come hang out. I'll buy a ticket. Like, did he start inviting you? How does that go? So that after that flight, we you know, I would text him and he's interested in multifamily. He's actually a really good real estate investor and he has multi that he bought last year. And I was like, oh, I'm happy to look at it and give you feedback if you're interested. You know, not everyone wants my feedback, which is fine, too. And so I offered to like look at it from he's like yeah absolutely that would be amazing I was like cool then we just like text every now and then like he um at the Super Bowl Usher performed this year yeah and so I was like oh maybe they're gonna bring him out

because he's in that song in the club yeah yeah and so and i knew he was going to the super bowl because we both happened to be in la at the same time he invited me to come for brunch and i was like okay come hang out um yeah went to brunch with him and then he was like i'm going to the super bowl in a couple weeks i was like okay cool i didn't you know i'm not used to thinking like oh maybe you're gonna perform at the super bowl right so he's like okay cool let me know you know how I'm not used to thinking like, oh, maybe you're going to perform at the Super Bowl, right? So it's like, okay, cool. Let me know, you know, how it goes. I hope you have a great time, whatever. And then afterward, so my securities attorney, Nick McGrew, who you maybe know, he's great. If you don't, I'll introduce you. So Nick is at this brunch with me. And after we left, he's like, Fina, do you think he's going to perform at the Super Bowl? I was like, no,

I think Usher's performing. He's like, no, no, they have a song together, he's like, Fina, do you think he's going to perform at the Super Bowl? I was like, no, I think Usher's performing. He's like, no, no, they have a song together. I was like, oh, they do? He's like, yeah, in the club. I was like, oh, still hadn't put two and two together. This is how slow I am. And I was like, maybe. And then he didn't end up performing, but he was there.

And I texted him. I was like, oh, I'm bummed. I thought I would see you performing, but hope you're doing well. And things like that, we kept talking. And then he came into dallas for something i don't know what it was for and he was like hey i'm gonna be in your city let's meet and i said yeah let's be for dinner or whatever um and his team like set up a dinner and we went to dinner i introduced him to my tax guy because he needs a tax guy and obviously my attorney because he needs good securities attorney so four of us went to dinner and then he he texted me again say he was performing in my city and he was like oh i want to come tell me like what the name of it is and you know i was

going to get tickets because i always want to support my friends he's like no no just come with me and i was like okay cool this man has ruined every other concert for me for the rest of my life. Of course. It was... So good. Incredible. Yeah. And he's just...

He's so in tune with his performance. It's like when you see our friends that speak and they're just like great speakers it's because they're really in their zone and in their element. And, you know, we don't talk a lot about like industry stuff for him. So I think he probably –

Which he likes. Yeah, he probably likes that. We talk a lot about real estate, which I like talking about. But we just talk about, like, business, and we do a lot of mindset discussion. Nice. Because he came from a very different background than I did. You know, he has a book called Adversity for Sale. Awesome book.

I enjoyed reading it uh it was a little weird because usually i listen to audiobooks when i'm getting a massage and i was like okay this is weird because it feels like my friend is talking in my ear while i'm getting a massage but it was a great book i was in a jen gottlieb's book like that when i'm getting a massage i'm like all right this is just my thing now that's it yeah it's the so the power of first class i've always made the argument it's always about you never know who's gonna sit next to you same thing of like so i go to like lifetime gym it's like 350 a month this is extraordinarily expensive but the very first day i joined i talked to a developer here in miami who knows if we ever

did but like those are the people that you're going to sit next to. I talked to a very high, high up politician who now is in the state of Florida that like, basically he's like, Hey, if you ever need anything, you call me and I can get anything done for you. And it's because I'm just sitting next to him for three and a half hours. It's the hack. It is literally a business hack and it's a life hack if you treat it that way. It is. But people don't see the value in making that investment. It's the same thing for your coaching program or my coaching program, right?

Your coaching program is Multify. Yeah. You're here because you're actually doing a really cool event tomorrow. Yeah. So this won't be available by her event. But if she's running another event and you're interested in anything multifamily, she is my go-to girl. So if it's good enough for me it's damn sure good enough for you guys make sure you reach out to her yes um and i know multi-fi those events are

you're having them periodically across the nation yes multi-fi everybody make sure you check it out what's the website uh multiply now.com multiply now.com so check that out check her out follow her for sure um but i think it's you know people get short-armed like alligator arms like oh i don't know if i have the but again they'll go buy the watch they'll go buy the car they'll go buy the thing all the things and it's like yeah but you could change your life forever the trajectory of your entire family for the next you know 100 years and you have short arms with it but first class is just like a starting point. Country clubs, high-end gyms. These are things that you and I believe in,

just being there. Yep, this is where powerful people go, is to these places. And you want to be around powerful people because you can, I mean, if making money is your goal, that's great. You can make a lot of money in those rooms. But for me, it's impact, right?

So I can make more impact when I have people around me who are also doing impactful things. And yeah, like I sat next to a lady on the plane on the way from Dallas to Kalispell. She's an OB and her husband's an anesthesiologist. And I still text with her to this day. And I meet a lot of people like that. I met a guy who is an insurance and his son is a professional athlete and plays professional baseball. And so it's like, you know, all these interesting people, but I'm a people person. I was just going to say the other component of this. Yeah, I am too. I'll literally start the conversation. I have no problem. Yes. Introverts are going to sit in the seat and you just spend, you know, whatever it is, a thousand

dollars. Okay. Well then that might not be the best investment because if you're not going to do anything with it just like anything yeah then it's a waste yeah if you're not going to do anything with it don't do it but right i encourage you even if you're just if you're in coach and you're scared start by talking to the people that you're sitting next to in coach like you have to start somewhere i'll tell you jay is a huge introvert yeah and so so he did not want to talk to you no and you but here's the funny thing so i you know the first couple times we met i'm like okay maybe he just forgot that i told him i'm gonna like give him a stream or that i didn't know or any of this right like maybe he forgot it yeah so i'm like just avoiding that part of the conversation

and then we go to dinner with uh larry west and nick mcgrew my tax and my legal and they're like so what was it like when you first met bina and she's like well let me tell you this story and he um he talks about it from his perspective which is really interesting he's like you know i have my big headphones on because i'm an introvert i was also tired he's like i went to the after party the after after party the after after party because we're in Vegas right oh god and he's like I didn't want to talk to anyone I was like I'm gonna get like a nice two-hour nap on the plane and he's like and I sit down and she's like excuse me take your headphones off he's like in all my life I've never had anyone get me to take my headphones off and then stay engaged in the conversation and he's like and now when I get on flights I'm like who's sitting next to me and he'll introduce

himself to the person sitting next to him because of our interaction and I'm like that's so cool and it's such a great idea because this you don't know who you're sitting next to you don't know how it's going to change your life yesterday I was a little perturbed so i went into houston we were just talking about this i had this big medical test and i'm super healthy which is phenomenal um but i believe everyone should do this and i'll talk more about this because i really believe in it right it's not cheap yeah no but knowing that you know yeah you're healthy and providing so um the interesting thing about that is yesterday i was bummed out because on my way home the guy was just obviously in a shitty mood and like i'm like dude i don't need that energy either like i don't need to be dealing with someone who's gonna be snarky so i just didn't say anything

but i was like man what if he was a fucking hedge fund man whatever right or sat next to one of those you know and you're just like i should have still said something but i he he just was like i could feel the energy coming from him and I'm like I'm out on this one yeah I'll tell you yesterday on my way into Miami I did not speak to the lady next to me I was just I'm like so exhausted sometimes my travel I fell asleep actually which I normally never sleep on planes it's hard for me and I fell asleep to fall asleep yeah me too it's never that's another reason for me first class is like almost i have to because like six four and like yeah anyways so five four

so i don't have this yes you're probably on the same problem no not quite but um so if you take anything from this podcast fly first class yes and follow vena jenny talk to people yes um so let's get a little bit more into business because i think that was just fun for you and I talk about. But you are a boss of bosses, in my opinion. You've built an incredible business for yourself. You are someone I look up to in the real estate space. And I've done this for 17 years. There's not many people I would say that about. Thank you.

But you've done it in a way that I think everyone should be following. Because if I could have started over, I would be more in alignment with your trajectory because of what you're able to do and how it all washes out versus what I did is I cared more about making a whole lot of money, which was fine. And I did. Yeah. I spent it all at the club. It doesn't suck. But yes.

You know, the point being is my biggest mistake isn't the development play that I lost seven figures. It's not the quarter million dollar high end flip I lost on. It's not, those aren't my biggest mistakes. It's actually what you do so well, which is I never invested into the real estate law and held the real estate, whether it's a multifamily or single family. The first decade I didn't do any of it. I just transactionally did real estate. I hear this so much from wholesalers and flippers. They're like, I never own the real estate. I'm like, yeah, that's why you pay a lot in taxes. And I don't because I actually own the real estate.

So yeah, this is very common. So if you are an entrepreneur of any level, this is something you're going to want to hear because I know this to be true. And I know you do too. That's why you do it. But real estate is the only vehicle that i know that can create a massive income and that you can keep because of the tax not evasion but tax deferment efficiency i thought you said evasion yeah no not evasion efficiency i hate it when people say that they're like oh we can evade taxes i'm like you're not evading taxes you're just utilizing and leveraging the rules that are in existence so yeah so but it also creates the wealth accumulation which then gives you ability to make more it all comes back to taxes because

then you can go refi to put that money in your pocket yeah cat you know tax-free yeah but let's just talk about like i guess where someone could start if they aren't in real estate yet right and they're like okay justin you're saying vena did it the right way and you would have probably done it more like her. Yeah. Well then how would you encourage someone to kind of get into this game? Okay. So it's funny that you say that because I think I did it the wrong way too, because now I have more knowledge, right? So I can look back. It's easier to connect the dots in hindsight than it is. It's the only way to connect the dots really. Yeah. So I actually think I did it the wrong way because I started, so I started in the corporate world and I worked for some of the largest real estate companies in the world. I left Tishman Spire who owned the Rockefeller Center and Chrysler building at that time.

And I had a $1.2 billion asset I was on the management team for. And that year was the first year that my husband and I paid taxes as a married couple and we paid like almost two hundred thousand dollars in taxes which was at that time was about almost 50 percent of our income and I remember I called my mom and was like mom what just happened we just spent two hundred thousand dollars on taxes this is crazy we never going to get it back. She's like, one, welcome to adulthood. But two, you should quit your job. And I was like, what? You know, this is like a stable job. You know, we're Indian. So what does your mom do? She's a real estate investor. And she always invested in single family. And she was like, quit your job and go invest in real estate. And I was like, yeah, quit your job and go invest in real estate.

And I was like, okay, it seems legit. And so I quit my job and started buying single family. So we kind of have that start. I just took it a little further longer. Yeah. You just stayed there longer than I did. Yeah. I started in the single family because that's all I knew. And I thought that's where I had to start. That's a lower barrier of entry for most right I thought it was I really did until I do what I do now and now what I realize is it's just a different kind of heart so you're gonna be uncomfortable regardless of what you're doing it's just do you want to do this hard or this hard and that's up to you to decide right and so I bought single families and the week that I put five under contract in a week, I was like, oh my gosh, I hate this so much because I'm like driving from like this place to that place. I'm like calling my tenants and I'm

like, Hey, we need rent. And they're like, oh, but Ms. Vina, I had to buy diapers for my baby. And I'm like, oh, okay. Just skip it this this month I was like the worst at it she was like I need someone to do this for me instead of me doing it of course and then I was like oh but I like residential because I like the idea of investing in communities in someone's home it's recession proof to some degree right and so I wanted to be in residential real estate and I was like but I can never own 50,000 doors. If I buy five houses a week, even for the rest of my life,

it's doesn't scale 50,000 doors. No, I just, I mean, whatever number at that, why isn't it? Um, because I think,

cause even if you get halfway there, you're at 25. Even if you get 20% there, you're at 10,000. Yes. Go for 50. I, well,

it's not so much the number for me anymore like now i you know i made my money i'm yeah i'm happy i'm content i'm proud of what i've accomplished but now the bigger goal for me is just impact and helping someone else's family change their trajectory is way more fruitful for me at this point than the dollars. But I mean, eventually I'll probably own 50. I'm going to stop you there for a second because this is triggery for me. Yeah. So the older you get in life, you come to certain realizations. Yes. So what you just said, making impact on other people's family

means so much. Is more impactful to you than it is to how many more doors or how much more money. Yeah. And that I get this question a lot, Justin, why do you coach you're such a good successful real estate investor why would you ever coach yeah and that is my answer and people don't a lot of times they don't even see that answer coming yeah because they're still so self-absorbed they're trying to just go make an extra couple bucks for themselves yeah and I'm like yeah but once you do that then it's not quite as fulfilling and you're alone on top of this mountain alone yes and no one's around with you and it's not quite as fulfilling and you're alone on top of this mountain alone yes and no

one's around with you and it's not that cool yeah and once you can make impact and bring people with you at the top of the mountain yes it helped them change their trajectory yes that's way fucking cooler i totally agree this is that's why you have to check out multi-fi wherever she is wherever in the country uh multi-fi now.com and follow her her because she's doing it for the right reason she's now gotten to a place where she's doing it to make impact on you guys not necessarily her anymore i did make way more money from doing my multi-family stuff than i do yeah and so i don't have to i do it also because i looked for a community i actually thought i'd do it the easy way and i'd go and join someone else's community. And this was at like 700 million in.

So I had already done enough. And I was like, oh, let me go find a community. And if you didn't hear, a billion plus in real estate transactions, everybody. A billion plus. I'm not at that mark. She is. Not yet. Not yet.

I will be. Not yet. Yes. Yeah. So I went and looked. And then actually, I see a lot of people that just teach it wrong, like illegal strategies. It's not ideal. But that's why so many people in our space are getting crushed right now on the syndication side. Yeah. Oh, yeah. It's I mean, it's very it's a thing right now concerning what's happening.

And so I, you know, I looked and it was 50 grand for one year. And I was like, I'll get a lot out of a year. And if I spend 50 grand, I'm getting 5 million out of it. I'm not spending that money without getting my money's worth. And I think that's how you have to think about these, too, is like, okay, if I spend 10 grand or 15 grand or 50 grand or 100,000, it doesn't matter. Whatever it is, you have to figure out how to extract 10x the value out of it. But that's up to the person. And maybe this is a cultural thing. One of my best shining star members in recent years, her name is Rashika, also Indian. She came to me. She lives in Houston. She says, I have five rental properties. I'll make the

investment in your program if you can 3x the return on the investment. This is how smart entrepreneurs think. Because I laughed at her. I said, if you do the work, why are you shooting yourself so short? You could 10x your investment. She made over $300,000. She added five more rental properties. And she still has a full-time job.

Right. But it's the person. It is. It's all about the person. And I've learned that. That's actually been a learning curve for me as I launched Multify. Because, you know, people like us, we're very diligent entrepreneurs. And we don't quit, right? And for me, I hate when I see potential unrealized.

It drives me up a wall. In real estate and in people. Yes, both. They go hand in hand a lot of times. And what I would do is someone would come and they'd complain like, oh, I'm not getting anything out of it. I'm like, great, show me what you're doing and let me help you how many offers did you make oh none none how how much of the videos did you watch none right or the opposite I watched everything you have in 24 hours and it didn't teach me anything it took me over a decade yeah

to get this level of experience to, and it took me months to record along with my experts, like the people I pay millions of dollars to. For sure. It took all of us months to record this and you watched it in 24 hours and got everything out of it. Right. Go back. Yeah.

No. Well, and then do something about it. Execute. That's the thing. So I say this a lot of time there's three levels of fear there's the fear of taking action yes that stems from fear of failure fear of you know whatever yeah there's the fear of doing it alone yeah and then there's going to be the fear of um uh staying the same oh and that one is the one that should trigger

yes the worst one yeah that for the right one that should trigger. That's the worst one. Yeah. For the right personality, that is what triggers them. Yes. Because if they're going to stay the same, like I could never. I could never. Look. If I'm not growing and iterating, like I'm dead. Yeah. And this is something I actually, my mindset coach, Rosie, teaches about.

And she does it at my masterclass. She'll tell you, look, you can stay the same. You can do nothing and that's going to be uncomfortable because you're not growing you're going to see everyone around you growing you're going to know that you have more in you or you can be uncomfortable taking action

and failing and growing they're both uncomfortable just choose your discomfort like choose the hard choose the hard you want that's it being broke is hard and being rich is hard I know that doesn't sound right but there's problems that it's hard to get rich and it's easy to be broke but it's hard to be broke totally so yeah there's no matter what life is hard yeah let me let me transition a little bit um again if you are out there trying to figure out how to break into like an apartment.

Yes. Oh, yes. Maybe you have some money. Maybe you don't. Maybe you just want to get your first deal. Where do they start? Do they just need to find the deal first? Do they need to know how to analyze the deal first?

What do you suggest they do? I actually think it's not even anything real estate related. The first two things, three things. First thing is show up. Okay. You have to show up. If you have to show up if you don't show up you're not going to be successful so forget about if you're not willing to show up like we were just talking about events right and how a lot of events you sell 100 tickets and 50 people show up there's 50 people that have already told me they're not betting on their future they're not

willing to do anything that's right that's uncomfortable they're not going to be successful that's right the second thing is mindset because this is a mindset game being able to believe that you can do the thing is the first step you're you um this is something cody barton told me he said your growth will never outpace your personal development that's true true. And I was like, very true. So true. Because if you can't even imagine being a millionaire, how can you ever take any steps to get there? You know, it's another thing is people can imagine failure and the loss and all the other things. Yes. But imagining being successful. It's like they don't envision it. They can't imagine it. But they can quickly imagine, what if I lost a hundred grand? Oh my God, my life, I couldn't pay my bills. What if you made a hundred grand? But it's hard for don't envision it they can't imagine it they don't but they can quickly imagine what if i lost 100 grand oh my god my life i couldn't pay my bills what if you made 100 grand but it's hard for them together and that's human psychology right like the psychology

of money is humans are willing to go further yeah i just read it like a couple months ago humans are willing to go further to avoid a loss than they are to get the same potential gain i know and i don't think people like us do that. Like you want to lose small. I want to win big. That's right. There's a difference. And so I think when you change your mindset around that, it helps you show up and do the hard thing and lean into the hard thing. And cause I'm not special. You're not special. Anybody can do this. Anybody. If you're willing to put in the work it's not easy yeah but it's worth it yeah and the third thing is actually the one that's the most powerful

it's finding community and it's not just any community it's in a community that is in alignment because when you have a community that shows up in the same way in every setting it is like pouring rocket fuel on a spark yeah because now i'm not i actually just talked about it on a live on my instagram this morning i was at multiply live i hosted the event in atlanta and we had our private vip dinner where we do a q a yeah and this guy raises his hand and he goes hey i have a real estate problem i'd like help solving he said great tell us the problem he goes i have a real estate problem I'd like help solving. I said, great, tell us the problem. He goes, I have a building that someone gave me, not an inheritance. He found the deal probably through some of the methods you used.

Yeah. Calls the owner, and they're like, we just don't want it anymore. We'll sign it over to you. He was like, okay. He takes it over over and it's worth $5 million. Okay. He goes, what's the catch? And they go, there's $18 million in back taxes that are owed on an asset that's worth $5 million. They said, okay.

So, you know, I ask follow-up questions like, do you own it? Do you have debt? Are there other investors? You know, we're asking all these questions. And then I go, okay, here, my first instinct is, you know, call Larry West. He's your tax man. He's the guy, right? So I was like, I'll give you his contact info. I'll put you in touch with him. He's like, okay, thank you. That's amazing. And I'm like, but I'm going to still keep thinking about it because this is a new problem. I've never had this happen. But I'm thinking with all the knowledge base I have of how I could solve

that problem. So I'm like thinking, and I base I have of how I could solve that problem. So I'm like thinking and I like come up with some sort of like half-baked strategy that wasn't quite there yet, but I knew it was a thought that was forming. And then the guy at his table right across from him raises his hand and goes, I have a solution. I go, great, share it. And so he talks about it and he's talking about like restructuring with a no and selling a no and getting the money back and then holding it forever because he has no investors in the deal so he can really just sit on it because he's just basically assumed the ownership yeah he could um you know we talked about like how you could recap through a syndicated

model there's so and so what happened in that room was then the guy next to that guy was like oh wait I have another idea and and gave him a different strategy. And by the time he walked out of that room, he had four different strategies that he could use. And we solved an $18 million problem in the course of a 90-minute meal. There's no doubt. Because of community. We were just talking about this about our friend Pace. I mean, he's really ingrained.

The KM community. He is. And I give him all the credit. I mean he is the guy i mean he's the reason that i do this that's right and there's nothing is the doing it alone those three fears right doing it alone yeah you have to have community right so and this goes back to the first class conversation part of that community will lead you in a direction that you didn't even know existed because the people in the community i'm a part of two different masterminds. I'm sure you have masterminds you're a part of or whatever, just for the one or two interactions. You may not always be learning

the biggest thing in, but if you have a conversation, you're having a coffee in the, and you like, I literally just left boardroom mastermind, which I would invite you to, if you ever want to go. Um, I met a guy there literally is changing. He's the reason why I went to Houston for this whole health thing is because I just met him there because of the community. Right. Um, okay. So do people need to have money to get into the apartment? No, no, it's a big misconception. And I had that same misconception because when I started investing I was like okay well multifamily is for Jeff Bezos not for Vina Jetty yeah and then what I realized was oh this is what OPM is other people's money right so I just bought my last deal I bought was 131.5 million and it was in Phoenix and I needed 67 million dollars give or take a million uh for down payment OPEX fees all the things right reserves uh dollars in yeah so

we raised that money as a big raise it was a big raise how long did that take you a bajillion years um I think we we finished in about eight or nine weeks. So yeah, it was a lot, a lot of running. Yeah. Yeah. It's like a straight sprint for eight. That's impressive. So yeah. Very impressive. Kudos to you. Thank you. Thank you. Yeah. We had to move that fast because we have a few million dollars on the line and we're like, we have no extensions. We have to close it. Otherwise we lose that money. So we, that was definitely a heavy lift for us, especially in this market. It's tough.

So when you buy that, did you fund it as a fund model syndication or did you do equity? Or is it a combination of both? We just did a syndicated equity fund. So it was just one asset in the fund. We do have a multi-asset fund that we also use, which will have like six different or five different assets. But this one specifically, the syndication, which is a fund, gets the ownership. And depending upon how much the people, just for the people listening. Yes, they get a prorated share.

How much you invest, you get the prorated ownership of that. Yes. And so distributions come from that. If you have a sell-off, it comes from that. Negative K-1s come from that. Negative K-1s because it's ownership. Yes. So the reason why I'm saying this now, this is for my own personal. come from that if you have a sell-off yeah it comes from that negative ones negative ownership yes um do you so the reason why i'm saying this now this is for my own personal yeah so i'm going down the path and i'd love to hear your feedback i'm actually going true ownership syndication

without the fund okay because my numbers are smaller right now right so without the fund they just own so like a great example yeah okay so you're not syndicating it no we're not syndicating in the definition of like with a ppm and yeah like they're active partners they're investing for an equity percentage of ownership of the entity but they're active on the deal correct yeah there will be gps not lps yeah so you you don't have lps in your deal okay yeah and that makes sense on smaller assets, especially. Yeah. These, I mean, you know, two of the deals they're like, I think I bought one for like 250, but it needs 900. I bought one for 600. It needs 600. So they're just smaller numbers. I mean, 600,000, that's 600 million, right? These are just smaller numbers. So for

me, it makes a lot of sense. And I actually really like it, especially on the smaller numbers. Yeah. It creates the community part. People love like, wait minute I'm gonna own this with you like legit my entity is gonna sit next to your entity on title paperwork and I'm like yeah I love that and and would you recommend it not right I love it especially for the smaller numbers for smaller deals yes as long as everyone's going to be active on the deal right because there's something called the Howey test. I know I'm about to get really technical on securities laws, but this is important. And this is something I don't hear people teaching about as much, and they really should.

So there's something called the Howey test, which tells you, are you selling a security or not? And the parts to that Howey test is, and I like to use the term ICES, I-C-E-S, is an investment of capital into a common enterprise with the expectation of a profit based off of someone else's hard work. So if I have an investor that says, here's $100,000, go make me money and come back to me and give me $150,000 or whatever that is, right? I'm not doing anything else. That is selling a security, right? And so if we're selling a security, we have to either register with the SEC or we have to rely on an exemption.

And that's where your PPM and everything comes into play. We use the 506C, Reg D 506C exemption. But without that, then you're probably operating in a way that's not aligned with securities rules. And you want to stay within securities rules. You want to have a healthy fear of any three-letter agency, right? Yeah. And so you don't want the SEC knocking, but you don't need to be an investor yourself to run a fund. Right. So, or you don't even have to be an investor yourself in your deal model either. And so for smaller deals, yes, it makes sense

because you have like four or five partners. Everyone can be actively involved in the deal. That's very recent. And when you say active, the term of general partner versus limited partner, push them into the general partner format just for the people that may not know so many terms. Exactly. And that eliminates the the security selling of a security for me as i'm structuring the deal that way right yeah because they're active they make decisions they are actively involved so they're general partners for me my lps really don't get any decision making power because there'd be too many cooks in the kitchen and so yes i would keep doing that but i would tell you to stop playing so small.

I know. This is what the big boys and big girls get to tell me. You're not the first person. Yeah, because you're wrong. But by the way, it's only because those are the only assets that have essentially come my way as a moment in time. But that's because you're not looking for bigger assets. I think you need to start saying, I buy larger multifamily assets. I do buy larger multifamily assets.

Yeah, there you go. That's what you have to say and that's what you need to start saying, I buy larger multifamily assets. I do buy larger multifamily assets. Yeah, there you go. That's what you have to say and that's what you have to do. Right? So here's the reason why. Making like a few hundred thousand, a million bucks on like 30 units, great. I would never knock anybody for doing that. What I would encourage someone that wants to do that to think about though is if you just partner up, let's say you find two partners, you could do like a hundred unit asset instead or 90 units, a hundred units. The problem that you solve by

getting over 70 to 75 units is you solve your management problems. So now at 75 doors, I can justify the cost of like a leasing manager or an onsite manager. I can justify the cost of a porter. So now I don't have to manage that asset and your property management becomes much more effective too. Yeah. The efficiencies, economies of scale, efficiencies raised. But it is the same argument I make even where I'm at. Yeah. When people are like, oh, you know, I'm buying all these single families or a quadplex or whatever, like get to the point of going into 10 plus doors. So you have a scale. Yes. You're just making the argument to me. Right. Yeah. I'm telling my people go from one door to 10 doors. You're saying go from 10 to a hundred. Yes. I'm with it from one to a hundred.

Well, we're going to do that together. Yes. I love it. We'll have a couple of deals that we'll do together. I'm sure. I'm sure of that. Next 12 months. We're going to add more zeros to your portfolio. Let's go. I like it. That's what I'm all about this yeah me too yeah okay so you don't need your own money you don't need your own money um do you need to know how to raise money like what are some things if someone's like this all sounds great guys but what the fuck can i go do right now yeah do i need to go lend my money do i need to raise? Do I need to find the deal? What do I go to? Yes. All of it. Any of those things. So this is like the same question people ask me. They're like, should I get started in single family or multifamily? And I go, yes. And they're like,

that's the answer. Just start. It doesn't actually matter where you start. If you want to go to multifamily, you can start there. There's no issue with that. I made the mistake of starting in single family. If I could go back knowing what I know today, I would have skipped single family because it was a lot of heartache. It was a lot of blood, sweat and tears that went into those deals. And like my best single family home, I made $57,000 on it. On a flip or on a... No, I held it for like a year and a half. I bought it for $21,000 and I sold it for $78,000. I collected rent along the way. So, okay, maybe I made like 60K on it.

Sure. My best multifamily that's gone full cycle so far, I bought it for $80 million, 494 doors. And I sold it 18 months later for $110 million. So, yeah, like 30 million over 18 months is not a bad day. Right. And to be clear, and I don't know this out here, but that didn't all go into your pocket. No, it didn't. I have no money.

Yes, I have no money. You're buying me lunch. People hear you say that and they say, oh, she just made $30 million. Like they think literally it went into your bank account, in your pocket. I wish it did. I mean, it could have, right? If I had 20 million. I'm sure you had partners or a bigger syndication.

I did. Had a good amount of that equity. Yeah. So it was me and one other partner. We co-GP'd. And she and I have done like half a billion dollars of deals together. So we co-GP. And we had investors in the deal.

We raised $29 million through, yeah, PREF equity and then high net worth investors. So what do you get for PREF? It depends. So at that time, PREF was kind of unsure because it was like mid-COVID. Sure. And I remember my partner called me up.

She's like, hey, we have this deal in Atlanta and it's $80 million. And I was like, oh, this is the biggest deal i'd ever done at that point um and the biggest deal i'd done before that was 52 million so this is like significantly bigger and has and i'm like it's the middle of covid we don't know if investors are going to invest okay yeah we should definitely do this yeah and i'm like bananas. Like, why are we doing this? And it was the best decision I made to say yes, because it was the middle of COVID. We didn't know how investors or the market was going to react. We didn't know if we were going into a bear market at that time out of this massive bull run we had had.

And we sold at just the right moment. And I'll tell you, sometimes it's better to be lucky than good and we were lucky because the next month we re-under read it we would have lost five million dollars in the purchase price because of cap rate okay not on the deal no five million we would have sold for like 105 instead of 110 probably did you have to go engineer architect growth or appreciation when owning it or just a simple, lucky economy, right time, right place? Interestingly, we were going to add value. There were 101 renovated units, 393 classic.

So our plan was to take some of those classic units and bring them up. Sure. We were going to do most of them. And we ended up doing 41. And so there were 142 renovated doors when we sold it. It was 494 units. And the next group was going to go and value add. And we wanted to exit for 107 after doing all the renovations.

And we exited at 110 after doing 41 of them. Was it a smaller group? Was it a big black type know, black team type? Yeah, it was an institutional fund that bought it. Actually, it turns out it's my friend's dad's group that bought it. I didn't know at the time. Yeah, and so it was Bridge bought it. Oh, really? From us, yeah.

No kidding. Yeah. I'm wondering if they like you still. I think so. I still see them. So I think, well think because it does have a lot of value add retention yeah there's some but they're gonna have to wiggle for a little while they're gonna have to wait for a bit because you know but they assumed the debt it was a fixed

freddie loan so let's talk about debt who who in your world goes and gets the financing uh so we we do it all in-house we have different lenders that we work with and so but who signs on the line oh we do yeah yeah so my co-gp and myself we usually sign on it if it's something that we can sign on like 150 million or something like that we maybe need a little more because the liquidity is always the problem worse they want to yeah yeah we never have the liquidity net worth is not the issue it's the liquidity because we never have the liquidity. Net worth is not the issue. It's the liquidity. That's right. Because we never have any money. That's why I said you have to buy me lunch today. It's, people think we're joking.

The more money in real estate, it's like, sometimes you're like, where the fuck, how come my bank account looks like this right this second? Yeah. It's a thing. Yeah. No, because we're investors. I cannot stand having money in my account. I don't like it.

I genuinely don't like it. It gives me anxiety. Because I'm like, oh my gosh. I think of them like my employees. I'm like, my employees are sitting here doing nothing. Get to work. That's the best way to look at it. I send it out, yeah. I send money out. I get money in. It stays in my account for 48 hours and it goes back

out the door into something. It's got to go somewhere. So that's why I'm like always in this perpetual state of cash poorness. And so we bring in a family office to come and backstop. Do they have to, do they not have to, do you give them equity? Do they ask? Yeah, they get equity in the deal.

Very, very, very minimal amount. They get equity. But they're taking the risk. They're signing on the dotted line. Yeah, they're signing on the dotted line. I think we're the only group that they sign for. They don't work with anyone else. So we just have really good relationships.

Is that just a relationship play? Yes.'re always back to relationships it always is i will do more real estate because of this podcast with you oh yeah then not and it's always relationships and so yeah um and this is why i'm encouraging you to start your podcast i know but we'll see you got to commit to it right and then so listen i'll give you the two laws of success out of the five. Okay. Decide what you want and who you need to be to get what you want. Okay. And then commit.

So if you want the podcast to be a raising money thing, if it's a, just a network thing, decide what you want and who you need to be meeting and then just commit to it. Just do it. I told you it took me 10 years to find a way to get what i've now built yeah but it's 10 years of nothing and finally i can say you did it you're successful you made it i made it right you know what i always tell people when they're like oh my gosh but you've done all this stuff i'm like yeah it only took me 10 years to be an overnight success. Yeah. It's real. That's how it works. I mean, people don't realize all of the hours and the reps and the failure and the heartache that goes in before they see the

successful part of it. And then they think, oh, but it was so easy for you. Yeah. I cried myself to sleep many nights, many nights. Would you do entrepreneurship and real estate investing all over again if you had to? Yes. Even the stresses, even the challenges, even all that kind of stuff. So I think people undervalue, I guess that we'd no one, none of us talk enough about being an entrepreneur and being a real estate investor. Like it's hard. It's not easy. Like Instagram makes us look awesome yeah it's a highlight reel awesome like this stuff I'm dealing with contractors right now yeah oh yeah I mean I learn like why am I doing this to myself I know I'm in pain for you yeah because it's so I've been

there yeah it's just we all have yeah so I everyone needs to be in real estate there's not a human on this planet that I think should not be whether I agree. Whether you're an investor in Venus Fund, whether you're partnering with her on a deal, whether you, whatever the case is, find a way to be in Venus World. And we could do this for hours. Yeah. And my next question probably would take us an hour to talk about.

Oh, okay. So maybe we're going to do around two of this. Okay, let's do it. Yeah, let's do it. Maximize. Let's maximize this. Let's do it. Your handle, Venajetty. Yes. Weize. Let's maximize this. Let's do it. Your handle, Veena Jetty.

Yes. We have MultifyNow.com. Yes. You have events across the nation teaching this. Yes. You are going to be my leader, my coach, my director, my business partner. It'd be great. I love it.

So if it's good enough for me, it's damn sure good enough for you. She is an absolute boss. She's so genuine. It's been a pleasure to have you on. Thank you very much. Thank you for having me. You're very welcome. Appreciate you. All right, guys, that is it for this episode. Make sure you are following her. We are going to be back with another incredible guest.

I will see you there. And this made impact on you in any way. Make sure you share with at least two of your friends. I'd greatly appreciate it. Peace out.