Real Estate Syndication with Sunil Chillar

eorge grombacher 0:00
Come on blood blood. This is George G. And the time is right. welcome today’s guests to try a powerful scenario. chilla Snell, are you ready to do this?

Sunil Chillar 0:19
Let’s do it.

george grombacher 0:21
Yeah, excited to have you on. So now is the co owner of Kuva capital and the owner of Exit Realty, urban living is real estate investor specializing in multifamily real estate investments. So now tell us a little about your personal lives more about your work and why you do what you do.

Sunil Chillar 0:39
Sure. Do before. Let’s take a little step back before I got into real estate, I actually were VP with a huge financial company. So at a young age, you know, I saw people basically retire months year later, people die. And in my 20s, I’m like this, got into the real estate world and never looked back. 21 years ago, I started basically, buying rehabbing and flipping have scaled my business tremendously. I am in the multifamily space right now. Where we Syndicate, obviously, everything we do is sec compliant. I do own my own real estate company. So one of the things, and this was I guess, going back 21 years ago, when I first got started, you know, paying it forward, I had someone who basically showed me the real estate world as far as the foreclosures, the bankruptcies, the all that stuff, and really ramped it up and took advantage of, you know, that experience that had led me now to purchase in a lot. So I pushed people, anyone walking through my door, one of the things that I will tell them, if you want to work for me, I’m going to make you uncomfortable. So I’m going to push you out of your comfort zone, because that’s the only way you will succeed. Just like I push constantly pushing myself out of that comfort zone as well. It’s the only way I can make it happen.

george grombacher 2:19
Amen. Why is that so hard for us? So now, why do we Why do we want to start dieting on Monday? Why don’t we want to start saving money and investing next year instead of right now?

Sunil Chillar 2:31
I know. For me, one of the things, I guess, the catalyst for me, when I first came to the US as a kid, we were undocumented. So immigrants, and it was tough. I’ve worked in our factories I’ve worked at literally worked on the street, selling stuff. It was stuff. So I’ve always had, I don’t want to go back there. It scared the hell out of me than I know what it is firsthand, to not have money. I’ve seen my parents do it. And we actually came from wealth until we landed here. And it was a different story. So I did not want to do that anymore. And I’ve been pushing myself. I guess at that young age it was It made an impression on me. The hardship that people go through, because I’ve gone through it. And that’s I think is a reason that I am hard on myself. One of the things that you know, I will tell everyone, all the viewers is get a mentor, get someone also a coach who will help you. For me, one of the things that I guess I was lucky enough to do is back maybe 25 years ago. So Tony Robbins and Tony Robbins went out. I’m a kid when to want to his seminars, I’m obviously had no expectations, didn’t know what to expect. And first night I walked on fire beer feet. And that just ramped it up for me. I remember getting back here getting back to my job and making six figures as a believer in that as a kid. And I gave my two weeks resignation. I was done. And I never looked back.

george grombacher 4:27
Amazing. What did your parents think about that?

Sunil Chillar 4:30
Everyone we’re like, are you crazy? Yeah, so, but it all worked out. And you know, it’s one of the greatest things. I belong to a mastermind group right now. So you know another something I’ll tell everyone is if you cannot belong to a mastermind group, associate yourself with someone who have actually done it before. Because you know, when you get into real estate, when you start buying, there’s so many things that could go wrong. There’s so many financial landmines that you could step on, and it will take you out. So, learn from others don’t be the first one or hot added, thinking you could do it all. And it’s tough. So learn, learn, be patient, and just

george grombacher 5:28
and you probably can do it on your own. But you don’t need to, because there are millions of people that have done probably exactly what you are interested in doing. And why wouldn’t you tap into that? wisdom, knowledge experience?

Sunil Chillar 5:41
Correct, you know, doing it on your own, you can only grow so far, you can only go so fast. You want to leverage the education and the knowledge from others. And I think that’s just a smarter way of doing it. You know, we all feel at some point, right? One of the, you know, for me, I want to fail faster. I failed 21 years, and are very successful. But I need to fail faster. Now. Because you learn from your failures. The faster you fail, the faster you believe it or not, you grow as well. We all want to be successful, but we just don’t start from point A to point B being successful. Some some people they’re lucky, me, Argos zigzag in a million different directions. But I’ve grown also, obviously tremendously.

george grombacher 6:35
Yeah, I appreciate that. It strikes me that you could tell me if I’m close or totally wrong, that the progression of real estate investing for a lot of people is to do single family rentals. So you buy one, and then you buy another one a couple of years later, and then the desire is to move towards multifamily. If that is a common experience, is there a way to speed that process up? Or do you think that that is a good method to do it?

Sunil Chillar 7:09
Well, I think that’s where everyone starts, right? We all baby steps. So we all first one, and transition, you know, to the second to it and what have you. One of the things that I’ve been doing for the last couple of months, is in addition to us, you know, working on big stuff, right now we are working on a 200 unit, we just lost the 92 unit, because we’re out better. But this is where I’m going with that. One of those types of properties. That’s one transaction on in 92 or 200 units. What I also do is I buy one property a month. So think about it, you buy one property a month, that’s which is a lot of work. That’s 12 properties a year. That’s 12 transactions of a lot of rehab, a lot of work. You buy one, let’s say 50 or 100. Yet, you buy one of those? Yes, there’s work to be done. But you have just scaled your business. And you know, one of the other things is when we are least me growing up, you know, when you have money, you live within your means you spend what you have. So in my lifetime, can I afford a $20 million home? Probably not. However you look at other people, and you say to yourself, well, lucky, we know what they’re actually not lucky. There’s a way to actually take these properties down which is syndication. There’s ways to do it. So why not learn how to do it, rather than say someone else’s lucky.

george grombacher 8:54
But certainly makes sense. And that knowledge is is available where we’re where would you suggest that people say okay, yes, I’m interested in doing that. So how do I how do I take that first step towards learning how

Sunil Chillar 9:07
quality I’ll be joining a mastermind group. So many investment space out there. There’s a wealth of information in on the internet today. But again, I’ve been doing this 21 years now I’d love to help anyone. You know, I love paying it forward. And I’ll be a great support to anyone asking for information or please are pointing right another direction if that’s you know where you had.

george grombacher 9:37
Yeah, I appreciate that. So we’ve got I was just looking at this morning, something like 65% of Americans are living paycheck to paycheck and now we have inflation is is making what was hard already a little bit harder. And we’re probably going to see interest rates tick up. How do you see or how are you thinking about it? rising interest rate environment in what you’re doing.

Sunil Chillar 10:03
You know what people, people tend to forget that interest rates would double digits. And when it would double digits, people were still buying real estate. Yes, it was a little bit harder as far as payments go. But interest rates are still low enough where you should capitalize as bad as things may seem, I’ll share this with you back in Oh, six or seven when the market crashed? You know, yes, there were a lot of pain for people. I bought properties for pennies on the dollar. I bought like a pig I ate like a pig. Why? Why am I saying this? Because the opportunity presented itself. We have COVID COVID for the last one, two years or so. Now, personally, it was the best thing to happen in my life. Because I started by and not started buying, I bought a lot, a lot also do in COVID right now. So wherever there is chaos, where whenever the world seems to go crashing down, is always an opportunity that presents itself. Sometimes people just need to take a step back. And you know, what, what’s played in my head? You know, who am I listening to? What books Am I reading? Where, where are things right now? Yes, things are bad. But where’s the opportunity at the same time? And people tend to forget, gear is an opportunity. You know, not everyone is suffering? Yes, there’s suffering going on. And I’m not saying no to that. But you know, is the glass always gonna be half empty, or at some point is going to be half full?

george grombacher 11:56
Yeah, like that’s well said. So with that in mind, we never know when there’s going to be an opportunity, a buying opportunity, like the 2008 crash, or the.com burst. And there’s just different opportunities in times where there’s blood in the streets. And so it’s an opportunity to be a pig, if you have the dry powder or the cash. How much cash do you have rules of thumb are thoughts on just how much cash to keep at different times.

Sunil Chillar 12:27
That’s where you will have a lot of times you want to have partners involved. If you have the money. It’s hard to say, and I’ll explain why. As much as I keep cash, I keep reserves. My wife has to control it, because we’re you know how I’m like a shock, smell and blood, right? So here’s an opportunity, I want to jump on it. And I tend to deplete cash, personal cash, because opportunities arise. And that’s where, you know, like I said, my wife keeps an eye on me. However, you want to have partners where you can also leverage the money. So there’s always going to be an abundance of property. You know, I know right now is there’s that deficit where prices have risen throughout the country because everyone’s buying something. But the opportunity still arises. So with partnership. There’s power and strength.

george grombacher 13:36
Yeah, I appreciate that. And that’s really does make sense. And that’s why it to what you’ve been talking about makes sense to be developing relationships and being part of these groups and networking and all of that. So. So interest rates don’t necessarily it’s not, you’re not packing things up, and you’re not going to stop real stop invest in real estate anytime soon.

Sunil Chillar 14:02
You either be in it for the long haul. Yeah, one of the things that I do, also, I flip a lot of properties. So people buy, you know, you either buy it a little bit higher, and you sell it a little bit higher. What really changes? Yeah, the cost of material have gone up, you may make a little bit less profit. At the end of the day, a profit is a profit. So what change

george grombacher 14:30
it’s that’s, that’s excellent perspective. And that was a word that sort of jumped into my head when we were first talking about the perspective that you came from, of coming from an environment where you were more wealthy, and then you show up and now we’re broke and know what it’s like to not have any money and you never want to go back there again. So keeping that in perspective, and then keep it in perspective that yeah, things are different now, but it doesn’t mean that it’s not something we should do.

Sunil Chillar 15:00
Correct Listen, there’s there’s always an opportunity. And you know, if this whole real estate or this whole game is mindset, in that’s, that’s, I guess how I look at it, you know, just goes back, personally for me, what’s playing out in your head? You know, who are you listening to? You listen to negativity or you listen to individuals who could push you forward? Who do you have? Do you have any affirmations? What do you do when you get up? Do you? Do you work out? Do you? What do you, you know, we all want to work out and build muscle. But a lot of times tend to forget that the brain is a muscle, and you need to exercise it, you need to take control of it. So that’s just how I look at things a little bit differently. And I guess, especially walking on fire, that’s have actually changed me personally. So you either stand on your problem. So I know your problems are on your head with bogging you down. How do you look at things perspective? So I look at it differently,

george grombacher 16:12
makes all the difference. I love it. What’s another people are ready for the different speaking tip. Even though you’ve already given us a lot, what do you have for them?

Sunil Chillar 16:22
Have a mentor get someone you could trust someone you can rely on someone who’s not going to take advantage of you and someone who have actually walked through those doors and have failed and could share knowledge with you. That’d be the greatest, you know, tip I guess I could give anyone and the other thing is, you know, read read, educate yourself. Don’t just want to think you know, I want to become a real estate investor or I have X amount of dollars go out Yeah, you know what money in your pocket to have money in the bank you have a greater responsibility to manage it.

george grombacher 16:57
Well, I think that is great stuff that definitely gets Come on. So now thank you so much for coming on. Where can people learn more about you? How can they engage with you?

Sunil Chillar 17:08
Best way to contact to contact me I’ll give you my personal cell number 201-954-0292 I’d love to speak with anyone I love communicating with people so called me get to know me know that.

george grombacher 17:26
All if you enjoyed this as much as I did show, sell your appreciation and share today’s show with a friend who also appreciate good ideas, give him a call. I will list the his number in the notes of the show and figure out if there’s an opportunity to put your heads together. Thanks. Good to know.

Sunil Chillar 17:43
Thank you. I appreciate it.

george grombacher 17:45
And until next time, keep fighting the good fight. We’re all in this together.

Transcribed by https://otter.ai