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Commercial Real Estate Professionals who work with Investors, Buyers and Sellers of Commercial Real Estate. We discuss todays opportunities, problems & solutions in Commercial Real Estate.
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Now displaying: Page 1
Mar 12, 2020

Now, thanks to technology you can manage your perfect portfolio from anywhere on your mobile phone.   

Minesh Bhindi with Perfectportfolio.com shares his strategy for doing just that. 

 

Today. My guest is Minesh Bhindi. He is with Perfect Portfolio.com and, they strategize to buy below market, cashflow and compound. And in just a minute, we're going to talk with Minesh about how to create and manage a fully diversified portfolio in prime real estate from anywhere in the world. But first a quick reminder, if you like the show CRE PN Radio, be sure to like share and subscribe. Also, you can leave a comment as we love to hear from our listeners. And don't forget if you'd like to see how handsome, our guests are, be sure to check out our YouTube channel and that's Commercial Real Estate Pro Network. With that, I want to welcome my guest, Minesh, Welcome to C R E P N radio.

Minesh

00:50

Thank you so much for having me. It's a pleasure.

Darrin

00:52

All right, well I'm looking forward to talk with you. I, read up a little bit on your, uh, your background and, I'm excited to, to hear, uh, you know, what, what would you have to say about, uh, uh, managing real estate? But before we get started, if you could take just a second and share with the listeners a little bit about your background.

Minesh

01:15

Sure. So I started off in real estate when I was 16 years old, uh, at 15 and a half. My, my dad has always been involved in real estate. I was watching him negotiate a deal and, uh, with a very arrogant 15 year old mind when he got off the phone, I was just sort of smirking at him and he said, what are you looking at? What are you smiling at? And I said, ah, that sounds easy. I could do that. That sounds, uh, you know, that doesn't sound too difficult at all. And luckily instead of telling me to screw off, uh, which you would have been perfectly right to do, he said, show me. Uh, and so by 16, I had started negotiating real estate deals and because I was at a very advantageous point that I can see now, I couldn't see then, which is I could walk away because whether we did a deal or not, I still had to get my homework done.

Darrin

02:04

I still had to go to school. I still had to do the things that a 16 year old is going to do. So I had the advantage of being able to walk away. Um, and so very quickly I started getting really, really good deals. And very quickly I started getting deals that were just unbelievable deals that people couldn't believe that we could get. I'm talking like 30% discounts on properties where you, you just, you, you could not get these deals before. And so that's what was going on. And then when I started working with these deals and when I started working on working with investors with these deals and believe it, cause we were structuring deals where you were getting a cash back on completion, you were putting nothing down on the property, you were getting a cash back on completion and you, you were getting basically an interest, almost an interest free loan on the day of completion.

Darrin

03:02

So it was phenomenal. And I did my first deal at the age of 18. It was a, a block of 16 or 18 units that I was negotiating and I decided to buy three of those, did it with the same deal. I bought 500 pounds down to reserve these properties. I got a 68,000 pound cash back on the day of completion and a quarter of a million pounds in equity. Well that was my first, my, my own first real estate purchase after a couple of years of, uh, negotiating deals. So that's really my background, um, on real estate. And then a friend of mine said, Hey, you should, you should teach this stuff. Uh, and that's when the education side started.

Darrin

03:46

No, it sounds like you started on third base. I mean that's, that's, that's awesome. To start so early and have a, you know, A), you had the exposure and it sounds like, again, like you, you uh, your father was encouraging as opposed to, uh, you know, uh, resistant to helping or, or even entertaining your interest I think is his kind of thing. Cause it is funny, the, uh, uh, parental child relationship as the kids go through teenage and, and, uh, you know, kind of the smart ass kind of a thing. And, and um, so kudos to your father for, uh, not, not resisting you then.

Minesh

04:22

Yeah. I think if I had failed the first couple of times he would have resisted because obviously then it was the reputation of the company and everything else at stake. But luckily I got the swing of it very quickly because I guess the arrogance and the confidence at 16 and sort of helped, uh, actually negotiate the deals, which was very strange. You know, a lot of people say you shouldn't be arrogant about it, but if I was to say, what was the one thing that really helped me actually get and secure these deals, it was the arrogance. Uh, and it was that confidence of just being able to say, Hey, look, you either want to do the deal or you don't want to do the deal. I don't care. You know, it was, it was really that approach that allowed me to get the deals that people that have been in the industry for 14, 15, 16 years at that time, couldn't get.

Darrin

05:05

Sure. Well, and I think, you know, you said something right there, the, the ability to walk away is always your most powerful leverage. You know, if you're emotionally into it and you can't see the, the faults and you don't have that, you've lost the ability to walk away the other sides though they've wo n. Right?

Minesh

05:26

Absolutely, in everything.

Darrin

05:26

Yeah. And, uh, so, yeah, but, but what a powerful message is, you know, somebody just starting out to have that and to see that work and to, to know that that is, uh, you know, it is a power. It's a tool for you as opposed to, you know, kind of, I hope it works. I hope it works out. It works. And you get all emotionally involved and then you can't walk away from them and you get crushed by it, or you do win or, um, but, uh, no, that's, that's awesome.

Minesh

05:53

Yeah. Right now, you know. Right. And one of the things that interests me is that right now, obviously the market's everywhere in the world, especially my home market of London, uh, and the U S have gone up a lot. And so people are thinking, Hey, you know, maybe people don't want to, maybe the seller is in, is, is in power right now. But for me, I think the buyers in power right now. And so I think now is a great time to be arrogant. I think there's less buyers now than there are sellers. I think a lot of people want to cash in on their profits right now at the top of quote unquote top of the market. Uh, you never know where the actual top is going to be, but a lot of people want to cash out. So now as a buyer's market, you should be going out, putting out offers. You never know what's going to land. That's, I really started off at the time where property was peaking, uh, in London. You know, it was like 2005 ish, uh, that I started. And that's, you know, it was only two years up until the credit crunch, uh, and three years up until, you know, the crisis happened. So that was my peak period. And it was a buyer's market at that point. I, I don't think it was a seller's money, you know, it was a sellers market.

Darrin

07:00

No, it's funny to hear you say that. I, I say funny, uh, from a lookback perspective because I think that so often what we, what we've been focused on is post-crash and how low things were for getting him a high things they were. And what you're saying is how much success you were having in the run up manner prior to the crash. Were you, uh, uh, holding any assets in the crash or where were you at? Uh,

Minesh

07:28

we, we S absolutely holding assets in the crash. It was during, it was during the crash that I sort of, um, realized that maybe I should take a different, different turn. And it took a few years for me to figure out what direction to go in with the difference between my portfolio in the crash and other people's portfolios. In the crash was that the cash backs that we were getting that I was getting, I would actually leave them in the bank and not spend them on a new car or not spend them on a holiday or not spend them on things that weren't appreciating in value. So when the crash happened, I still had cashflow and cash reserves to actually see through the cap, see through the crash.

Darrin

08:09

Right. No, I think that's most people I see that a or that I know that, uh, made it through the storm. Uh, like you say, either they were well reserved before or they certainly weren't foolish with what cash they had in the storm, conservative. But that was what gave them the match. You know, that much more ability to capitalize when things corrected.

Minesh

08:33

Yes,

Darrin

08:33

They were in a position to, to run fast when others, others couldn't. And capital was capital was at a premium. I mean, you know, lenders weren't lending. Everybody was afraid that there was more to, you know, crashing. And you've mentioned this, nobody really knows. Are we at the top? Uh, are we, you know, at the bottom you knew, you don't know in the moment that you're there. It's only after time has passed so you can reflect and say wow that was the top or that was the bottom.

Minesh

09:00

Exactly. You know, one of the things that was interesting was that one of the strategies that I employed to stay in the game, so to say was that all the cash reserves that I had, you know, in 2008 when the market started crashing by about March, 2009 the stock market had bottomed. So this is why we talk about the perfect portfolio. It's not just about having assets in one and understanding one vehicle. You've got to understand multiple vehicles cause while property was still recovering, was still going through the period of recovery, the stock market had bottomed by March, 2009 so I just took the cash reserves at the ridiculously low interest rate that I was paying on them, put that money straight into the stock markets. As the stock market started climbing after March, 2009 I had more than enough cashflow to, to survive quote unquote, the the crash and what was going on there.

Minesh

09:51

So you've really got to understand multiple different asset classes and how they work so you can stay in the game longer. That's what my mentors taught me and that's what I try and practice.

Darrin

10:00

So let's talk about that. What, what, what type of asset classes are you in?

Minesh

10:05

Yeah, so we, Perfect Portfolio is focused on real estate, the stock market as a whole, via index funds, uh, and golden and silver. So that's what we're really, that's what we typically focus on. And the idea of a perfect portfolio throughout history and my research shows, if you are sort of between 40% in real estate, 40% in the stock market, 20% in golden silver, you are at a very, very good stable portfolio level.

Darrin

10:32

And is that a, that's how you manage your own portfolio then? It's between that, those kind of ratios.

Minesh

10:38

Yes. It's, it's almost almost exactly that.

Darrin

10:41

And how much of those are our cash flow as opposed to appreciation is that.

Minesh

10:49

They're all cashflow. They're all cashflow assets. We, the way we do gold and silver, it's cash. It allows us to bring in a cash flow the way we do real estate allows us to bring in our cashflow in more ways than you can do with traditional physical real estate and the way we do the invest in the stock market by the index funds. It allows us to bring in a cashflow. Cashflow is the King of anything that you're going to do with investing. The only way capital gains really works in the, you know for you is if you make capital gains really fast because then it's almost like cashflow. If you think about it, right? If you're trading in and out of an asset and you're making cash and you're making capital gains, it's sort of like cashflow in the short term if you can do it in an in the near term, but if you're holding on to assets longterm and you want to grow your wealth, there's three key things. You've got to buy those assets. At the best price possible. You've got to have a cashflow and then you, you've got to reinvest that cash flow into those assets that are going up anyway. Um, and so I like to call that my wealth triangle philosophy. So it's, it's very, very simple.

Darrin

11:52

That definitely, uh, sounds like a recipe for success. Um, and the ability to withstand, uh, any kind of shortcomings or market cycles, um, and not just with, but then also, uh, you know, capitalize and grow your portfolio when, when times are are down. I mean, that's the always the thing is that, uh, you know, I, I think from this, the beginning of this have we talked about when you started, when you were able to be a non non invested emotionally in, in the situation, uh, is something that, that would propel any investor to help any investor and just to be in that position, uh, you know, and be able to, to be the counter action to what the market's doing and really seize the day kind of thing.

Minesh

12:41

Yeah. And you know, I was very lucky to be in that situation. Um, I don't overlook that. I was very young, I didn't have any other commitments. I didn't have a job. I didn't have a wife, I didn't have kids. I didn't have these things. Um, you know, sort of holding me back or making me second guess myself or making me want it to work so much where I would screw up the deal, you know? Um, so I was very lucky when it came to that. That's one thing I have to say, but saying that, you know, now we've coached people in 46 different countries to do what we do and it just works. You just need the right coaching. You just need the right mindset. And really it's the mindset. It's nothing to do with the actual strategy. There's not too many strategies that work in anything. There's only a, you know, less than less than five strategies work in anything that you want to do. You just got to have the mindset to see it through. And that's what we specialize in. Our strategies are very, very simple, but we specialize in actually making people execute on them. And that's why we're successful doing what we do.

Darrin

13:44

I like a mindset and a execution. Um, let me ask you in the, the, the assets you mentioned a gold, silver, um, uh, the, um, what was it, the, the index funds and uh, uh, the real estate. Um, can you describe a real estates, such a broad topic? I mean, are you investing in, in specific, uh, pieces of real estate? Are you investing in funds? How are you, how are you doing your, your real estate?

Minesh

14:15

Yeah, so we use rates, which are real estate investment trusts. Um, and we actually use reach ETFs, which is an exchange traded fund. And how it works is very simple. Rates are set up like companies like funds and you put your money into them, uh, and they go out and buy real estate and manage that property in, in, in the best way possible to generate you the highest return. Now their objective is to get you the highest return so that you put more money into the rate. It's very, very simple, right? Capitalism works. Um, now the rate ETF is sort of one level above that where their job is to allocate the funds in the ETF to multiple different rates to give you exposure across a broad market of real estate. So in essence, with the way that I do it with one stock purchase, I'm investing in eight different sectors of real estate, 154 different real estate projects and I can manage the entire thing from my phone.

Darrin

15:10

And I can also use, you know, the option strategies that we use to generate a cashflow, uh, on my holdings. On top of that, you know, there is in the uh, re TTF that I use, which is VNQ anyone can go and, uh, look at it. It's got $64.2 billion of assets stored inside of this ETF. So when you are going and knocking on the door trying to do a deal as an individual versus someone with $64.2 billion behind you, who do you think is going to get the better deal? So these guys are able to get much better deals and most importantly, they have the best accountants, the best lawyers managing your portfolio so that you make the most amount of money. Why? Because if you make the most amount of money and their fund outperforms, they're going to get more money.

Minesh

15:59

It's very simple. Capitalism works. So that's why a, I like to use the read ETFs. The results on these have been absolutely fantastic. BNQ provides a 4.52% dividend. It also has compounded at 8.48% since inception. Uh, and the fee for getting involved in this thing is 0.12% yearly. So it's nothing, you know, compared to what your fees and expenses and everything are. When you are looking at, uh, buying physical property, this is, this is so much better. And on top of those rooms, on top of those returns, we use options to then generate us an extra 1% a month. So you're adding 12% a year on top of, on top of what I've just said. And again, you're diversified into eight different sectors and 154 different real estate projects with one click of a button.

Darrin

16:53

No, that's pretty impressive. Um, the dividend, uh, you mentioned the 4.5% or 4.5 to a percent. Is that, is that paid a quarterly or how was that a quarterly?

Minesh

17:08

Yeah.

Darrin

17:08

And then, uh, the 8.4%, uh, compounding, um, are you, I assume that's a value you would recognize if you were to sell essentially?

Minesh

17:18

Yes, absolutely. Yeah. You're getting after gain, you're getting a capital gain, plus you're getting the cashflow via the dividend and you're using the options to generate an extra 12% a year.

Darrin

17:27

Got it. So the, the, the asset, uh, the value is going to historically is, uh, is that an average or is that,

Minesh

17:36

yeah, that's an average average compound since, since inception.

Darrin

17:40

Gotcha. And then tell me about the, the options you mentioned, uh, how is it that you're able to, uh, utilize options in the REIT there?

Minesh

17:52

Very simple, you know, options allow you to speculate on an, on an asset price. Uh, it allows you to guess or bet what you think is going to happen to a particular asset by a particular time. Um, and all we do is we sit on the other side of the speculators and we collect that money. It's like when you go gambling, you become the house rather than, uh, becoming the player. And so all we're doing is sitting there going, okay, this person thinks this real estate fund is going to go up by 10% by the end of the month. And so we own that stock. So we're going to take a, a premium, uh, to hold that stock and guarantee that stock for this, for whoever that person, whoever the speculator is. Uh, and as per the Chicago board of options, uh, statistics, 90% of speculators in options lose money.

Minesh

18:46

So we're winning 90% of the time and the other 10% of the time based on the rules of, of, uh, of how we place these options, you're never going to be in a scenario where you are selling that asset for less than you buy it for. The other key thing that we do is we do not leverage, we do not use margin. We do not use, uh, uh, any form of leverage when it comes to our strategies. So you're basically as safe as you can get and generating a cashflow via those options while that asset is going up. The fundamental thing to understand is that I am a longterm investor. We are all longterm investors. We believe in the longterm value of the stock market, the longterm value of real estate and the longterm value of gold and silver. The cashflow is designed just to give you that cashflow on a short term basis. So we're never getting into a position that's going to force us out because we're trying to, you know, get very greedy on the short term. It's never going to happen. That's why we aim for 1% returns. You can easily try and aim for 7% a month, returns with options, but then you're taking huge risks. Uh, and that's not what we're, that's not what we're about.

Darrin

19:54

Got it. How does that, uh, uh, income stream the, the return, uh, compare with like gold, gold and silver and what you're seeing in the index funds?

Minesh

20:07

On the real estate side? You mean?

Darrin

20:09

The, the percentages we just went through like the dividends and the compounding of the real estate value and uh, uh, the options. How do those percentages compare to, to what you're seeing in the index funds and, and uh, golden silver?

Minesh

20:24

Yeah, the, the index funds out perform, uh, everything in the short term. Um, I believe gold and silver will revalue at some point and outperform all of them. However, gold and silver is more, that's why the cashflow side of gold and silver is very important because you could be sitting on a, on some gold or silver for 20 years before it does anything. Uh, and I know there's a lot of people out there and my peers, the industry that are harping on about owning gold and silver and, and that's the only thing that you should own. You know, it's, it's, it's funny how they're the ones selling the physical gold and silver for you to buy in that scenario. But for, from my perspective, you, if you're invested in gold and silver and you've got more of your, more than 20% of your assets in golden silver, and out of that 20%, if you've got more than $5,000 in physical gold and silver, that doesn't generate you a cashflow. You're being inefficient with your funds. There's better ways to do it. And that's how hedge funds do it. And that's how billionaires do it. And that's, that's the way we like to do it.

Darrin

21:26

So when you say cash flow again, I guess from the gold and silver, I'm still not clear on how, how is it you generate cash flow from the gold and silver? I mean, if you physically hold it, it's, it's in your possession. How does he generate the cashflow?

Minesh

21:39

So we use the ETFs as well. Uh, we, we, we like to utilize ETFs because they're there. They're fantastic innovations in the investment space. And it's interesting to me how, you know, especially in the gold and silver space, there's a lot of fear around using ETFs and actually in the real estate space too, it doesn't, it doesn't make any sense to me. People are very comfortable buying Apple stock, but they won't go and buy a real estate stock. It's just sort of, it's very, very interesting, uh, why there is that fear. Um, but yeah, we use the ETFs, uh, and we then use options on those ETFs to generate that cashflow.

Darrin

22:13

Got it. Got it. Um, you mentioned your, your longterm, uh, players. Um, how do you, I guess, what do you see? Do you see everything continuing? Do you see, uh, I mean, are there, are there strategies you employ? I mean, it sounds like from the real estate thing, you're, you're hedging your bet from getting a spread of risk, uh, amongst different asset classes and working with the biggest, uh, players.  Index funds. I think they are similar from the standpoint of you're, you're, you're, you're basically tracking that the, the Dow or the index. I mean that's the,

Minesh

22:50

the S and P.

Darrin

22:51

S and P. all right. Yeah. And uh, the gold, gold and silver, like you said, uh, is it been pretty flat here? I'm not really that familiar with the gold and silver prices right now. Where are they?

Minesh

23:03

Yeah, I've been doing pretty well [inaudible] doing pretty words holding on 1550 right now. Um, and it's done very well last year and it's going to do very, very well this year as well. And that's the one thing that people get confused with gold and silver. If anyone's watched any information on YouTube about gold and silver, what you normally get told is that gold and silver are going to skyrocket when the world melts down. And that's not true when you look throughout history, the only time gold and silver actually skyrocket is when there is a us dollar crisis. And I don't foresee a U S dollar crisis for a long time. What I do foresee is the stock market continuing to go up. And as a result of that hedge funds having to reallocate more of dollars as a percentage of their new net asset values in their hedge funds to gold and silver as a hedge. So if they want to put 5% in gold, for example, and they've got, you know, let's say $100 million to play with, and now that hundred million dollars has gone on to $200 million, now they need to put in a bit more dollars into gold to keep that 5% balance. And that's what pushes the price of gold and silver up while the stock market's going up.

Darrin

24:12

Gotcha. So it's basically the, the, the demand based on their growth is essentially a leverage, uh, for you to, to increase your position in gold based on the value of gold or silver going up based on a supply and demand, uh, kind of thing.

Minesh

24:30

That's absolutely right. You know, you don't, not with gold and silver, you're know, we are not waiting for the world to melt, uh, before we make money with gold and silver. I know that's a, a big thing in the world that, you know, people try and propagate, but that's not when typically gold and silver, they'll skyrocket when there's a U S dollar crisis. Typically that's when it happens. It's nothing to do with the stock market. It's nothing to do with anything else. In 2008, the stock market went down, gold and silver went down and have a guess why, because the hedge funds were reevaluating their portfolios. The net asset values went down. They had to reallocate out of gold. So it's very simple from that perspective. You know, anyone who's waiting for a crisis to make money on gold and silver, you're gonna we'll be lucky to see that in our, in our generations.

Darrin

25:20

Well, I appreciate you saying that, cause I think that, uh, given the, um, near-miss to the last crash, I think there's a mindset of there's another crash coming and there's like,

Minesh

25:32

Which is ridiculous.

Darrin

25:32

Right, right. Right. Now I, I've, I've, I, you know, I, I've talked with and read and heard and everybody wants to, to identify the, just the, the average length of a cycle, uh, the averages. And there's constantly ups and downs and stuff. But I think that, uh, in that conversation, one thing that I find missing is the gravity of the crash and the correction that occurred. Um, if it was a minor, a dip, you know, like a, a w w what's a recession? Is it a one quarter of negative growth? Is that, is that how we define? Three quarters?

Minesh

26:08

Well, one quarter, three months is typically a recession. Yeah.

Darrin

26:12

Okay. So three, three months. So three months is what a recession is defined by and over, you know, over history. They happen periodically, every, you know, cycle of seven, eight years kind of thing. There's usually, there's some sort of a minor correction, but the, the correction was so major and then plus the fixes that were put in place that have, uh, essentially prevented, you know, the opportunity for it to get out of hand doesn't mean that it won't get out of hand again. Cause I think that it just, the nature of things as we get comfortable, we kind of loosen the standards, policies change and you know, expectations. But, but there will be another crash. But I think that the, the those that are waiting for the next crash uh, crash, we're predicting the next crash, uh, as big or bigger than the last crash. Uh, maybe waiting for a long time, just based on what I'm seeing. I think that the economy is relatively strong unless there's some sort of a worldwide, um, you know, event. I'd love to hear your input on that.

Minesh

27:11

Well, let me say something that's going to blow people's minds. We're not going to see a 2008 style crash in our lifetimes that has done, that happens about every 70 years. Uh, and that style of crash is done. Anyone who's waiting for an economic slowdown or a, uh, a period of recession, we've already had it since the beginning of 2018 and we've just come out of it. If you look at the channel for the world, uh, well, even the U S stock market, it's gone nowhere since February of 2018 and just at the tail end of 2019, it started coming out of that. So that crashed that everyone's waiting for has already happened on the ride noses. And now we're in another cycle up in the stock market, in real estate and obviously in gold and silver. So anyone who's sitting out of the market right now, you've already cost yourself 25% last year and you're probably going to cost yourself somewhere between 10 and 20% this year, just on a capital appreciation, not anything, not even including the cashflow. So if your money sitting in the bank, that is, in my opinion, the absolute worst place to have it right now.

Darrin

28:14

Right, right. So let me ask you, so when you're, um, making your investments, um, are there any characteristics or you know, I mean, you basically, it sounds pretty simple as far as the three things that you're investing. You know, when I, when I typically think of real estate, it's, it tends to be a specific property and there's characteristics and we can run the numbers and all that stuff. Um, but it seems like you've taken all of that out of the conversation. Uh, is it, is it, you're, you're investing in a, in a REIT that's so large, that's constantly, they're out there shopping for these deals. And the opportunities that basically as simple as it gets.

Minesh

28:54

Absolutely. And not only are the, are they out there shopping for these deals? They're out there with their head on the chopping block because the moment they have a bad year, they get all their, all the, all of their funds pulled. So they don't get the luxury that you and I get when we go looking for real estate, which is our one bad deal out. It's not a problem. They're on it 24, seven for you. So you don't have to worry about that. If they buy, if they perform badly, they'll get, you know, $70 million pulled from their fund in the next year. Um, and so they're, they're, they're not looking to do that. And these are the best nerds and the best geeks in the world doing all the analysis to keep your portfolio growing.

Darrin

29:34

Got it. So basically the way that you manage your portfolio from remote is that you're investing with the experts in these different funds. Uh, and from there, from your phone, you're able to manage, uh, and keep track of what's going on. And

Darrin

29:54

is that there's basically, I mean, it's.

Minesh

29:57

My job. My job is very simple. I need to know when to get in. I need to know what percent to allocate into each asset class and I need to know how to generate that cashflow using the options. Everything else I've already said to you, you got to be in, in stock, in the stock market. You've gotta be in real estate, you've got to be in gold and silver. However you do those things, that's really the key where the skill comes in and depends on how much money you're going to make. That is the dependent factor. It's not about what assets to get into. You need to be in the stock market. You need to be in real estate, you need to be in gold and silver. What you do after that realization is the key on how much money you're gonna make. I mean, you know, and right now I'm talking to you from Bogota in Columbia. So it's like, you know, you can manage this portfolio from anywhere, but a multimillion dollar portfolio that I can carry around with me on my phone and track from anywhere. Um, I've made, I've been traveling since the first week of January. I think I've made eight, 8.8%, maybe 8.9% of my money so far while I've been traveling. And that's really the key. It's what do you do once you decide that this is the asset class and that's what we specialize in.

Darrin

31:12

Let me ask you, you mentioned the, the dividends, um, which essentially to me that's the cash flow. Correct? I mean that's the,

Minesh

31:19

no, so there's difference because you know, with, with, with gold and silver, there's no dividends. So the dividends is a part of the cashflow, but the majority of the cashflow comes from utilizing the options.

Darrin

31:33

Okay. Gotcha. It's the options. Gotcha. Gotcha. Ah, interesting. That's, that's a definitely a, a, a unique, uh, perspective. And, and uh, sounds like you've had a lot of success with that. How many people, you said 46 countries. You, you've worked with, uh, students. Um, how many people have you got a,

Minesh

31:54

We only, we only every single year we cap it off at 155 people. And the reason for that, I don't know, don't ask me why it's not 150 or 160, but it's 155 people. And the reason for that is very simple. When I started my first education business, the mistake that I made, and bearing in mind I was involved with physical real estate. The mistake that I made was that as I worked with more people in the education business became successful. I had less time to put it into my own investing. And so after the, after the 2008 crash and after my transition into doing it this way, I've just realized I didn't want to make that mistake again because from my personal wealth and my family as well, the majority priority of that is going to come from, uh, my own investments and not actual business.

Minesh

32:40

So we work with 155 people a year. As soon as we hit that 155, if we get 155 people by February, we'll shut doors up until uh, the next year. It doesn't really bother me. I like working with good quality people, people that are focused and people that are at least coachable. Uh, we're not a churn, you know, a churn and burn and dump company were doing seminars every single weekend selling it and not providing support. Once you become a client, you get to access a weekly coaching call for life at no extra cost, you know, so these are the types of things that we're trying to, we're trying to do, um, to help people over the long term. That's what it is for me. It's about building a relationship and that's why we have an application process. I review every single application, uh, that we accept. So it's more of a longterm, um, approach and a more of a relationship building approach than anything else.

Darrin

33:35

Oh, I got it. Love the a, you still got the, the mindset of a, you know, one foot five, we can walk away. There's not, you know, not a, not too hard or not two 50 if we're going to make more, you know, more students this year kind of thing. That's, that's great. It's an,

Minesh

33:48

At the end of the day, I know that if I can compound my money at 20% a year consistently, you know, no matter what I do, it's not worth getting overly stressed on an education business or any business really. You know? It's just not worth getting overly stressed because if I can compound my money at that level, you know, which I have been doing, I'm set. I'm sitting very, very nicely for my, for my future, you know, and that's what this is about. The strategies that we teach are really strategies that I wanted for myself.

Minesh

34:19

And this is what I do for myself. It's, it's, there's nothing, there's nothing that I don't do for myself that we, that you know, that we, that we teach everything that we do is exactly what I'm doing myself. And that's what it's about. That's how I would like people to live as well. I think there's a lot of people chasing success and chasing a business and chasing things in such a way which sacrifices their quality of life. And I think, you know, when it comes to real estate, I don't think there are actually that many people on earth that are super passionate about a building. There are a few nutcases, but I think most people are very passionate about what real estate can give them, which is the lifestyle, which is the security, which is the wealth, which is, you know, the quality of life for their children, their family, their wife, their husband, their, their parents, et cetera, et cetera. Those are the people that I like to work with because those people are not egotistically attached to having 10,000 properties. You know, those people just want the end goal and they're aware of the end goal. Um, and that's what I like to work with. Cause the end goal is easy. The egotistical shit in the middle, that's where it gets complicated. That's where you can take too much risks. That's where you can blow the whole thing up.

Darrin

35:32

Right. Right. No. Well, said. Well, said. Hey Minesh. If we, could, I want to shift gears here for a second. Uh, I mentioned to you before we started that by day. I'm an insurance broker and, uh, I work with clients, uh, on a regular basis to assess risk and determine what to do about the risk. And, uh, there's three strategies we typically, uh, can, you know, rely on, uh, the first strategy is we look, uh, and ask, can we avoid the risk? I, if that's not possible, we, we look is there a way to minimize the risk? And if we can't avoid it nor minimize it, then we look to transfer the risk. And that's what an insurance policy is. And, um, as, uh, for the last year or so, I've been asking my guests, uh, if they would, uh, take a second and consider what they see is the BIGGEST RISK. And, uh, just to, to be clear, I'm not necessarily looking for an insurance related, uh, answer. Uh, but, uh, I'd like to ask you if your game, uh, Minesh Bhindi, what is the BIGGEST RISK?

Minesh

36:40

The biggest risk is an external, uh, situation happening in your life that forces you out of an investment earlier than you wanted to be in it. You know, and that's really the, for most people when they're investing in the stock market, a margin call comes along and that wipes out, you know, 50% of their portfolio. We don't get involved with margin, we don't get involved with leverage. So for us, the biggest, the single biggest risk is a life situation happens. You don't have enough reserves and now you need to get out. And while you need to do that, the market is down 10% because it's, it's, it's going through a standard correction, uh, that it does every, every 18 months anyway. So that's really the biggest risk. The, if anyone wants to get involved with investing, there's two parts to it. The first part is actually making money.

Minesh

37:26

And the second part is investing money. What a lot of people get these two things completely mixed up. The other way around. When you're investing money, which is what we do, you want to invest with money that you're not going to miss for 10 years. If it just, if the market shuts down for 10 years, then you know, as Warren Buffett says, you're not going to miss that money. You've got to have enough cash reserves or a lot of people I find are doing is approaching, I don't have any money. I want to make money. Let me go use an investment strategy to do that. And that's not, that's not the right way of doing it. Go make the money first, have the reserves and then start investing. Otherwise, if a life event comes along, you're going to be forced out of a market and people like me are going to buy all your stock at 50% of the value.

Darrin

38:11

Right? No, that's, that's well said. Uh, right out of the, uh, Warren buffet school of, uh, you know, uh, what's that, uh, say? And he says, when the, when the, all the water is out of the tub, you find out who's wearing shorts or whatever that is and kind of thing. So, yeah, that's good. Good. Hey Minesh, where can listeners go if they'd like to learn more, connect with you?

Minesh

38:34

Well, perfectportfolio.com but I'm sure you'll have a link in the description anyway, so they can go check out the training, um, and, and go watch the training. You know, like I said, we, we specialize really in helping people execute and get the result. That's why people, you know, people pay over 50% of our fee after we help them make $50,000 in profit. So it's really a collaborative arrangement that we have. That's why also we got to review every application. Like when I say we, I have to review every application because I've got to trust someone who's going to actually implement it, uh, and not just get excited and buy things. Um, that's not who we're looking for. We're looking for people who are actually focused on growth and actually focused on implementing the strategies that we teach because we know they work now. We know they work from, you know, people that have never had, I've got single moms that are never ever thought about investing in delay, you know, got an inheritance and they, and they have to do it to ex wall street traders that are using the strategy and not everyone's making it work. Um, so, you know,

Minesh

39:39

that's, that's, that's really what we're looking for. If it sounds interesting to you, come and have a look at our strategies, you can come and learn a lot on our trainings. We give away a lot of the things that a lot of other people try and hold back. Like, which funds during the, the funds in the, you know, what you invest in. That's not the secret. The real secret to your longterm success and you actually achieving the security, the freedom that you're looking for is actually the implementation part. That's where we help. That's where we come in. Everything else I can give you, you know, everything else is very simple. Uh, and I can give you that and you can walk away with it and do something with it or not do something with it. But what we specialize in is actually making you do it.

Darrin

40:18

Got it. Minesh, I can't say thanks enough for taking the time. I've enjoyed talking with you. Learned a lot and I hope we can do it again soon.

Minesh

40:28

Absolutely. My pleasure. Thank you for having me on.

Darrin

40:31

All right. For our listeners, if you like 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, C R E P N radio.



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