Making Money in Multifamily Real Estate Show

158 | Creating Your Edge Through Operations with Yomesh Deliwala

August 16, 2021 Dave Morgia Season 1
Making Money in Multifamily Real Estate Show
158 | Creating Your Edge Through Operations with Yomesh Deliwala
Show Notes Transcript Chapter Markers

Yomesh's Background:

  • Cofounder of Exponential Equity which operates large multifamily and development deals
  • Real estate investor for over 14 years in the Charlotte area

In this episode we cover:

  •  05:06 - Yomesh's focus on operations
  •  08:33 - Course correcting
  •  13:01 - Measuring what matters
  •  17:32 - Areas for opportunity
  •  21:42 - Staff retention on a property
  •  25:26 - Growing to be vertically integrated
  •  29:24 - 5KQ1 - If you could only pick one trait that explains your success, what is that trait and why?
  •  30:14 - 5KQ2 - What is the most uncharacteristic thing you've done in your business and why did you do it?
  •  31:56 - 5KQ3 - Can you name any time where you felt like you were not going to end up successful? How did you overcome that fear?
  •  34:48 - 5KQ4 - Can you name a time where something in your business went perfectly and what did you do to make that a reality?
  •  36:12 - 5KQ5 - What have you been focusing on lately to improve yourself or your business?

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Intro:

Welcome to the Making Money in Multifamily Show, where we discuss everything to do with multifamily real estate investing. We believe it's the best way to gain financial freedom and build lasting wealth. This is where you'll find it the best information and practices to help you succeed in your real estate business, whether you're already experienced or just starting out. Here's your host, Dave Morgia.

Dave Morgia:

Hello listener, and welcome to the show. I'm your host, Dave Morgia. And with me today is Yomesh Daliwala. Yomesh, welcome to the show.

Yomesh Deliwala:

Thanks, Dave. Thanks for having me.

Dave Morgia:

Yeah, really looking forward to our talk Yomesh. And just for the listener, I wanted to give them a little bit more info about you before we talk today. Yomesh acquired his first real estate property all the way back in 2007, with the sole purpose of creating passive income, and then over those last 13/14 years, he has owned and managed a huge portfolio across the Charlotte area. And he is the co founder of Exponential Equity, where they like to pair investors with just high yield high performing assets. And actually, if you recognize the name, Exponential Equity, I had his business partner Hemal Badiani, on episode 143. Check that one out, we had a great talk about pretty much just aligning yourself with successful people and really just kind of 10xing in your timeline on performing a business. So yeah, you must you want to just kind of take the lead from there and tell the listener a little bit more about who you are and what you focus on.

Yomesh Deliwala:

Yeah, absolutely. So thanks, again, Dave, for having me on the podcast here. And thanks for doing this, this is really helpful for, for me and for all the listeners out there giving value back, you know, giving back to the community and an opportunity for everybody to learn, right. So and, and know the people who are in the industry and, you know, getting to catch on the mistakes and not not do the mistakes that everybody else has done. So that's a, that's a great way of giving back to the community. Right. So appreciate that. Myself, I'm, I come from a very humble background, you know, I come from the western part of India, and you know, have, you know, finished all my master's studies, everything in India came, came to us like any other aspirant in search of an opportunity, you're in US early 2000s. And you know have still have a full time job in it, along with my real estate business, but I did start earlier then. Made, looked at, you know, ways of creating passive income, right. So that has been sort of say, in, in the blood, as to, you know, looking out trying to hustle for, for doing something as a side business and getting getting yourself into a passive income. So that had been on that drive for quite a long time, picked up quite a few properties in your, like you said, I am in the Charlotte market have been here for over 16 years, landed in Charlotte and call it home. So I've seen the city grow and reach to the current potential and the current levels that that it is today. And, you know, along that journey I picked up my you know, my pieces into it with real estate, ventured out into a couple of different businesses and then settled on, on real estate. Where, you know, I was able to keep myself pretty much hands off, and then getting to a point where I could create passive income. So like you said. You know, I acquired my first property 2007. And then from that point onwards, first in residential real estate, you know, quite a few properties during the boom time within Charlotte area, and then, you know, move myself into commercial real estate with multifamily and a couple of other asset classes. And, you know, completely focusing on commercial real estate now, I still do have my residential properties, though.

Dave Morgia:

That was a that was going to be my first is how far along are we with trying to dispose of the the smaller stuff, but I guess you got most of it. So

Yomesh Deliwala:

Yeah, I do have, I do have all of them. And one thing that if the listeners are focusing on that, as well, if you had a property for a long time, you know, you get your cash out, you know, cash out, revfi, and I don't have any money, my own money in the property anymore. And you know, I'm looking at an infinite cash flow right at zero money and and, you know, getting good returns on top that,

Dave Morgia:

Yeah, officially no risk in those now. Right. So it's a beautiful position to be in. Yeah. So we kind of got speaking before the show, a little bit more of your kind of expertise is more on the operation side of things. Obviously, with 14 or so years of experience in real estate, I'm sure you've learned a thing or two. So what kind of do you focus on day to day to make sure that your firm is continuing to perform? I mean, because it's one thing to to buy a property right and and it's another thing to actually say one thing and then perform and put those numbers in the real world so so you want to just kind of go over the day to day and maybe long term vision that you guys you guys uphold?

Yomesh Deliwala:

Yeah, absolutely. So You know, the number one thing that the listeners want to know is operations is where the money is made, right? So you don't make money and in the deals in any other format, operations is where you focus your time and energy. And that's the money is made, there are two ways that you can make the money. You can bump up the rent, increase the profits or increase the NOI. And the second one is, you know, you decrease your expenses, and that will end up also increasing your NOI. So that's how you, you make money within operations. And there are several ways to do that. As you go into the journey of operations right now, starting from the day, you take over the property, trying to look for the opportunities to modernize, you know, make lives better for the tenants, at the same time, make your own lives, putting the right systems and processes in place, so that you can see those results coming in to you on a day to day basis. Right. So you know, when you look at the core operations of the property, like you divide all your expenses into various aspects, whether it is your utility expense, maintenance expense, your payroll expense, you know, how to optimize all of that, right? There are certain ways to get into each of them. Right, you know, for example, utilities. And so you we've never, you know, we hear a lot of people talking about, you know, optimizing from a utility bills perspective, right? So how can you optimize that, right? So there, you know, when you go into specifically like, you know, water and sewer, right, so you can, there are more ways available use of modern technology. You can now track the water usage by unit, right. So, you know, there are certain ways you can put, there's also ways where you can bring in a third party provider, where you can implement some economic ways of water conservation measures. You know, low flow toilets, low flow, faucets, all of that, and that has some tangible gains that you can see on your monthly statement, you know, that's not, you know, things that you pull out from thin air, these are actual results that you see on your statement. So, that's one example. There are payroll, that you can do it, you can do it on your, the maintenance aspect of it, you know, monitoring your business on a day to day basis. So that's on the active hands on. And then there are some hands off activities where you basically are doing better for the tenants, right? So you listen to the tenants, you get their feedback, you let you put the right list of items on your agenda, and you can tackle that, as you go along. Put your goals in place, right, what your day one goals versus what your quarter one goals. So what's your end of half a year goal and a yearly goal, right? So that way, you can work with the partnership, right? So it's all about the partnership that you develop? Right? Whether it is your own staff, whether it is property management, what kind of expectations you're setting? And how are you following up on those expectations with the right process systems and processes in place to monitor those results. And then do a course correction. Right? So if you if, wherever you thought you were 30 days on, it's not making any sense? How can we, you know, let's let's regroup and do a course correction. So that's in a nutshell, and we can we can talk about anything specific.

Dave Morgia:

I think I got to really dig into that last part there the course correction. So that's, that's soft skills, right? That's not where you, you have to have experience to make those decisions correctly. So what do you guys do to properly decide A when it's right to make those kind of corrections, instead of letting a scenario play out a little bit longer? And B What are the discussions that you have, once you decide that you're going to adjust? How does that look like?

Yomesh Deliwala:

Yeah, so one of the one of the books that I have, you know, been following and, you know, have our teams follow as well is Measure What Matters. So there's a concept of OKRs, right? Objectives and key results, right. So that's where we kind of put in our objectives for let's say, a quarter, that's the minimum that we set it up. And then for those quarters, we then you guys, like every week, we measure ourselves against those objectives. Right. And then, for each objectives, there are a set of key results. Are we achieving those key results for those objectives? So if our objective for example is let's let's reduce our utility bill by 5% in a quarter, right, so what are the different key results that you would need in order to achieve an objective? Right are we look at the vacant units. Are the thermostats, you know, set to 65 in summer, right? What that would mean is the unit is vacant, there's nobody living in there. And then the AC is running 24 by seven. Costing us as owners as as utility in utility bills, right? So let's say if you have 10% you know, typically we assume 10% vacant units in our property. So recently we have we have a property that's 246 units 10% of that is 20/25 units. 25 units running 65 degrees, on a hot summer day in Winston Salem. That's going to be a lot more a lot more than 5%. So that's, that's how you break your longer objectives, longer term objectives into smaller set of key results. And then you keep on measuring yourself every week over and over against those keys, and then see whether you are reaching to date or not. Or let's say the property is already optimized to a level where we do not have to go down to that level, then or if we are not making the right progress towards that. And then we go back and, you know, revisit the objective itself saying that, hey, is that achievable? not achievable? Are we, too, you know, we too ambitious or too less of ambitious. Because, you know, you set up yourself for a quarterly goal, and you achieve that in a month. Right? So that requires you to go back to the drawing table, and say that, hey, we kind of, you know, shortchange ourselves. So now, we need to set ourselves up a more achievable target. You know, stretch ourselves, and put it into, you know, more rigorous or more aggressive target, that we need to achieve that objective. So that's, that's just a couple of examples. But you know, things like, you know, payroll, right. And, you know, you're one of the properties, we're spending at least 12 to 15 grand on just lawn maintenance, it's a huge property where you ever spend, you know, the maintaining the lawn, cutting the grass, shrubs, all of that. So how can you optimize it? You know, why don't we put out a resource, you buy all the equipment in house and hire a person, right? That will be a fraction of a cost, versus getting that from an outside party. So those are some of the ideas and things that you would come. And then this is where you partner with everybody, that's for your property manager, your staff, all of that you partner with them and say, hey, what can we do to achieve that target, right. And then once we achieve that objective, we set ourselves to another set of objectives. So that's, that's in a nutshell, you kind of keep on measuring yourself, it's okay to fail, but you fail fast, right? So that that's the key there fail fast. So that, you know, you're not waiting three months to know that you're not achieving an objective, you would know within three weeks. And then you can course correct yourself and saying that we were rather too ambitious, or we were short, short selling ourselves, and then now we can achieve X, Y, and Z or let's trim it down to a certain level that is more achievable. And that's, that's the way to kind of make yourself accountable as you work through these objectives.

Dave Morgia:

So in a way, you guys will set the longer term target, but then basically watch it like a hawk. And when it starts to deviate, before you even let it flinch, you swoop in and call it call out for an adjustment. So yeah, I like that. And then I guess mechanically, how do you creatively come up with these solutions? I know you mentioned interfacing with the project management team or the property management team rather talking to these other parties, is it a type of meeting structure that gets these things done? How do you kind of consistently come up with strategy?

Yomesh Deliwala:

Yeah. So, operationally, you work with your property management. So, we have a weekly touch point with the property management and there are certain portion of the meeting is talking specifically about the statistics or the stats in the in the and the numbers about the property. And then there is a section of time where we talk about Okay, what are we doing in terms of those objectives that we have set, right. And the strategy to come up with those is purely based on the partnership that you'll develop in the market, right. So, you with our association in the market with our association with our brand, we have been approached by or we have approached or in partnership with our other operators in the market, we have come across certain strategies that has that are beneficial to running an efficiently running a property right. So there are more than one ways where you can improve the health of your property to help the health of the numbers that you are trying to look for. And you know, having the right partnership so like the when I say the utilities, right, or the water conservation measures that are specific lenders that are out there, who are servicing multifamily industry, how do you get to know them, you go out, meet them, you go out to the conferences, you go out to the meetups, you go listen to the podcast like this. Listen to the YouTube channels, that there's a lot of information out there. But once you get to know them, you got to keep a track of all of them and then make make yourself you know, put yourself to the task of getting them connected with them. You know, for example, I would typically put myself, every month, I would connect to at least one or three vendors, who are in this area, who makes, you know, automated locks mechanism, you know, automated thermostats that can be controlled by the property manager and the units, awaken water conservation policy, the security deposit related information, you know, parking lots, security cameras, how to automate all of that, right. So those are some of the measures that and then you keep yourself updated, you know, you know, keep yourself engaged in the process. And once you see the problems, then you, you don't have to wait for the problem. To solve it, you already have the solutions listed out and once the problem arise, you already know who to work with, who are the best vendors best in the past. And then you pick up each of them, pick up your phone, you already have a relationship with them, pick up the phone, call them, you know, get your get a brainstorming session in place and put a solution in place.

Dave Morgia:

Yeah, and that's such a just a beautiful answer. I think I think you nailed it, to go beyond the PM level, and to have relationships with the local regional guys for whatever that little niche of of the businesses, right, like you mentioned, just say, for example, smart locks. Say there was some random smartlock emergency at Friday afternoon or Saturday afternoon. And, you know, seven at night, if you had that good relationship with that person, you can get them in, you know, solve the problem. And it's not something you had to, you know, be worried about. And you can continue operating as planned. Obviously, that's a worst case scenario, putting out fires as well, we try not to do, right. But when you have those relationships, that's the kind of stuff you have the power to do, because you put the time in Day 1 to be able to sell those things. And then on top of that, just having those relationships, like we're talking about just so much more efficient on the cost savings, to be able to put these things in place to operate more efficiently. So So yeah, just really appreciate that. So where else, I guess, you focus on, you know, the operation side of things. Where else do you guys go, as far as let's rewind, and we'll say, targeting properties, you have kind of the metrics, I'm sure you guys like to focus on where there's inefficiencies that you see in the market, where the sellers kind of have gaps and where they are, you know, working their P&Ls, is there some kind of favorites that you guys target that makes you interested in properties more than others? What is kind of the avenues that make you think we have opportunity here that others may not see?

Yomesh Deliwala:

Yeah, absolutely. So there are there are a lot of properties that have in house property management, right. So we, we try to target those that those are shouldn't say easy to fix, but easy to see, right here, there are more ways to identify a property where there is a property management being the issue, right. So when the staff is not managed correctly, there are unrealistic expectation from the staff, you see the reviews that are there on various platforms, social media platforms that, you know, recurring theme of having issues with the property. The issues are small, right? I mean, issues could be as as easy as pest control, right? I mean, that's, that's an outside contractor that you would get in, and you would write up a strict contract with them, and make them accountable. Right. And that's, that's how you solve that problem. But the fact that some tenant needs to go on social media to voice their concerns, tells you that, you know, they have already attempted to connect with the property management, and they have not gotten any response, right. And that's where you kind of you find those opportunities. So those are some of the ones that are really easy to find, and, you know, more interest to us. Because that way, we already have our established processes, right, and what set of property management companies that we need to work with. So when we know, for a specific type of property in a specific type of market, these are our partners, from a property management perspective. We already have an understanding, we already have a set of goals that we need to reach. So we set that expectation with the property management company and saying, Hey, we know that this is the property, it is going through XY and Z issues. One of them is management, one of them is maintenance, one of them is this. We need you to come in and fill this gaps. And this is where kind of that the systems and processes level setting on the right expectations. You know, communicating, the way we communicate with the property management comes in really handy. So that way we know what objectives they are working on. And what are we looking for in that property over a period of you know, a quarter or a half year or end of year kind of goals? Right? So that's that's one aspect of it. The other aspect is like you know, clearly the the state of the property right and the market it is in. So there could be you know, take example of Charlotte market, right anything in Charlotte market would sell with a fabulous price. But unless you know, the market ins and out, right I mean, there are, again, Charlotte as, as a market is great, but there are certain areas in Charlotte where you don't want to be, right. So you need to have that presence. And again, that comes with local relationships, you know, making sure we have right good broker relationships, property management relationships, because that's the first person you need to come in contact with, right? Whenever you have a property that's in out there that you are considering, I will pick up the phone and call a couple of property managers that I already have in that region, right? Then tell them that, Hey, could you give me your evaluation, right? Because that's the view that they will present is going to be completely different view from you being an owner, looking outside it, right. So that's one. That's one aspect of it. And then there are, you know, market conditions itself, right. So you know, type of property that you want to invest in, right, whether you want to go with a completely distressed property, if that's your appetite, you know, you're strong in construction, and you want to go into a completely distressed property. Get it at a very good rate where purchase price where you can optimize and make it better, you know, so that's, that's another way to look at it. But those are the high level three to four areas that we look at it. And so once we look for acquiring new property,

Dave Morgia:

So you mentioned one of the biggest green flags, as far as acquiring or a red flag, if you're looking at an existing property is a bad PM group, right? They can really make tenants life miserable. Obviously, the operators lives miserable. Have you on the flip side, kept a property manager that was performing well, even though you typically like to lean on the few in kind of your circle, have you kept one, even though maybe you usually operate with PM groups A and B,

Yomesh Deliwala:

We have not what we end up doing is we have so typically how the property management company companies work is they have a critical critical mass of people who manage the property that belongs to the overall property management company. But then there are staff that are associated with the property right, which you want to keep it at the property, right, and which who are also inclined to stay at the property whenever there is a change of ownership. Right. So that's where we kind of tap into in conjunction with the sellers, we can tap into those staff members, and convert them over to the to our property management firm, and make sure that you know they are spilling over and coming onto on our side wants to take over is complete. So that way we know we get an opportunity to interview them, right. So that's the first thing that we asked for, if the seller say. Hey, we don't want to keep the product, the same staff, or same property management company, but we are interested in X, Y and Z staff who are also willing to stay because they want to stay in this property. Right, maybe they are staying at the property at some employee unit, or maybe they are close by to the property there, where they just you know, it's a five minute drive, and they are under par. So you never know, right? So it's not going to be in the best interest of the outgoing property management company to keep them because more more likely than not, they are going to quit once they get out of this property. So it's in the benefit of both outgoing property management company and incoming property management company to move those staff over. And that kind of works out pretty well. Because at that point, you have that understanding. Both sellers and buyers are trying to do good for the tenants good for the sale good for the property itself. And, and that's an understanding that you need to have with, with the sellers. And once you spend, you know, typical, from the time you get the property under contract to the time you closed, you're essentially looking at somewhere between 60 to 90 days, right. And you are at least interacting about, you know, if not 90 times, then at least you know, 80 to 90 times with the sellers, so you and then their property team. So you you develop a relationship with them. You both are working on the same site to make the deal work, make it take it through the finish line. So with that relationship, you know, there's always, you know, you work out a situation where both parties are having a win win situation. And they kind of depart on good terms that are alright their staff, the specific set of staff, specific set of contractors specific set of contracts itself in there ready to take over. They're ready to go over and we're more than happy to kind of becomes like a handshake agreement.

Dave Morgia:

Yeah, and I think that's so well put, you have people in the roles who like you say you could be just uprooting them and moving them out to a property or location they wouldn't want to be going to anyway, say they're well established in the local area. And if they're, if they're talented, successful people in their role, why not be able to take advantage of that and just transition them and train them. To the way you need to be able to operate the property, it seems like a win win as long as you can find those right people and really just make sure you don't pick the wrong ones, I guess, right. I'm sure there's a bad apple or two in there every now and again, you have to maybe unfortunately, part ways with but as long as you're keeping the right team in there, it makes a ton of sense. So. And then we're kind of delving into, you know, more of the not quite vertically integrated side of things, but I wanted to kind of dig it. That is, as you guys are growing bigger, I don't know what size you guys are at as far as portfolio assets under management. But have you guys kind of had those discussions of next step? You mentioned you have a couple of groups that you work with consistently. But is that going to be in house for you guys eventually? And what doeds those talks look like?

Yomesh Deliwala:

Yeah, that is that's a great question. And I think Hemal might have to viewed that in his podcast as well. But our goal is, yes, we want to be a vertically integrated company. Right. So we're, we're taking the right measures, we're building the right team. And eventually, we want to bring property management into the, into our mix as well. Right. So right now we have acquisitions, we have land development, we have construction, as well. Right? So construction, from a value add perspective, is another arm that we are going to be developing in as well. And property management is the last part of it. So but yes, that is that is our goal to be a vertically integrated company. And that's it's a it's a win win for for everybody, right? You know, because the way we are keeping ourselves or holding ourselves accountable, right. We are setting those same standards for any of the vertical arm within our company. Right? So right now, with our acquisitions team, we have just like how I said the OKRs objectives and key results, we have the same thing running with our acquisitions team, we have the same thing running with our land development and new construction team. We're maintaining that structure so that, you know, not only us being the managing partners are accountable, but the teams are also accountable, they stay motivated, they are more charged up. So think of it as a as a startup company, right? So we are nothing different than a startup company, right? So we are starting up in the multifamily side of the business. But what we want to do is we want to keep ourselves hungry, and perform. And then course correct. If you're not doing the right thing that you can fail fast, right. So that that gives us the opportunity to kind of do the course correction. And yeah, that's eventually our goal is that we have everything in house, from a vertical integration perspective. That way the same objectives that we are holding ourselves accountable for, we can put forward for the best interest of our investors, for the best interest of our tenants, you know, for the best interest of anybody who the partners are involved with. That's, that's the goal.

Dave Morgia:

Yeah, and I just heard it recently, and I love people's takes on these types of things. But, you know, vertically integrated companies, they're almost a necessary evil once you get to a certain size, right, because you might not make a ton of money on the margin side of things. But it allows you to create more opportunities, it allows you to make better deals to better suit, you know, the needs of your investors, you might not make a ton as the PM side of your vertically integrated business. But you can ensure like you're saying the quality is consistent everywhere, throughout all of your properties. And that you can provide a good fair price to produce that instead of having who knows in the property and managing it maybe sideways like you don't want. So yeah, I guess when you can take over you Yomesh and fail fast, like you say it makes it a home run for all of your investors at the end of the day. So.

Yomesh Deliwala:

Exactly, exactly. And we have better control on things, right. So at the end of the day, you know, you, when you have your own staff, and you're interacting on a day in day out basis. No doubt we with the property management company, we do the same thing, where it's a completely different story, when you have it in house, it gives us another level of opportunities, where we're not just looking at the property itself, but we're also looking at the company that we are managing and it becomes our responsibility to kind of work towards a certain aspect of the company itself along with the property as we scale. So

Dave Morgia:

Yeah, I really appreciate that. And I guess we're kind of getting into a little bit more of the soft skill stuff. So would you want to dive into the Five Key Questions here to wrap up the show?

Yomesh Deliwala:

Sure. Absolutely. Let's do that.

Dave Morgia:

So Yomesh first one year if you could only pick one trait that explains your success, what is that trait and why?

Yomesh Deliwala:

I would say willpower, right? You know, I've been I've been the guy who has you know delved into multiple businesses right and failed, right and then you know, gather my bit bearings and started over and the only the only way I could do that is having the willpower to fail. And then again, go back and try and then eventually get be successful right whether it is being on my professional side or on my personal side, you know, willpower is, is I would put it, put it in one word.

Dave Morgia:

You mentioned fail fast. If you're not, if you're not afraid to fail, you'll, you'll be okay, eventually, right? You'll get back up, as long as you keep getting back up, you'll do good. So, just just got to find the route. And then what is the most uncharacteristic thing you've done in your business? And why did you do it?

Yomesh Deliwala:

Yeah, so you will, and I'm sure you must have interviewed a lot of different folks coming onto your podcast where they are focusing on one specific aspect or one specific asset class within multifamily, right. So, you would have seen people focusing only on new development or only on value add, or only on self storage or only on you know, specific aspect of an asset class. What what I have done and, you know, we as a company have done is we have ventured into all of them at the same time. So, we, we have an active value add property acquisition, we have new development, we have land development and new construction. We also have self storage, self storage, new construction, Self Storage acquisitions of value. So, this is completely uncharacteristic as you, as you, as you pose the question, right, because that's completely unheard of where people are going in all five directions. And then it's, it's like, you know, throwing something on the wall and making it stick, it's not like that you all you need is the right processes systems, you need the team to manage that, and the willpower to to make sure that you are being successful in each of those. And that's, that's one of the things that we are venturing into. And, and so far, it's giving us good results. You know, like I said, you know, OKRs, fail fast. We know, what has worked in the past what has not worked, we're doing course correction as well. But so far it has it has been a good journey.

Dave Morgia:

Yeah, that's absolutely amazing I've followed briefly, you know, your guys's journey and what you guys have been into, like I said, I had Hemal on the show a little while back. And yeah, you guys have completely taken off so quickly here. So it's always fun to kind of keep a pulse on what you guys are up to. And then can you name a time where you felt like you were not going to be successful? And how did you overcome that fear?

Yomesh Deliwala:

Yep, absolutely. So we started our journey with being a limited partner. Right. So you know, LPs, you know, typically, most of most of the folks that I've known, they have started the journey with me, that gives you the opportunity to, you know, learn what you're getting into. Right. So we started with that, we, we became core GPS on three of the other deals, right. And that's when we started today. And now that we have good amount of team in our place, you know, we are experienced at our hands. Now we need to go soup to nuts deal on our on our own. Right. So this is where we venture into our first deal got her first property under contract in Winston Salem, and that just busted out in due diligence phase. Which is kind of reinforcement of okay, what whatever we were doing, it's working, because that's what we're putting our experience into action. And we're seeing things that that we're supposed to see the property and get out of the deal. Right. So that's one. We get into our second deal where, you know, we picked up another deal under contract in, in Dallas, Texas. And we failed there as well. Right? Do we get out of the get out of the deal, as part of the do does beater. We lose money on both deals. And this is we're talking about day one hard money. And in the Dallas deal, right? At the same time, some you know, any deal, whether it is goes out and due diligence or after that it also has cost associated with it, right? Because you cost relationships, right? It's not always money, you always can also cost yourself in relationship relationship with the vendors that you work with relationship with the property manager relationship with the with the sellers, right. So there, we lost all of that. Now that you know, for having the first two deals going down, downhill. I mean, it was it was an experience. But then, you know, we kind of pick back ourselves up and then said, Hey, whatever we did, if we got out of the deal, it's okay to make a 15,000 mistake. Mistake that cost you 15,000 bucks, versus making a mistake that is going to cost you 5 million bucks, right? So you know, you, you don't want to enter into a deal. You fail fast, you know, you don't want to be in a bad deal with good people. Right? So if you consider yourself good partners, you don't want to be in a bad deal with good partners, right? So that's our motto and we just get out of those deals. And it took us some time to get our first full soup to nuts deal under our belt. But you know, we're after that and several other deals after that and making good progress.

Dave Morgia:

Again, it's that picking back up right my mentor Rod Khleif will say sometimes the best deals are the ones who don't do so. It's better to like you say shell out 15k and call it a loss then to lead your investors to some poisoned water and then just really, really make a bad name out of yourself. You know, if you can take a hit that's also a testament to your character saying listen, I know this is wrong. And we're not going to do this deal. But we'll wait for the next one. So yeah, that's really, really great story. And then pretty much opposite to that one. Can you name a time where something in your business went perfectly? And what did you do to make that a reality?

Yomesh Deliwala:

Yeah, so we we kind of ventured just like how value add right, we ventured into new build as well. Right. So new build, for the most part of whatever new build that we have been involved in, right, for the multifamily and self storage, you know, that has really made an impact and has been going pretty smooth, because of the the lessons learned around whether it is getting the right team members on board or building those organic relationship. Right. So new builders, carries a lot of risk, right. So we, you know, we focused only on Charlotte market for those big sites or Charlotte in the surrounding Charlotte metro area. Right. So that's where we kind of build our organic relationships, those relationships actually gave us the right path to move forward. And that's how we were able to be successful on the new build side.

Dave Morgia:

That's really interesting. Yeah, I think leaning into, you know, you have to have some place where you're familiar to be able to successfully pivot. So using the market that you obviously have, you know, a decade and a half experience. And that's probably the surest way to make sure you won't trip up too hard too quickly. So that's good. And then the last one here, Yomesh, what have you been focusing on lately to improve yourself or your business?

Yomesh Deliwala:

Yep, absolutely. So this, one of the mentors that I follow has, you know, has 5F philosophy, right? So you have your, your fun, family, friends, finance, and fitness, right. So that's where your five apps are. So I consciously put effort to find out where my day goes, right? So whether professionally or personally, is it falling into these five F's? Right? And how is it falling? Right, and then you take the collective intelligence of all the books that that I've been reading, and try and see how can I cut time from wherever it is dominating, and move to the other bucket, which is going to make me more comfortable, or bring me more joy, and helped me you know, being more freedom to my life, or, you know, giving time back to my family, whatever it is, right? So that you, you basically take your day and find out, break your day down your eight hours to allow us wherever you work in these five apps and find out where you are dominant, you know, what is the time that should bring the most in which quadrant and once you got that, you get them get the opportunity to see where you can optimize. And then move back and forth delegate for processes in, get some third party involved in, you know, optimize the way you are, you're utilizing your time. And that's where there are tons and tons of things available on how you can do that. But first and foremost thing is that you need to look inward, to find out where you can make change. And a lot of people find that difficult. But then first thing you need to do is look inward and do the do the homework in order for you to do the rest of the optimizing activities.

Dave Morgia:

Yeah, absolutely. That's sometimes it's a muscle that not everyone's okay to stretch, right? It's tough to really flex those muscles if you don't do it very often. So looking inwards and figuring out how to balance the imbalance that you may have going on, it's gonna pay dividends for sure. Yomesh, I just can't thank you enough for this talk today. And before we just hop off, you want to let the listener know they can reach you today.

Yomesh Deliwala:

Absolutely. Again, thanks again, for having me, Dave. You guys can find out Yomesh Deliwala is the only person in the world. If you use my first name, last name, you will find me everywhere. Especially on our website, exponential-equity.com. You can also look me up on Facebook, LinkedIn, I'm pretty active on each of those platform. And I'll be more than happy to answer any questions. You know, like I said, one of the aspects that I all also look into is giving back to the community. So is there if there is any other way that I could bring you value to what you are doing helping you learn helping you grow, please feel free to contact

Dave Morgia:

Yomesh, thanks again so much. Have a great one.

Yomesh Deliwala:

Absolutely. Thanks.

Dave:

Thank you for listening. This has been the Making Money in Multifamily Podcast. If you have any questions, comments, or would just like to connect, please feel free to check out the show notes for how you can connect or visit longviewacquisitions.com

Yomesh's focus on operations
Course correcting
Measuring what matters
Areas for opportunity
Staff retention on a property
Growing to be vertically integrated
5KQ1 - If you could only pick one trait that explains your success, what is that trait and why?
5KQ2 - What is the most uncharacteristic thing you've done in your business and why did you do it?
5KQ3 - Can you name any time where you felt like you were not going to end up successful? How did you overcome that fear?
5KQ4 - Can you name a time where something in your business went perfectly and what did you do to make that a reality?
5KQ5 - What have you been focusing on lately to improve yourself or your business?