Vinney Chopra 0:00
My investors in multifamily for the last 13 years have been wanting to get cash flow from day one, I close on the deal, and I start paying them cash flow every quarter from the day of the closing. Right? So I should come up with a better plan to tell them first year it’s dirt. So I’ve been using the word Dirt, dirt, dirt. And they understand that and say no, don’t worry about it, because we give you a monthly review of what’s happening with your money with the ground being broken and bulldozers and drone footage of you know foundation and everything. So we got it all planned, where people can go log into their our Appfolio website, they could see everything happening with their money. Then second year, they get not 7% return, giving them 10% or 11% return cash flow because we build it in 12 months!
Welcome to CRE PN Radio for influential commercial real estate professionals who work with investors buyers and sellers of commercial real estate coast to coast . Whether you’re an investor, broker, lender, property manager, attorney or accountant We’re here to learn from experts.
J Darrin Gross 1:23
Welcome to Commercial Real Estate Pro Networks CRE PN Radio. Thanks for joining us. My name is J Darrin Gross. This is the podcast focused on commercial real estate, investment and risk management strategies. Weekly we have conversations with commercial real estate investors and professionals who provide your experience and insight to help you grow your real estate portfolio.
Today, my guest is returning guest Vinney Chopra. Vinney is a real estate investor. He’s a syndicator. He’s an author. He’s gone full cycle on multiple syndications. And in just a few minutes, we’re going to talk to him about the new venture he’s invested in, which is the senior multifamily living and why Senior Living multifamily is so essential. But first, if you like our show, there’s a couple things you can do to help. One you can like, share and subscribe to our podcast. And if you’re inclined, please consider leaving a comment we’d love to hear from our listeners. Also, if you’d like to see how handsome our guests are, be sure to check out our YouTube channel. And you can find us on youtube at Commercial Real Estate Pro Network. And while you’re there, please subscribe. With that on welcome back my guest, Vinney, welcome back to CRE PN Radio.
Vinney Chopra 2:48
Thank you. Thank you so much. Darrin, it’s such a pleasure. I’m so tickled. We are on the show again. And thank you for inviting me. I know you have done quite a few really great shows last year also we did it and even a year before. I’m back with you. I’m so glad. Yes.
J Darrin Gross 3:05
And we have actually if the listeners or viewers are interested if they go to YouTube, there’s actually I’ve got a playlist that’s got all the Vinney interviews we’ve done and we’ve covered a number of topics over the years. We’ve we’ve gotten into multiple topics on multifamily. We’ve done how the numbers work syndication, buy sell agreements. Operation I think the list is extensive. And it’s it’s definitely an educational platform. I encourage anybody to go check out. But today you know, you’ve been very, very busy. I mean, we were just talking before I push the record button. Here we are. We’re recording this today. It’s It’s October 14 2020. We all know that 2020 has been a humdinger of a year as far as all the challenges with COVID in that. But you while sitting in your your home area. It’s your I mean, you virtually not traveled at all,
Vinney Chopra 4:09
Not at all, zero.
J Darrin Gross 4:10
But right before COVID You are like a globetrotter you were like I mean, I remember seeing pictures all over the globe. You were weren’t you? Weren’t you traveling all over?
Vinney Chopra 4:20
We were in Ecuador. You’re right Darrin, and also Amazon and Galapagos. And thank goodness, my wife and I, we love to travel, we had six trips planned this year yet, you know, after our Amazon travels, because it’s our 40th wedding anniversary. So we started planning this year to be the best year in travel. every two months we were going to be gone away, right? But we did get one trip in and as soon as we came back, we had to cancel them because of COVID-19. But you know, my life. I always believe whatever is happening, it’s going to happen. So never fret about it. Never think it’s second you know that What if? You know, so even our children were going to go with us this year Neal and Monica in several other trips, and we are paid a lot of monies and everything, but you know what, we’ll do it next year or the year after watching who cares, right? So right, that attitude that, you know, hey, we are here, let’s make the best of it. That’s what it really got. Well, and I, you know, started two new companies. I also did the branding company, and then we got the hospitality and then the senior living, which we’re going to talk about it today.
J Darrin Gross 5:33
Yeah, I was gonna say, just but you know, while maybe the world has been in a little bit of a pause, you’ve had the accelerator to the floor. I mean, you’ve literally been tearing it up. And let’s talk a little bit about what you’ve done here. You mentioned you you’ve done how many syndications Have you done. This year,
Vinney Chopra 5:52
I’ve done 33 so far. So I did 28 as of last December, many of you might know, then I did one more just recently bought a $35 million deal in Austin, which was very good 308 units with my partner, actually, the son and his team, I love to work with them were in part 50 million last year, and then 35 million in December, but then our new partner Shahe them wrong, who is a very good partner and in senior living, that we have been talking and now we are drilling, you know together. So I did four syndication for that. So that’s why it is 29 plus four is 33 syndications.
J Darrin Gross 6:38
Wow. So let’s talk about your senior living. What you’re doing in senior living?
Vinney Chopra 6:44
Surely, I didn’t actually, I’ve been thinking about senior living for the last three years, three years, because when I read lots of articles, I read a lot. By the way, I listened a lot, read a lot. Look at where the trends are the big ship book game, and I started reading it, how everything is merging down south into, you know, Florida’s and Arizona’s how the population there is silver tsunami going through USA, and the world, which really caught my attention is 10,000. Baby Boomers like me, are turning 65 every midnight, every midnight 10,000 of them. And that’s like almost 60 some million, you know, a baby boomer at 65 Plus, right now, in 30 years, they’ll be hundred million. Hold on. So everybody’s aging in USA now. 85. and above. That’s another statistic, almost five or 6 million are right now. They got to grow to 20 million.
J Darrin Gross 7:52
So if you’re saying there’ll be 20,000,that are 85
Vinney Chopra 7:55
85 plus 85 Plus!
J Darrin Gross 7:59
Vinney Chopra 7:59
20 million in the next 30-40 years. I mean, it’s tremendous that it’s so much demand is going to be there in real estate. See, we are in real estate. So we need to really look into the forward looking forward looking. Where is the demand coming? Where are the demographic shifts happening? Why you know we should be in this market is because they be so much shortage of housing in the senior with the 85 plus and 75 plus and 65 plus. So that’s why we decided I’ve been sending messages out in the universe. Let’s just say that, I believe in law of attraction, the secret and everything manifestation. And then I find John Lewis and my good buddy, and he’s brother of Joshua Roosen, and he joined my VP of the Academy. And I said, John, I really want to get into senior living. He says, Vinney, you’re going to talk to my buddy, I went to school with, Shahid Kahn. He’s been building senior living in luxury kind for the last 10 years. I said what? Here I never knew Shahid at all, he comes in my lap, and we do few zooms. And his passion is to build the best of the best of the best for such a reasonable price. And look at that. rest is history. So we have started already within few months 100 million dollar worth of senior living ground up hundred million
J Darrin Gross 9:37
Ground up. So this is this is a little different than just buying something that is existing product and and adding value to it. You’re starting from raw this piece of dirt and you’re going through the whole process
You saw. So right there. So essentially what I’m learning right now and I’m a student of anything, I mean, I believe believe that, you know, when I study when I don’t learn, I die. I that’s my thinking is I’m you know, so essentially you’re right. It’s like buying a land trust a lot of studies, find out where the needs will be where seniors are going, what’s the population of 85 plus 80-85? Then find out what’s out there in that marketplace, right, like market comparison, very similar multifamily. Like I buy those, right. But the biggest thing I love in this market is I don’t have to go out to jobs, jobs jobs, which I’ve been chasing for 14 years. If right whose job I have to give concessions or delinquencies, I mean, we have turnover a lot of things that are happening right. But in the assisted living when we build it ground up, it’s Class A plus. It has zero deferred maintenance, it got everything brand new appliances, everything new air conditioning, youJunaid right. And no turnover, no delinquency and no concessions. And the rents are four times Hold on. So expenses there because we have a commercial kitchen in all our facilities. We have two chefs, we have Restaurant Style dining restaurant style, five star restaurant, in the place in the place. We have movie theaters, we have spas, we have a salons, we have meeting rooms, we have billiard rooms, we have got pianos, I mean, there is a night life right in that multifamily for seniors there one story, there are four to six courtyards hold on courtyards, where people can go out and really enjoy the fresh breath there. No elevators, seven acres of land for only 88 units, seven acre. So we are just building this Taj Mahal, in all these different communities where people have very old, stinking, you know, very old style 2 3 4 story buildings, and our residents are not getting the same kind of service and the food and everything like we do. And we have our own transportation, buses, everything, um, you name it.
So you are also not, you’re This is not just a quote landlord, you are the operator, which you mentioned the the kitchen facility, but is there any care that’s built into that as well?
Vinney Chopra 12:35
Yes, it’s total care. This is assisted Senior Living luxury, and memory care. And memory care.
J Darrin Gross 12:42
Vinney Chopra 12:43
So about out of maybe 88 or 92 units about you know, 68 or so are or 73 is 68 are regular assisted living. Then we had a memory care also right in the same building. So that because when people are that old 80, 85 you know, they will probably be our average stays 2.4 we manage all our communities also. Just like we’ve been vertically integrated in my life for multifamily. You know, we have the same procedure here. Care givers, we have 55 caregivers for 88 residents Hold on,
J Darrin Gross 13:23
Vinney Chopra 12:36
55. It’s a three shift. See, it’s a around the clock. And it’s caregiving. And it’s like the bathing and medicine and you know, all those, but it’s not acute nursing home. It’s not rehab center. There are no doctors, right. So we have had zero COVID effect and zero deaths in our facilities, which Emraan has built and we manage seven of them right now. Seven of them. He has built 21 of them, you know, so he’s really done this over and over again. He’s got the general contractor’s He’s got the whole recipe, right? So it’s just my good fortune that I found him through John. And now we are in partnership together like anything. I’m the money raiser, we can raise hundreds of millions of dollars. Next year. My goal is $100 million to raise. And we’re going to be building six to 10 of these facilities every year for the next 10 years.
J Darrin Gross 12:36
Vinney Chopra 12:36
J Darrin Gross 14:28
That’s awesome. And we’re all are you doing this where you mentioned the Sunbelt kind of thing where?
Vinney Chopra 14:33
You’re right see because as the age groups you know, that 80 85 or 90, gravitation is that the seniors have a better lifestyle in the warmer climate, warmer climate. So that’s why we are going in Virginia, in Florida all over the place, Texas. We’re going big time in Texas. It’s hot there, and Arizona, even coming up here in the Bay Area. We’re in my backyard. And then coming to Washington where you are Portland in Washington, because a lot of seniors are retiring, you know, and my partner based in Michigan, because he’s from Michigan. So if anybody wants to check us out Hampton Manor, just google it Hampton Manor is our brand. And Michigan just say Michigan, you will find there are like 17 different towns in Michigan, where there is a Hampton Manor in every town.
J Darrin Gross 15:31
That’s fascinating. So now is this are your plans to build and hold build offering the holder? Is this a like a sale? Is there an exit date? Like in a traditional syndication?
Good point. Good point. Darrin, I’m an engineer, right? I always think and I see, okay, how I’m going to sell it to my present investors, right? I have the grace of God, I saved hundred 68. Now I have 207. I think I just saw a list going like crazy through click funnel and branding and everything. So we do three point contact and meet with them. And then in the future, when the deal comes we offer right, just like syndication is done. The good part is that we I knew that it’s a ground up construction, my investors in multifamily for the last 13 years have been wanting to get cash flow from day one, I close on the deal. And I start paying them cashflow every quarter from the day of the closing. Right. So I come up with a better plan to tell them first year it’s dirt. So I’ve been using the word Dirt, dirt, dirt, and they understand that and say no, don’t worry about it. Because we give you monthly review of what’s happening with your money with the ground being broken and bulldozers and drone footage of you know foundation and everything. So we got it all planned, where people can go log into their our app for your website, they could see everything happening with their money, then second year, they get not 7% return, giving them 10% or 11% return cash flow. Because we build it in 12 months, we build it and then we start managing it. Actually we are 50% occupied the day we open, because we have a marketing arm that goes in advertises locally, and everything and we get executive directors hired and everything marketing starts. And then by the time we do ribbon cutting for opening, we have 50% already leased pre leased, which is unheard of By the way, within nine months, we are 100% full hundred percent full.
Wow, that’s awesome. So the the target market you mentioned 85 to 90 is that’s kind of the the age of the occupants is that the
Vinney Chopra 18:06
It is. See what happens during this to your audience to assisted senior living as the Word says it’s not independent living, it’s not living in your own home, right. You know, if you don’t need assistance, you could live in your own home, right, as long as whatever age, but if a spouse passes away, we find that the degradation of the life starts to happen. You know, people need that somebody significant, you know, somebody they could talk to, and live with, and you know, get to know and have a social life, there’s the word right social life. And then if they cannot cook, or that’s another trouble, you know, and then if they cannot take medicine and properly and all that, or if they had a slip and fall. Wow. So then families get together and they say you know what mom and dad, you’ve got to get into assisted living. So they start looking for within the 20 30 mile radius where they’ve been living to see where is a good place to go. Right. So that’s the what we do. In our case, we don’t take any medical, any Medicare, no nothing because our facilities for regular people. We don’t charge $7,000 $10,000 a month at all. It’s luxury at a budget, we call it because we charge only 3,800 to 44 or 4,500 depending on the level of service, which includes three meals, snacks, and the use of in of course all the utilities paid their linen, their laundry, everything is taken care except the cell phone. That’s the only thing. Entertainment, ADL says activities of daily living all that done. Care giving is all included in their transportation is all included in there in that price. So that’s what we provide to the our seniors. And they have to do the due diligence, we have to check their health, full health, because we had zero COVID effect, because we are so particular and be locked out. Even the families could not meet their parents, we made ait sure, because we didn’t want anybody to die, you know. So they have been doing this birthday’s through the window, hold on, through the window through videos and all that. So we’ve been very, very particular now we have done quarantine, one segment of our building, we somehow planted where it’s an independent unit with kitchenette and everything. So we are able to put plexi glass and the families have to show 14 days of negative to see their family to their mom and dad. And we would even notice by governor of Florida hold on cutting edge. So on our side, we were the first one, Cape Coral, if you google us, Cape Coral of Hampton Manor of Cape Coral, we were in the news. And then we did the same thing in Michigan. So we got recognized because we are on the cutting edge in making sure that we are able to follow the CDC guidelines, lockdown, zero deaths, zero COVID effect. So we are just very, very particular. Because this age is like that. And our residents live in our communities for 2.4 years average. So it’s not the working class who come in and out turnover is so strong, right? In our case, they come in, then they are there for life. And when we want them to live for five, six years, even their families tell us that Oh, my mom and dad have gained 10 pounds. Yeah, good thing, which is because we are very particular about the five star dining, five star dining. It’s not the same food, which is made for everybody. And everybody gets it. No, no, it’s made to order made to order.
J Darrin Gross 22:13
Vinney Chopra 22:13
The head chef and the junior chefs and all and served in a beautiful dining. They know I just sent to that movie of the place. So you will see that right the whole movie put together we’re putting it on YouTube soon so that he could share with the world. Yeah.
J Darrin Gross 22:30
Well, it’s it’s fascinating from from being more of a an apartment operator with the the general population where you’re like said, You’re constantly chasing jobs, where are the jobs where the jobs are the job? Now your view is totally different where the seniors, right I mean, we’re where’s the
Vinney Chopra 22:47
I don’t need any jobs, I mean, I’m in communities and the lakes and very good lifestyle, and we’re the seniors would like to move, and you know, there is need to be there, you know, so we do captivate, want to share that capture rate is because our product takes six to nine months, sometimes 12 months to pass the ordinances to get the permits to get architectural drawings. So and then we take about a year to build it. So we are coming, looking into the future two years from today, to bring a product out. So we have to be very careful with our millions, that we spend our own millions to do all these things, you know, so, I mean, you know, it sounds easy, but it’s not that easy. I just want to mention everybody, but the good part is the rewards out there.
J Darrin Gross 23:39
No, that’s that’s fascinating. And and I think the thing that I’m most impressed by is just the all the success you’ve had with multifamily syndication. And now you found this new kind of a vein of opportunity with the senior living and it sounds like it’s even, you know, that much more based on way, you know what you have available or what you are working with.
Vinney Chopra 24:02
while you’re working. So true there and then it’s good for next 40 years, I wouldn’t be alive. I’m 68. Right? So I’ll be hundred eight. Maybe I’ll be one in
J Darrin Gross 24:13
See you in the dining room.
Vinney Chopra 24:14
You know our goal, play bridge and cards and billiards and so we’re putting pianos we’re putting all these great things, movie theater, right inside this place, salons and beauty, you know, and the small dining places and just you know, sitting down in the cafe and the Bistro, and going to the swimming pool and putting green, every single one has putting green also, and waterfall functions and everything so that they could really enjoy the life. Our motto is to spoil the generation that has spoiled us. So
J Darrin Gross 24:53
That’s great. That’s great. Well, just the the numbers I mean, you mentioned You know, two and a half years average stay the I’m just thinking about the the type of tenant I don’t imagine they’re too tough or rough on the property, the ability to, you know, the need for touch up or whatever, when we do have somebody move out. I mean, I can’t imagine being here.
Vinney Chopra 25:18
J Darrin Gross 25:18
Vinney Chopra 25:20
you’re right there. And, you know, these are specially designed communities that we build with, you know, high ceilings, right. And also, the doors are wider, everything. And within the apartment, you don’t need too many doors, because they are so frail, in the age group is at 8485 to 90 to 100. So they just should be able to go in and out, as you can see in the movie. So we have just perfecting what it should be, you know, and they love it. Yeah.
J Darrin Gross 25:55
That’s, that’s great. I’m, I’m so happy for you. And congratulations on all your success, sir. That’s, that’s awesome.
Vinney Chopra 26:02
Thank you. And we’re coming up with the book too, by the way, you know, your audience know, this book did really well. And if you have not seen it, please do go and buy Spanish, you know, partners and readers, please go ahead and look at Spanish version of the same book. And then my other book came out, which is the Positivity Brings Profitability. Again, please look at my third book is coming on Investing In Senior Living Made Easy. So we’re really teaching everybody what senior living is about why we feel so compelled that we want to be in this market, along with others. So I have about four businesses right now. Five, six. Anyway, it is buying apartments, which I’ll keep on buying B class B plus, in good growth areas, just like I’ve been chasing that. The other thing is my hospitality, because we’ll be buying we just bought Hilton Garden Inn may be buying Marriott’s and Comfort Inns, we’re looking into now with COVID, we’ll have even better deals come on our table. So we’ve been buying them, you know, when my partners, then my other business is Senior Living ground up, ground up. So that is the one we just share. And it’s a three year hold and everything. We are not selling any securities. But if you’re interested, just reach out to Darrin or myself, you know, and so on. Third one, is we becoming a REIT. What is that? Because Emraan our partner was selling after all this hard work and running the operation and everything. Guess who was buying them? REITS. Or some big fund or something? Then he sat down with them two months back, I think they said, Ron, we want to make you a partner with us. That’s what he said. He said, Really? Okay, how does it work? He realized quickly, he was going to get peanuts, just like 10% in the whole REIT. Here he could that whole hundred or 50% with me if 50/50 right. So he said Mr. Chopra, we’re gonna sell nobody nothing, we could achieve them ourselves. So that’s what we are doing now. So we’ll be buying everything we have building will cashing out our investors. After three years, so two and a half years, get new investors in for the next five to seven years. And then flip it again, get another LLC, the exciting part is there, you’re ready. You do cost segregation every single time when you sell a new in new entity, right? New entities brand new and you do cost segregation, then flip again, sell it yourself for another entity do cost segregation again. And this way I can give my investors so much money back. And then they could even do 1031 so never have to pay any taxes at all ever. They just keep on going from one to next to next next.
J Darrin Gross 29:09
That’s That’s awesome. You keep figuring out the ways to make the money rain. That’s awesome. That’s great. Hey, Vinnie, before we wrap up here, I always like to ask people about risk. You know, the I think you’re one of the first guys I asked it, but it’s been a while. So I’m going to see if you if you don’t mind, I would like to let people know that by day. I’m an insurance broker. And we assess risk. That’s what we do with our clients. And we look to see if we can, what we can do to manage the risk. And there’s a couple of different strategies we look at we first looked to see if we can avoid the risk. Yeah. If we can’t do that, we look to see if we can minimize the risk. And then if neither of those are an option, we’ll see if we can transfer the risk and that’s what an insurance policy is. And I like to ask my guests if they can look at their situation, whether it be their clients, their investors, their tenants, the market, however they want to frame the answer. But if you can identify what you consider to be the biggest risk, and, you know, just for clarity, I’m not necessarily looking for an insurance related answer. But if you are inclined, Vinnie, I would love to hear from you. What do you Vinney Chopra considered to be the biggest risk?
Vinney Chopra 30:30
You know, I’m so glad I mean, you know, I’ve raised $140 million I was just counting in my wife. My wife is my Investor Relations. As many of you know, our daughter, Monica is now VP of operation, and we just grown so much. But the key thing is, as the investor gives you money, you know, Darrin, they want to know, Vinnie, what if you die tomorrow, right? So we have to really as business owners, and I highly recommend everybody listening to us to really sit down with Darrin or anybody who can really change you and tell you, what are the risks involved in your business? You know, it could be your death, it could be your transferring of the wealth, right? It could be like, we’re into ground up construction, what are the different risks involved, when the GC runs out, or runs away, or doesn’t have or slip and fall and, you know, anything, fire is there or wrong, mechanical, you know, systems are put in. So those things are very, very important. Of course, buying the multifamily, the renter’s insurance is so, so huge. Not only that, also the property has to be properly insured. And the lawsuits and the directors insurance, I mean, I got, I had three or four lawsuits in the last 12 years, and I cleaned up, I totally didn’t have to pay with $3 million lawsuit was going on with me, mediation came and the insurance setting for 500,000 I think I have to pay zero money. Zero money. If I had really said, Hey, I’m totally bankrupt, you know, I wouldn’t be bankrupt. But the thing was, I just didn’t let it bother me. I just kept on going kept on going in my thing. I knew my insurance company’s gonna take care of me, right, you know, so it’s very important that we get the best of the best. And, you know, like the GL general liability, right? umbrella policies on every property, I’ve had 6 million to $10 million, even the smallest of the smallest properties, because I believe paying that small premium is well worth the nighttime sleep, which I like to have really good sleep. And then it takes the risk of a you know, I can racial discrimination lawsuit. I got mechanical lien on property. So things like those happen right there. Yeah.
J Darrin Gross 32:58
Yeah. No, they do. They do.
Unknown Speaker 33:00
J Darrin Gross 33:01
I appreciate you highlighting the the the insurance aspect of that that’s always there. And, you know,
Vinney Chopra 33:08
thank you so much. It’s a pleasure to spend time with you. And I hope if anybody would love to find out more about senior living, investing, and so forth through Darrin, please call Darrin and we touch base together.
J Darrin Gross 33:23
And Vinney for the listeners where where can they go to find more learn more about you? You know,
I have actually on over the internet, I don’t do nothing. I just get up in the morning. I’m all over with the posts, because by branding company, you know, I pay them some money in to name India, then you’re using them. And they do all the things for me, but just Google me Vinney Chopra. I have three websites now. One is Vinneychopra.com. Vi nn, e y ch o pra chapra.com. Monealinvest that kid’s name Monica and Neal invest.com. Then my third website, which is getting this for many great great investors is Senior Living investing.co Senior Living investing dot CO or senior living investing Made Easy, the new book that we are coming out with, we have taken the website domain on that one also.
Awesome. I will list all those in the show notes. And I appreciate you doing this thing. I always enjoy the opportunity to talk to you and learn. You always come with great lessons. And I look forward to doing it again soon.
Vinney Chopra 34:45
God bless you, your family and stay healthy, stay safe. You know this COVID is going to pass but let’s just use this time to grow our businesses and to learn more and be more passionate about life because I can spend more time Time What a great thing with lunch and dinner and, you know, breakfast with my wife and kids and do the kind of things we always wanted to do. And that can be right now. So God has given us an opportunity. It’s the silver lining in the dark cloud, we should always look for.
J Darrin Gross 35:18
Oh, amen to that. 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. cr e pn radio.
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