Leaving the 9 to 5 in 2 Years with Jaspreet Baveja

Is it possible to achieve financial independence and retire early within a few years? Yes! Jaspreet Baveja did it by lending private money to real estate investors and earning a fantastic return. He left his W-2 very quickly by implementing the lessons he shares in today's episode, and his wife is not far behind!

Jaspreet made smart moves to build passive income and now he can travel the world anywhere, any time he wants. This process isn't for anybody, though! You have to have the drive and determination to make it happen.

Tune in to the full audio to learn how Jaspreet built financial independence by passively investing in real estate and making his money work for him!

You'll learn:

  • How to find potential private money borrowers
  • Mistakes to avoid
  • How to protect the downside
  • What to do with all of your time freedom!

Get in touch:

URL: https://www.jgbllcre.com
E-Mail: [email protected]

Other Similar Episodes:

Financial Independence thru Long Term Vision with Scott Price

Hard Money Lending Secrets with Kevin Amolsch

 

Jaspreet Baveja's Bio:

Jaspreet (Jus-Preet) Baveja (Buh-way-Jah) is the CEO of JGB LLC, where he is helping others achieve the dream of Passive Income through Private Lending since quitting his job in Healthcare after 8+ years! He has built a business that lets him follow his passions of travel and spending time with his family, while generating income from anywhere, on his time and on his terms (literally)!

He is well experienced in Private Money Lending, Fix & Flips across multiple states, and investing through various platforms into Equity based, Cashflow producing syndications across different asset classes!

Full Transcript

Taylor   0:01  

This is a passive wealth strategy for busy professionals. Thank you for tuning in. We got a great one for you today. We got my friend, Jaspreet Baveja, to come here to talk to us about becoming financially independent, leaving his W-2 job by investing in real estate. He's teaching us about the strategies that he uses, which includes private lending, syndication, investing and flips. He's teaching us about how he got to where he made mistakes that he made along the way, keys to his current investment strategy and the things that he finds the most important to succeeding at his current investment strategies. These are very important lessons and I believe it's important that we take these lessons from people who have been where we want to get to so if you're somebody who you want to work on, you want to be your W two job. By investing in real estate, then learn from lessons learned from guys like your street who have done exactly that. These lessons are great, Jaspreet’s an amazing guy, great guy to talk to, filled with lessons and very happy to be bringing this interview to you today. For those of you who are new to the show, I'm your host Taylor load. I'm a real estate investor. I'm a real estate syndicator. I buy real estate, specifically multifamily apartments with passive investors, and we split the return. I love talking about real estate investing and what it can do for us in meeting our financial goals. this interview today is certainly no exception Jaspreet’s a great guy to talk to he's filled with knowledge and experience and he has accomplished amazing things. once again, I'm very happy to have this one for you today. Without any further ado, here we go with Jaspreet Baveja. Jaspreet thank you for joining us today.

 

Jaspreet Baveja  2:00  

Thank you for having me, man. It's a pleasure.

 

Taylor   2:02  

I'm happy to talk with you once again after we met on bigger pockets when we talked and learned about your story. I just thought it'd be great to share and learn more along with our listeners about what you do and where you've got to where you are. Everybody out there that doesn't know about Jaspreet and your financial independence. Tell us about it. Tell us about your story.

 

Jaspreet Baveja  2:24  

Well, I was just a W two employee regular job. I was doing healthcare, regulatory compliance consulting, so exciting, amazing work,   and it really made me get up in the morning and go wow, I really love my job. and, and,   it just, I was doing the grind and a couple of my friends introduced me to real estate investing back in 17 and said,   this is something you should get into is create cash flow and start generating some monthly income where you don't have to rely on your W two. there's this Call financial independence none of those things were I mean this is all net new to me then it was just you know the Indian household grow up be an engineer or a doctor have a great job succeed in life do great and keep moving on and you know buy your home make sure you have a big home data. I was doing all that. We had a huge 3000 square foot home in Northern California. Great job My wife has a great job. Two young kids and we were just living life and so real estate investing was a whole new concept. Got into it with duplexes went from one duplex to full duplex within six months to just ramp it up all cash and just set it let's just do this you know generate as much money as we can every month and then do so well. You know all C class duplexes and the whole dream that you get sold doesn't actually come to fruition and you realize,   property management, while they take over all the headaches, they still come down to you. They may take the call at two in the morning, but you still have to pick up the phone at 9am your time and answer those questions and approve those rehabs or toilet replacements and all that stuff, it still comes down to you at the end. got through all that and said are done. We sold all those off and ended up being flips and still ended up making money on those. it was not a bad idea but turned those into flips, did a flip in Austin in the meantime, and the best thing we did was sell our home. in Northern California went over to a rental, and we've been renting since 2018. March 2018 and it has definitely been blessed since then. It's really helped a lot in a lot of ways. Just huge, huge. and I think   as we grew into 2018 I started getting into private lending. It was just another one of the things that fell into my lap. Somebody said, Hey,   I see you're investing in this area too. Would you be interested in doing a loan from me instead and went through the process and got to understand what is private lending? What do I need to be doing to make sure my investment is secure? And is it against a property? What are the rates? What are the fees, points, documents, title documents and notes, mortgages? deeds, like recording all this stuff that you just as a buyer or a borrower, you just sign documents and off you go? Yeah, it has the lender, who is the responsible for generating those documents and making sure your investment is secure. That's when it comes to play. learned all that and did the loan and snowballed again. It's more like a very quick ramp up for me. I went from one loan to six loans within four months. yeah, it's just for me, it's all about learning the process. Once that process is down, then it's just a lot easier to scale and grow. I think it's true for a lot of people a lot of different ways, but it's just the hesitation getting past that initial fear that once I do that, then then I'm good to go. The private lending started. As I kept going, I did a couple more flips, intentional flips in Austin and an MD and I said, All right, well, let's, this is not bad, I can do this, but I was managing a full time job. I had become a limited partner by then in six indications. I and so I like actually,   like engaging and researching the syndicator and the properties and the assets and the locations and the deal and reading the memorandum. doing all that research, so it takes time with a full time job, two young kids, and, and the desire and the need to travel all the time, and doing the flips in two different states and doing private lending. like having all these five or six different full time jobs, we're just getting too much. I said, which is the one thing that I'm hitting the most out of all of it. It by far was the W two job. Well, gotta go buddy.

 

So may 2019. I said, All right, off you go. my goal at the time, I think from the day my wife and I discussed it till the day I gave my notice was probably 72 hours. Wow. On a Friday evening, I said, Honey, I think I'm done. she said, All right, let's make it happen. Over the weekend, we went through every financial statement, everything for 24 months, did all the research, and figured out, can we survive on one income? And we had already like I said, we were already renting. That was a fixed cost. There were no additional headaches, right? The nothing pops up in a rental, you just call the property manager or the landlord and boom, you're done. to make it easy. We did all that stuff and calculated that Yeah, we can make it happen. Monday morning, I had the letter email, everything signed up, took it instead. All right, I'm done. it was it was a quick decision, but it's just a lot of planning again,  

 

Taylor   7:52  

wow. that I mean, it takes a lot of bravery and I appreciate that. Once you have a process, you're just going to make things happen. I wanted to make sure we call out a few things that you live in California, but you had started investing out of your area. you said you did a flip in Austin. Where else were you investing?

 

Jaspreet Baveja  8:14  

Indianapolis was my primary hub. Is my primary hub still where I invest out of state? And yeah, the syndications that are part of have invested in Ohio, Colorado, Texas, California. I'm all over the place. But yeah, it's just,   it's again, it's all about, as long as you do your research and you're prepared. The location won't matter as much as long as the metrics around that location makes sense for what you want out of your investments. flipping market versus a wholesaling market versus a buy and hold market can all be different markets. it's just as long as you pick what you're after. Then and then you find the market that fits the criteria that becomes easy. Oh, and unless Not discount building a team that's that is a fun, one very painful key point that you cannot miss out on is

 

Taylor   9:08  

building the right team. How do you do that from a long distance? And you don't know these people like how do you go find them and vet them and get them on the team and get them interested in being on the team? What is your process, your process, man?

 

Jaspreet Baveja  9:25  

Well, I think for syndications, I tried to leverage a platform so I did the very first syndication I took part in. I was actually a co worker of mine at my job said, Hey, I heard you're into real estate and a friend of mine does syndications. we're doing a property just down the street from us so you can drive to it if you want to. you can take a look at it. But here's the stuff. If you're interested. Take a look. there's no minimum investment amount. they have it where you can get in at a low dollar amount and all that stuff. I said, Okay, well, it sounds good. I took a look at it and said Alright, I assessed the property, met the syndicator, did some research on what companies you'd have been a part of and what deals they did and, and so put that money in. But then I went over to crowd street where it's a little bit more of a,   they do a little bit more of the upfront work on vetting the syndicators and the teams that come to the platform. it becomes a little bit easier, but it's still a very heavy intensive process of doing the research on that individual member of the team. Sometimes I've found stuff about particular members of a team that CrowdStrike vetted and said, Yeah, everything is good, but then you do the research yourself and go, I don't think so. I've gotten emails from customers saying, Hey, we're sorry, we will allow this syndicator to get onto the platform, and with this deal it is no longer available. I said, Yep, I know exactly why because I did my own research too. it's just you trust what you verify no matter what. my syndications after that have been a little bit more crowd street based, and one or two more networking based where   you have to Somebody who's vouching for them and they've done deals and you know people who've invested with them before and they can vouch for them so it's a little bit a little bit easier that way. As far as the crown team for doing flips or buying holes and things of that nature that's a little bit more intensive around getting a lot of research done where you're talking to people in bigger pockets where you're talking to people who invest in Indianapolis or Austin or wherever you want to invest. friends or people at meetups people in your RIAs that are doing out estate investing, you talk to them have you used what was your   what was your experience? Is the property management team good? Is this guy who he does because he really that good? Is this electrician really that good? Because no matter what your GC can do, sometimes they just hit a snag and go Yeah,   I can do everything plumbing but not replace the whole house plumbing. Okay, well, now I've got to go find somebody else who can do that, right. it just For you, it's all about talking to people in real estate no matter what you do, whether it's lending or syndications, or flips or buying holds. It's all about relationships. I've heard it before. I'll say it again, no matter what you do in real estate, networking, and relationship building and maintaining that relationship is super key. that's what I rely on the most is leveraging our relationships with fellow investors and then trying out with smaller jobs and then giving them more responsibilities and then putting them onto the team.

 

Taylor   12:34  

I can definitely say you're, from my perspective, you're definitely consistent with that message, because that's what you said, the last time that we talked when not recording their message of the team being so key, and then the people and the network just being so important. you know that there's a lot in here. There's a lot of lessons that I want to learn here and unfortunately, we're not going to get to all of them today right now. But   we went through a few topics there. You mentioned First syndicators that, like a crowd, street or platform to make it more general, had vetted and had not found things that you ended up finding. What's your process for going and finding those things? We don't need to get into like, specifics of this guy Mike did this one thing, but on what do you look for?  

 

Jaspreet Baveja  13:23  

it's, you can find so much on Google these days. I've never yet had to pay for a private investigator to investigate these syndicators and their managers or their operators, as you call them, right. It's never needed to get to that point where I can just type into Google and go through LinkedIn and see okay, where were they working before? All right, well, let's let's try that track that in Okay, well, they at this job, okay, how did that work out?   sometimes the other you'll find either a litigation out there active litigation, either with the company if you don't find them with the name, maybe you find it with the previous employer and you dig into it. say, Oh, well, he wasn't named in the actual header. But here's his name as part of this thing. it's been, I've had that happen with borrowers whose companies are, yeah, this is a brand new company he created two years ago, doing great, don't worry about it, everything's fine. then you look back,   like three other companies that they had in the past and seven years ago, they were part of, or they had created this company and were in a different state altogether. you do the research and you find all of a sudden, yep, there's active litigation still out there pending litigation and lawsuits and things of   they got involved with the city. there's a fine that was outstanding that they never addressed or permits that were never issued. It's just small things that speak to the character of the individual and how they're trying to hide behind the name of the company change, or,   their company was based in Nevada, and now it's based in Delaware and all of a sudden, everything's fine and dandy and nobody really cares, right? So it's just it's individual names of the office. operators that are involved in the key managing of your syndication. That's what I research and Google is your best friend just try to have been a king at Google for too long, like researching things. This is from what I was back in college days just finding stuff. just leveraging that experience to make sure that our investments are safe and secure as best as possible.

 

Taylor   15:24  

It's and it's very smart to do that work upfront. Now, another thing that I wanted to make sure we touch on as well is private lending. We get a lot of questions generally, especially on bigger pockets,   people who live in California or some of these other more expensive areas and less landlord friendly areas trying to invest out of state, maybe they're not comfortable with syndications. Maybe they are but they also want to learn about lending. When you tell us about your process, I mean, it's obviously complicated, but   tell us how it works for you.

 

Jaspreet Baveja  16:00  

Well, as I said, the very first deal, I was able to leverage my borrowers network, again, key network to get in touch with, with lenders with title companies that they had done business with before and I was able to speak to them, okay, well, if this person or this company,   gets into loans, do they pay them off on time? Have you seen a lot of Have you ever seen a default come through on their company name, talking to a lawyer about, okay, well, what are the state specific regulations that we can leverage or laws that we can leverage? And you can say like, Okay, well, hey, on this date, I can just put this statement in here that says if they miss a payment, and 30 days later, they haven't yet paid, I automatically get title. Whereas in California and good luck,   six months fighting litigation, and filing   documents and suits and whatever else writes and defaults and whatever else you will need to get that process. In your name. it's very state specific how lending will work or at least how you're securitizing your investment, and what your resources are, and how long those resources will take to implement and get your money back. That's a very key piece that you need to look at is what state you're investing in lending in. When you are securitizing your collateral so you're doing a deed, a mortgage of trust, whatever, whatever instruments you put into place, what particular piece of language can you include, to reduce the amount of stress that you have on yourself in case of default?

 

Taylor   17:39  

So to give yourself a lot of options that are or or maybe one key option, like the example you gave that limits your downside for exam

 

Jaspreet Baveja  17:50  

Exactly. Your exposure. Yep, exactly that.

 

Taylor   17:53  

And how about now doing due diligence, these properties in Indianapolis for example,   I assume you're not jumping on a plane for every single one of them, do you have somebody go and do a broker's price opinion or do an inspection or what's your physical due diligence look like?

 

Jaspreet Baveja  18:11  

So for the majority of the deals if they're a repeat borrower, and pretty much everyone that I have on my list is the borrower. Now, I'm not adding anyone new at the time, but it's once you have built a rapport, it becomes easier, but I will make sure that I get as is current videos, current photos of the price of the property, and certain documentation around the property from the MLS from title from anyone else and put all that together and then give it to an unbiased third party broker and say, Hey, here's everything that you need, leverage this and whatever else you need, whether it's to drive by exterior x,   inspection or whatever it takes to get me a valid BPO of the property and so far, I have used Get defined a single deal that I've invested in where the BPO wasn't significantly higher than the loan amount that I was providing. I would say my average loan to value is somewhere around 50%. But that's really good. Yeah, above my average loan to purchase has been as high as 95%. But I'm still barely touching 50% loan to value. It's just that's how much equity the deal has, when they approached me with these transactions, that I feel super comfortable saying, Yeah, no problem, you'll put in $5,000. I'll be worth 20 more, so we're fine. Don't worry about it. We can do this. though. Yeah, all those things that you said are super important. you have to have somebody on the ground who knows the market well enough to give you a broker pricing opinion based on videos and photos and a physical inspection if you need it. You can always rely on an appraiser and actually pay for an inspection and pay for an appraisal and put those investments in. But I think it all different pends on the dollar amount, right? Like, if I'm doing a $17,000 loan on a $20,000 purchase, where the property is worth 50 It doesn't make sense for me to spend $600 up front and an appraisal and an inspection. Because the rate of return or the dollar amount that I'm going to make on that deal may not be high enough to even cover all that. But I know it's gonna be a quick transaction and the money goes in quickly and comes back out you, you made money on your fees and points, whatever, however you structure the deal, and you keep doing it over and over again. at the end, your rate of return is pretty good at the end of the year, but the transaction may not create as much money and it's just more of building the relationship making sure that the deals keep taking place and and you're helping them get their business going and you're helping yourself keep your money deployed. But you are doing it sensibly in a deal that makes sense. there's enough value and enough equity in the deal. that's just the way I progress Yeah.

 

Unknown Speaker  20:57  

limits your downside. Yeah.

 

Unknown Speaker  20:58  

So

 

Taylor   21:00  

One of the things   I talk to a lot of folks who have achieved financial independence by investing in real estate. many of them, I'm not putting this on you, many of them don't want to admit when they make mistakes. I want to ask you Jaspreet. What are some mistakes that you've made along the way,

 

Jaspreet Baveja  21:18  

ah, placing too much trust in a referral or in their claimed background and their claimed abilities of being able to deliver. This was definitely the flip I did an Austin thing I lost 10s of thousands of dollars in that deal over an 11 month ordeal of the GC firing their subcontractors three times around, asking for more money, trying to find a different GC to take over but it's going to cost more money and continue to just have faith and have trust and say hi, I think this guy can turn around. I think this guy can turn it around and it eventually sold for The dollar amount that I wanted, just the amount of money it took to get to that point, ended up being a lot more than originally planned. I think,   with your first deal out of state, I think a lower dollar amount and it all depends on someone writing somebody for somebody, a million dollar deal could be a low dollar amount, whereas for somebody, a $17,000 deal could be a low dollar amount, I think so. proportionate to how much you have to invest. I would say if you're going to go do something new, be more conservative, be more hands on, fly out there five times if you need to. But keep a closer eye on things if it's an active investment, like a flip. if it's even if it's a passive one, make sure you have more phone calls with your property manager or if it's a syndication, make sure you have more touches with the operator. it's just trying to be more actively involved. definitely focus more on that verification part. Then the trusting part and the leveraging the network. it's just you, you can get access to people that way in the network and their relationships. But sometimes situations just change for them, they may have delivered 17 times for these other people. But now all of a sudden their subcontractor got sick and is no longer working. they're, they're farming it out to different people, and all of a sudden you get stuck with holding the short end of the stick. Right? So it's just I think being more actively engaged in whatever type of investment you do to ensure that you get the results that you're after is definitely the lesson that I learned from that mistake.

 

Taylor   23:38  

Interesting. I'm curious because you, you have your, you have your hand, your investments in a variety of strategies. If you were in a situation where you were decided you wanted to keep your day job, that was not the thing that you were going to get rid of it was something else you're going to read it good gonna get rid of it What investment strategy Do you think you would still be able to pursue because you you just classified flips as active and then I think implied from your other investments were less active, maybe passive. right. If you were still working still one of the W two for whatever reason you so chose, what would you still be able to invest in? Or what are your thoughts? What would your recommendations be to somebody in that situation?

 

Jaspreet Baveja  24:27  

I think my private lending is definitely the one thing by far that I would recommend to anyone as a key easy enough to operate in as a passive investment. Right now I am spending on average, maybe eight hours a week in my lending business. I'm generating enough to surpass my two incomes in less than a year. Thank you. That's one thing that I could have easily continued to do. Even with a W two I just chose not to. and focus more on my kids and family. But I think going forward, you know if my my goal is to get into syndications and doing a GP side of syndications and getting into larger deals,   1020 $30 million transactions, doing a lot of this pooling money together going out for an asset and generating monthly cash flow from these multifamily assets and doing all that, but people who want to get into a passive the second best thing, I think strategy is definitely investing money with a syndicator operator that has done a few deals or has enough analysis and documentation to prove that they've done their due diligence that they have a deal that makes sense. You can get their party people to agree that Yep, that makes sense. go into that. I think that stuffing the next best thing that you can easily do with a W two job is invest with a syndicator

 

Taylor   25:59  

so When we were talking before we were recording, I recall there was a syndication investment that didn't quite go the way you had expected. I wonder if we could talk about that while we're here.

 

Jaspreet Baveja  26:13  

Oh, man, Southern California marijuana extraction facility.

 

Taylor   26:18  

Sounds like a lot of fun, right?

 

Jaspreet Baveja  26:19  

Yeah, I figured, hey,   this is right around 2019 everything's gonna go great. It's just gonna get legalized, there's gonna be a lot of demand. A lot of people out there, I mean, CVS, and Walmart are going to have drinks. it's just there's a lot of demand for these things. As soon as they get,   consumerization like everything is becoming all about the consumers. As soon as that consumer base grows to anybody who can walk into CVS versus needing to have a card and walking into a specific dispensary and all that stuff. Right, you're going to see a demand increase. I figured all right, well, let's get into that and they were expecting conservatively 100% cash on cash return a year. Within the first year, and I said, Alright, well, even if they can do 10, I'll be happy. Let's just, it's okay, let's put some money in. I think since then, since 2019, I have received one payment. That was, cash in an envelope certified no less than I had to go to the freakin post office to go pick up. But it was cash and an envelope, and that's it. it was just around the county decided that they are not, they're not going to allow cannabis investments in that county. They had this huge warehouse and distilled it,   manufacturing facility, so they had all this machinery and all this equipment and all this stuff that was being done to make sure everything was legit. All of a sudden everything had to be shut down. they had to move operations somewhere else. Well, that all took money and time and they lost a lot of contracts in that timeframe. they said okay, well we're not doing this anymore, and they're gonna sell the business and for the last seven months I've been hearing or selling the business, we're selling the business, you're going to get your money back. Okay, at some point, it's going to come back to me at the bare minimum. I'm hopeful that we'll get our principal back. But they're claiming they're gonna give us 8% return. I think that's, I mean, it's still better than zero, but it's not anywhere near the hundred percent they were claiming they'd be able to generate.

 

Taylor   28:24  

Yeah, that's very true. I definitely can appreciate the temptation there from absolutely exactly everything you were saying the perspective of, hey, it's going to be legalized, there's a huge demand for this stuff like, this is tech tech. We're, we're very happy with   the prospects here.

 

Unknown Speaker  28:42  

Exactly. But,

 

Taylor   28:44  

  If we're, again, trying to pull lessons out of the past and decisions that were made, what would you do differently? What do you think was the mistake there?   in hindsight,

 

Jaspreet Baveja  28:59  

I don't No man, I think   sometimes things like the county, there's no way anybody could have predicted the county all of a sudden saying, sorry, you're gonna have to vacate the premises because we're not allowed, and we're not issuing any more licenses. We're not going to legalize it here, or we're not going to let you operate this business here. You can sell it all you want. We're not going to set up Priscilla shops. Right? So there's, there's really not much you could have possibly done in that, in that particular scenario to protect your investment. But   because we've vetted the people who had at the team, they have done this elsewhere, and they've done it successfully. they'd been in this business for a decade or more as consultants for other businesses to get this going and for the legal stuff that was there at the time. There was a lot riding on and a lot behind them to say, Yep, they're going to succeed and a lot of speculation around market growth and production and demand and all that so I don't think that there's much I could have done differently. But sticking to what   maybe perhaps is the only thing that comes out of it right? Like I know real estate better than I know marijuana businesses. It's not a physical asset that I'm lending against. It's not a physical asset that's going to generate monthly cash flow where people have to live every day and pay you monthly income. It's not a single family home. I think that the key differentiator is the asset class, right? It's something that is a business that you're investing in, versus a physical real estate asset that you're investing in, that can retain value, no matter what, almost, almost. you

 

Taylor   30:40  

think, sticking to what   Does, does does FOMO ring,   true to you at all. Do you think you felt that maybe I don't know i'm not i'm trying to try to cut I

 

Jaspreet Baveja  30:49  

i think one of my best friends approached me with that deal and said, I've done this research. I've talked to another one of my good friends. He's been involved with the team. it was not just something that happened Pure out of nowhere. somebody that I found on my own is somebody that brought me and this is a friend of mine that I've known for a decade plus 15 years. he said, I've done the research, it makes sense. The team is good, let's do their own research. Then we did our own due diligence. it was more than yes, there was a little bit of FOMO for sure. As to well, if there's an opportunity to get into something which we know for a fact is going to happen. It wasn't speculation that it was going to get legalized, it was a fact that it was going to happen, right? The regulations had already come out, it was just going to happen. It was just a timeline. you're able to get into it with a company that has access to farms that had access to contracts for resale and had access to a warehouse volume. they had a well established name. It's just,   you can't you can't ever guess what a city or a county or governments are going to do right now. They're telling you to reduce rents by 25%. No, you can't throw anyone out of your house. No, you can't evict anyone. I mean, even utility companies are telling us   we can't we can't shut down power because you haven't paid your bills. This massive shift in what things that are not in your control or the operators' controls can change the investment and the return. You can't really account for that too much. But I thought I did by saying, Okay, well, they're expecting 100, as long as I get 10, I'm happy. Right? That was a 90% reduction in my return rate, I figured was a good enough buffer. But sometimes it's just,   it is what it is, like anybody will ever tell you all investments are risky, no matter what you do, and you just have to gauge that risk for yourself and put into play any mediation tactics that you can. That's why my first and foremost answer is always private lending because I know I can put a lien against the property I can get. things get recorded at the county level where my name will show up as the lender I'll have insurance, title insurance, property insurance, whatever the case may be, it's just there are so many different layers of protection you can put towards Sort of securing your investment in your asset, that it becomes a lot easier to have ease of mind peace of mind, and not have to worry about it constantly every day going, Oh my god, what's gonna happen to the property? Are they going to pay? What am I going to do? They don't pay and they just generate the return that I wanted. So

 

Taylor   33:17  

here's my contract, you're gonna walk from the job or   any of these things that you mentioned earlier? Yeah, that's, that's great. I really appreciate that. We'll have to turn that into a sound bite. Right now we're going to take a quick break for our sponsor. All right, Jaspreet. I've got three questions. I asked every guest on the show, as   are you ready, sir? All right. First one, what is the best investment you ever made other than in your education?

 

Jaspreet Baveja  33:46  

Man, I'm gonna go against the norm here and say my single family home primary residence that we bought in Northern California with us investment, because it allowed us to get a massive amount of appreciation. I put it as a rental for two years before I sold it. even after then, when we sold it, everything had gone up. all that appreciation was tax free, because up to half a million for a married couple, in a primary residence that you've lived in for at least two out of the last five years is tax free. That was a huge boost in dollar amount to my war chest. That's what I was talking about,   it just allowed me to explore other avenues of investments. Because the moment we sold that and said, oh, wow, that's amazing. We,   even if we had it on rent for two years, it didn't make a difference because two out of the last five were still us living there. that appreciation game was tax free, and it gave me a huge amount of boost. it just that to me, was luckily enough the best investment that I think we've ever made.

 

Taylor   34:51  

so far. Nice, nice. I love the huge tax advantage there too. really cashing in on that appreciation on the other side of that, we have The best investment now the worst investment what is the worst investment you've ever made?

 

Jaspreet Baveja  35:05  

I think that flippin Austin was definitely the most amount of money I've lost in a deal, the most out of the headache I had and dragged out the longest. yeah, even though this marijuana thing may not work out, at least I'm not actively involved in the daily phone calls and Lowe's and Costco and Home Depot and order this from me and pay for that and make sure it's here and   that active engagement whenever it results in a loss as a far worse feeling, than when it's a passive investment and you've given your control to someone else and you knew going in that okay, I'm not actively engaged. I'm going to trust someone else with my investment and what it does fine, you still feel bad. But when you take it on yourself and you still end up not doing as well then it hurts the most.

 

Taylor   35:49  

Yeah, there's a lot less psychic mental cost. Yeah, exactly. Passive investments.

 

Jaspreet Baveja 35:56  

Yep.

 

Taylor   35:57  

Interesting. Wow. Yeah, that's it. Sounds like it was a very painful experience to go through the flip, losing money and dealing with contractors and being on the calls. I just feel myself in your situation and I would just be like, be so frustrated ruin my ruin my day.

 

Jaspreet Baveja  36:17  

Yeah, I'm in the process of selling a flip this week that was that will more than make up for that one flip. There are ways of recovering that investment right; you shouldn't let that one failure or the very first deal that goes bad deter you from continuing to progress towards your dream of financial independence if that's what you want. Right: You just have to find ways of securing your assets, securing your investments, building a process, building a team and just keep going don't don't let one failure or one bad thing deter you from continuing to keep pursuing what your what your dream is and what you're after.

 

Taylor   36:54  

I really appreciate that because there are so many people out there who are on the outside looking into real estate and vesting, that's a   I'd love to be a real estate investor but my cousin's great uncle's nephew owned a property once and then lost all his money or some some story like that where something went bad and things go bad all the all around, because there's a lot of success out there to be had. Definitely. Yeah. Well my favorite question here at the end of the show is what is the most important lesson that you've learned in business and investing?

 

Jaspreet Baveja  37:31  

Oh man, trust but verify. That is that is by far I think the one most important thing is is trust, whether it's a recommendation whether it's someone   who's bringing someone to you to invest with, through for on behalf of whatever the case may be right I mean, it all depends on whether they want you to buy a house from this guy or they want you to put money in a syndication or lend him some money or,   whatever the case may be, it's or using as a contractor or or her team for design or whatever it is, there's so many different,   networking things that happen. But I think verifying the track record is key. on that end, right, even on my own website, I've created a resource page where I said, Okay, if you ever want to verify that I have done these loans out of my business or my name, click this link, it goes to the county recorder's office, you can't fake that, right.

And you type in my name, and you will see every mortgage and mortgage deed and mortgage release and liens and everything that I've placed on all these assets, dollar amounts that I've invested. Right. to that end, I'm an open book, if you ever want to check me out as a private lender, or the deals that I've been able to help with, go to the site, click on the link and boom, you can literally do that research on your own with a third party government website that cannot lie. Right. I think those are the kinds of things whether it's a licensed number you can validate or it's their entity information or the background about a specific person. there reviews online, you got thumbtacks all the way to actual legal documents where their names are saying this versus this guy has a lawsuit.

 

Jaspreet Baveja  39:11  

  The spectrum is insane depending on the level of investment you want to do, but I think the verification process to me is key in business and investing.

 

Taylor   39:22  

I love it. Now, if folks want to get in touch with you, you mentioned your website. Yeah, where can they find you?

 

Jaspreet Baveja  39:30  

jgb LLC, calm is my website and just breathe jgb LLC comm or my phone number you can call me text me what's up. Everything works as 530-522-8352 and the cool way of remembering that is 530

 

My first initial first name Jay and my last name was a DJ from Asia.

 

Taylor 40:00  

Did you do that on purpose?

 

Jaspreet Baveja  40:02  

He did. Over a decade ago, when I had no

 

intention of investing. I was just a really cool thing that happened to work out. I said, Dude, I'm never given that up. it served me well. It's easy to remember. people can get in touch with me whichever way they want on that.

 

Taylor   40:20  

Well, nice. I definitely recommend folks do that. It's been a fantastic time. Both times we've had a conversation and you're in bigger pockets as well. That's definitely definitely where

 

Taylor   40:29  

we connected. Well, I really appreciate you joining me today and joining our listeners and sharing these lessons because I think stories like yours are very inspiring. they are really what, get others to put their foot in the pool of real estate investing and get started. thank you for bringing that to

 

Jaspreet Baveja  40:46  

  1. Yeah, no, man, thanks for having me. It was amazing. It was a lot of fun.

 

And I've really enjoyed both competitions as well so far. So

 

Taylor   40:52  

thank you. my great pleasure to everybody out there. Thank you for tuning in. If you're enjoying the show, please leave us a rating and review on Apple podcasts. It's very helpful to help other people learn about the show. If you know anyone who could use a little bit more passive wealth in their lives, please share the show with them and bring them into the fold. Thank you for tuning in. We'll talk to you on the next one. Bye bye

 

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The host of Passive Wealth Strategies for Busy Professionals podcast highlights all aspects of real estate investing and more in this can’t miss podcast! The host and expert guests offer insightful advice and information that is helpful to anyone that listens!
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Love all the information and insights from Taylor and his guest. Fun and entertaining. Highly recommend.
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About Taylor

I am a real estate investor, syndicator, and host of the Passive Wealth Strategies for Busy Professionals Podcast.

I started the show because I realized that the typical “skip that $3 latte once a week” financial advice does not produce the life of abundance that so many Busy Professionals desire.

We’re here to learn how to live at a higher level.

Don’t forget to follow on Instagram @passive_wealth_strategies

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