Better Returns: Invest Like a Pro

12. The Ripple Effect of Investing with Vinki Loomba

January 03, 2023 Vinki Loomba Episode 12
Better Returns: Invest Like a Pro
12. The Ripple Effect of Investing with Vinki Loomba
Show Notes Transcript

Using her experience and expertise in real estate investing, Vinki Loomba would like to make a meaningful difference in the lives of people in need. This episode highlights the investing path of following your heart.


  • The desire to make a meaningful difference in the lives of others led Vinki to concentrate her financial efforts into multifamily apartment investing.
  • Vinki’s main goal is to be able to help women and children all over the world in a way where those helped may also have the means to continue helping others, creating a ripple effect of lifting people up.
  • Do your own research and due diligence on your investments, regardless of what the media or others are saying. Educating yourself will help make the right investing decision for you.
  • Learn the difference between class A and class B apartments and the pros and cons of investing in each.
  • Apartment investments Vinki likes to be involved in are ones that add value to the apartment complex, giving the residents a better place to live.

“I have the ambitious goal of helping one million people. I'm ready to touch one million lives in a meaningful way and that's what my goal is.”

“Become a smart investor, a savvy investor. Ask a lot of questions, educate yourself on the process and do your due diligence.”

Vinki Loomba is the founder & CEO of Loomba Investment Group, a private equity/investment firm specializing in real estate syndications. She is also the host of the successful podcast The Real Estate Vibe. She is a former IT professional and a professor who turned into a full-time real estate investor. The goal of her work is to provide investors with the right knowledge to be able to make wise investing decisions aligned with their long-term financial goals in order to achieve financial success.

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welcome to better returns where you will learn how to escape the volatility of the stock market by passively investing in real estate like a pro 90 of millionaires earned and maintain their wealth by investing in real estate we will share real-life examples from Savvy investors so you can do the same when he was 10 he crashed his bicycle while jumping it off a ramp and broke his jaw his mouth was wired shut for three weeks your host and my dad Matt Hansen I'd like to welcome to the show my good friend vinki loomba she has a real estate investment firm and a private equity firm she's an expert in real estate syndications she's the host of the wildly successful the real estate vibe show check that out she's a former I.T professional and Professor that has moved to a full-time real estate investor her goal really is to provide investors the right knowledge to be able to make wise investing decisions aligned with our long-term financial goals so she's going to try drop some great knowledge with us today on the show I'm excited to have her so welcome vinki thank you so much Matt I'm super excited to be with you today wonderful so let's go ahead and start with how you got into particularly from an I.T and a professor background to being a real estate professional tell us a little bit about that journey and how you got here thanks for asking me that question but this goes long back um in late 90s when we bought our second home like home home single family home before that we were in the condominium townhouse and we saw those we bought our first home and then after a few years later we bought our second home so when we bought our second home we were in a position to keep both homes and then we rented our first home when we rented our first home by default we realized the passive income flow so me and the husband we were like yeah we figured out okay we can do this and uh we started multiplying that model uh we started buying more duplexes in our area more single family homes so we grew up to I think about six or six I would say six uh homes or maybe seven I don't recall 100 so I think it was about six homes that we had and at that time I got my realtor license and I thought I can do that as a side hustle with my corporate job on the weekends I can make some extra money and when I got my license I realized there's much more in the real estate not just a single family homes and I learned about the retail side or the business side of the real estate and I started selling businesses I went on the retail side versus selling homes because I I didn't think that's quite my appetite and we got into businesses I did that for four or five years keeping my Cooper job as well and uh but that was way too much um with my two kids two corporate jobs and this my side hustle which was actually a full-time hustle it was another so it's a full-time job in itself and uh one day I remember when I think I flew back from one of my business trips I think I'm chilly or somewhere and my I came home I dropped my bags my husband has his bags ready he was ready to fly to St Louis and then we had two young kids at the time he told me he's like you know what I know you're an invincible but you have to decide on what you wanted to do either you can do corporate job or you can do your real estate because it's way too much and we don't want our kids to suffer so at that time not uh fully understanding the power of real estate investing I picked my corporate job over real estate because I thought I have a status I'm doing really good and I and then I kind of that job I had it kind of figured out and you know back of my I would say back of my hand I knew exactly what to do with my position so I just chose that and I stick with my corporate job I put my real estate career on the back burner I thought will come back to it someday so fast forward five years ago I got a chance to take off on my job because my position was gone in California it was moved to New York I had the option to move to New York or just like take off so I chose my I exercise my option I chose to take off and I thought I am free now I don't want you to do anything I am happy I asked my husband do you want me to work anymore or should I count myself retiree and he's like whatever you like to do it's your choice and then we started traveling around the world about a year we did that and one day when we came back from Egypt early morning like three o'clock 3 30 in the morning I got up with a strong feeling that if I die today I did not do anything in this world other than you know worrying about my family my immediate family or myself making money hanging out with my friends so even though I do not need anything today I need to make a difference so I wanted to go back work make money I created a purpose for myself to help women and children so I already had a non-profit so I knew a little bit uh specifics how to work that so this time I didn't want to go back to corporate world I wanted to start something my own so real estate since I had done that before I stepped back into real estate and I was thinking I'm gonna go into merger and Acquisitions because having the corporate background I thought that was a perfect fit for me right and and my LinkedIn connections I was looking for some connection who can help me break into that industry but before I found somebody in the merger Acquisitions I read somebody's profile on LinkedIn that read 400 million assets under management I'm like wow I know this person and within couple years what happened I has 400 million dollar worth of assets under management so I called him so he introduced me to multifamily investing so that's tall is history so I started in um Malta family investing started as an LP I'm part of multiple deals as a GP now and I'm really really enjoying because I can make a difference to the women and children right now we are funding the projects in India but someday my vision is to be Global that we can pick up any project anywhere in the world and make a difference oh wow sorry long story that's a fascinating story so you started as an accidental landlord as they say you you bought a house you moved to another and you kept your old one so that's that's the classic you know accidental landlord and then you know you retired from your corporate gig and decided you need to have meaning in life exactly for me in that book so you found they decided okay you came into multi-family and you also have another pretty ambitious goal and what is that one the one to help how many people I have ambitious goal of helping one million people I'm ready to touch one million lives in a meaningful way and that's what my goal is before I exit from the space and I think I can I think I can do that it's not a very audacious goal you know anybody can do that if you set your mind into something uh you can do it it's easily achievable because there's so many people in this world who need help right and health could be in any form or any way you can make a difference in somebody's life maybe they just need a Love or maybe just need a helping hand or maybe just need a little bit money or maybe just need a little bit nudge here and there so it's just like I wanted to make myself available to all those women and children around the world to make a difference a children is because they're the future of this planet so we wanted to help them grow with a certain mindset with certain goals certain ambition in their mind so they can grow into uh I would say fruitful Tree in a sense that they are not only making difference in their own life but they're spreading the fragrance of their being all around them right the compounding effect exactly the compounding apart like we do in the real State that's the reason real estate is very good investment vehicle because we have the compounding power and which helps us grow exponentially let's talk a little bit about that the the so you're doing great things you're syndicating deals you're helping investors get their money out of Wall Street in Main Street investing in apartments passively and you're doing a great you've got this great cause which I think is fabulous which thank you and support as well so let's talk about how you're helping people like right now we talk to a lot of investors and they're concerned about what's going to go on in the economy like should BB investing should we be just holding all of our cash or just leave it in the stock market because it's down so let's give some a little advice to our listener like what what is your view on did people be investing passively in real estate right now what's your thoughts on that I think investing in real estate passively I I think like I said investment in real estate is a good recall and I don't think um it's a good and bad it only boils down to you what your risk appetite is what your mindset is I mean I know we are economy we say we are in the bad situation right now economy is bad we are in recession there's inflation a lot of things are going on but if you recall there's a quote by this famous guy Warren Buffet when people are fearful get greedy and I would I agree on that too it's not that saying that I am greedy that's why I wanted to do it but I just wanted to kind of put myself out of the situation and think about it you know there is Media telling us giving us all this news that things are happening in the economy but I'm not adding more to those stories because what happened is when I'm hearing some news or when we hear some news we add toward that story like how that's gonna happen for me how that's gonna happen for me so you create a limitations for yourself or you get fearful and then you're just doing exactly whatever everybody else is doing around you

 so here I wanted to take a pause I want you to think a little bit outside the box what if I do not add my story to make this Media news even more powerful I don't want to give power to that news I wanted to use my knowledge my due diligence to figure out what is good for me and depending on my risk appetite I wanted to invest maybe this is a good time to invest right now when everybody's fearful yes there are good deals out there still as long as you're doing due diligence regarding the operator regarding the deal you should be feeling comfortable investing and that's what I'm doing right and I agree with that and it really comes back to education now passively invest in real estate may not be right for everyone and I like the fact that you acknowledged and I do as well because some people will just self-select but if you're educated well enough on it and you see the value in it you should certainly you know participate in it it's one of the best risk adjustment Investments you can do it's a concrete asset all this Wall Street stuff going on these are paper assets you own it's not backed by collateral of a physical building a physical business that's you know has got value um so I think that's a that's a big contrast to what's going on in the world so let's talk about so given the economy what type of deals do you are you looking for to bring to your investors what is your criteria changed recently in the last six or eight months what are you looking for uh we just closed one um Class B properties over focus is more on Class B and a now right now so we are not really going for really really heavy lift deals because uh given the economy given the interest rates and the loan conditions it makes sense for us to stick with the class B asset because that's uh more acceptable at this point and uh if we get opportunity to get into class A yes definitely we'll look into that as well but uh uh we are not looking at the heavy lifts we are staying away or you know staying put with only uh Class B and S because it's like more solid more sustainable class at this point because look at it you know multifamily uh it's a good phenomena because uh the real estate the way it's going is hitting hard on people and most of the uh as a class that's being hit is a single family home so think about that if the single family owners are underwater where they're gonna go everybody needs a place to live so they're gonna go to multi-family they're gonna rent apartment right so we are kind of resistance uh Recession Proof I would say or recession resistance and also at the same time we are adding value for those people who need a place to live and the other thing is I do not like to call a word tenants tenants I call them residents because that make a mix models because they make that apartment their home that's their home they're the residents So you you're adding value to their life by giving them whatever they need providing a service they needed service yeah you're providing a service not just like investing you're investing with the investors you're doing that by creating a good talent base making them uh kind of residence space for them you adding value you're touching those lives as well well so yeah in the news we're hearing all these things about the real estate bubble bursting and that's primarily primarily residential type properties but there's going to be some residual impact on Commercial properties as well so give us your thoughts on what's going on there in the economy and how it's going to impact multi-family versus single family yeah of course I think there's gonna be some impact or the inflation on the multi-family too because uh with the rise in interest rate and if we are not able to increase the rents there's gonna be uh some issues there but again like I said if you are you know diligent about what type of properties you're getting in because there are so many multiple good deals out there as long as you're finding the right deals and you're riding on the right deals you should be able to give your investors the promise returns and again you know economies go it's a cyclical in nature and it's not here to stay forever it's a temporary It's Gonna Change there's always ups and downs in economy so maybe the period we are in right now people are more fearful but at the same time it could be like really good time uh for investing too again I would say depending upon your risk appetite so if you look into that and then just see why I'm fearful wherever that knowledge Gap is try to mitigate that Gap educate yourself talk to people ask questions there's no right and wrong questions ask as many questions as many you have get the full satisfaction and then just take action absolutely I was on a call with an investor last night potential investor and it was an hour and a half and we'd scheduled for like a half an hour this is the second or third time I've chatted with it because he had so he was new to it and so I'm always super patient because I remember when I was in those shoes you know six seven years ago passively investing my first large multi-family deal and so I love that the fact is really the key is in education and then maybe you find out it's not right for you based on your risk tolerance but the more educate the more comfortable you are in that and you were talking about your business plan your business plan so you're looking at class B type properties B plus maybe A's so how was your business plan change then are you still what what are you guys targeting for um hold periods and things like that what's your business plan look like typically in a deal you're doing now uh so far real sticking with the same plan three to five years because uh like I said uh economic economy is cyclical in nature so it's not gonna be the same and now you're down the road is going not be a different landscape totally so our plan is still we're trying to look for three to five year exit for our properties What markets do you guys buy I am mostly in the Sunbelt area and the Carolinas market and Carolinas Market is like really booming and a lot of opportunities there and my business partners are in that market as well they are local so I work with them over there good so they've got expertise and there's there's specialists in that market that's really good that's really good exactly because it's kind of the backyard and the super expert finding their ideals in the right areas in that market that's another challenge I've had with some local investors I live in Michigan love Michigan but a lot of people that live here want to invest locally but it's kind of like um the real estate guys say this uh you know live where you want to live invest where it makes sense that's something that you're right it's great to have contacts in those areas boots on the ground if you will so they know the market really well they know what to look for because not every not every State's a great place to invest and frankly that's that's the value that we bring hopefully to investors that you don't have to go and know what Jacksonville Florida looks like or Dallas Fort Worth or Phoenix Arizona we've got people there that will do all the due diligence and share that information with you um so any other any other critical things that you think a a new investor should be looking at right now in this in this climate what are they whatever things they should be educating themselves on I think the important thing for any investor is just like do their due diligence right you know and don't jump on other investment just like that somebody's sharing do a background check on the operators check their track record look at the deal carefully ask questions understand the deal fully which you're getting into because I didn't do that initially a few deals I just I just wanted to write the deals I did and now I think that it's not like that I lost money or anything those are good deals but I just feel like you know I can do much better now knowledge and working with different um you know syndicators different operators you understand a little bit better so it's not going to hurt you talking to multiple people is you're growing your knowledge Base by doing that and do that as as many questions as many you can don't think anything is uh something like stupid questions they're not stupid questions you know is something you don't understand it's a valid question for you so don't worry about people what other people think about you just do your due diligence check all the background on the deal on the operator and then and if you feel comfortable take action don't forget to take action because that's what happens uh we know we just like acquire the knowledge we get whatever we need everything then still we are hesitant and ask yourself what is stopping me and take action I'm going to say that over and over again action is the most important thing in each and everything whatever we do and sometimes when we don't take the action at the right time we miss that word so you don't want to do that exactly exactly and rolled into action is the mindset is like that's so important is your mindset okay you're confident in yourself and your abilities you've done the education um any anything any tips you could give on mindsets I know you're very spiritual in that way I know you meditate so do I and all that any other tips like that you could give for somebody from a mindset standpoint to get over the things they have in their head that they keep saying over and over to to be comfortable in stepping outside the box yeah exactly because the thing is you know we create uh our own destiny I'm gonna put it this way because most of most of us we come with a pre-conditioning because from the childhood on parents friends or a circle who we mingle with we have some conditioning some limitations around us and which might have created some kind a scarcity in our mind because we always you know a lot of people they have this scarcity mindset where they think I'm lacking this if I have this I will do this or what if I do this I will lose this thing it's it's not like losing or gaining or anything everything is here right now so you just wanted to ask yourself a question whenever this kind of feeling or emotion pops up why I'm getting this what is the underlying cause and then you wanted to always stay in a state of fulfillment that I have everything then you're creating the abundance around you because that's the abundance mindset uh one of the feature I would say is that you are coming from a place of fulfillment place of fulfillment as you just feel you are complete within yourself you do not need any outer force or energy to complete your or any validation outside of you to complete you and your decisions are your decisions whatever you're making because you are making the decisions with best of your ability and you are not blaming anybody later on because with the scarcity mindset you always be blaming on other people he's like okay she told me this or he told me this that's the reason it happened so you won't need to take yourself out of that situation so and the other thing is you want it to be always like I say I'm always at the end of the situation side where I'm I look at myself as a problem solver if I see it as a problem I don't see as a problem and I'm not worrying why this is there my energy is focused on how do I solve this how do I get out of this situation so I do not get myself entangled in the situation I hope it makes sense what I'm trying to say yes yes it does it does I get that that's really good point thank you um well I think we're ready to for our rapid five questions and these are just fun questions just to get to know Vinki a little bit better so my first one is as a child did you have a nickname and what was it well my peer it's a funny story I'm gonna share with you my parents named me Vinki and I do not have any nickname and winky name is not a common name in India especially those days when I was a little baby uh when my mom was pregnant my dad and my mom they went to somebody's birthday party there was a little girl she was one year old first birthday her name was vinki and my dad Dad decided oh gosh she's super cute I'm gonna name my daughter vinki too but uh winky does not mean anything so all those years I was growing up and uh let me give you a background too because in India all the names mean something his name is a very important thing in Indian culture because people are very diligent when they name their child because they wanted to give some meaningful name because they feel like the your personality develops according to that right and uh fortunately unfortunately my name did not I don't know what my name means uh let me put it this way so when I was uh in college my first year so there was some hiking trip was uh you know scheduled and they used to take an intense interview um as part of NCC National Credit corp in India so they you know have to go to a rigorous interview process in order to get selected so I went there for the interview there was like my principal my vice principal and my professor somebody else I don't know so many people were there and the first question they asked me was winky hmm what does it mean and I was thinking in my mind oh gosh I never thought about that but I was very spontaneous so I came up with right away I you know what I say is is two words it's wind key so my name means key to Victory and guess what I was selected I didn't even have any interview after that and then I started Living with that meaning for all my life I'm like I'm free to Victory so that's what my name means I love that thing you are the only thing I've never heard of that name either until I met you what a great story what a great story okay morning person or night owl morning person yes but I can stay late as well because uh I like you know I do some meditation practices and all that so I do not need that much sleep good good that looks good but if you a lottery and I kind of know the answer to this question because I know you quite well you won the lottery what's the first thing you would do you you need to ask again because you were frozen in the middle oh okay if you won the lottery what's the first thing you would do that's a good question I haven't thought about that if I want a lot of the first thing I will say is thank you God that you're giving me power to help so many people around me I knew you would do that I knew that you would take something great and do do with it so I love that um if you could live anywhere in the world where would that be I don't think I will choose any place other than where I am now because I don't feel there's any difference uh no matter where you go it's all about you and I'm gonna share a small story over here long time back I went for an interview and it was uh some management position and this guy he asked me he's like how about the corporate culture how do you adjust to that when you think about that so I gave him the answer I am my own culture wherever I go I bring my own corporate culture and that's the answer I'm gonna give it to you no matter where you go it's all about you so you can create the feelings emotions positive negative all around you no matter Wherever You Are excellent excellent that makes perfect sense the last question what's the one piece of Golden Nugget you would give to new investors to help them get better returns that's the one critical piece of advice I would say uh do you due diligence be a smart investor I use the word Savvy investor I do have a meet up as well it's a learn and grow meet up and become a smart investor a Savvy investor um ask questions a lot of questions educate yourself on the process and do your due diligence find out he wanted to invest with do the background checks and also understand the deal fully excellent and you do a great job at that you really do help investors you have lots of content out there just to educate people in general you have an open Forum to ask questions I love that I love that thank you so much it's been an absolute pleasure to have you on the show how can people reach out to you and connect with you well I do have multiple portals but I LinkedIn the best way to connect with me and I would like to love to connect with anybody and all and also do I have my website and I do have a free ebook there seven reasons why syndications make long-term vows so anybody is welcome to download that and connect with me uh via the form on the website as well excellent we'll have all that information in the show notes as well thanks so much for being on the show vinki I truly appreciate you and your friendship as well you're wonderful Take Care thank you so much Matt I really um appreciate you and our friendship and thanks for having me on your podcast our pleasure bye-bye and that's a wrap thank you for listening to better returns brought to you by Hanson Holdings if you enjoyed this episode please leave a five star review because it helps others discover this valuable content if you would like to earn truly hands-off passive income go to where we help you invest in large apartment complexes to grow your family's wealth see you next week with another awesome episode have a great day