Table of Contents - The Multi-Strategy Approach to Real Estate with Ankur Puri
Dave Debeau [00:00:08] Everyone, this is Dave Debeau with another episode of the Property Profits podcast today, my special guest is Ankur Puri, Ankur's got a very, very interesting back story. Ankur is a relatively new Canadian who came to Canada in 2010 to study, to go to university. That's where he started. And then he got the real estate bug and drove in, feetfirst not really knowing what the heck he was doing, but he took he took massive action without much of a safety net. And since then, he has done many, many, many transactions. He's done a ton of no money down deals, creative real estate investing. And he does that himself. Plus, he helps other people do those kind of deals as well. So, Ankur, welcome to the podcast. Glad to have you on.
Ankur Puri [00:01:05] Thank you so much for having me on your podcast. I really feel humbled and honored to be here. Thank you.
Dave Debeau [00:01:10] Well, it's our pleasure to have you so anchor let people know a little bit about your story. You were telling me a bit of this off camera, but I want to it's really interesting. So tell us a little bit about how you got started.
Ankur Puri [00:01:20] Sure. So as I told you, I came to Canada in 2010 and my intention was to study and that kind of stuff. So I came here to do a two year course to be a chef. So professionally, I'm actually a chef. I can cook food, which is good news. And then I worked in a restaurant for a year as a manager, and that was in downtown Toronto as well. And I was not happy, obviously, with all of the students that I had with international students. As you know, we pay three to four times than what a student would. And then also taking care of my friends. And I don't have a background like I don't have parents or somebody here who can just take care of my expenses. I had to do pretty much everything on my own. So that's how I started basically working in a restaurant for a year. In the meantime, I always want to do real estate. And when I was back in India, the thing that I did when I was a teenager, I read the book called Reached Out for that. And that's where it all hit me. And the thing was, in India, the rules are different. The way things are happened to different, they don't have such a dynamic outlook of how things are here. It's more systematic here or in the US and stuff. So I always have this thing in my in my mind. If I ever go out, I would love to do real estate. So that always was in my mind when I came to Canada. I would like, hey, I'm here. Maybe I can try to do something. So that feeling just came out and I'm like, OK, you know what? If I really want to do this, I should just jump into it right now because I don't have time. I don't know how it's going to come out and what's going to happen. And I'm still young, so if nothing works out, I can go back and maybe do what? The dishwasher? That's fine. You know, at least I get the minimum rate. So which is good news. So I quit my job, took a bold step and with no safety net, like you mentioned that and I don't have any savings or I don't even have my own house.
Dave Debeau [00:03:05] Like you said, you had one hundred bucks in your bank account or something like that.
Ankur Puri [00:03:09] Yes. So when I started, I had some savings to go for two, three months because I saved from my job. And then I would like at least I'll be able to do one deal and it be fine. But every two weeks that I was going by, I didn't see any more money coming in. Everything was going out. And that when it hit me and I said, what did I just do? Why did I quit my job? I mean, I don't have to support. Eventually I stopped looking at my bank account because I'm like, it's depressing me. I would rather focus on real estate, try to do some courses, go to meet ups, try to speak to sellers, get close, did not work out. And eventually, almost after a year, I check my bank account and I'm like, OK, do you have money for my rent and all that kind of stuff? And I log in and I see ninety dollars and twenty five cents and I'm like, No, no, that cannot be true. So I dug out and again maybe it's 980, maybe nine thousand. No it's still nineteen dollars. Twenty eight. Twenty five cents. And I was so scared I couldn't even go back to that. My ticket is fifteen hundred bucks to go back so I don't have that privilege anymore and I can call money from home or anything. I have no support. I don't know many people here. I hardly know students or maybe one or two people that I just met. I just had one year at that time which turned out to be a consultancy, which was actually an assignment,
Dave Debeau [00:04:30] turned out to be
Ankur Puri [00:04:31] a consultancy. So I consulted the guy who basically do the deal in a way that I'm able to make the money. He's happy and so is the person who's buying it.
Dave Debeau [00:04:41] So you help somebody do an assignment, basically,
Ankur Puri [00:04:43] it's a little bit more complicated. So what happened is it was technically an assignment. I'll give you some numbers to make it simple. This guy had a townhouse and a couple. They were working at McDonald's. They didn't have enough money to cover all the rents. Their kids were like Little Seven, two kids. And that really helped me because he's like, you can buy my house. Everything is good, but I don't know where to take my kids. And it was around January, February. And I said, OK, let me see what I can do. So I said. What his mortgage was at three, 60, the house was worth around four hundred. After you do repairs of 20, 30 thousand, so it doesn't matter which investors buy it. There's no money for anybody in this deal and no investment can get into it. He's going to lose money. So what I did was I did I became a little creative. I got some strategies into it and I told him, if you are able to rent this house for me right at eighteen hundred, I can have you live here for a year. He said, I would love to do that because right now I'm paying over twenty five hundred. That will help me save seven hundred dollars. I can provide my kids. I don't have to tell my kids we are moving. One year is enough time for me to move back. So I said great. So I got one side settled that eighteen hundred bucks a month and I knew I did my calculation. If somebody buys a house you can get a cash flow. And I went to my investor friend and I said, hey, listen, I have this amazing deal for you. If you buy this property at three seventy, you have a renter in place already is going to take care of your rents. So it's going to give you a cash flow. And guess what? You don't have to do any renovations until he moves at. So all you have to do is put down just a down payment of 20 percent. So my question was damn happy because you had a cash flow and then he had a renter. No repairs, nothing. So that's how the deal worked out. I made my first ten thousand dollars, so everybody was happy. I got the house. He was able to live in the house for eighteen hundred dollars a month. No more stress with the mortgage, no more stress of losing his credit or anything like that. My investor friend, he was able to get a beautiful house in maqam in which he flipped after a year for one hundred thousand more. So he was way too happy and he made his cash flow too. And then I was able to net ten thousand dollars.
Dave Debeau [00:06:48] And you're able to keep the lights on for a while?
Ankur Puri [00:06:50] Yeah, actually that's when I started. And then I started getting into assignments, also wanting to fix conflicts where I get my investors and I don't put any money. And then most of my little cash, there's no mortgage involved. And then my term ends up three to six months and that's how we roll call.
Dave Debeau [00:07:10] So what's your main bread and butter strategy these days and what do you do primarily?
Ankur Puri [00:07:15] Well, the thing is, I do fix flips. That's my primary. But I do it with a twist. And the thing is, in every deal, the normally what you make is what you bought it for when you sold it for and your profit margin. That's what you make great. But I try to do a little bit more. So I do I bring a lot of strategies in the same deal, but I'm able to make a lot more money, just not the flip profit. So I have a flip profit and I have money that I would get on a second mortgage on the same deal. And I would do get some kind of grants from the city and all those things I out of all those things. So you start making, let's say, one hundred thousand, I might end up making twenty thousand on the same team. So that's how I actually roll in most of the deals. And then my mindset is pretty straightforward. If I'm not making at least one hundred percent, it's a waste of time for me. So I would not just bother to do it. It's making ten, twenty thousand. I don't have the time. That's how I actually do on that.
Dave Debeau [00:08:11] It's very, very cool. So you I think you're imagining that you find most, if not all of your deals off market, is that correct?
Ankur Puri [00:08:20] That's right. Ninety nine point nine percent deals are all of market. So I have my own marketing going on. I got a lot of dogs as well. I got a lot of deals, stuff like that. So I have made my connections that way. And then there are also a lot of sellers who have already dealt with me to try to them from the other people. They know the process is simple and all those things. And then I make sure that whatever they need and be able to give them. So I tell them when I speak to any seller, I'll tell them. My company is based on only two principles. No. One is how I can help you. Number two, can I make money helping you or not? I want to make money off you and can I help you? I tell them all the time. So I let them know I want to make sure that I'm able to help. If I'm not able to help you, I don't think I'm going to buy a property, but maybe I can give you some advice that can help you to sell it to somebody else or to get out of a situation. That's what I normally do. I'm not buying it. It's OK if I know something that can help the person.
Dave Debeau [00:09:17] I'm so angry nowadays. I mean, you know, especially in a hot market like Toronto, a lot of people have the misconception that there there aren't any good deals and it's hard to find motivated sellers and blah, blah, blah. Obviously, that's not the case or else you wouldn't be in business. So so what are some of the things that you find these days that are most effective for finding these motivated sellers? Can you give us a little peek at what your marketing machine looks like?
Ankur Puri [00:09:48] Sure. Well, technically, it doesn't matter what market. There are always people who are losing houses. And the only difference is in Canada, there's something called a privacy laws. You can really know who's losing their house until somebody comes up and tells you, hey, I'm losing my house, you don't know. You can win the average losing the house until he really tells you. And just the way things work here,
Dave Debeau [00:10:09] like down in the States, you can find lists of these. It's all public
Ankur Puri [00:10:12] knowledge in the US. I can sit here and I can just go on Zillow or something. I can see which one is Red House. And I know this one is in foreclosure. Albatros it's pretty. It's empty. Is on unlikely, but it's different here in Canada. So the difference is that now you have to reach out to them rather than, you know, your target audience. So you have to be very specific with the people because you can send out your mail. A lot of people say that, but you're going to be sending it to a million people and maybe there's only one person who's in trouble right now. You just spend a million dollars to get on leave. It doesn't make sense. So I stick to a lot of referrals. One of those is bad and I do a lot of ads. I have my website going on, so I do a lot of online marketing. I also do door to door. When I'm around, I see something. I just knock on the door, leads my flier or something. I have stuff in my car or my car or something or the other. I also try to get some more information on tax sales, that's all. The big thing here, so I've actually bought a property, which is it's a fourplex and I bought it for eight thousand dollars. It's possible things are there. Just a lot of people, they just feel everything is on MLS. Not really. MLS is something where the no one's buying. So they want evidence and by
Dave Debeau [00:11:31] everybody wants full retail price on MLS.
Ankur Puri [00:11:34] And then to be honest, I don't like to compete with people who have too much money, but they have no brains what they want to do with the money. So they end up spending too much and over bidding on something which is not worth. And I said, you know, you can take it, it's fine. Eventually be out of the game. But for me. So it's okay.
Dave Debeau [00:11:49] Excellent. Excellent. All right. Well, thanks for sharing a little bit about your marketing machine there now. It was interesting to me because I heard, OK, that first year you did, where you made your ten grand was basically an assignment, kind of that hybrid of an assignment. And then you talked about you've actually moved into doing fix conflicts with your twist on it. Typically buying properties, all cash. So obviously 10 grand wasn't going to make that happen. They had to use investor partners. So can you just briefly walk us through how did that process go for you at the beginning? How did you first start bringing on money partners?
Ankur Puri [00:12:30] Sure. So what happened is, as I told, like, I was losing a lot of deals, but in the meantime, whatever doing was I was building my buyers list so I would go to meet ups or either through someone's preference, I would say. And this is what I told myself and I literally quit my job. I printed my visiting cards and I told myself, I'm an investor, I flip properties. If you need deals or if you need to make money, you should come to me. So that's what I told myself and I believed in it. So whenever I would speak to any measure I would like, I would tell them I flip a lot of properties. If you want to make money, I can help you. I can do this. I can do that. So when I got into that zone, I was literally doing things as I'm actually doing it and I've already done it ten times. So my very first deal, it was actually all the way in Sudbury, which is four and a half hours from Toronto. That was my first class flip. And that one also turned out to be a lot of creative stuff that I did in that deal as well. Where I bought that property was a four plus one bedroom with an enclosed suite and stuff. I bought it for like seventy thousand dollars and the numbers were offering fixed up. It will be worth 160 to 180 somewhere around there. So I presented that deal in one of the meet ups and I had so many investors saying, I have the money, I can do it, let's do it, let's work together. And for me, it was a success, right. That even if I haven't done the deal yet, but I would like, OK, people believe in what I'm doing and they can see the number that I came up with and what I'm going to do. I have the picture so they know, OK, it's going to happen. So then I just chose one of those investors who connected with me the most. And then we went to and also in that deal, the creative thing was it did not have to come up with the full seventy thousand dollars, but the renovation cost up front because I made a deal with the owner where I will give her up for thirty thousand dollars. And so the upfront I'll give her forty thousand dollars and the thirty thousand will be a win to take back with no interest. Nine thousand dollars every month. What happened after a month. She's like, I just need the money. I don't care. I said, hey, I started the renovation. If you need that money that's fine. Instead of thirty thousand, I'll give you fifteen all in and then you take the name of the title as a lender.
Dave Debeau [00:14:47] You got a discount on the note immediately. There you
Ankur Puri [00:14:49] go. So is it a seventy thousand. I really want to give you a fifty five. So that was a great deal that turned out that we made fifty thousand from the back end and then of course we sold it eventually and then we made the money that we were thinking, OK, so that's how I made my first.
Dave Debeau [00:15:04] So what I'm hearing is, you know, as a new guy, you had a lot of you didn't have any money, but you had a lot of hustle, went out there. You weren't shy. You went out to all the meet up groups, had your business card, you said. And basically at that point, you're almost you're a couple of steps up from a bird dog. But you you're really trying to find the deals, get them under contract and then bring the opportunity. And then you're out and meet ups meeting active investors and saying, hey, I got this deal. I need a partner to work with me on it. And that's how I generated the interest,
Ankur Puri [00:15:40] because that's true, because for me was any deal that comes to me, I'm like, how can I make it happen? What is it that I can do? It can be beneficial not just for me, for my investor, even for the sector. So I would always think from a perspective, it's not just I want to make money and I don't care about other people. I want to make sure that, yes, I want to make money. But that's the last thing. The first thing is how can I help the seller? Second thing is, how can I have investor and am I still able to make money
Dave Debeau [00:16:08] by listening to Sarah? OK, well, that example there where you had the vendor take back financing and you needed the money and then you got a discount. Aren't you ripping that lady off?
Ankur Puri [00:16:18] Not really, because at the end of the day, what happened is she's the one who agreed. I just gave her an offer I can give an offer of, say, I buy a property for ten thousand if you agree to it. That is that is what the property's worth. See, the difference is that if you go and buy a table, you buy a chair and everything. There are certain prices. But there are two things. One is properties and the other thing is diamond. The only price is what someone's willing to pay. That's just the way it works. So if he's OK to take the fifteen thousand and then leave the fifteen thousand on the table, I'm not going to say no. She could have come back and told me
Dave Debeau [00:16:56] you might have if she had to negotiate a little harder.
Ankur Puri [00:16:58] You might have he could have got more. But I told you, this is what I can do. She said, OK, then I don't need to say, oh no, no, you should negotiate and take them. Ten thousand.
Dave Debeau [00:17:06] She needed cash now a lot more and more cash later,
Ankur Puri [00:17:11] because instead of waiting for 30 months to get that thousand dollars every month, she's getting 50 up front and she was happy with that. So I said,
Dave Debeau [00:17:20] no, you're preaching to the choir here, my friend. It's just that people really get their knickers in a knot about that factor. Time flies when we're having fun, my friend. You'll have to have you back on the show again at some later time and and dig into this a little bit more. Now, I know you offer coaching and mentoring and things like that, but just briefly, if people want to find out more about you. Yes. Maybe get a hold of you, what can they do?
Ankur Puri [00:17:44] OK, so they can go on my website. It's called Inc.com. I have everything set out there. What do I offer for mentoring and what is it that they look at? And for me, if I want to make sure that I'm able to help them, it's not about how much they're going to be charged and everything. I want to see people successful because I believe I can do it. They can do it to all the some of my mentors. I've made tons of money, which is amazing. And I'm look forward to help others as well to six months course. So it's a great outcome where they can go in. And I would also love to give a little gift to your audience, if that's OK. Sure. So on my website, I have a series of eight videos which unstrategic strategic mastermind videos that I use in my business day in, day out so they can have free access to that. And also the dealer analyzer that I use in my own business to analyze the deal, to see if it's going to make money or not. And that's what, around five hundred or so. But it's all free for your audience, so love them to go on it and hopefully help somebody who is able to take action.
Dave Debeau [00:18:46] Alison, Margaret, thank you very much. I appreciate it. Thank you. Thank you for tuning into this episode of the Property Profits Real Estate podcast.
Ankur Puri [00:18:55] See you next very much every day for having me on your show. Appreciate it.
Dave Debeau [00:19:00] Well, thanks very much for checking out the property profits podcast. You like what we're doing here. Please head on over to iTunes, subscribe read us and leave us to review it. Very, very much appreciated. And if you're looking to create a regular flow of inbound investor inquiries about your real estate deals, then I invite you to attend one of my upcoming live online demonstrations. And you can check that out at Investor Attraction Demo Dotcom Ticker.