Monaz Karkaria | Florida Mastermind
Bill Fairman introduces a great guest in Monaz Karkaria. They discuss Monaz’s first presentation during CG.
It gives a glimpse of what to expect and how much can be learned during this event. Tune in to learn more about her experience during the event.
Carolina Capital is a hard money lender serving the needs of the “Real Estate Investor” and the “Small Builder” borrower who is striving to build wealth and generate income for themselves and their families. We offer “hard money rehab loans” and “Ground up Construction Loans” for investors only in NC, SC, GA, VA and TN (some areas of FL, as well).
As part of our business practices, we also serve as consultants for investors guiding them to network with other investors and educating them in locating and structuring transactions. Rarely, if ever, will you find a hard money lender willing to invest in your success like Carolina Capital Management.
Bill Fairman (00:00):
I have a great guest, Monaz. I tried to pronounce it several times and I’m trying, let me try. Karkaria.
Monaz Karkaria (00:15):
That’s fine. Karkaria.
Bill Fairman (00:17):
Is it correct?
Monaz Karkaria (00:17):
Bill Fairman (00:19):
It was close though.
Monaz Karkaria (00:19):
Bill Fairman (00:20):
So Monaz is, this was her first meeting here at the CG. She had a great presentation, oh I’m sorry, the camera’s over there, I keep looking at the stupid computer.
Monaz Karkaria (00:30):
Bill Fairman (00:30):
It’s my own fault, I’m the one looking down there too. But Monaz is out of Dallas, as you can tell by her accent, she’s from Texas.
Monaz Karkaria (00:40):
Bill Fairman (00:42):
What’d you think at your first meeting?
Monaz Karkaria (00:45):
I loved it. It was very interesting. I got to learn a lot, lots of nice takeaways, nuggets as I call it and I’m definitely going to continue and be back for more. So right now, all I see is a great group of people, I’m hungry to learn and grow my business and take it to the next level.
Bill Fairman (01:06):
And some of the things we were talking about is how giving the group is here because I was just on with Leon and how the community is always here to give. Now, you still have to be able to share because when you’re, you’re in a mastermind, if you’re the smartest person in the room, you’re in the wrong room.
Monaz Karkaria (01:24):
You’re in the wrong room.
Bill Fairman (01:24):
And it’s one of the things about the culture here at CG is that we’re all trying to give back as much as possible and if you run out of good stuff to say, you better go study something so you’ll have something better next time. So let’s talk about your business. You got started and single family, buy and hold and your original goal was what?
Monaz Karkaria (01:50):
Four. Four houses.
Bill Fairman (01:50):
How many do you have now?
Monaz Karkaria (01:56):
So I have 71. Three out of those are commercial deals, actually and they’re paying very well and I have one multi-family. So I feel I’m blessed.
Bill Fairman (02:08):
I think you have exceeded your goal.
Monaz Karkaria (02:11):
Yes. My goal keeps changing every couple of years.
Bill Fairman (02:15):
That’s one of the, listen, that’s all part of life. Things change, you can’t set the goal. I mean, you can set the goal up here, but you can only fit it in smaller increments. We were just talking about that again with Leon it’s, you know, how do you eat an elephant? It’s one bite at a time.
Monaz Karkaria (02:34):
One bite at a time.
Bill Fairman (02:34):
That’s the only way you can do it. So, how many markets are you in now?
Monaz Karkaria (02:40):
Right now, I’m in three markets in the US and I still have my original properties back home in India. So Texas, Indiana, and Florida.
Monaz Karkaria (02:50):
So I want you to hear this again. She still has homes in India that she owns and is renting out and if you’re afraid to get outside of your market, it’s not like she can get in the car and go drive and see it. Now, Monaz has one flaw in her real estate investing and that is she gets emotionally attached to her property.
Monaz Karkaria (03:16):
Yes, I’m working on that. Trust me, I’m working on it. I’ve come a long way because before, if someone would even come and say, do you want to sell your property? That would make me so mad that I would say don’t ever call me again and I will sue you if you’re calling me again. So from there saying, no, I’m not interested right now or maybe if you offer me double of market price, I think I’ve come along. And I do sell a few now. So yeah,
Bill Fairman (03:50):
Well a good investor is always looking at their portfolio and seeing how they can adjust that portfolio. So they don’t have too much dead equity. I like to say, lazy money. Because if you have too much equity in one property, you could take that money and all right, so let’s say you sell that property, maybe you can now buy two or three and double your cashflow.
Monaz Karkaria (04:21):
Bill Fairman (04:21):
Or you can refinance them and do the same thing. And as we all know, rates are really low and you can get really long terms that, you know, the issue is when you and you own as many properties as you do, you’re not going to qualify for the Fannie Freddie type loans but rates are still extremely low right now and if we could find a commercial banks, and there are some out there that will still do this, that will allow you a 20 year loan. Not one with a balloon or one with a call option so you can keep those for long-term at really low rates and we talked about this the other day too, about paying. Excuse me. Our friend, Aaron Chapman who’s been on our show quite a few times, talks about this a lot. Bing able to pay in today’s dollars tomorrow and in the future because we all know that today’s dollar is not going to buy as much stuff 10 years from now.
Monaz Karkaria (05:20):
Yes. It’s time value from money.
Bill Fairman (05:22):
So, if you guys can hear the thunder in the background, I’m pretty sure it’s not going to come here. This is just a normal sound of Clearwater. So
Monaz Karkaria (05:36):
On here, the wind is crashing on the rocks, maybe
Bill Fairman (05:39):
We can hope so. So, what was I going to ask you? I am so sorry. All right. So quit laughing at me, Jonathan. If you don’t have anything nice to say, even to yourself.
Jonathan Davis (05:56):
Bill, no one could have anything to say. You don’t take a breath, even when you don’t remember what you want to say, no one can come in and cause you’re talking about what you forgot
Monaz Karkaria (06:08):
By the way, Monaz, meet Jonathan.
Monaz Karkaria (06:11):
Hi Jonathan, how are you?
Jonathan Davis (06:13):
I’m good. How are you doing?
Monaz Karkaria (06:14):
I’m glad I get to see you.
Jonathan Davis (06:16):
Yeah, I know Bill and Wendy were excited to meet you.
Bill Fairman (06:21):
Jonathan is on this back porch with his little fireplace behind him. It’s 68 degrees and raining but he still decided to take it outside.
Jonathan Davis (06:33):
I thought, Bill, if you were going to be poolside, I was going to be fireside.
Monaz Karkaria (06:38):
Awesome. Is the fireplace on the wood?
Jonathan Davis (06:42):
It’s a wood one. So yeah, I’ve got some logs in there and burning.
Monaz Karkaria (06:44):
Bill Fairman (06:45):
You can’t see because they have his name in front of it. Oh there it is.
Jonathan Davis (06:48):
There you go.
Monaz Karkaria (06:48):
There, I see it now. Yeah.
Bill Fairman (06:52):
Yeah. Now you’re going to have to clean it out. I’m always thinking ahead.
Jonathan Davis (06:58):
That’s why we have a kid for.
Bill Fairman (06:58):
That’s right. They’re not old enough yet. Oh,
Jonathan Davis (07:01):
They’ll learn young. Come on, now. You got to put them to work.
Bill Fairman (07:03):
All right. So about your cashflow, what is your goal for cashflow typically when you’re buying a property that is going to have a leverage on it.
Monaz Karkaria (07:16):
Okay. So my minimum cashflow that I want from the property, I do the perimeter so I buy it with hard money and then I put whatever I need to put down. And my goal is to try and refinance it in three to six months as quickly as possible and once I refinanced it, my goal is to make minimum $400 or door. I make more than that. But if it makes less than $400, I don’t buy it.
Bill Fairman (07:44):
That’s pretty interesting. There’s a lot of markets where the goal is $200.
Monaz Karkaria (07:49):
I know, but at 200, so I have a system that I’ve developed where I have red, yellow, and green. So all my green properties are the ones that are making more than $400 so I’m going.
Bill Fairman (08:01):
Good reason to have them green, green for go.
Monaz Karkaria (08:04):
So I like it, I love those properties, they’re there. Then anything between 200 and 400 goes into the yellow zone and anything that’s making less than $200 a door goes into the red zone and those are the ones that I have to sell.
Bill Fairman (08:20):
That makes sense.
Monaz Karkaria (08:20):
So once they got red, I have to figure out how I can make it yellow if I can, by raising the rents or reducing costs. Sure and if I cannot, then in six months, I have to sell those properties.
Bill Fairman (08:34):
That’s a good system. Now, do you have any that are red now? Yes. Well, now’s a great time to sell them because the prices are out.
Monaz Karkaria (08:43):
Bill Fairman (08:43):
Monaz Karkaria (08:44):
Bill Fairman (08:45):
What markets are those in the United States?
Monaz Karkaria (08:46):
One in Miami, which is my retirement house. So I know it’s red but again, there’s an emotional to it. We bought it because we found it really cheap. We don’t know when we are going to retire but eventually we’ll retire. So even when I bought it, I knew it would be in the red and I’m fine with it being in the red because knowing, going in, I knew that we would have to pay something out of our pocket. The rent would not cover it because it’s a super expensive house so that’s fine. And then the second house that’s red is one that I bought for my daughter to go to college right by SMU, which is in Highland park, which is one of the most prestigious areas of Dallas. And again, I knew it’s going to be red. So there was no my red houses and next year I’ll be selling it cause she’ll be graduating and then I won’t need it anymore.
Bill Fairman (09:34):
Well, I can say the one in Miami, if you can look at trends in history, the Miami Fort Lauderdale market. There’s a lot of this. So if you can sell it now while everyone’s moving from New York, you can buy it back here fairly.
Monaz Karkaria (09:48):
I actually thought about it cause I’ve been talking to my real estate agent last week, we actually had this conversation. Should I just sell it now and buy something else in two years or three years when I’m actually ready to move and maybe we’ll actually do that.
Bill Fairman (10:06):
I just know from history, that’s not a bad play. The chances are it’s going to go down and then come back up again.
Monaz Karkaria (10:13):
Right. You’re right about that.
Bill Fairman (10:14):
Listen, thank you so much for joining me.
Monaz Karkaria (10:17):
Bill Fairman (10:18):
It was wonderful meeting you this weekend. I look forward to having to come back again.
Monaz Karkaria (10:23):
Bill Fairman (10:23):
Well, I say this weekend, we did it at the beginning of the week. It’s not the weekend yet.
Monaz Karkaria (10:28):
It feels like a weekend for us, right?
Bill Fairman (10:30):
I know you got a flight that you need to catch and I appreciate you taking the time to come up here.
Monaz Karkaria (10:34):
Bill Fairman (10:34):
In this terrible wind.
Monaz Karkaria (10:37):
Have a great day guys, thank you, bye bye.
Jonathan Davis (10:38):
Nice to meet you.
Bill Fairman (10:38):