After graduating from college, the rat race started, and career and family interests took over. Old memories were pushed to the side. When my kids mingled with their friends carefree as just friends, not acquaintances, and not business partners, I felt a constant envy. These kids hang out regularly, stopping by each other’s houses, watching movies, eating together, and playing together.

I sighed. Why can’t I mingle with my friends the same way? It is difficult to recreate expectation-free friendships with new contacts. Getting past the “what is in it for me” and status comparison is a constant challenge. Corporate culture is inherently at fault. Conversations about promotions, salaries, cars, houses, kids’ education, and career growth, while providing a sense of pride, tend to alienate friends and adulterate relationships.

So, I started my quest to reach out to old friends with whom I interacted the same way my kids interact with theirs. I called on my friends from college to get together for a reunion in Phuket. I like to watch Indian movies with my wife. This trip was an enactment of the movie “Jindagi Na Milegi Dobara”. All of us graduated from the Indian Institute of Technology, Kharagpur. So we remembered incidents that had played out in films such as “Three Idiots” and “Chhichhore” from our college days. We named our group “Four Idiots”.

Now these guys run large companies, large teams, and whatever else they do for a living. But who cares, at least why ask, why bother? I don’t need or want favors. I want to hug them, walk with them, and touch their shoulder. Chat late in the night. Sing karaoke, play, run, hike, swim, dive, snorkel, and do so many things that I have not been able to do since college with them. It doesn’t seem very easy for a 52-year-old to feel young again. But that is what we did. Time just flew by.

We were deliberately blind to our professional leadership roles and took on mundane tasks for each other. One took on the role of a cook and prepared beverages for others, while the other became a photographer and a drill sergeant, pushing others to be on time and ordering everyone to do this and that… We talked about our children, receding hairlines, eye bags…

One of our batchmates died at a young age of 49 from a heart ailment. So, the awareness of our short lives sat heavy on our minds, and we did not know if this would be our last group visit.

I saw this group after 35+ long years. But as soon as I met them at the airport/villa, the gap of so many years melted away, and I was teleported as if inside a time machine to my 18-year-old self. We talked and talked and forgot that we had wives and kids since we felt like kids during the reunion. Whatever little mischief we did in Phuket stayed in Phuket. That was our secret and something to remember for years to come.

If you have read this post this far, live your life. Money, status, and everything materialistic can wait. Rewind, unwind, and feel young… it will inadvertently help you energize yourself to pursue your successive materialistic wins.

A toast to old friends!

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I just completed a business class flight from Chicago to Delhi via Vienna. At the time of booking my flight, I was apprehensive about traveling with Air India after reading about it in the media, including reports of clogged toilets, returned flights, irate customers, old aircraft, stubborn operational losses, and the indifferent demeanor of flight attendants. Further, with the recent closure of Pakistan’s airspace and numerous schedule changes before the flight, I became more nervous at the time of boarding. All I wanted was to reach Delhi safely. With the lowest expectations, I couldn’t have expected anything worse.

On the contrary, my flight experience was way better than what I have historically received at top-end all-inclusive resorts. First, the Air India mobile app provided up-to-date flight status notifications, allowing me to continue running my business from home and reach the airport just in time for the updated takeoff time. At the counter check-in, the staff gave me access to the classy airport lounge, where I could continue working and enjoy healthy, great-tasting appetizers and beverages. With priority boarding, I landed straight in a spacious, fully operational seat with a complete flat bed arrangement. The entire cabin crew was young, energetic, professional, fit, attentive, and overly enthusiastic to shed the old Air India image. I found their attitude refreshing.

The food menu was top class and, in a way, better than my recent visit to Caribbean resort restaurants. The long list of top-quality beverages to complement puts a feather in its cap. Too bad that I don’t drink these days. My selected, gourmet, mouthwatering fish entrée, paired with a hot beverage, at 30,000 ft above ground in international airspace, provided a surreal experience. After I finished my business tasks and was ready for my shut-eye, the attendant offered to prepare my bed with a sleeping mattress, blanket, and lighting arrangements. There was no difference between the sleeping experience at home and on this flight. After I deboarded the flight, I experienced no fatigue or stress, which is typically a result of long flights. As a side note, I would like to recognize Sheetal Aggarwal, the cabin crew member who attended to the business class customers on this flight. She and others are leading the Air India charge to restore the original Maharaja image, which was started by the same owner, the Tata Group, after a multi-decade gap.

Now, why am I raving about Air India? How does this experience pertain to the topic title, and what do I do for a living? Selecting distressed assets at a reasonable price for potential turnaround requires a strong heart, business acumen, a suitable skill set, and a management personality. Once a company has a success story with one acquisition, a repeatable model starts to develop, and they can begin looking for other acquisitions. The Tata group executed a similar turnaround earlier with the acquisition of Land Rover and Jaguar from Ford. (We won’t go into the Auto (Land Rover and Jaguar) acquisition turnaround (that will be for another day) and stay with the Air India story for now.) We acquire assets of our own at a much smaller scale, but the process involved is the same:

• Search for assets that are underperforming, with bad/disinterested management, with a lot of potential, and ones that can be turned around with our experience.
• Use past credibility to line up lenders and investors for the purchase.
• Get control of operations (maintain the status quo).
• Find the “lipstick” (to use the English phrase “lipstick on a pig”) that will immediately bring out the new look, showcase a new management point of view, and intent to turnaround.
• Prepare a list of changes and prioritize with the low-hanging fruit first
• Use the budget from the acquisition analysis and create additional funds to cover the changes. We generally use money from operations to avoid bringing in more seed investments. Tax breaks resulting from the loss of the current transaction can offset gains from other stabilized acquisitions.
• Improve operations, continuously bring in more revenue, and lower expenses
• Refinance/exit the business with a much higher valuation and then repeat from #1 above

Now, let’s see how the Tatas are working on steps 4, 5, 6, and 7.

#4 Lipstick – The purple scheme neatly complements the original red and brown colors of the previous Maharaja brand. The aircraft linen, seats, and walkways gradually bring out the newness to the old aircraft. The imperfections – scratches, wear and tear, dents, etc., can be “hidden” from the guests’ eyes by subconsciously urging them to look elsewhere. People who complain will complain, and it isn’t easy to please everyone. They will complain when using the other supposedly best airlines in the world. To entice customers further, the ticket prices can be adjusted to provide the most value for the money. Remember, with a lower cost base, Air India has more room for price adjustments.

#5 Prioritized Change List (constantly evaluating bang for the buck) –

1. Bring in a younger, passionate, modern workforce eager for work, and more aligned with the “change mindset”.
2. Bring in the best quality food and liquor for service, since that is much cheaper than buying and deploying new aircraft.
3. Compensate the new workforce better to improve customer service.
4. As long as the aircraft’s internal mechanics are good, continue making minor adjustments and repairs to the aesthetics. For example, if a high-quality duct tape can hide an imperfection, then so be it. Focus on the critical human essentials – water, sewer, air, food, beverages, timely departures and arrivals, and baggage service.
5. Add better-quality entertainment content (i.e., movies and shows, as opposed to electronics if the latter is difficult). Human senses (eyes and ears) start with the superficial, but then the content takes over and doesn’t care whether the screen quality was good, if the content was memorable.
6. Add freebies such as a small Tumi toiletry bag, sleepwear to further augment the memorable experience

#6 Budget for small and big-ticket purchases. Buying new aircraft is expensive, so start with token purchases with small down payments and later deliveries. Create room for small ticket investments with immediate returns and a positive effect on ground operations.

#7 Improve operations – Make money from the older aircraft as much as possible, while orders for the newer ones are in place. Attract new and lost customers, and use political pressure to secure favorable landing spots worldwide. Add economies of scale and sustainable measures to continuously reduce costs.

In our efforts to educate and cultivate entrepreneurship in the workplace, we hope you found this helpful article. There are multiple opportunities available, such as business for sale websites and multi-family property investments, where you can repeat the above steps and make a lot of money. That is, if you want to make money and not work for others.

# entrepreneurship #business

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I can build on this hyper-efficient mindset to optimally execute 8-figure purchase deals and 7-figure annual costs if I constantly optimize my small expenses. The same percentage savings on larger transactions can be substantial.

As a small business owner, I cannot afford to let complacency sink in. Staying lean is not an option. I write checks for $1000s daily. Home Depot and Menards purchases run into the $ 100,000 annually. Other expenses combined run into seven figures. We take on distressed properties and bring them to compliance. That requires us sometimes to replace stairs, balconies, heating, sewage, plumbing and electrical systems, roofs, and driveways, amongst other aspects of apartment living.

We must constantly evaluate buy vs. rent, in-house vs. contractor work distribution, volume vs. individual, deal opportunities with specific vendors, and other considerations that come to mind only when a frugal mindset is always in play. I still drive a barely $3000 SUV to my real estate locations so that the employees, contractors, and customer base vividly understand that we seek rents and look for lower costs “justifiably.”

When we work for someone else, we tend to focus on our immediate responsibilities within a Fortune 50, 500, or 5000-sized organization. Cost optimization is the least of our concerns, except for staying within our employers’ existing policies. But if and when it is time to venture out on one’s own, transitioning from a business-class, 5-star lodging travel to a more modest setup can be a challenge.

When you make the transition, I hope you can see why I won’t spend $1 more on one transaction but 6+ figure times more on others.

In closing, I would like to share an incident I encountered while reading about the legendary Warren Buffet’s way of thinking.

Warren [Buffett] was playing golf at Pebble Beach with Charlie Munger [Berkshire Hathaway’s vice-chairman], Jack Byrne [chairman of Fireman’s Fund], and another person. One of them said, “Warren, if you shoot a hole-in-one on this 18-hole course, we’ll give you U$10,000. If you don’t shoot a hole-in-one, you owe us U$10.”

Warren thought about it and said, “I’m not taking the bet.” The others said, “Why don’t you? The most you can lose is U$10. You can make U$10,000.”

Warren replied, “If you are not disciplined in the little things, you won’t be disciplined in the big things.”

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Undetectable leaks and clogs, corroded supply lines behind unobservable dry walls, sabotaged main drains packed with stones and dirt, compromised heating systems serving numerous tenant units, burst water supply lines during winter, compromised electric wiring, city pressure, unending tenant complaints, evictions, vacancies, and lawsuits, are just a few of the many blows that hit you many times on the same day.

How should one deal with such situations?

1) Reinforce self-encouragement. I tell myself, “I have handled such issues in the past. I can do this.”

2) Spiritual belief. The Almighty has provided a solution for every problem. Trust God and seek solutions instead of getting bogged down with the issues.

3) Emotion control. I display my stubbornness by saying, “Bring it on. Nothing can break me. I will stick around till the issue is addressed. Let others (tenants, city, cops) do whatever they want. I will fight alone if they cannot cooperate during these tough times.”

4) Lead from the front. I don’t shy away from stepping into the “nastiness” and help front-line workers as much as possible by running errands and opening my wallet to buy whatever tools or materials they need to find permanent solutions.

5) Cultivate strong ties with mentors, lawyers, city inspectors, industry specialists, vendors, and specialty retailers to ensure they answer your calls during and after hours.

The one-word response is the attitude that displays my character and attracts others to work with me to support my ongoing growth.

Running one’s enterprise full-time is not for the faint of heart. So, if you ever dream of being the man (or woman) on the top of the food chain, be prepared to take these blows. Be fearless! Trust that what you are doing is for the greater good. The world will automatically support you sooner rather than later.

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What happened in 2024? AI? US Elections?

How much of this is truly sustainable? What is the average P/E over a long-term period? Is it 20 or 30? Can the Nasdaq companies sustain the same earnings or higher for 46 years?

Maybe they will. But maybe not. Do you want to risk it all?

Ten million plus workers (technical and business) are in the tech sector. Much of their wealth (sweat and equity) is at risk and tied to the Nasdaq index.

This worker base can exploit the generational wealth transfer in real estate. Older landlords are unable to transfer their wealth and ownership due to estate tax, the younger generation’s indifference towards real estate, and myriad other reasons.

34% – a large percentage of the American workforce – immigrants (both legal and illegal), low credit score applicants, short-term stay residents, geographically uncertain, or frequently transferred – need rental housing.

Growing up, I learned that housing, clothing, and food are the three essentials for human survival. Do you want to invest in one of these three essentials rather than the next big “spin” from the tech giants? They will keep making money from these spins, but will you?

Something to think about when adjusting your portfolio in 2025!

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Life should be about adding value to others. However, protecting our interests and preparing for the “rainy day” are equally important. There is nothing wrong with working for others; however, we need to build a money cushion so that it works for us when we cannot work for it!

After about 25 years of experimentation, I have put principles of the BCG growth matrix and good poker player strategies to outline below a framework that may work for you.

Primer 1: BCG 4 product life cycle stages move from Question Mark to Star to Cash Cow to Dog. Companies use their current cash cow to identify and create future ones.

Primer 2: Texas Hold’em Poker bets start with small and big blinds, then increase based on the win outlook.

While employed, I used my salary and free time after work as a cash cow to invest in multiple ideas that appeared to be Stars. Nine out of ten initiatives failed, taking many of my small and big blinds. However, each initiative made me wiser, increased my network, and opened up other better opportunities.

The 10th initiative was a home run (from a two-unit property purchase bet to 100s under management and ownership).

After the 2008 crash, I started following Blackstone’s real estate investments and invested in two townhouses in 2013. As a poor low-level employee, I could only afford $100,000 then. So, I bought foreclosed properties with pesky issues and numerous city violations.

After renovations, those two townhouses seeded the down payment for two 6-unit buildings. The two 6-units urged me to go for the third 6-unit. After appreciation, each 6-unit supported the purchase of two 20-unit buildings. The 1031 exchange tax clause in real estate allows investors to transfer tax-free gains to sell and buy more significant portfolio properties simultaneously.

With the collaboration of other like-minded investors, I refinanced existing investments to buy an additional 40-unit complex, then another 27 units, and then another 83-unit complex. We kept buying distressed properties, turned them around, and sometimes operationalized units used as storage by previous landlords.

That same two-unit bet became so promising that I invested fully in it, using my 401 (k), all other stock exits, and full-time involvement, not to mention the employee base supporting this venture. I couldn’t have guessed that this bet would become so lucrative.

Early on, the transition from early six-figure to mid-eight-figure wealth was complex and uncertain. However, the wealth generation framework outlined here is still repeatable.

Keep testing the waters with small bets, using a cash cow that works for you. If you work hard enough and are patiently optimistic, you will find your Star.

The post Wealth Generation Framework for Personal Gains appeared first on Latviv.

When the above steps don’t work out, or boredom kicks in, the person looks for another job or starts a full-time or part-time business.

The energy level and aggression start dropping as the person progressively moves from their 20s to their 30s to their 40s and later.

Then the questions arise: why am I doing this? Am I able to enjoy life simultaneously? Is my family stable and getting my attention, love, and affection? Am I financially well off in case my skills get obsolete, my health suffers, and or, god forbid, other such outcomes?

If you are among the select few who have made millions and billions, the key question is: What do I do with this wealth? Uncle Sam won’t let me transfer everything to my kids.

Self-made rich people generally find it challenging to spend money since they evaluate the value of the purchases meaningfully. Is this Rolex, Bugatti, or Ferrari worth it? Do I need another faster Porsche if I cannot break speed limits?

I have faced these questions and concluded that it is best to keep doing what you are doing despite the extent of your wealth. The answer lies in Karma. We are here (on Earth) to serve others. More wealth, resources, and experience enable us to serve a larger group of people and make a difference in their lives.

As you wrap up 2024, I wish my network a happy, successful, productive, and satisfying 2025. In the new year, I hope to share ideas on financial freedom, real estate, and healthy living.

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Message to my network:
Please let me know if you want to grow your wealth while supporting it via the underlying real estate OR would like to talk and discuss health.

Not all of us are super CEOs leading billion-dollar companies. If you are part of middle management, running a small business/shop, or exiting a business, I can show you ways to get into real estate that you can manage on your own or through us.

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