Just when I was about to give up on the idea of a successful and healthy relationship involving family and money I found Meghna and Malhar Bhagat, a sister and brother team and founders of M2REST. M2 stands for Meghna and Malhar Real Estate Solutions Team. Located on opposite coasts, Meghna in Oregon and Malhar in New Jersey, this dynamic duo are full time real estate investors in several states. I was curious as to the dynamics of their relationship and how they make it work. I recently spoke with Meghna and Malhar for a heart to heart and discovered what makes them so successful. At the end of the day, it’s all about communication and respect.

Golda: Prior to real estate investing, what was your occupation?

Meghna: I had several part time jobs. I taught for the Princeton review as well as the Institute for Reading Development.

Malhar: Prior to real estate investing, I worked with my father in his jewelry shop.

Golda: Why did you decide to form this partnership?

Meghna: The most important thing, to me, is my relationship with family. I was hesitant about forming a partnership with my brother because I didn’t want money to damage our relationship. However, after some contemplation and some persuasion from Malhar, I decided to go for it. I realized that the things I want to accomplish require money and real estate is a way for us to accomplish those goals. One of our top goals is to retire our parents and allow them to live the lives that they would like to live. We want to see each other succeed and no matter what happens, we will be able to build income and wealth through real estate.

Malhar: The jewelry business was very stressful. I had been interested in real estate for a few years and seriously began exploring it as a business about a year and a half ago. I attended a Robert Allen seminar and made the decision to enroll in his Mastery program. My sister and I have similar goals so it was a natural fit. It has also allowed us to get closer than we have ever been.

Golda: What is it about real estate that excites you?

Meghna: Everything. There are two things that come to mind. First, every time we make money every one makes money…. the Realtor, the contractor, our lender investors, and all others involved in the project. The second is that this is a business that can happen anytime, and in any market. There’s always money to be made in real estate. It’s a fantastic people business and an opportunity to create a win-win situation for everyone involved.

Malhar: I think Meghna and I are thinking one word…Everything! (laughing). There’s so much opportunity. What real estate is enabling us to do is replace our income. Even people who don’t know anything about real estate understand that it’s a great opportunity, especially in this market. There are a lot of great deals available.

Golda: How do you separate the personal and business lives?

Meghna: It’s funny because we don’t have much personal time these days. When I am feeling anxious or stressed I can call and talk with Malhar and we don’t always talk about real estate. It really is seamless, it doesn’t feel like there needs to be a giant separation. I do carve out time to spend with friends. The reason our relationship works is because it’s personal. I love and respect my brother very much.

Malhar: We’ve become a lot closer since working together. I have no problem speaking my mind and though we don’t always agree, that’s all right because I feel very comfortable speaking with her. I also have a very active social life.

Golda: Could you explain how you are improving the communities where you invest?

Malhar: We recently placed a property under in Kansas City. It was located in a lower middle class urban neighborhood. We discovered that a prostitution ring was being run out of the home. The neighbors thanked us when they discovered we had purchased the property and were going to rehab the home. We were moving an undesirable element out of the neighborhood and (more importantly) bringing in a nice family in addition to potentially increasing the property values. We have been investing in areas populated with foreclosures. We go into these areas and clean them up. We give families a place to call home and raise their families at an affordable price.

Golda: You currently do business in Kansas City, Atlanta, Charlotte, and Indianapolis. What are your plans for expansion?

Meghna: This year the focus will be on strengthening our teams. We want to make sure we are all on the same page and we would like our teammates to feel ownership in what we are doing. For the time being we anticipate going into more markets if we need to.

Malhar: I see commercial properties following the same fate of residential real estate, so we are beginning to look at multi-units. With the current recession many small businesses are not going to be able to keep their doors open, thereby creating more opportunities for smart investors. What our business is enabling us to do is replace our income and increase our cash flow to a couple thousands of dollars per month.

Golda: Where do you see M2REST in 5 years?

Meghna: In the time that we have been working together, we have developed many systems. We have been discussing the idea of a franchise system. That way we don’t have to keep doing it all, it would be a true win-win situation. One key to success in this business is being flexible. I love the challenge of a new deal, and the new ways of pursing real estate. I want to stay on the cutting edge of what is possible in real estate while maintain a fair and profitable situation for everyone involved.

Malhar: I see the business continuing to grow. We want to leave a legacy of doing quality work with a personal touch. We also want to continue to help our investors achieve their goals and create passive income. In addition, we’d like to help build better communities and neighborhoods.

Golda: What have you learned about yourselves as a result of working so closely together?

Meghna: I’m always a big sister at heart. I still feel like I want to look out for him and make sure he’s taken care of. I am very grateful and aware of how much my parents and brother mean to me. I love my brother for his willingness to invite me to partner with him. My brother had his back against the wall and took a leap of faith into the unknown. When Malhar gets hold of something, he doesn’t let go. He wrote 150 offers before he got his first deal. I learned that sometimes you just have to go into the unknown. One of my mentors said “persistence + failure= success.”

Malhar: With Meghna’s help, I have learned to slow down and not sweat the small stuff. When I focus on the trivial things I can’t think rationally and Meghna helps me to evaluate all the options. Patience is something that I have been able to work on, both in business and life in general. I don’t need to stress out. Life happens and you just need to take a look at it and see why what is happening is happening. I also learned not to let anyone tell discourage you with their limited thinking.

You may contact Meghna or Malhar at www.M2REST.com.

By Golda Smith

Selecting a Health Insurance Plan to Compliment Your Lifestyle
The U.S. Census Bureau stated that 45.7 million Americans lacked health insurance in 2007. Consider for a moment the cost of not having health insurance. If you or someone you know has ever had a medical emergency then you understand the implication of not having any or adequate health insurance. Just one heart attack or car accident could cause you to deplete your savings and possibly file for bankruptcy. Illness and medical bills account for approximately half of the bankruptcies filed in the United States. Individuals without insurance are less likely to seek out preventative care and will often use emergency treatment as their primary medical treatment. This is not meant to scare you just to alert you that health insurance is an important part of your financial planning. Selecting the right medical plan for you and your family can be a daunting and timely process but consider the alternative.

There are four types of health plans available and they are:

Fee for Service

This plan allows an individual to go to any doctor or hospital for treatment, pay them directly and then receive a reimbursement of 80%. This is an example of 80/20 co-insurance. Plans pay for medical tests, prescriptions, doctors and hospitals, but may not cover some preventive care.

Health Maintenance Organization

A Health Maintenance Organization, HMO, is considered managed health care. For a monthly premium, the insured chooses a physician within the given network to provide their primary care and if they should need other services such seeing a dermatologist, who must also be part of the network, the primary care physician would provide the referral. Some HMO’s require a co-payment, while some don’t.

Preferred Provider Organization

A Preferred Provider Organization, PPO, gives the insured the freedom to see any physician they choose. If you see a doctor in the network you will pay a co-payment, usually between five and forty dollars. The cost of seeing a doctor outside of the network will increase the co-payment. Although the fee may be higher, some people prefer the right to choose their own physician.

Point of Service

A Point of Service, POS, is a combination between an HMO and a PPO. With a POS the insured has a primary care physician who can provide a referral for a specialist who may or may not be in the network. If your physician refers you to a specialist outside of the network, the insurance company will pay some or the entire bill. However, if the insured sees a specialist without a referral from their primary care physician, the insurance company may choose not to pay for the services.

Now that you know what your choices are you have to decide what’s most important to you. Is it the monthly premium? The choice of physicians? What is your medical history? Do you have a medical condition or anticipate having one in the future which would require a specialist? You also want to research what pre-existing conditions are covered in the plan you are considering. Depending on your answers you can narrow your selection. Kimberly Lankford, author of “The Insurance Maze: How You Can Save Money on Insurance and Still Get the Coverage You Need” (Kaplan Business, 2006), suggests researching your state’s insurance website.

Group Plans: Your group plan offered by your employer may be the most economical. If your employer does not offer health insurance or if you are self employed, investigate professional associations which allow members the opportunity to join a health plan. If you currently have a relationship with a physician check to see that they are listed in the health plan you are considering. If you must select a new physician, the American Medical Association is a great resource in which to check credentials. Also take into consideration the location and availability when choosing your doctor. Does the physician have more than one office? What are their hours?

Pre-existing Conditions: A pre-existing condition can include anything from a current pregnancy to a heart condition and all health plans do not treat them equally. Do not assume that your new health plan will cover your pre-existing condition although it may be covered after a certain length of time. If you were insured during the past twelve months or if you are joining a new group plan then The Health Insurance Portability and Accountability Act otherwise known as HIPPA, ensures that your pre-existing conditions will be covered.

Specialists: A specialist is a doctor who has received advanced training and education in a particular area such as cardiology, obstetrics, gynecology, or oncology. Are you currently or do you anticipate needing to see a specialist in the future? If so, what is the protocol for contacting the specialist? Will you need to go through your primary care physician? If you already have a specialist make sure that they are part of the health plan you are considering.

Prescriptions: This is a big one to consider. As people are living longer this is one area that we will need to consider when planning for retirement because as we age our use of prescription drugs will increase and you will need to plan accordingly. Coverage will vary from plan to plan. Do you take prescriptions on a regular basis? What’s the copayment? Can you get generic drugs which are often less expensive? If not, what how much will it cost you?

Preventive Services: Eastern medicine emphasizes preventive or holistic care rather than the Western philosophy which is treatment of symptoms. Preventive services can include Massage Therapy, Chiropractic Care, Yoga, Pilates, Drug and Alcohol Rehabilitation or Mental Health Counseling. Does the plan you’re considering offer any of these?

Cost: After you have determined what you want and need in a health plan what will it cost you? What will your investment be before the insurance company will pay? You will want to know if you have to pay your deductible before you receive any services or can you pay after? Can you get medical attention as often as necessary without incurring any additional costs or is there is set yearly limit? Often people will use the terms co-payment and deductible interchangeably when they mean different things. A co-payment is a set fee the insured pays for services received. There may be separate co-payments for each service provide. For example, you may have a $15 co-payment for every doctor’s visit, $50 co-payment for each day in the hospital, and a $5 co-payment for each prescription. Co-insurance defines how medical costs will be shared between the insured and the insurance company. A deductible is a fixed dollar amount paid by the insured before the insurer makes payments for covered medical expenses. The insurance will decide what it deems to be reasonable and customary care.

There are many things to consider when comparing health insurance plans. Read all the materials especially the fine print! In the end, after your thorough research, your plan should reflect your needs and priorities.

What exactly does it mean to live below your means (LBYM)? Simply put, it is a concentrated effort to save and spend your money wisely. It means understanding the difference between needs and wants. Why would anyone want to lbym? Well unless you know when you are going to die then you should be planning for your future and with the advancement of medical technology your chances of living an entire century is a very real possibility. LBYM can allow you finance items such as college expenses, a new car, retirement and gifts to charitable organizations. LBYM is a concept that can apply to all income levels. Here are my suggestions for LBYM and creating the life you want.

Change your belief. I can give you the most detailed plan on saving money; however, if you have a poverty mentality then you will not appreciate what I am sharing with you. You have to change the way you think about money. Earning more is not the key, keeping as much of it as you can if what counts. Money is your friend, respect it!

Become financially literate. This may be a first for you but if you want to gain control of your finances you need learn the language of money. What does your financial statement say about you? If you don’t know then this is the time to learn. A financial statement looks at your income, expenses, assets and liabilities. Go to www.myfico.com and order your fico score. This three digit number will determine your ability to borrow money and the cost of borrowing money.

Have a written budget. Every month is unique to itself and needs its own written budget. Account for every penny before it is spent. This way you tell your money where to go instead of the other way. If you find you don’t have enough, take care of your shelter, food, utilities, and transportation first. Go a step further and write your annual and lifetime financial goals.

Cash is Queen. If you can’t afford to pay cash, then you cannot afford it. If you don’t have the immediate cash, then save for your purchase. I’ve noticed that layaway has made a comeback, just be cautious of hidden fees. If you must use your credit card then make sure you pay the full balance at the end of the month.

Don’t pay retail. I didn’t say you can’t buy your labels but who says you have to purchase at the beginning of every season? First check your inventory and decide what few key pieces you need then purchase them off season. You are the only person that knows.

Balance the books. Save all your receipts and file them accordingly. This way they are neatly prepared and ready for tax time. Pick a day and time that you can commit to recording all your expenditures. I recommend ever week not less monthly. Whenever you swipe your debit card make sure you record the transaction in your checkbook ledger…ever time.

Turn off the television. We are bombarded by millions of images everyday trying to convince us to buy this that or the other. Turn off the television and spend time doing something that will increase your income. Start the business you’ve been meaning to. Attend a personal finance seminar. Just do something proactive.

Eat in. Or at least don’t eat out as often as you currently do. If you do eat out do so during lunch as prices are often cheaper. Can’t cook? Learn! If you can read then you can follow a simple recipe. Pick a theme, organize a monthly pot luck with friends and enjoy the company.

Get Minty. Mint.com is a free online personal finance tool. I recently discovered this site and find it very easy to use. I love it because it does not ask for any personal information. No social security, bank accounts, or pin numbers. Set up takes less than ten minutes and you are able to see exactly where you are spending your hard earned money. Did I mention that it is free?

Stop competing. Who are you trying to impress? Your children? They don’t care, they just want your time and love. Your family and friends? They need a financial bailout too. They Joneses? Must I go on? At the end of the day, what does your financial statement say about you?

Never lease a car. Low down payments and low monthly fees sound very appealing but will keep you in the poor house. If you really want a new car then save for it and pay cash. It is very doable but requires you to be patient and intelligent about your purchase.

Make sure you’re covered. Don’t be cheap! The least expensive insurance is not necessarily the one you need to have. Make sure your policy covers everything you need. Compare costs and benefits.

Have an emergency fund. To be on the safe side I recommend eight to twelve months in a liquid account, meaning you can get to it in a hurry. All the money that you are saving in other areas can go into this account. So when an emergency does come up you won’t panic about how to handle it because you will have prepared for it.

Mind your business. You get up every day and work hard making someone else rich. Why not put at least half of that energy into building your own business? In case you haven’t noticed, there is no such thing as job security so figure out what you love to do and do it. Take a class, write a book, stop making excuses.

Stop faking it. Ladies and gentlemen, we are adults. Be honest with your family, friends, and most important, with yourself. If the gang is going out for dinner and drinks and you did not budget for it, then gracefully pass. If getting out of debt is important to you then make it a priority!

Get involved. When you feel like you are without that is not the time to feel sorry for yourself. Instead that is the time to give. Give of your time, talent, or money. When you give without the expectation of receiving that is when you will be blessed. You can take that to the bank!

by Golda Smith

“The poor and middle class work for money. The rich have money work for them.”

-Rich Dad, Poor Dad