Episode Summary:
In this episode of Real Investor Radio, host Jack BeVier interviews Malhar Bhagat, a seasoned real estate investor based in Atlanta. Malhar shares his journey from starting in real estate during the Great Recession to becoming a successful investor and lender. He discusses the evolution of his business, the challenges faced in the current market, and the importance of adapting to changes, including the integration of AI in real estate and property management. The conversation also covers the significance of short-term rentals and ADUs in today’s real estate landscape, as well as insights into market trends and future opportunities.
Overview of Episode 93
From Rock Bottom to Real Estate: Malhar’s Rebirth
After the 2008 crash, Malhar Bhagat had $100 to his name. However, he had good credit, and guts. Accordingly, he invested $40,000 into real estate education using credit cards. His first rehab in Charlotte was a baptism by fire. The contractor quit. Everything that could go wrong, did. Nevertheless, he cleared nearly $19,000. That win sparked his belief: this business could work.
Building a Business on Grit and Geography
After that, Malhar tried rentals in Indianapolis. However, $800/month in cash flow wasn’t enough. Consequently, he shifted to flips in Atlanta. Not only did Atlanta offer better margins, but it also had strong job growth and net migration. Eventually, he moved there full-time. Altogether, those early years built a strong flipping foundation.
A Family Operation: Fixes, Flips, and GC Licenses
Soon after marrying, Malhar convinced his wife to move to Atlanta. She thrived in construction management. Eventually, she became a licensed general contractor. As a result, they vertically integrated their business. She handled construction. He handled capital and deals. And both flourished.
Market Lessons: Adapt or Die
Between 2017 and 2023, they spent up to $50K/month on marketing. Yet, after analyzing KPIs, it was clear: ROI was dying. Therefore, they cut spending and doubled down on networking. Similarly, they leaned into what worked – relationships.
Why Private Lending Became the End Game
Another key point: in 2018, Malhar started lending. Being that traditional hard money lenders demanded monthly payments, he created friendlier terms. Notably, he has funded over 300 deals and repossessed only two. Furthermore, because he understands construction, he underwrites with safety in mind. Lending became the final pillar of his vertically integrated model – investor, contractor, agent, lender.
Harder Projects, Higher Payoffs
Given rising competition and thinner margins, Malhar pivoted to more complex flips and ground-up construction. Additionally, he avoided saturated areas like Atlanta’s West Side, instead focusing on high-end East Side flips. As I have shown, deeper renovations made him stand out when the “lipstick on a pig” rehabs failed.
Why AI in Real Estate Is a Game-Changer
HostBuddy AI slashed Malhar’s short-term rental communication costs from $1,200 to $169/month. AI in real estate didn’t just improve service—it remembered everything. Hence, it became a must-have tool. For Malhar, AI in real estate isn’t optional. He believes, “Use it or become obsolete.”
Scaling Short-Term Rentals With Precision
Malhar built 26 Airbnb units in just 18 months. If … then logic shaped the strategy: if they hit 20 units, then they could hire full-time help. And they did. Furthermore, AI supported growth without ballooning costs. In this case, technology didn’t just help—it multiplied his output.
On ADUs and the Power of Curiosity
Malhar was one of the first in Atlanta to secure permits after zoning changed to allow Accessory Dwelling Units (ADUs). Because he read market shifts nationally, he acted fast. For instance, in places like Austin, the “parent-child” lot concept inspired him. Thus, ADUs became a wealth-building strategy through both cash flow and potential future sales.
Today’s Market: Softening, Yet Full of Opportunity
Despite some market softness—even in hot neighborhoods—Malhar remains bullish. After all, as Warren Buffett says, “Be greedy when others are fearful.” Accordingly, he believes now is the time to buy smart and hold tight. In contrast to 2021, today’s edge lies in careful underwriting and flexible operations.
In Summary
Malhar Bhagat’s story is a masterclass in resilience, reinvention, and readiness. His journey spans the crash, cold calls, capital raises, and now—AI in real estate. Whether you’re flipping your first house or automating a rental empire, his message is clear: adapt, evolve, and stay curious
