How a Civil Engineer Is Building Affordable Housing Through Real Estate Investing

Kassam Bhegani (00:00)
Jackson is one of the quietest corridors in the Southeast region, if not the nation. ⁓ Jackson’s been in the news over the past five years or so with ⁓ infrastructure issues, lots of concerns when it comes to his outdated utilities. ⁓ but there’s been a lot of conflicts also on the political side, ⁓ from the city, the state, been some issues on that. Navigating through those ⁓ and establishing the right relationships, we’ve been able to kind of sieve through the weeds here and get to

what the nexus of the problems are.

Issa Hanna (02:02)
Welcome back everybody to another episode of the Real Estate Pro Show. And today I have somebody I’m so excited to talk to. Somebody I cannot wait to pick his brain about. Kassam Bhegani Kassam, welcome to the Real Estate Pro Show. How are you, brother?

Kassam Bhegani (02:16)
I’m doing well. I’m doing well, brother. Thank you. Thank you all for having us.

Issa Hanna (02:19)
Anytime, man. I mean I’m super excited. Thank you for letting me host you. ⁓ so first thing, ⁓ for people that don’t know what you’re doing right now in the real estate world, give us a rundown on what what you got going on.

Kassam Bhegani (02:31)
Absolutely. So our primary focus is investing in emerging markets that are in need of housing inventory, single family, duplexes, and multifamily developments. And so with my background in civil engineering and my co-founder’s background in landscape design, we’ve taken our experience as retail investors to come together to start a fund that ultimately can do what we believe in at scale.

And so we’re focused on investing in Jackson, Mississippi and Nashville, Tennessee to provide affordable, attainable, and workforce housing.

Issa Hanna (03:04)
Beautiful, beautiful. And ⁓ I we were talking earlier and I said you and your business partner with your backgrounds are like peanut butter and jelly. So with that though, not everybody ⁓ just walks into the real estate world. You know, you don’t grow up saying, Hey, I wanna be a real estate guy. Some people do, but not everybody. ⁓ how did young Qasim get into real estate?

Kassam Bhegani (03:26)
man, it he said it really stems from my experience working with my father, who was a fence contractor. So he owned a fence contractor business for about twenty years. And so summers and winters were obviously spirit working with dad, helping the family business not only operate but hope grow over time. ⁓ working with him, I I really got my first feel on a mini version of land development. He would quite literally take a

a standard looking home and beautified with this custom wood of fence designs. From there I really got involved in ⁓ saying, hey, well, like math, I like roads, building bridges, let’s get into civil engineering. Once I started taking a few classes, I came across studying the real estate market because here in Nashville, ⁓ the impact of the major real estate crash in two thousand seven and two thousand eight had unique implications in this market. While I was just a junior in college, I realized

Hey, what I’m studying right now has a lot to do with infrastructure, utilities, ⁓ structural design, building envelopes. That’s real estate. That’s property development. I want to be on that side of the equation. Well, God’s allowed me to do a few mathematical equations and all that on this side, but what can I do to better myself to be on the ownership side? And and that’s what really led me to do some independent studying of real estate, ⁓ seek out mentors, advice, and any information I can get my hands on leading to

my first land purchase in December of twenty seventeen. A very small ⁓ baby parcel in a small town outside of Nashville called Columbia, Tennessee. I purchased that for a little over a thousand dollars, ⁓ paid a few fees on it over the next year or so and was able to actually sell it for about twenty four thousand. And it was at that point that I realized, okay, it was very real to me. All the preparation, the studying and kind of evaluating other deals and

reading myself, it became very, very, very practical to me. And I said, This is where I need to be, this is where I can bring value and really help shape and improve communities.

Issa Hanna (05:25)
Definitely. And one thing that stuck out and we touched you touched a little bit about it ⁓ with the background, this peanut butter and jelly partnership you got with ⁓ with your partner Khalil, ⁓ shed some light, man. How’d you guys link up?

Kassam Bhegani (06:26)
⁓ man, we linked up through a good brother named Ben Thomas. If you’re in Nashville and you’re in the entrepreneurship space, you know brother Ben, and Ben is quite the connector. ⁓ Ben connected, Khalil, to me, we hit it off right out the gate. ⁓ he’s born and raised in Jamaica. His background is in landscape design and also has an MBA. And so you combine the technical proficiency that I possess in civil engineering with his design competence.

And our business acumen, bread and butter is a perfect way to describe it. You know, we’re really jamming out. ⁓ we are able to we have the same core values around impact investing. ⁓ and as we first began to meet ⁓ and talk about what are we seeing as far as not only our careers and our investment goals, but what is needed in various communities, what is needed that will improve the quality of life of, you know, different citizens across different markets.

And we just hit it off wheel. And so, yeah, i he has an eye. He has an eye for how the curb appeal should look, obviously, with the landscape design. I have an eye for how the quality of the structures and what ways in which we need to consider laying out a property and the zoning and entitlements and permitting that comes along with developing ⁓ land. And and and everything in between has really just been great. We both believe in off-market deals and strategic relationships.

in order to access lower cost, lower barrier investment opportunities for not only ⁓ the everyday user, but also new investors who are new to the space and may not have fifty thousand, ⁓ a hundred and fifty thousand to invest into a fund or otherwise may not be a high net worth individual. We have that level of relatability and I believe that again, it is we’re just getting started and we’re we’re we’re well on a pace.

Issa Hanna (08:14)
Definitely. And when a partner ha shares the same beliefs, and just talking to you, I know that you hold yourself to the utmost integrity. And ⁓ I’m sure your partner does too. So with that, ⁓ excuse me, with that, every real estate investor has a nightmare. and and I always ask everybody because it’s definitely good to hear.

the broad spectrum of things that could go wrong in real estate. So give me a time where you had a nightmare and then you overcame it and what you learned from it.

Kassam Bhegani (08:48)
Okay, I always go to a tax sale property that I purchased in twenty twenty one. Great deal. Great deal. But I’ll start out by saying it started out like a nightmare. I mean this it turned out to be a dream of a return. ⁓ the end buyer and user, everyone’s happy, but in the beginning tax sales the audience may not know, but there’s what’s called a ⁓ th th there’s marks on the title, right? You have to go and do a ⁓

Essentially a confirmation suit to give proper notice to any of the heirs, prior owners, or anyone that may have rights to that property. Well, in the jurisdiction I was investing in at the time, the title was ⁓ the title work was done incorrectly by the city. We didn’t realize that the confirmation suit was not already completed. Once we acquired the property through the tax sale process, we go to sell the property, do an off-market deal, thinking everything’s great.

We get under contract, all to find out that it’s not a clean title. It’s not gonna be able to work. And so, yeah, we’ve we’ve got ⁓ a potential buyer who is now worried, concerned. We have our reputation on the line. It it it came into a big, big issue where there were over seven children, still living children, who were heirs to this property. Some lived in

the the South somewhere in the Midwest, it was a absolute nightmare to track everybody down. We had to mobilize three different attorneys across four different states. ⁓ very expensive. It ate into the margins, it ate into just the timeline. But at the end of the day, coordinating with the attorneys, being in direct communication with the city, ⁓ having a level of accountability that they had to uphold. ⁓

they were able to take on the cost in the jurisdiction in which we bought it because it was their miss. And so how to overcome it was through communication, coordination, and accountability. And not being afraid to maybe hold even a whole city or municipality accountable for their shortcoming and and pushing that that point. And so at the end of the day, the title was was cleared, the confirmation suit was completed, we’re able to transact the property, the same buyer that was under contract four months prior

still stuck around to purchase it which really spoke to not only their patients but also maybe the relationships that we had built in the in that city. So I was pleased. It it turned out good. ⁓ they were able to then redevelop the property and get a ⁓ a a tenant ⁓ lease and and not be something that was out of that was attainable. It was an attainable rent rate. Everybody along the deal chain remained practical.

not getting greedy, which I think is the best way to do real estate.

Issa Hanna (11:26)
Definitely. And you mentioned impact investing. ⁓ for people that don’t know, define that for our viewers, please.

Kassam Bhegani (12:07)
It impact investing is defined by what impact you’re not just making on your top and bottom line. Right. We’re gonna do that. We’re in business. Cash flow to a business is like blood flow to a body. If you don’t have cash flow, you’re not gonna stay alive. So I don’t wanna get caught up in something that’s not profitable. This is very profitable. We’re gonna make sure that that’s considered. But we’re also gonna have KPIs that include job creation, quality of life improvement, right? Proximity to ⁓

other elements of life like work and play. We’re looking at the pipeline towards home ownership, which is sometimes a barrier for our lower middle class to lower class income earners. How can we help the American dream become a reality for those in which credit, down payments, and even just the home purchase readiness is not really there. And so a renting to owning pipeline is what is part of that typically in impact investing in real estate.

But overall, you’re measuring more than just the financial metrics. You’re measuring the quality of life or the impact on the community.

Issa Hanna (13:07)
Who better to run that than a civil engineer, right?

Kassam Bhegani (13:09)
our our literal training and experiences to serve the general public. So th this is just in line. You know, we we have a nonprofit, a STEM nonprofit that focuses on community outreach, STEM workforce development. And so giving back to the community is at the core of who I am, improving ⁓ the overall well-being, quality of life, and generational wealth opportunities for just the people is is really what’s in my heart.

Issa Hanna (13:35)
Definitely. And ⁓ you know, sometimes all people need is that education. All people need is to be told this is how you do it, because not everybody grows up knowing how to do it or or having a role model that they could watch and see. So ⁓ man, I applaud that. That’s that you’re empowering everyday people to get into this field that can make people, like you said, generational wealth. So just like I said, the a man who is

honorable man, you know, and and not just somebody that’s after the money. That’s that’s who you are. ⁓ with that, we’re gonna segue into ⁓ what do you see the future holds for your business, you and Khalil?

Kassam Bhegani (14:13)
wow, 2K developments, what I see in the next five to 10 years is hitting every one of our strategic goals, which is really embedded in the name. 2K Developments is an O to the names of the founders, Khalil White, Kassam Bhegani. But our long-term goal is also in the 2K. It’s 2,000 affordable, attainable, or workforce housing units doors by ⁓ in the next 10 years. So we’re looking at somewhere around 2035.

If we can beat that in 2030 by, of course, connecting with other like-minded investors, then it’s a very, very attainable goal. But that’s where we see ourselves. doing more partnerships, ⁓ not only in just joint ventures, partnerships with investors, but getting public and private partnerships in place because there’s a ton, a ton of opportunities to align with the strategic economic plan that most of the cities around the nation have.

Affordable and attainable housing is a housing crisis. It is the crisis of today. ⁓ we’re all experiencing inflation. We’re all experiencing ⁓ lease and rent and mortgage creep. I don’t even like to call it creep. It’s an outright it’s a outright, you know, skyrocket, but it’s a real crisis and aligning with folks that see the same things is is the best way to get there.

Issa Hanna (15:25)
No, definitely. ⁓ and you know ⁓ the future being having such a great goal, having such a high goal like that, being such a worker, ⁓ we talked earlier, son of Ugandan immigrant, partner is you know, Jamaican descent, ⁓ blue collar guy, first generation American, you grew up, you took advantages of the system.

And and you’re building something and now you’re just giving back to not just your community, but everybody who grew up, maybe in a similar background. So I definitely applaud that. I love that about you. with that though, you’ve been able to build a great network, a huge network of people. ⁓ great, great business partner.

Please tell us about him and then how you’ve been able to build your successful business relationships.

Kassam Bhegani (16:54)
Well, I the networking and relationship building is something I saw my mother and father do growing up firsthand. My mother was very well connected throughout the church and the community. My father well connected throughout the community and his business clients. Most of his business clients became friends and buddies. ⁓ so if he built the fence for someone around town and in in some of the quote unquote backyards of Nashville Finance, these folks typically became family friends. And that’s by me watching him by not treating a business as just business. It is

a value add. It is a a real service to your fellow man, your fellow woman. And so that’s really at the the the the base of what I saw and what is normal for me. You couple that with, you know, training, networking, books and all these other things, and and it and it becomes very, very genuine and strategic. ⁓ brother Ben, Ben Thomas, to shout him out again. And also my brother yes and my brother Shabir Bhegani, these are the type of men who

Just it’s something natural about them. They’re they’re they’re gonna mention the name of the business and who they know in whatever room they’re in. They’re very good. These are like business development experts. They don’t even have to have the training or the background. It’s who they are. So my brother and Ben have been connecting, me, our partners, all of the ventures that we have together with like-minded folks for nearly a decade at this point. And so really connecting with the right folks is important.

⁓ anything that I will share with the audience is get involved in different groups. Go to the local real estate investment group. Get involved in the different societies and organizations, whether it’s in your career or in real estate. Urban Land Institute is one of the best communities to join, but you also have many, many more based on wherever what’s going on in your city. Tap it into those local chapters is the best way to do it. But I also encourage folks link in.

If we’re not on LinkedIn and we’re not networking heavy on there, then you’re probably gonna be missing out. And lastly, my approach to networking, I am involved in in multiple sectors. Purchased a child care center in twenty th thirteen and a few more since then. ⁓ I’m involved in engineering. I’ve earned my Bagana Engineering Consulting Firm since twenty twenty. We just celebrated six years, thank God. And ⁓ doing well there. But being in multiple sectors is what I would recommend.

for anyone, especially if you’re in real estate, and even more if you’re a real estate developer. You’ll need to know how to communicate with your your your local councilman, aldermen. You’ll need to know how to go into the zoning and permitting office. So having that public political type of network is important. You’ll need to know how to in ⁓ connect with the technical advisors and and and and consultants, architects, engineers, contractors. ⁓ and also of course finance people.

So networking with bankers, private lenders, private equity people. So having a diverse, you know, ⁓ black book is super important and is going to be essential to ⁓ especially real estate investment or land development.

Issa Hanna (19:49)
Definitely you gotta get out there and and talk and meet and and like you said, get get everything covered, you know, that’s some great advice, great, great advice. So we talked about Jackson, Mississippi. ⁓ you said it it’s a great place. ⁓ let’s hear about Jackson.

Kassam Bhegani (20:07)
Jackson is one of the quietest corridors in the Southeast region, if not the nation. ⁓ Jackson’s been in the news over the past five years or so with ⁓ infrastructure issues, lots of concerns when it comes to his outdated utilities. ⁓ but there’s been a lot of conflicts also on the political side, ⁓ from the city, the state, been some issues on that. Navigating through those ⁓ and establishing the right relationships, we’ve been able to kind of sieve through the weeds here and get to

what the nexus of the problems are.

What is the community needing and how can we be of service to solve those issues? ⁓ Jackson right now is a heavy, heavy renters market. And so if you’re looking to be a long-term rental portfolio owner, this is a great place to join in, tap in with 2K Developments and Bhegani Engineering and White Landscape and Design, and you’ll be able to be plugged right into the ecosystem. We know exactly where the off-market deals are, who the best realtors are.

One of our realtors is featured on HGTV and and owns network, or an associate of ours who’s like an advisor, is a retired realtor and CPA. He’s owned hundreds of properties for almost 20 years. He’s 80 years old. He and he’s still kicking. He still does sightwalks with us. ⁓ and local contractors, because I do believe if you come into an outside market, you should work with those who are already inside the market. Bring those opportunities to the people who are there.

And that’s how you actually impact the community in a good way. Jackson is the best place for that. Lots of ⁓ state and federal funds that are coming into Jackson in particular and the surrounding smaller cities. And we also have a major tech hub that’s being developed that’s gonna really, really bring ⁓ lots of job opportunities that are livable wages. So Jackson is a place to be. It’s similar to Nashville in maybe twenty ten, twenty eleven. Imagine Nashville in that point, but Jackson was already a bigger city. So that at at

at like a certain scale, I think Jackson can be a place to be in the next five to ten years.

Issa Hanna (22:04)
Okay, and if we got some investors who ⁓ who hear this and just got excited about Jackson and and you in general, where can they get a hold of you, Ankhalil? ⁓ plug time. Let’s go you got the floor, let’s do it.

Kassam Bhegani (22:17)
Okay. Okay. You’re going to hear a few names here. I don’t want us all to say the course, but of course it’s 2K number two. K Developments. That’s with an S. Find us on all your social platforms. On Instagram is the best way to actually tap in with us. We also have our email, [email protected] That’s the best way. Reach out to us, shoot us a note, ⁓ and we’ll be happy to connect with you. We have a capital raise coming up for our Capital Street Fund one.

And wish we’re doing a modest $500,000 raise in order to develop three duplex properties. Once we do that, we’re gonna mobilize a much larger project. But tap in with us, we’d be love to connect. We also have I’d like to give my personal information. Kassam Bhegani Jr. is my Instagram, and of course, we’re on LinkedIn at Kassam Bhegani. That there you’ll find my background, the work, the value that I’ve added to various ecosystems from my career as an engineer all the way up to my

My experiences, my career as a business owner the last ten years. ⁓ and then lastly I would say is just shoot out to me. I’ve got the same phone number since two thousand and seven. So ⁓ six one five four one six two seven six seven. I urge you to text me because if it’s an unknown number, I’m gonna assume it’s spam or you know, some sort of jump call. I’m sure everybody gets those now and then. But a text would be great and I’ll be happy to connect. We’ll come right to me, we’ll be in touch.

Issa Hanna (23:38)
So if you guys are interested in anything Kassam got going on, especially in Jackson, make sure you link up. Make sure you get you connect with him because ⁓ he he’s not a greedy guy and he will plug you right in. So ⁓ with that, Kassam it’s been an absolute pleasure to have you on my show, to have somebody with such a wealth of knowledge about not just real estate, but all different aspects that tie in together. So with that.

I would love to thank you for coming on again. And if you guys enjoyed my conversation with Kassam and want to hear more just like this, make sure to like and subscribe. I interview people every day that could bring us different knowledge on every aspect of the real estate world. Until next time, the Real Estate Pros are out.