The Untold Stories of Real Estate Investing - #43: Podcast #43 Sandhya Seshadri

20 Bullet Points to Choose From

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1. Introduction to the podcast and the host, Wayne Courreges III. 2. Guest introduction: Sandhya Seshadri, an experienced real estate investor. 3. Discussion on the challenges faced by real estate investors due to rising interest rates and lack of rate caps. 4. Importance of stress testing deals and evaluating property management practices. 5. Analysis of failed real estate deals in Houston due to poor underwriting and troubled locations. 6. Importance of reading and understanding the Private Placement Memorandum (PPM) for investors. 7. Focus on the details of the PPM and operating agreement when a deal is in trouble. 8. The significance of transparent communication with the sponsor syndicator. 9. Availability of monthly financial reports for investors, providing full transparency. 10. Understanding the impact of additional capital raised through a capital call on the deal's recovery. 11. Importance of assessing risks and potential outcomes when evaluating a distressed investment. 12. Communicating concerns with the general partners and documenting questions in writing. 13. Involving other LPs to add their voice and request a meeting to discuss problems. 14. Seeking advice from the syndication lawyer and obtaining original copies of relevant documents. 15. Writing a demand letter and requesting a meeting or webinar to get clear answers. 16. Assessing the deal and making an informed decision on whether to hold on or exit. 17. Considering the runway and potential future distress deals in the decision-making process. 18. Sandhya Seshadri's successful real estate deals that outperformed the S&P 500. 19. Importance of being sophisticated and informed as a passive investor. 20. Encouragement to be prepared to invest in distressed real estate opportunities and remain vigilant in evaluating investments.

Carlos Introduction Prompt

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Welcome to another episode of "The Untold Stories of Real Estate Investing"! In today's episode, we have a special guest, Sandhya Seshadri, an experienced real estate investor and expert in passive investing. With over 3,000 doors and $200 million in assets throughout the United States, Sandhya brings a wealth of knowledge and firsthand experience to the table. In this thought-provoking conversation, Wayne Courreges III, our seasoned host and commercial real estate professional, delves into the crucial topic of how to save a deal as a limited partner (LP). Sandhya shares valuable insights into the challenges facing passive investors in the current real estate market, including rising interest rates and troubled locations. She emphasizes the importance of transparency, stress testing, and effective communication with general partnership teams. If you're a passive investor or interested in gaining a better understanding of the world of real estate investing, this episode is a must-listen. Get ready to discover practical strategies for navigating challenging situations, spotting signs of distress, and making informed decisions. So grab your headphones and join us as we dive into the untold stories of real estate investing!

ℹ️ Introduction

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On this episode of The Untold Stories of Real Estate Investing, host Wayne Courreges III is joined by real estate investor and syndicator Sandhya Seshadri to discuss how passive investors can save a deal and avoid potential train wrecks in the current environment, where rising interest rates, insurance costs, and property taxes are creating challenges. The conversation covers topics such as stress testing deals, communication and transparency, private placement memorandum, and evaluating distressed real estate opportunities. Seshadri shares her experiences dealing with a train wreck deal and offers advice on how limited partners can communicate concerns and take action early. The conversation ends with a call to those with "dry powder on the sideline" to be ready to invest in distressed real estate opportunities.

🔖 Titles

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1. Navigating the Perfect Storm of Real Estate Investing 2. Unlocking the Secrets of Passive Real Estate Investing 3. Transparency and Trust: The Key to Successful Real Estate Investing 4. Surviving Troubled Waters in Real Estate Investing 5. Maximizing Returns with Distressed Real Estate Deals 6. Understanding the Financials of Real Estate Investing 7. Passive Real Estate Investing: Mitigating Risks and Evaluating Opportunities 8. Using KPIs to Enhance Real Estate Investment Success 9. When a Deal Goes Wrong: Effective Communication and Action in Real Estate Investing 10. Real Estate Investing in the Post-Pandemic Market: The Road Ahead

💬 Keywords

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real estate, negative cash flow, transparency, investing passively, interest rates, insurance costs, property taxes, distressed deals, financial picture, variance report, net operating income, mortgage payments, net cash flow, capital calls, path to recovery, budgeting, trust, general partnership team, limited partners, private placement memorandum, operating agreement, monthly financial reports, underwriting, break-even numbers, risk tolerance, signs of distress, declining financials, runway, KPIs, pandemic, train wreck experience, sophisticated passive investors, dry powder, distressed real estate opportunities, communication, net operating income, group investing.

📚 Timestamped overview

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00:38 Real estate experts talk on saving deals.

05:53 Real estate beats stock market; analyze KPIs.

10:48 Access all financial information with variance report.

35:00 Real estate deals saw good times end.

40:40 Assessing capital call risk for real estate.

44:56 LPs get involved, demand answers and action.

48:00 Opportunities in distressed real estate investments emphasized.

51:20 Contact me via Wayne, Facebook, LinkedIn, website, book.

❇️ Key topics and bullets

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Topics Covered in the Podcast:
1. Challenges in Real Estate Investing - Negative Cash Flow in Some Real Estate Deals - The "Perfect Storm" of Challenges for Real Estate Investors - Distressed Deals Available for High Returns
2. Transparency and Trust in Real Estate Investing - The Importance of Transparency in Building Trust - The Need for Access to Full Financial Picture of a Property - Scrutinizing Net Operating Income (NOI) and Net Cash Flow - Commercial Real Estate Investing Offers More Control Than Other Investments
3. Evaluating Investment Opportunities and Troubled Deals - Evaluating Private Placement Memorandum (PPM) - Communication with Sponsor Syndicator is Important - Importance of Monthly Financial Reports and Underwriting - Assessing Risks and Potential Outcomes
4. Taking Action When Deals Go Sour - Communicating Concerns with General Partners - Getting Other Limited Partners Involved to Request Clear Answers - Consulting Syndication Lawyer and Writing a Demand Letter - Considering Whether to Hold On or Quit
5. Investing in Distressed Real Estate Opportunities - The Importance of Communication and Transparency in Evaluating Investments - Being Prepared to Invest in Distressed Opportunities - Evaluating Financials, Net Operating Income (NOI), and Asking Questions.

🎞️ Clipfinder: Quotes, Hooks, & Timestamps

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Sandhya Seshadri 00:05:53 00:09:49

"Real Estate Investing: If we buy real estate and wait, we will probably beat the stock market in return."

Sandhya Seshadri 00:10:48 00:32:04

Real Estate Investing: "The net operating income is what determines the value of the property. [...] NOI net operating income, is it enough to cover your mortgage payment?"

Sandhya Seshadri 00:35:00 00:40:14

Common Mistakes in Real Estate Investing: "The real interest rate actually is more than six and a half percent right now, or 7% kind of rate. So I'm only required to pay up to that 5.25%, and then I get the remaining reimbursed, like an insurance policy, and so my deal is able to handle it."

Sandhya Seshadri 00:40:40 00:42:58

Real Estate Investing Risks: "What are the risks? What all things have to happen in perfect sequence for this to work. What happens if you want to sell the deal today and forget this capital call? How much money do we lose? Are we better off cutting our losses today?"

Sandhya Seshadri 00:43:10 00:43:31

"The Pros and Cons of Bringing Additional Influx of Capital: Diluting, and it's pushing you down. And sometimes they might bring it in as a layer of pref equity, too, in which case they get paid out first."

Sandhya Seshadri 00:44:56 00:48:00

Dealing with a Distressed Investment: "The more LPs get involved in terms of emails, phone calls, et cetera, you have a louder voice. so it's not just you that whiny annoying LP like a fly that they want to SWAT. It's all of you asking reasonable questions, requesting a meeting."

Sandhya Seshadri 00:49:48 00:50:32

Real Estate Investment: "Real estate is a long game. It's a marathon, it's not a sprint."

Sandhya Seshadri 00:50:49 00:51:06

"Financial Management in Business: Look at the income statement and look for trends." - "Don't worry if one month something happens. As long as a three to six month trend, it's happening in the right direction."

Sandhya Seshadri 00:51:20 00:51:46

"How to Connect with Immigrant Entrepreneurs: 'They can find me through our host, Wayne. I'm very active on Facebook and LinkedIn. You can also find me@engineeredcapital.com, which is my website...'"

Sandhya Seshadri 00:51:50 00:52:12

"Bestselling Book on Amazon: 'It's nice, light, fun reading and inspirational.'"

🎬 Reel script

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"Hey guys, it's [Your Name] here, and I just hosted an amazing episode on my podcast, The Untold Stories of Real Estate Investing. We had Sandhya Seshadri on to discuss how to save a deal as a passive investor. Here are a few key takeaways from our conversation: #1 - Check the financials and ask questions. #2 - Understand the private placement memorandum (PPM) and operating agreement. #3 - Communicate with the syndicator team. #4 - Be aware of potential risks and scenarios. Remember, it's important to be informed and take action early. And for those with dry powder, be ready to invest in distressed real estate opportunities. Thanks for tuning in, and be sure to check out the full episode."

👩‍💻 LinkedIn post

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In the latest episode of The Untold Stories of Real Estate Investing, Sandhya Seshadri discusses how to save a deal as an LP. Here are three key takeaways: - Real estate investing offers more control than other types of investments but requires trust in the general partnership team and transparency for building trust. - Passive investors should scrutinize the net operating income (NOI) and have access to the full financial picture of a property to understand the revenue, expenses, and path to recovery. - LPs who are seeing signs of distress in their deal should communicate their concerns with the general partners and make sure their questions are in writing. Get more insight on this topic and learn how to identify potential problems early on and take action by tuning in to The Untold Stories of Real Estate Investing. #realestateinvesting #passiveinvesting #LP #distresseddeals #transparency #trustworthyinvesting #control #podcasts #investors #realestateindustry

🗞️ Newsletter

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Dear podcast community, Real estate investing can be a lucrative investment opportunity. However, it can also be risky, especially when it comes to passive investing. That's why our latest episode of The Untold Stories of Real Estate Investing is worth your attention. In episode #43, titled "How to Save a Deal as an LP," our host, Wayne Courreges III, leads an interactive conversation with Sandhya Seshadri, a real estate investor with over 3000 doors and $200 million in assets throughout the United States. The topics covered in this episode include challenges in the real estate market for passive investors and syndicators, transparency, communication, and important KPIs worth considering. Seshadri stresses the importance of transparency in real estate investing. She encourages passive investors to ask questions, scrutinize the net operating income, and understand break-even numbers. In-depth knowledge and analytics are vital tools to evaluate investments, especially when it comes to dealing with unexpected challenges. The speakers also emphasized the importance of communication between the general partnership team and limited partners. Transparency is essential to build trust. When there are signs of distress in a deal, LPs should communicate their concerns with the general partners and make sure their questions are in writing. Sandhya shared a few steps if LPs are not satisfied with the answers received. Overall, the podcast offers insightful tips and strategies worth considering before you invest in real estate. So, whether you're a seasoned real estate investor or a novice looking to invest, be sure to check out episode #43 of The Untold Stories of Real Estate Investing, available on all major podcast platforms. Best, [Your Name]

🧵 Tweet thread

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1/8 Real estate investing is facing its share of challenges due to a "perfect storm" of factors such as rising interest rates, insurance costs, and property taxes. However, there are still opportunities for investors to yield high returns, especially in distressed deals. 2/8 Passive investors should be informed and ask key financial questions when considering investments. This includes analyzing a property's net operating income, variance report, and net cash flow. They should also assess the general partnership team's trustworthiness. 3/8 Transparency is crucial for building trust in real estate investing and avoiding potential "train wrecks." LPs should also understand the details of a property's PPM and operating agreement, including capital calls. Communication with syndicators is key for transparency. 4/8 Monthly financial reports should be fully transparent for traditional multifamily properties, and LPs should evaluate risks and potential outcomes before making investment decisions. If LPs see signs of distress, they should communicate their concerns with the GP in writing. 5/8 If satisfactory answers are not received, LPs can involve other LPs and request a meeting to discuss the problems and ask for clear answers. If this still does not work, they can talk to a syndication lawyer and write a demand letter with specific questions. 6/8 Sophisticated and informed passive investors can potentially save deals and spot signs of trouble early on. They should assess KPIs in the financials and take courses to spot potential problems. The discussion was prompted by the pandemic and a train wreck experience 7/8 With distressed real estate opportunities available, those with "dry powder on the sideline" should be ready to invest. Understanding financials such as net operating income and asking questions are key in evaluating investments. 8/8 Real estate investing offers more control than other types of investments such as stocks, but it requires informed decision-making. The outlook for real estate investing is still positive, and investors can reap high returns with careful evaluation and a transparent approach.

❓ Questions

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1. What are some key factors that real estate investors should be aware of when investing as a Limited Partner? 2. How do interest rates, insurance costs, and property taxes contribute to the challenges facing real estate investors? 3. What are the benefits of investing in real estate compared to other types of investments, such as stocks? 4. What are the biggest challenges facing real estate investors in today's market, and how can they overcome them? 5. What are some red flags that passive investors should look out for when evaluating real estate investment opportunities? 6. How important is transparency when investing in real estate, and what steps can investors take to ensure that they have access to all of the information they need to make informed decisions? 7. How can passive investors work effectively with general partnership teams to achieve their goals? 8. What are some of the most important metrics that investors should track when evaluating a potential investment opportunity? 9. Have you ever been in a situation where you had to save a real estate deal as a Limited Partner? What strategies did you use, and what were the outcomes? 10. In your opinion, what are the key takeaways from this episode for real estate investors who want to be successful in today's market?

🪡 Threads by Instagram

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Post 1: 🎙️ New Podcast Alert! 🏠 Tune in to "The Untold Stories of Real Estate Investing" for an eye-opening conversation with Sandhya Seshadri on how to save a deal as a passive investor. Learn the ins and outs of navigating the challenges in today's market. Don't miss out! #RealEstateInvesting #PassiveIncome Post 2: 💡 Did you know not all real estate deals are failing? Join our podcast episode as Sandhya Seshadri shares tips on saving a deal as an LP. Transparency and communication are key in navigating potential distress deals. Boost your real estate investing knowledge now! #PodcastAlert #InvestingTips Post 3: 📈🏦 Ready for a deep dive into real estate investing? Our latest episode features Sandhya Seshadri discussing how to save a deal as a passive investor. Discover the importance of stress testing, thorough due diligence, and transparent communication in the world of real estate. #RealEstateTips #InvestingInsights Post 4: 🏢💰 Seeking financial freedom through real estate investing? Our podcast episode with Sandhya Seshadri reveals valuable insights on protecting your investments as a passive investor. Learn how to evaluate deals, spot signs of trouble, and make informed decisions. Check it out now! #FinancialFreedom #InvestmentInsights Post 5: 🎧Calling all real estate enthusiasts! 📢 In our latest podcast episode, Sandhya Seshadri dives into the world of real estate investing. Discover how to save a deal as an LP, navigate challenges, and seize opportunities in today's market. Listen now for expert advice and guidance. #RealEstateEnthusiast #InvestingKnowledge

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