Real estate investing offers cash flow, but at what risk? Praveen Varshney joins us for a second time to speak about his passion for this asset class.
Praveen started his career focusing on public venture capital deals, particularly in the resource and tech space, but for the last fourteen years, he has diversified into various real estate properties and projects.
In this discussion, Praveen gets into why he loves real estate, the different asset classes he has experience in, and how he structures deals using partnerships and private company arrangements. He sheds some light on what to look for before joining syndications, as well as the typical locations and multifamily asset classes he prefers.
We also discuss Sarmaya Capital which is one of the partnerships that he’s acquiring real estate assets with. You can check out their website at www.sarmayacapital.com
And a thank you again to Praveen, for joining us a second time.
KEY POINTS FROM THIS EPISODE:
The opportunities for cash flow and intergenerational wealth offered by real estate.
Tricky aspects in the hotel game due to it involving the management of several businesses.
Investment deal types: private companies, GP/LP structures, publicly listed equities, and REITs.
Preferred deal types driven by capital and investor requirements: corporations vs GP/LPs.
What to look for before investing in potential syndication deals.
Asset types Praveen works in: hotels, apartment buildings, retirement homes, RV parks, etc.
The value of using a clustering strategy to generate scale in markets.
Ways to drive revenue increases with lease renewals and renovations.
Risks to investing in real estate: interest rate growth, over-leveraging, etc.
A case for renting and making cash flow investments rather than buying a house.
Global trends tending toward hesitations around ownership.
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