Sridhar Sannidhi, a seasoned IT professional with a Master’s in Information Management, brings 28 years of expertise. Managing over $125 million in assets, he co-sponsored 1329 units across 5 Texas multi-family communities. With active investments surpassing $100 million in 4300 multi-family unit syndications nationwide, Sridhar excels in Financial Analysis and Statistical modeling. Renowned for his commitment and collaboration, he enjoys travel, film, and actively engages in charity activities.
Here’s some of the topics we covered:
- Sridhar’s Background In IT
- Attending Events to Network With Like-Minded Investors
- The Analytical Type of Person
- What’s More Important? Networking or Studying?
- The Blueprint for handling Investor Calls
- The Right Property Manager Is The Key For Success
- Where Sridhar’s Assets Are Located
- Finding The Right Partner For You
- Getting Over The Fear of the First Deal
To find out more about partnering or investing in a multifamily deal: Text Partner to 72345 or email Partner@RodKhleif.com
Full Transcript Below
00:00:00:00 – 00:00:24:22
Rod
Welcome to another edition of Lifetime Cash Flow Through Real Estate Investing. I’m Rod Cleef, and I’m thrilled you’re here. We’ve got an extremely seasoned and very nice guy here today. His name, sweetheart Cindy and Sweetheart is in about 350 million in assets under management. I think that’s right. And over 2100 doors, you already owned 600 under construction and you’ve actively invested.
00:00:24:29 – 00:00:32:09
Rod
Also, I’m assuming in an LP capacity and a whole bunch thousands of units as well. So you’ve got a ton of experience. So we’re going have a lot of fun today.
00:00:32:11 – 00:00:33:20
Sridhar
Sure. Yeah.
00:00:33:23 – 00:00:35:06
Rod
Well, welcome, my friend. Welcome.
00:00:35:09 – 00:00:37:29
Sridhar
Welcome to the show. Thank you. Thank you for having me on the show.
00:00:38:01 – 00:00:52:05
Rod
Yes. And I. I appreciate you coming down for this. Why don’t you you know, let’s start the way we normally do, just by having you tell my audience your background. And, you know, I where you came from and why Real estate. So, yeah, give us.
00:00:52:08 – 00:01:16:20
Sridhar
Sure, Sure I am. I was really born in India and then I came to this country in 95. I’m an 80 professional by nature. I was in I.T. for 30 years. I worked in Wall Street it for 18 years, and I decided and relocated to Texas. Ten years back. I was working with large companies like Oracle and Google, and my last, uh, company was Google.
00:01:16:21 – 00:01:46:29
Sridhar
So I when I was at Oracle, I realized that in 2000, um, 14, 15, I think there was a lot of changes happening. The technology landscape was changing towards cloud and on a lot of people were uh, uncertain whether the jobs will be there or not. So at that point I felt that I should start something as an entrepreneur and have some income on the side in case something happens in future.
00:01:46:29 – 00:01:47:15
Sridhar
I will have.
00:01:47:15 – 00:01:49:16
Rod
To win in 2014 or 15, somewhere around.
00:01:49:18 – 00:01:56:21
Sridhar
Somewhere around that. And the easiest thing was like building up the single family portfolio. That’s what I thought.
00:01:56:26 – 00:01:58:12
Rod
Oh, is that how you started?
00:01:58:15 – 00:02:05:10
Sridhar
No, but I didn’t. I was not able to buy a single, single family after trading for 18 months. Wow. So then I gave up.
00:02:05:13 – 00:02:06:15
Rod
Where were you living at the time?
00:02:06:15 – 00:02:07:23
Sridhar
Sorry, Texas. The Dallas.
00:02:07:23 – 00:02:08:13
Rod
Dallas got it.
00:02:08:13 – 00:02:29:01
Sridhar
So then I said, it’s not the way to go. So after trying for 18 months, if I wanted to scale up and really build a sustainable passive income cashflow, it would take decades for me at that rate. So that’s when I thought I should go for the big and bold. So I was looking for commercial real estate at that time.
00:02:29:03 – 00:02:44:04
Sridhar
I attended a few events over the weekend. I felt this multifamily was much better and then I looked at notes, looked at hospitality and looked at, uh, warehouses and all that.
00:02:44:04 – 00:02:50:09
Rod
So if you looked at my notes, you looked at maybe doing hotels and other other asset classes. But yes.
00:02:50:14 – 00:03:09:27
Sridhar
Yes. And then I felt multifamily being more dependable because it’s and that’s the city class. I feel that there won’t be that much of seasonality with that necessarily. GLASS I was not sure where to start. I started looking in the bigger focus because when I was searching for the single family, Bigger Pockets was one of the big portal.
00:03:10:02 – 00:03:31:23
Sridhar
Yeah. So in that one, a couple of syndicators posted their deals basically. I mean, not they cannot post the deals, basically said that if you are interested in passive income and come see us type of thing. So I followed a couple of, uh, groups and they invested in one of them. After three months, I got my first check, so I got excited.
00:03:31:23 – 00:03:37:14
Sridhar
I said, Oh, if I do it passively itself, I’m getting ticks. What if I do actively? I will get a bigger check.
00:03:37:16 – 00:03:39:15
Rod
Okay. Right now, like the way you think.
00:03:39:17 – 00:03:59:11
Sridhar
So that is how it started. And then after that, I started attending more events and one of the events I found a partner and we decided quickly to go ahead and buy multifamily from that decision to action. It took two months.
00:03:59:13 – 00:04:00:01
Rod
No kidding?
00:04:00:02 – 00:04:01:01
Sridhar
No. Yeah.
00:04:01:01 – 00:04:03:01
Rod
So is he still your partner?
00:04:03:03 – 00:04:03:16
Sridhar
No.
00:04:03:16 – 00:04:05:28
Rod
Okay. Okay. That’s how you got started.
00:04:05:28 – 00:04:09:23
Sridhar
And that’s how I got started. But I did, uh, five deals with him.
00:04:09:23 – 00:04:11:09
Rod
Five deals? Okay. Okay.
00:04:11:11 – 00:04:16:18
Sridhar
Later on, he went for bigger and bigger ones. So I said, uh, I don’t want to be in that.
00:04:16:20 – 00:04:20:14
Rod
You pushed your, your your, your, your envelope.
00:04:20:20 – 00:04:33:10
Sridhar
Yes. Yes. And also, when you go for bigger deal, you need to build a team. So I was not comfortable with some of the partners that I said. I don’t want to be in that I see syndication. So I see that’s how I got separate.
00:04:33:12 – 00:04:36:18
Rod
Got it, Got it. Well, keep going. I’ve got two questions. I’ve got lots of questions.
00:04:36:18 – 00:04:49:21
Sridhar
So then we closed on a 96 unit deal. It was a $3 million parties and 1.2 million raise. So I was not sure whether I would be able to raise the money.
00:04:49:23 – 00:04:53:09
Rod
Oh, sure. Your first. Your first big raise. Yeah. Oh, yeah. That’s always scary.
00:04:53:09 – 00:05:01:09
Sridhar
Partners for underage. Luckily, I was from technology background. My plan B was to liquidate me. Right?
00:05:01:12 – 00:05:04:21
Rod
If you didn’t raise the money, you were going to go into your IRA. Yeah.
00:05:04:23 – 00:05:27:11
Sridhar
So that was option? I thought. So. That’s why I was comfortable. Okay. Each of us put for four 400 K and it would be 1.2 million. Luckily, I called to my close friends who have some other entrepreneurialism talks, right? So I asked them if they will be willing to join me in this one to my surprise, all said yes.
00:05:27:13 – 00:05:29:22
Rod
Every one of them. Yeah. So I love it.
00:05:29:24 – 00:05:37:28
Sridhar
So I raised maximum in that deal. So the other two other two outright remaining and then we closed it down on that one.
00:05:37:28 – 00:05:40:11
Rod
And when was that first deal? First big one.
00:05:40:13 – 00:05:43:18
Sridhar
Uh, it was in 2019, 2019.
00:05:43:18 – 00:05:44:24
Rod
Okay. pre-COVID.
00:05:44:26 – 00:05:56:11
Sridhar
pre-COVID. So we still have the deal. We did a major lift of that one. Like when we bought that one, around 36 units were gutted down. Completely.
00:05:56:13 – 00:05:59:28
Rod
Completely down. Wow. Yeah. So. So you got a great deal then?
00:05:59:29 – 00:06:03:29
Sridhar
Yeah, I’ll go. We thought that value. That means it has to be to that level.
00:06:03:29 – 00:06:17:01
Rod
Oh, you like to do a value add deal. It had to be destroyed. Wow. Okay. Well, you’ve learned since then, so. Wow. Your first deal at 30 down units. Oh, you you learned a lot of lessons in that deal, then?
00:06:17:03 – 00:06:20:16
Sridhar
Yes, definitely. Definitely. I can write a book on it.
00:06:20:16 – 00:06:21:12
Rod
Yeah.
00:06:21:14 – 00:06:26:20
Sridhar
So a lot of surprises, too. So. Yeah, but I know it quickly did.
00:06:26:22 – 00:06:33:14
Rod
Yeah, sure. You didn’t have enough of enough CapEx budgeted for the thing. I’m sure you were low on that. Yes, in my career. Yes.
00:06:33:15 – 00:06:46:29
Sridhar
Yes. Luckily, there’s a smaller deal. We could take that money and bring it to normal. See, now all of them are up and running. All the units. Sure, it’s doing well now. So of course, stabilized, but we are waiting for the exact right time.
00:06:46:29 – 00:07:06:15
Rod
But but, you know, not now. No. Anybody that’s selling now has to sell. Yeah, but but yeah, back to that. You know, when you do that as your first deal that is trial by fire, when you’re taken on a plate property that needs that much work heavy, call it a heavy lift, not for the faint of heart and lots of mistakes.
00:07:06:15 – 00:07:36:11
Rod
And sometimes that’s the only deal people do if that’s if it doesn’t go well. But. But you got through it and hear it. Look at you now. I mean, good lord, 350 million under management. That’s incredible. So back to your i.t. You know, experience and a lot of super successful people in this business come from that space. There’s a lot of money in that space and, and you know, and all those people are very analytical so they understand the benefits of investing passively or even actively in multifamily.
00:07:36:11 – 00:07:37:19
Rod
Would you agree with me?
00:07:37:21 – 00:07:59:17
Sridhar
Yes, that is correct. And most of the i.t. Folks do analysis paralysis, right? Right. So for me, my family has a business back home. So I am very familiar from childhood home. My father used to quickly take decisions on certain aspects, so I picked that skill and based on that I did not go in depth on things. Right.
00:07:59:17 – 00:08:04:07
Sridhar
And usually I go by five or six parameters. I will take that decision. Yeah.
00:08:04:10 – 00:08:26:01
Rod
Now that’s unusual for son because you’re obviously very analytical as well. And you know, I will tell you, some of my most successful warriors are super analytical and they’re the hardest to get to make a decision. They have to check off every single box, but they’re super successful when they do and I push them and I use the analogy, you know, imagine driving across the country at night with your headlights only seen 60 feet in front of you.
00:08:26:04 – 00:08:46:26
Rod
You know you’ll make it. Other people have done it before you. You may have some obstacles, but you know you’ll do it. And it’s the same way with this business. But you but you got to take that first step, that first leap of faith. So so, you know, talk about team for a minute because you had that partner, you know, you only about five deals with him.
00:08:46:26 – 00:08:54:13
Rod
But did you have complementary skill sets when you’re looking to get in a partnership? Talk about that a little bit. Give it give a little background. Yeah.
00:08:54:13 – 00:09:24:29
Sridhar
So the partner competition even then and now also I look for complementary skills but sure. So for me I can take any role. So I really can determine like if I have to work extra hours and doing certain things, I can be hands on as well as look at the high level strategies too. So the first deal, obviously the other partner has more experience, but he was buying smaller units like 20 to 30 units like that.
00:09:25:01 – 00:09:27:22
Sridhar
This was the first the bigger one for him too.
00:09:27:24 – 00:09:32:06
Rod
Okay. So of course you learn together on. Yeah, I learned at trial by fire. Yeah. Okay.
00:09:32:09 – 00:09:43:20
Sridhar
And the other partner is more like a numbers so I can do numbers also but I is for some people they have a lot of patience to go through numbers. I don’t have too much patience.
00:09:43:22 – 00:10:02:27
Rod
Interesting. Okay, so. So you’ve got both skill sets then you’re not just analytical. You can do the numbers and I’m sure do them quite well because you’re i.t background, but you’re, you’re actually more like my role where I’m kind of the mouthpiece, you know, I’m out there building relationship chips, raising money, broker relationships, all of that. So would that be accurate statement?
00:10:02:27 – 00:10:03:10
Sridhar
Yes.
00:10:03:10 – 00:10:22:11
Rod
Okay. Got it. Yeah. And that’s by the way, guys, when you get into this business, you need both those skill sets. You need you need a numbers cruncher you need because this business is primarily empirical. You get the numbers right and you ask all the right questions. Pretty hard to make a huge mistake, but the you know, the other pieces, it’s relationship driven.
00:10:22:11 – 00:10:35:05
Rod
You know, I tell my warriors, my new students, that, you know, when they come on into the program, I tell them building relationships, ships with other warriors is more important than actually even learning the business, because this business really is a relationship driven. Would you agree?
00:10:35:06 – 00:10:40:28
Sridhar
Yes, definitely. Yeah. Yeah. Sometimes one small connection through a relationship can change.
00:10:40:28 – 00:11:01:26
Rod
Huge change. Your life can change your life. Yeah. Love it. Did you go to meeting she last week? Yes. Oh, you were there? Yeah, I had major FOMO. I couldn’t go. I said to my team members I wanted to go so bad, but I’m dealing with some investor stuff right now. Partner. Actually, partner stuff. I’m dealing with a partner issue, which is why I asked you about team and partner.
00:11:01:28 – 00:11:13:19
Rod
But so you are actively involved in the acquisition piece on the, on identifying an asset, evaluating it, and then, and then you’re involved in the due diligence as well.
00:11:13:21 – 00:11:18:25
Sridhar
Yes. I go, um, if the property is large ones, right, then.
00:11:18:28 – 00:11:19:18
Rod
Bring in a property.
00:11:19:18 – 00:11:26:16
Sridhar
Man like a 400 units and I don’t walk to every single unit, but at least I walk like 40, 50 units to have an idea.
00:11:26:19 – 00:11:29:08
Rod
Oh, so you don’t bring in a property management company to walk every one of them?
00:11:29:10 – 00:11:35:12
Sridhar
No. We had third party property management company and third party inspection company. Okay, go through and give us the report.
00:11:35:13 – 00:11:41:20
Rod
Okay? Right. Right. You don’t personally walk each one is what you’re saying. Yes. Got it. Same here. Yeah. But you bring in people to walk each.
00:11:41:20 – 00:11:42:01
Sridhar
Yes.
00:11:42:05 – 00:11:58:20
Rod
Because you never know what you’re going to find. I mean. Exactly. We bought a 403 unit asset in Shreveport, Louisiana, the bane of my existence. And and discovered when we did walk all the units that there was a ton of flooding and mold. I mean, really bad. Really bad. And we wouldn’t have known if we hadn’t walked them all.
00:11:58:20 – 00:12:05:19
Rod
So thank God we did. But so you’re involved in that. You’re involved in the raising the money, Of course.
00:12:05:19 – 00:12:06:03
Sridhar
Yes.
00:12:06:07 – 00:12:26:08
Rod
And talk a little bit about that. What are some of the things you’ve done to build your network with investor speak about strategically, some of the things you’ve done? Because obviously I’ve got my podcast I can talk about Deal Skeeter, by the way, Screaming Deal in San Antonio right now on that note. But but but talk about some of the things you’ve done to build a database.
00:12:26:08 – 00:12:37:09
Sridhar
And so I did not do too many podcasts, too many like webinars and all that. My investor base grew organically.
00:12:37:12 – 00:12:38:18
Rod
Through through networking.
00:12:38:18 – 00:12:41:22
Sridhar
And through networking and mostly through referrals.
00:12:41:22 – 00:12:42:26
Rod
Through referrals. Yeah.
00:12:42:26 – 00:12:59:15
Sridhar
Oftentimes when somebody invested in my deal and the way I respected their interaction, I, they liked it and they referred a few more like that. I started with maybe 200 people and that was my phone book that when I started.
00:12:59:18 – 00:13:00:19
Rod
Rolodex, it was called.
00:13:00:19 – 00:13:04:27
Sridhar
Index. So now I have close to 3000 and my that of 3000.
00:13:04:27 – 00:13:06:10
Rod
That’s fantastic. Yeah.
00:13:06:11 – 00:13:08:10
Sridhar
All grew silently.
00:13:08:12 – 00:13:25:22
Rod
Nothing tastic. No, that’s fantastic. You know, you do you pay an investor back and you give them a little bit of return and they tell everybody, you know, if it’s a little more than than you estimated Now, if it’s a dollar less, you’re you’re a scumbag. But if it’s a little bit more, then they tell everybody. Would you.
00:13:25:22 – 00:13:46:23
Sridhar
Agree? Yeah, agree. I agree 100%. The way I treat investors is this simple. So when I invest somewhere, what do I need? Like from the other sponsor? Like if I invest in a company in the stock market, I look for the monthly report, a quarterly report of that company. That’s something that I try to emulate. The same thing here.
00:13:46:23 – 00:13:51:01
Sridhar
Like basically I try to have a monthly investor call. They can ask open.
00:13:51:01 – 00:13:56:21
Rod
Monthly investor call. Yes. Oh, that’s a lot. We we we send an email every month, but we just certainly don’t call over.
00:13:56:22 – 00:14:07:12
Sridhar
I do send emails every month. Okay. I do send emails every month. Every month. Second Sunday 6 p.m. without fail I have investor call for past 40 years.
00:14:07:16 – 00:14:16:04
Rod
Okay. But you. So you do one for the whole database. You don’t do one per property. No. Got it. Okay, so it’s just a Q&A for your investors.
00:14:16:07 – 00:14:23:03
Sridhar
I first 15 minutes I talk about general conditions, pre condition and all that.
00:14:23:05 – 00:14:30:08
Rod
Oh so like macroeconomics, what’s happening in the country and with interest rates and debt markets, capital markets, all that. Okay. Yes.
00:14:30:10 – 00:14:42:22
Sridhar
And we follow around 100 sources and we summarize like ten, 15 minutes and what’s going on to the best of our ability. We say that we are not an experts, but we are reading from other reports. This is what we think. Yeah.
00:14:42:23 – 00:14:59:11
Rod
Like we all we gather all the information we can, right? I mean, we do all that, you know, all the broker, all the big brokerage houses send grisly, great research reports out and then some other sources as well. And you just you know, you never you can’t believe any one of them. You kind of accumulate them and then you present it.
00:14:59:11 – 00:15:05:24
Sridhar
Yeah. Then I show all properties performance, whether it is good or bad. Yeah. So I will.
00:15:05:27 – 00:15:07:21
Rod
Do all that in 15 minutes. Yeah.
00:15:07:23 – 00:15:10:17
Sridhar
But again 15 minutes is the property, is the properties.
00:15:10:18 – 00:15:20:05
Rod
Okay. First 15 is the economic environment. What’s happening, what you’re seeing. Second 15 is on this property. We’re here, here, here, this property over here, here, here. And then you open it up to question minutes questions.
00:15:20:05 – 00:15:20:15
Sridhar
Oh, that’s.
00:15:20:15 – 00:15:25:18
Rod
Beautiful. That’s really good. So I might steal that from you, by the way. I like. Sure, I like that.
00:15:25:23 – 00:15:31:03
Sridhar
And sure, sure. Feel free. So that way they know that I’m not hiding anything. Right.
00:15:31:05 – 00:15:39:15
Rod
So if you have bad news, you tell it immediately. Yeah, exactly. Yeah, as quickly as you can. So they don’t hear it from somebody else? Yeah.
00:15:39:18 – 00:15:56:08
Sridhar
I’m not intimidated by somebody asking me a tough question, too. So sometimes if I’m not doing a great job and certain property, they ask me like, why it is like this, right? Yeah, I will explain. Yeah. Yeah. If I’m not doing a great job, I have to admit to what is going wrong. Of course it’s not me alone.
00:15:56:09 – 00:15:59:12
Sridhar
I have tough team members. Sure.
00:15:59:14 – 00:16:10:23
Rod
But the buck stops with you. Yes, that’s right. But see, I like that you know, you own it, you own it. Exact good, bad, indifferent, you own it. And I think I think everybody likes that when somebody owns what’s going on.
00:16:10:27 – 00:16:14:03
Sridhar
So that really a lot of investors.
00:16:14:07 – 00:16:15:11
Rod
Yeah.
00:16:15:13 – 00:16:23:13
Sridhar
So that transparency and any investor calls me any time up to midnight on AM I’m accessible.
00:16:23:18 – 00:16:29:21
Rod
Really wow no that that I won’t do like no lately.
00:16:29:23 – 00:16:33:25
Sridhar
But the trick is first few times they call afterwards they don’t even call.
00:16:33:28 – 00:16:34:10
Rod
Yeah.
00:16:34:14 – 00:16:52:03
Sridhar
So slowly the number of calls will drop. That’s what I noticed. So first, the year, six months, there were a lot of calls. Yeah. To understand more about the market and all that. Yeah. After that, they felt comfortable. They know that. Okay, if I need some information. Sorry. There is always available on the phone.
00:16:52:09 – 00:16:53:00
Rod
Got it.
00:16:53:03 – 00:17:00:23
Sridhar
You know, they’re comfortable that they call me and Sundays, Saturdays. It doesn’t matter. My phone is open for them.
00:17:00:28 – 00:17:17:04
Rod
That’s a good way to do it. You know, I do that with my students, my warriors and, and nobody abuses it, really. I tell them, if it’s urgent, text me. You’ll get me right away. If it’s not, you know, talk to my team. They’ll get you on my calendar. Yep. So nobody abuses it. You know, I have a lot of listeners that want to get into this business and you’re super successful.
00:17:17:04 – 00:17:39:27
Rod
You’ve been really doing a great job and everything I’m letting I’m speaking about the investors that want to invest actively. They actually want to do this like you’re doing it, not just invest passively, although that’s a great way to start and a lot of people start that way. But actively, what would you suggest to them? You know, if they’re thinking about doing this business and as an operator?
00:17:40:00 – 00:17:55:27
Sridhar
So first thing is people underestimate the time they need to spend on these things. So they have to be mentally ready to spend so many hours. So we will have a lot of commitments. So they have to put certain number of hours aside for this business.
00:17:56:00 – 00:17:56:29
Rod
Of course, it takes time.
00:17:57:06 – 00:18:06:01
Sridhar
And we should not think like a single family business, right? Multifamily is a pure business like any other.
00:18:06:03 – 00:18:09:06
Rod
And it’s a team business is what the single family you can do by yourself.
00:18:09:06 – 00:18:09:20
Sridhar
Yes.
00:18:09:20 – 00:18:11:05
Rod
You’re not going to do this by yourself?
00:18:11:05 – 00:18:27:28
Sridhar
No. Right. It’s a team business, so it needs to be executed in a proper project management style, whatever style they prefer to have it. So that is very important. The commitment is very important and always they have to think about the investors first.
00:18:28:00 – 00:18:29:10
Rod
That’s right. You put the investors.
00:18:29:10 – 00:18:30:26
Sridhar
First, the investors first, their.
00:18:30:26 – 00:18:35:16
Rod
Money. You treat it like it’s your money. Yes, absolutely. And no, I like it.
00:18:35:19 – 00:18:47:19
Sridhar
I like it. Also, make sure that you need to show that you are first hit. If something goes wrong, you put more money into the deal and say that you are committed and you’re serious about it.
00:18:47:19 – 00:19:14:04
Rod
Yeah, if you have a challenge. So so like that first deal you did, you have to throw some extra money in there. Yeah. Yeah. I the Shreveport deal, we put 2 million of the general partners but 2 million into that deal to get it across the finish line. And I spent months of my life there months and I don’t ever want to repeat that exercise again, but so as you progressed in this business, talk about any epiphanies that you had any like aha moments.
00:19:14:04 – 00:19:20:17
Rod
Okay, now I get it. Now I understand that. I’m sure you’ve got numerous examples, but just a couple of those or one of those.
00:19:20:19 – 00:19:29:03
Sridhar
Sure. First thing and my last observation was the property manager is the key for the success of this business.
00:19:29:03 – 00:19:29:25
Rod
No question.
00:19:29:25 – 00:19:41:14
Sridhar
You need to have the right property management company. If you don’t have one, you need to change it. You cannot drive it. I mean, two months at the most, you can even survey about three months. Yeah, it’s, it’s not.
00:19:41:17 – 00:19:43:27
Rod
So you’ve done a lot of flipping management companies like.
00:19:43:27 – 00:20:06:01
Sridhar
I have one, not only one property I want to flip in other properties and a couple of other properties. The property management company went out of business, so I had to change them. But other than that, only one property we initiated the change, right? Because they were not performing well, right? Because we are on top of things. So usually we know that things are not going wrong.
00:20:06:03 – 00:20:09:04
Sridhar
Majority of the cases we ask for the property manager change.
00:20:09:09 – 00:20:25:16
Rod
I’m right on site. Property manager. Yeah. They’re the they’re the linchpin. Yes, for sure. A good property manager. As long as the management company doesn’t destroy the relationship with them through over reporting or whatever, can, can make all the difference in the world. Do you agree?
00:20:25:17 – 00:20:46:14
Sridhar
Yes, I agree. So the property management company could be moderator average or whatever it is, but if we have a good staff on on property still, we can win. Yeah, so that’s what we saw. I mean, even in the stock market, some of our property managers are really doing excellent job with 96% occupancy. Yeah, less than 1% delinquency.
00:20:46:14 – 00:20:46:25
Sridhar
Yeah, that’s.
00:20:46:25 – 00:21:04:10
Rod
Fantastic. Yeah. So let’s talk about asset management for a minute because we’re talking about asset management now, by the way, I’ve got a great book on this that’s free on asset management. I’m really proud of it. If you go to Rod’s links dot com, it’s in the free book section, isn’t it? Matt Yes, it is. So it’s in the free book section there.
00:21:04:14 – 00:21:15:06
Rod
It’s a very good book. So let’s talk about some of the KPIs that you review on, I’m assuming a weekly basis on, on those assets. What are some of the things you look at, the metrics.
00:21:15:08 – 00:21:15:28
Sridhar
Um.
00:21:16:01 – 00:21:28:00
Rod
The key by the way, KPIs, key performance indicators that that’s how you measure any business, any business at all in an apartment complex. Is it a business? And so you got to measure what doesn’t get measured, doesn’t get improved. So right.
00:21:28:03 – 00:21:38:12
Sridhar
So on a weekly basis, mostly I do on occupancy, how we are doing, how we are doing and collections how we are doing and workers.
00:21:38:14 – 00:21:43:27
Rod
And work orders, how long the work orders are taken. Yeah, if they’re delayed a long time. You going to have angry tenants, right.
00:21:43:27 – 00:21:54:24
Sridhar
Yeah. And then how is our prospect feel. Mm hmm. Only those for the ones which are mostly focused on. Okay, Because the remaining ones are like, Wait, it’s like one week. They may be good the other week.
00:21:54:27 – 00:21:56:29
Rod
How about monthly? Then What do you check in? Monthly.
00:21:56:29 – 00:22:15:27
Sridhar
Some monthly. Obviously. I see the progression on the collections. We are doing the cash positions. I look at it over in accounts payable account receivable, we look at it, the delinquencies are within range. Right? And the rent growth is happening. Right. And whether the rents are just to the market rent or not. Right.
00:22:16:04 – 00:22:24:10
Rod
So those other than what they called loss to lease, if if you’re not at market rent, the difference between what you’re charging and what market rent is is called loss to lease. Yeah.
00:22:24:11 – 00:22:33:06
Sridhar
Okay. So if we are burned out on loss to lease, then something is wrong that we are not being the market service. So every month we do the market survey.
00:22:33:08 – 00:22:52:13
Rod
So what he’s talking about market surveys, you’re checking all the available properties around there to see what they’re charging and your management company should be doing this in other even services that provide a really that a lot of the management companies are using. That’s almost changed daily. Are you familiar with what I’m talking about where where the rents are adjusted to almost daily at these assets?
00:22:52:13 – 00:23:13:14
Sridhar
Yeah, but we are not using that. We do some research and we feel that it has a limited success. So that’s why we didn’t go for that. But we do continuously check. We do in both ways. I have a team of ten virtual assistants, so they do a background check from all the websites and see how we are performing against it.
00:23:13:17 – 00:23:28:10
Sridhar
At the same time, we get the report from property management and we see that there is any disconnect the way they are doing and the way that these guys are doing. So the my team builds up all the reports for me from a different point of view for everything.
00:23:28:13 – 00:23:30:04
Rod
Are your Vas in India or where they.
00:23:30:04 – 00:23:31:12
Sridhar
Love Philippines, Philippines.
00:23:31:12 – 00:23:50:07
Rod
The Philippines are great. I used to have 1010 in the Philippines a lifetime ago. Six of them were a dollar 93 an hour apiece. So I had six people working for under 12 bucks an hour and they were happy to get it 40 hours a week. Only thing I don’t like about the Philippines is you got to you know, I mean, you can get them to work your hours, but it’s brutal.
00:23:50:09 – 00:24:05:01
Rod
You know, when So I didn’t make them do that. So I’d have to talk to them later in the evening, early in the morning, which was challenging. I’ve started using Vas in Latin America, actually. I’ve been very happy with those. They speak English well and they’re on our time frame, which is the big thing I like. But okay.
00:24:05:03 – 00:24:27:00
Rod
And of course, you’re also checking renewals. Renewals, that’s a real big one, you know, to see what’s being renewed. And I mean, any any, you know, leases that are expiring, you know, your management company should be three months in advance trying to get those people to renew at market rents and, you know, maybe painting a wall for them or cleaning some carpet or doing something to juice it up for them.
00:24:27:00 – 00:24:28:26
Rod
And, you know.
00:24:28:28 – 00:24:49:01
Sridhar
But quarterly, we look at the expense trend, how we are doing and all that. And quarterly we look at how far we need to reach our total and annoy for exiting the property. So, so constantly we look for it. I mean, in the current market we cannot take it because of the interest rate. Yeah.
00:24:49:01 – 00:25:04:15
Rod
And interest rates, cap rates, you know, and I’m sure you’ve seen some compression of rents as well. I mean I know we are, which is right. You know, used to check the market surveys to see how much you could push the rents. Now, you know, we’re checking them and having to suppress some of them a little bit. You know, we’ve seen that.
00:25:04:15 – 00:25:10:20
Rod
And as the bulk of your inventory in Texas. Yes, all in Texas. Is it all Dallas or other parts of Texas?
00:25:10:22 – 00:25:13:10
Sridhar
Dallas, Austin, Houston and Wichita Falls?
00:25:13:16 – 00:25:35:10
Rod
Oh, nice, nice, nice. Okay, Love Austin. We’ve got 2s3 assets in San Antonio. Well, two in the one I’ve got under contract right now, Screamin Deal. And this listing is a mile from our other asset 296 unit asset we own is 200 units and the one next door sold for 137,000 a door. We’re getting this one for 100,000 a door.
00:25:35:13 – 00:25:59:06
Rod
I’m very, very happy. Same, same vintage, everything. So but anyway, so your background is in financial analysis and modeling, correct? Yep. So do you play a role in in creating the pro formas for the offering memorandums for investors or do your partner partner do that because obviously you’ve got the skill set in that is that you or your partner.
00:25:59:08 – 00:26:01:15
Sridhar
So it’s a teamwork team.
00:26:01:17 – 00:26:02:05
Rod
Okay.
00:26:02:08 – 00:26:07:05
Sridhar
Oh, you need to deal with that same rules. But you know, you.
00:26:07:05 – 00:26:08:18
Rod
Assign you assign who’s doing well.
00:26:08:18 – 00:26:20:15
Sridhar
Yeah, most of my deals are I’m the lead. So I send the roles slowly over a period of time. Some of them will draft, so I will pick up the slack and continue on it. I don’t enforce them like why you’re not here.
00:26:20:20 – 00:26:25:16
Rod
How big is your team? Tell me. Tell me who’s not. Tell me about your team now that you have the deal.
00:26:25:16 – 00:26:26:23
Sridhar
Size dilemma.
00:26:26:26 – 00:26:29:01
Rod
No, no. Yeah. The acquisition team.
00:26:29:03 – 00:26:31:23
Sridhar
So all which are closest to know outside.
00:26:31:25 – 00:26:35:24
Rod
So it’s you and a bunch of virtual assistants. That’s how good for you.
00:26:35:26 – 00:26:46:04
Sridhar
Wow. So all of them are very well-educated, highly educated. I see. Three of them are engineers and B is. Wow, two accounting majors.
00:26:46:07 – 00:26:47:09
Rod
Wow.
00:26:47:11 – 00:26:49:03
Sridhar
Now they made sure that I picked up.
00:26:49:03 – 00:26:59:12
Rod
Yeah, that’s that’s that’s high level stuff. Yeah. Just. I mean, if you’ll say it publicly, can you give me an idea of what you’re paying hourly for, for like an MBA or someone that’s super.
00:26:59:12 – 00:27:01:00
Sridhar
Still to fix a salary.
00:27:01:04 – 00:27:01:26
Rod
If you don’t.
00:27:01:28 – 00:27:06:06
Sridhar
Know why, it’s fine for between 500 to $800 a month. Wow.
00:27:06:08 – 00:27:10:25
Rod
500 to $800 a month for. That’s it for that level of skill is incredible.
00:27:10:25 – 00:27:12:17
Sridhar
Yeah. Then Master’s is not.
00:27:12:19 – 00:27:25:04
Rod
Yeah, got it. Got it. Wow, That’s awesome. Yeah, that’s. That’s fantastic. So what headwinds are you facing? Like we’re facing right now? Talk about insurance for a minute. Talk about your insurance.
00:27:25:07 – 00:27:29:25
Sridhar
So incidents definitely in Houston, market incidents went up three or four times.
00:27:29:25 – 00:27:31:10
Rod
Even Dallas for us.
00:27:31:11 – 00:27:35:10
Sridhar
In Dallas is percentage up. Yeah, Houston is multiple.
00:27:35:13 – 00:27:58:03
Rod
Multiple up percentage versus multiple. Wow. Yeah, yeah, yeah. It’s it’s been crazy. And I mean, I’m certainly that’s impacted, you know in a way and in an even distribution as in in some regards you know but you know I tell my investors I’d rather lower the distribution and not have to worry about cash in the bank than than the alternative.
00:27:58:03 – 00:28:16:25
Rod
And so, yeah. So let me ask you this. How do you feel about where we are in the marketplace right now? Do you feel like there is going to be some opportunities based on what’s happening? Do you feel like everything’s fine? What are you what are your thoughts about on a macro level about our economy specific to commercial real estate, specific to multifamily real estate?
00:28:16:25 – 00:28:35:09
Sridhar
So the next six months would be tough. Yeah, a lot of deals will come onto the market. Yeah, definitely. It is that test for all the syndicators are looking at us to see their liquidity position, right? Yeah. So they need to be illiquid enough to survive until the end of the year.
00:28:35:11 – 00:28:39:18
Rod
The catch phrase is survive until 25 is for a lot of operators.
00:28:39:18 – 00:28:54:00
Sridhar
Yes. Yeah. Yes, I think it’s psychological. Also, once the Fed does four rate cut, I think things will change from that point on. Virtually everybody will have a different mindset. Until then, they’re not sure whether the rates will go up or down.
00:28:54:04 – 00:29:01:19
Rod
Yeah, everybody is hoping for that rate cut. Any any you want to make a prediction as to when that may happen? Because I believe it’s going to happen before the election for sure.
00:29:01:19 – 00:29:15:25
Sridhar
But I’m thinking that by May-June timeframe they’ll have the first rate cut. Yeah, based on the 22, I mean historically seven months is the span they were holding off on last rate increase, the rate cut.
00:29:15:27 – 00:29:17:18
Rod
And when was the last rate increase.
00:29:17:19 – 00:29:22:09
Sridhar
Um, that one was around that October to October.
00:29:22:09 – 00:29:22:16
Rod
Yeah.
00:29:22:16 – 00:29:24:14
Sridhar
So that’s exactly it puts in a medium.
00:29:24:17 – 00:29:24:27
Rod
Yeah.
00:29:24:27 – 00:29:35:10
Sridhar
So if they missed that one then nine months is the next one. Okay. July timeframe. Yeah. And beyond that I would say November. I mean I don’t want to go Oh no.
00:29:35:15 – 00:29:53:00
Rod
That’s a crystal ball. That’s crystal ball. If we knew that we’d be on 300 foot yachts. Right. Yeah. So. Okay. And are you gearing up for any opportunity in the space? Are you getting, are you going to cash heavy or are you creating a fund or any I mean, some of these operators claims opportunity funds.
00:29:53:03 – 00:29:54:05
Sridhar
We started a fund.
00:29:54:05 – 00:29:55:18
Rod
No sort of way. Yeah.
00:29:55:19 – 00:30:04:03
Sridhar
Yeah. So I’m part of a fund. We are raising 100 million. Well, to buy at least three or 400 million worth of real estate.
00:30:04:04 – 00:30:06:20
Rod
It’s just fantastic.
00:30:06:22 – 00:30:07:04
Sridhar
You know.
00:30:07:07 – 00:30:15:21
Rod
So. So the answer is definitely yes. Yes, that’s the answer there. Yes. Okay. So you’re raising a big chunk. Are you going after private equity for that? Because that’s a big raise.
00:30:15:25 – 00:30:17:09
Sridhar
Mostly family offices, family.
00:30:17:09 – 00:30:31:07
Rod
Offices, Yeah. Okay. Got you. Yeah, that’s. That’s great. Yeah. Good for you. And let me ask you this. What do you think is the most challenging part of your job of what you do, your career, your mission?
00:30:31:09 – 00:30:35:17
Sridhar
So at the moment, and because of the stressful market.
00:30:35:17 – 00:30:36:12
Rod
Yeah.
00:30:36:15 – 00:30:42:03
Sridhar
First time partners get really, really stressed out. Yeah. You need to calm them down being you.
00:30:42:05 – 00:30:44:21
Rod
When you say partners, you’re talking about passive investors. Yeah.
00:30:44:27 – 00:30:46:10
Sridhar
You invest. Yes.
00:30:46:12 – 00:30:48:15
Rod
So even the CEO. Yeah, yeah, yeah, yeah.
00:30:48:15 – 00:30:56:14
Sridhar
So they get scared and they say the moment they receive a letter from lender. Oh my God. It’s like a then I will have.
00:30:56:16 – 00:31:04:09
Rod
They see an envelope with the lender’s name on it, then they start freaking out, they think the loan is going to be recap what do they call it?
00:31:04:12 – 00:31:06:04
Sridhar
Foreclosed, foreclosed, foreclose.
00:31:06:04 – 00:31:09:09
Rod
But no, not that. But but. Oh, what do they call it?
00:31:09:12 – 00:31:09:29
Sridhar
Rebalance.
00:31:09:29 – 00:31:40:11
Rod
Rebalance. Thank you. I was just having a brain. Four day rebalance. Yeah, they freak out about that. We meaning, you know, the lender wants more money put in because the debt service coverage ratio is not quite what they like. And. Yeah, but you know, the the good news is, you know, they’ve been pretty much instructed by the Fed to to work with, quote unquote, creditworthy borrowers and not let deals go to, you know, not let deals go to foreclosure and take them back and they don’t want them back, you know, but let me ask you this, though, because this is what I think is the canary in the coal mine.
00:31:40:13 – 00:31:55:00
Rod
What about the impact of office right now? I mean, we’ve got markets that are 50% occupied. Okay, You know, what about that? And and a lot of that debt’s held by small and regional banks and the potential impact there. Any thoughts on that?
00:31:55:03 – 00:32:17:06
Sridhar
I definitely I think in certain markets, the big office space is prevalent right now. Those markets are seriously impacted. Yeah, that indirectly impacted the multifamily market. Right. Luckily, those are bouncing back because most of those cities are mandating the workforce to come to office at least 2 to 3 days a week. I see. So there’s a bouncing back.
00:32:17:07 – 00:32:29:14
Sridhar
If you just said last report, all of those markets have the highest rent growth in recent year in office. In our office went up and in return, multifamily also went up in that market.
00:32:29:16 – 00:32:45:01
Rod
Well, the beautiful thing about multifamily, I didn’t want to cut you off when you were talking about your analysis of these different asset classes before you got in the business. But I can tell you when COVID hit office didn’t get help, retail didn’t get help where didn’t get help, and we got hundreds of thousands of dollars in rent relief from the government.
00:32:45:01 – 00:32:58:21
Rod
So, you know, I actually thought that was going to be the catalyst for a crash. I even did a YouTube video. The Coming Crash. Yeah. And I got so much hate. It was, of course, the most watched video because it was negative news. But I got a lot of hate and I was wrong. But I really thought that.
00:32:58:21 – 00:33:08:13
Sridhar
Let’s get to that one. It shouldn’t be here. We have a lot of tenants. Yeah. And after that, the delinquency rates went up because they’re thinking that if you don’t pay, then government will pay it over.
00:33:08:16 – 00:33:09:05
Rod
Exactly.
00:33:09:05 – 00:33:12:20
Sridhar
A few months for them to change their mindset to start paying that.
00:33:12:20 – 00:33:31:10
Rod
Right, right, right. Oh, yeah. No, we had we had some really tough times with that Shreveport asset, for example, and things like that where people just didn’t want to pay. They want to work. You know, they were getting that extra money on their unemployment’s like, Hey, I’m going to kick my legs back and watch Netflix, you know? And it was it was terrible.
00:33:31:13 – 00:33:40:20
Rod
So let me ask you this, because you are super successful, sridhar. If you could go back and tell 18 year old self something with knowing what you know now.
00:33:40:25 – 00:33:41:18
Sridhar
Yep.
00:33:41:20 – 00:33:45:05
Rod
Is there anything you do differently? And if so, what and why?
00:33:45:07 – 00:34:10:27
Sridhar
Definitely. There are a lot of things I learned in the process. First thing is you need to have a right partner. Yeah. So don’t experiment with solo. Well, that is for sure. The multifamily is not a solo business. You need to have the right team, look for the right partners and build a team. And another thing is, once you have the team and start working with the outsiders, right?
00:34:10:29 – 00:34:18:18
Sridhar
And then they would start helping you. How to pave the way for your strategy. Like, Oh, it can be done and all.
00:34:18:19 – 00:34:19:27
Rod
Right, yeah, they’ll help you.
00:34:20:00 – 00:34:28:05
Sridhar
Yeah. So in my I to get it out. So people always say that you should not be the smartest in the room, then you’re in the wrong room.
00:34:28:06 – 00:34:28:21
Rod
That’s right.
00:34:28:23 – 00:34:41:25
Sridhar
So that, that one I’m trying to implement now so earlier I used to have a different idea like, oh I have to beat everyone up and all that. But now it’s not like that. I need to learn from all the experts right?
00:34:41:25 – 00:35:05:12
Rod
Yeah. No, I started a mastermind for that very reason. And in fact, we met in an event initially that my friend’s been in Ferris and we’re put on and, and they were all in my mastermind and, you know, I wanted to be around people that thought what I thought was hard was easy. And so, you know, that turned into about, I don’t know, 30, 40 billion in assets under management in that group.
00:35:05:12 – 00:35:21:05
Rod
I’ve kind of stopped it for right now because it’s just a lot of work and it’s not a financial reward for me, but I’m ready to maybe do another meeting or two because it’s just such it’s so great. You know, if you play tennis, do you want to be play? Somebody is better than you or worse than you, right.
00:35:21:07 – 00:35:40:06
Rod
Right. You want to be around people that that that have done it. And, you know, I remember when I started it, there was like one word and a PM that saved oh. Gosh. And I’m trying to blank on his name. I can’t believe I forgot his name. And it saved saved like $50,000 in costs on a PM. And, you know, just little things like that.
00:35:40:06 – 00:35:49:25
Rod
These little tweaks that you get, like when you get experts in anything they can, they can advise you and save you a lot of money in mistakes, right?
00:35:49:25 – 00:35:51:05
Sridhar
Yeah, definitely. Yeah.
00:35:51:07 – 00:35:57:00
Rod
And I know you came to my bootcamp as well. I’m honored that you came. I’m sure you were there trying to raise money. I’m assuming you know when.
00:35:57:02 – 00:36:00:24
Sridhar
In more than the raising the money. Just I want the networking Networking?
00:36:00:24 – 00:36:01:26
Rod
Yeah. Yeah, sure.
00:36:01:29 – 00:36:05:26
Sridhar
Couple of times. Like, I got a real good help through networking.
00:36:05:27 – 00:36:25:05
Rod
Yeah, of course. Of course. Yeah. When you were at the Denver event, was that the one my mom? Was that. Did I bring my mom and you? Probably outside in the hallway networking. But my mom came to one and, and it was a real treat for me because she’s a reason I got in the business and I was behind the curtain crying like a little girl because, you know, it was just emotional for me.
00:36:25:05 – 00:36:27:19
Rod
But yeah, that was one of the Denver ones.
00:36:27:19 – 00:36:29:21
Sridhar
But not the recent one. The previous one?
00:36:29:24 – 00:36:46:04
Rod
Yeah, that was it. That was it. That was the one. My mom. Because it was my mom at the last Denver event or one before you sit up there. Yeah. It was that also was last one before. That’s right. Yeah. I was the one before. So that’s the one. You were probably in the hallway networking too. Is there a book?
00:36:46:06 – 00:37:00:22
Rod
You know, I’m sure you have people come up to you and say, you know, they want the magic pill. How do you do it? Just tell me how you do it. You know, let’s go to lunch and you can tell me how to be a success. You know, what I used to do is I used to give people a CD set of real estate, and I said, Watch this and then come back to me.
00:37:00:22 – 00:37:11:24
Rod
Nobody ever did, you know, do you do anything like that or do you have a book that you like to gift more than another when you know, when you’re trying to inspire someone to get into this business? Is there a book you like to gift?
00:37:11:26 – 00:37:18:11
Sridhar
So most of people talk about, which that Rich did, and I like to think and grow.
00:37:18:13 – 00:37:21:07
Rod
I think you grow rich. Yeah, that’s the one I give away. Yeah, yeah, yeah.
00:37:21:08 – 00:37:24:19
Sridhar
That one I gave to all my investors. Yeah. Yeah. So.
00:37:24:22 – 00:37:45:23
Rod
And oh, that’s a good idea. That’s a great book to give us a gift. Yeah, I think that’s when you should read several times a year, in my opinion. Yeah. So what are some of the best advice you’ve ever received as it relates to life or this business or, you know, maybe your father as an entrepreneur? I mean, just just anything come to mind when I so.
00:37:45:25 – 00:37:53:25
Sridhar
Getting panic situation right? The more calmness you ishow the more you can think and more you can.
00:37:53:28 – 00:37:54:07
Rod
Yeah.
00:37:54:12 – 00:37:57:04
Sridhar
Come to an answer for our solution for that.
00:37:57:10 – 00:37:57:20
Rod
Yeah.
00:37:57:24 – 00:37:59:28
Sridhar
So I don’t get stressed out just like that.
00:37:59:28 – 00:38:19:23
Rod
You hold, you hold it. You, you kind of hold on to it. Yes. Something I’m working on. I’m actually in coaching for that right now. Literally that exact same thing because I’m too reactionary. Yeah, I’m actually doing coaching. So, you know, you’re analytical, you’re from the I.T. Field. How did you get over the fear of that first deal, that 400 massive 400,000 raise?
00:38:19:23 – 00:38:21:15
Rod
How much have you raised since then?
00:38:21:17 – 00:38:25:10
Sridhar
And since then? Maybe maybe 25, $30 million.
00:38:25:10 – 00:38:30:22
Rod
25, 30 million. But you that first 400 was that was the hardest raise you probably ever did, right?
00:38:30:26 – 00:38:34:07
Sridhar
Yeah, definitely. It was a stressful one.
00:38:34:10 – 00:38:35:21
Rod
So how did you get past the fear?
00:38:35:27 – 00:38:58:28
Sridhar
So my biggest fear was I’m taking from all this friends. So if something goes wrong, then you will lose friendship and you lose money. But so that was the fear. I mean, still, I always had that fear. Sure. I had not even a single dollar should be lost because of me. If too many investors love it. So that that fear I constantly see what is my risk tolerance in finance industry.
00:38:58:28 – 00:39:02:20
Sridhar
They have they have something called bad value at risk.
00:39:02:24 – 00:39:03:12
Rod
Yeah.
00:39:03:15 – 00:39:20:04
Sridhar
So I constantly look at value at risk for each deal. So how do I mitigate that? Yeah. So how can they get their principal back if not the profits? Right. The constantly I look at it and I see how can I do a financial engineering to protect.
00:39:20:04 – 00:39:26:13
Rod
That more operating reserves, You know, better debt. Yeah. Did you get into any of the bridge debt?
00:39:26:15 – 00:39:29:26
Sridhar
Yeah, I have a couple of variables.
00:39:29:29 – 00:39:38:06
Rod
And they’re no fun. I’m dealing with them to. They’re no fun. But you have, you have a you have a runway. You have, you have you’re going to rate cap them again or.
00:39:38:07 – 00:39:57:18
Sridhar
Yeah we do have and luckily well two years back. Well we got into so we do have one more year with our pain is the timing was bad that when they calculated the rate cap amount per month three as cross that was high. So now we are negotiating with them because the rate caps have gone down.
00:39:57:26 – 00:39:59:25
Rod
Oh you want, you want it, you reduce it now.
00:39:59:25 – 00:40:14:05
Sridhar
Yeah. You reduce it. And we are even willing to buy the red carpet and once we tell them that we spread that rate, cap, capture. So for example, in one deal that they can $107,000 for rate cap.
00:40:14:07 – 00:40:15:09
Rod
Annually or monthly.
00:40:15:15 – 00:40:16:02
Sridhar
Monthly.
00:40:16:03 – 00:40:22:10
Rod
Oh, I had one guy we were looking at San Antonio deal. His reserve was 8000 a month. It went to 80.
00:40:22:14 – 00:40:22:29
Sridhar
Yep.
00:40:23:02 – 00:40:27:06
Rod
I mean, how do you how do you recover from that? I mean, yeah, so.
00:40:27:09 – 00:40:36:06
Sridhar
So we worked with, uh, the lender and then we are able to bring down to 20,000 on his fist bump.
00:40:36:06 – 00:40:37:28
Rod
That’s awesome. It’s awesome.
00:40:38:01 – 00:40:47:10
Sridhar
So basically we bought two year rate cap from the date. The current one expires, right? So the deal is save for extra two years.
00:40:47:13 – 00:40:48:03
Rod
Oh, good.
00:40:48:05 – 00:40:59:26
Sridhar
So and then we do have funds and then our monthly outlay from cash flow is okay. Other than the rate caps grow, I think pretty much in every single deal of mine is like cash neutral or cash positive.
00:40:59:26 – 00:41:17:26
Rod
Yeah, that’s good. That’s good. Yeah, that’s that’s that’s tough. Well, let me ask you this, because you’re very driven. Obviously, you’re you’re a go getter. What’s the why that’s driving you? What what what gets you to jump out of bed every morning and go take the day and and what’s, what’s what’s the driver.
00:41:17:26 – 00:41:26:24
Sridhar
So eventually I want to build a bigger enterprise that I can say that I have a legacy that I will something nice.
00:41:26:24 – 00:41:27:18
Rod
Do you have children or.
00:41:27:20 – 00:41:33:21
Sridhar
You have two? Okay. So both are in college. Okay. Well, they may or may not come into business, but yeah, I’m trying.
00:41:33:21 – 00:41:39:24
Rod
I’ve been trying to get my son forever and he he made he had golden handcuffs from my brother’s business, so. Yeah, but.
00:41:39:26 – 00:41:52:12
Sridhar
Yeah, I don’t want them to be in the business right now. I want them to explore other opportunities. And once they go through the corporate world, then they will realize how good it is. An entrepreneur trip. If I tell them no, they don’t understand.
00:41:52:12 – 00:41:58:00
Rod
They don’t believe you either. Because you know, if someone else tells them, they might believe it. But when dad or mom tells them it’s hard. Yeah, no, I get it.
00:41:58:01 – 00:42:17:19
Sridhar
Yeah. So internship gives that feeling that you’re employing X number of people, right? So that is one thing. And then you can have something on the side like as a whatever you want to do, a social cause, right? You are empowered to do that. If you don’t have that money or influence. Right? You cannot do that.
00:42:17:19 – 00:42:41:21
Rod
Yeah, no, I agree. And so that’s a driver for you as well. I’m not surprised to hear that. I will tell you, you know, I did a Hall of Fame award at I think at the Denver event. I know it may have been the that after the second Denver event, I did it where we took our warriors that were exemplary and really, really and not just in door count or anything like that, but just good people that were helping other warriors and we gave them an award and we’re like ten, 15 of them.
00:42:41:21 – 00:43:04:05
Rod
And and as they come on stage, we flashed a PowerPoint up of of who they were in their accomplishments and started to notice something. Every single one of them does something to make the world a better place, you know, fight human trafficking, veterans, suicide veterans, homeless, build schools in India, build schools in Latin America. And I as I pointed to the 800 people, I said that’s what we call a clue.
00:43:04:06 – 00:43:08:20
Rod
Okay. You know, the power moves to those who serve. Would you agree with that statement?
00:43:08:21 – 00:43:13:02
Sridhar
Yes, definitely. Definitely. So we started one charity organization in India.
00:43:13:02 – 00:43:14:06
Rod
Did you? It’s good for you.
00:43:14:07 – 00:43:18:28
Sridhar
Good for you. So but not distributing cash to our motive is different.
00:43:19:00 – 00:43:22:08
Rod
No, No. So what are you doing to give a little more detail?
00:43:22:08 – 00:43:35:28
Sridhar
So this, like, oftentimes the biggest hurdle I’ve seen is like a mindset. People are afraid to do things, so I want to give them that confidence. So that’s what we are trying to achieve, of course, in that.
00:43:36:00 – 00:43:39:03
Rod
How are you accomplish? I mean, do you have like like sessions or what do you do.
00:43:39:03 – 00:44:00:06
Sridhar
To go to universities and colleges and give you like a speech motivation? Not exactly a motivational speech, like correlating our journey and correlating the journey up there and which point they’re in, So how they can plan their future. I love pointing.
00:44:00:08 – 00:44:02:28
Rod
Oh, I love it, love it, love it, love it. That’s fantastic.
00:44:02:28 – 00:44:04:16
Sridhar
So mentoring is the main theme.
00:44:04:16 – 00:44:18:19
Rod
Yeah. No, no, I love it. That’s that’s absolutely fantastic. So as you were getting into this business, did you lean on a mentor or a group or a program to help you? You know, basically pay for speed and get get up to speed faster? Did you do something like that?
00:44:18:21 – 00:44:28:17
Sridhar
Yes, definitely. I did that. The difference I can you can see my results in five years. I did 18 deals, three full cycles.
00:44:28:23 – 00:44:29:06
Rod
Nice.
00:44:29:06 – 00:44:48:24
Sridhar
So that is all because of the influence from the mentoring program, Right. So you always feel that, Yeah, you have to be in the ecosystem and you get to know what are the pitfalls and what are the pluses and which market to go for and all. So a lot of that information is readily available when you meet other people and you get motivated.
00:44:48:26 – 00:45:06:26
Rod
Yeah, yeah, of course you get inspired by what they’re doing. You learn what not to do. You have people you can lean on if you’ve got deal to look at it. I mean, that’s one of the huge benefits. Obviously, my Warrior program, I think we’re at 190,000 units. At last count, I believe we’re at four. My warriors don’t quite somewhere around that.
00:45:06:26 – 00:45:32:25
Rod
And which is astounding to me because I’ve only been teaching for six years. But. So you did it as well. Yeah, that’s how honestly, you know, seriously, you can do it yourself, but it’s going to take you a lot longer and you’ll have more mistakes and you’ll have more what I call seminars. You know, if you can lean on a group, stay and be around people that want more because so many people will try to pull you down, you know, the naysayers and sometimes even family, you know, and they’ll try to pull you down.
00:45:32:25 – 00:45:40:20
Rod
And but if you’re in a group of people that that want all of this, they’re motivating you, they’re inspiring you, they’re helping you, they’re validating you. And would you agree?
00:45:40:21 – 00:45:41:19
Sridhar
Yes, definitely.
00:45:41:19 – 00:45:43:05
Rod
Yeah, yeah, yeah. Love it.
00:45:43:08 – 00:45:48:04
Sridhar
And it reduces the time in something else. That’s it. I paid for.
00:45:48:06 – 00:46:03:26
Rod
You pay for speed. That’s the bottom line. Yeah. Love it. So, you know, we, we get excited about something, but then sometimes we’ll lose that that, that drive, that motivation. You know, we hit these stumbling blocks or plateaus. How do you keep yourself motivated and inspired.
00:46:03:28 – 00:46:18:12
Sridhar
And I that’s a very good question. So after a while, I’m just seeing so many small, small challenges. People get demotivated. Yeah, of course. So my approach is like, what is my eventual vision? What I want it to do?
00:46:18:14 – 00:46:20:16
Rod
So you look you look at the future pace.
00:46:20:16 – 00:46:43:01
Sridhar
Of future pace. Yeah. So how do I get to it? It it’s not a straight line, right? It will be always ups and downs and ups and downs. Right. How do you course. Correct. And then reach that goal. Yeah. So for doing that. Okay. Well I’m tracking how do I boost myself up. Yeah. So one thing obviously people get stressed out, so I constantly watch comedy shows the.
00:46:43:02 – 00:46:44:10
Rod
Side that’s smart.
00:46:44:12 – 00:46:48:26
Sridhar
So my end of the day, blood pressure should be normal.
00:46:48:29 – 00:46:56:04
Rod
I love that. That’s really smart. I actually know somebody that healed themself from cancer watching comedy. Yeah, I know them. I know this person.
00:46:56:04 – 00:46:58:22
Sridhar
I watch comedy movies. I watch comedy shows.
00:46:58:23 – 00:46:59:03
Rod
Nice.
00:46:59:06 – 00:47:01:28
Sridhar
So in one of my monitor, YouTube of this.
00:47:01:28 – 00:47:06:05
Rod
Place now, that’s. I love it. No, I love it. I love it.
00:47:06:07 – 00:47:15:23
Sridhar
As soon as some serious conversation is done, the first few minutes, I would stop everything and watch comedy and again come back to normalcy and continue.
00:47:15:25 – 00:47:17:06
Rod
What a great idea.
00:47:17:06 – 00:47:36:07
Sridhar
That’s a good one. That’s what I do. And the motivation was, yes, I came a long way. How can I influence I can change lives of few people, too. Yeah, money is one thing. I definitely in the process will get it. Yeah, but at the same time, if I can help ten people achieve their financial freedom. Yeah, that is.
00:47:36:11 – 00:47:52:14
Rod
No love it. If that’s if that’s the mindset and the true driver of success is inevitable, which is why you’re a success. It’s a pleasure to meet you, my friends. See you again. We’ve saw each other twice now. This is the third time, but I appreciate you coming down for this. Great to see you again.
00:47:52:17 – 00:47:54:21
Sridhar
Thank you. Thank you for having me on the show.
00:47:54:21 – 00:47:55:11
Rod
Absolutely.
00:47:55:11 – 00:47:56:03
Sridhar
I really enjoyed.
00:47:56:03 – 00:47:59:09
Rod
It. Thank you. Likewise. Good. Yeah, that’s really good.
