Joining us on the show today is Sandhya Seshadri, founder and CEO of Texas Twilight Investments/Multifamily 4 You. Sandhya is currently a general partner and key principal in 476 doors and a passive investor in over 2500 others. She intended to remain mostly passive for the stress-free cash flow but has one or two assets which she actively manages to qualify as a full-time real estate professional, thereby making the most of certain tax benefits. Sandhya is a firm believer that most wealthy people are in some way involved in real estate, so after building her wealth from the stock market, she immersed herself in passively investing in multifamily and later signed up for a mentorship program that has tremendously accelerated her growth. In this episode, Sandhya speaks to Kyle and Lalita about her technical and business background before entering the real estate space and why she eventually decided to transition into a new role that would allow for more time at home. She shares her reasons for exchanging the stock market for multifamily investing, the criteria for qualifying for a real estate professional designation, and offers her thoughts on diversification, property management, and the importance of vetting your sponsors.
Key Points From This Episode:
- Why, when Sandhya is primarily a passive investor, she still actively manages a few assets.
- Find out where she was educated as an electrical engineer and later received her MBA.
- The circumstances that resulted in her being home and investing in the stock market.
- Why she decided to switch from investing in stocks to investing in multifamily.
- The tax benefits of being a real estate professional and the contribution of the new tax laws.
- The vulnerability of the stock market compared to the steady cash flow produced by rentals.
- What you need to qualify for a real estate professional status (REPS) designation.
- Investing passively in other people’s deals and her making a point of visiting these properties.
- Sandhya’s thoughts on diversification and having most of her portfolios in Texas.
- Her rule of thumb for the size of units she invests in.
- Preferring a hands-off approach to property management and how that affects her property choices.
- Aspects to consider when investing passively, including vetting the sponsorship team.
“Every rich person I had ever met had something to do with real estate.” — Sandhya Seshadri [0:03:35]
“I want to have time for my family and I want to make money while I sleep. The easiest way to do that is passive income through real estate.” — Sandhya Seshadri [0:09:55]
Links Mentioned in Today’s Episode: