Sandhya Seshadri invested passively in about 3,000 apartment doors before she ran a single one herself. On this episode, host Abel Pacheco and Sandhya talk about the internship phase and underwriting with brutal conservatism.
In this episode:
- The internship phase: "you've got some knowledge but then you're not quite ready to run the property yourself."
- Conservative on purpose: on one deal she used a 7.4 percent reversion cap rate, more than 2 full points above her purchase cap, "because I like to underpromise and overdeliver."
- The one question that needs no spreadsheet: "has someone else validated all these numbers? Did your lender agree? Did your property management company agree?"
- Abel runs the same on the active side: he wants his property manager's projections, his lender's term sheet, and a third party asset manager's plan, all independent of his own.
- The frame: "we're buying income streams, not apartment complexes." Cap rate is just net operating income over purchase price.
Abel Pacheco is a San Antonio real estate operator who went from 8 single family houses to a share of roughly 1,500 apartment doors, and now works as a fractional Chief AI Officer helping small and mid sized businesses put the back office on autopilot.
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