Generational wealth is the goal of many real estate investors. And while the first generation works hard to create the foundation, often the second-generation has different goals and desires outside of the family business. Pankaj Sharma knows this all too well.
Pankaj is a second-generation multifamily owner/operator with over 20 years of experience in the field. His current personal portfolio consists of 2,000 units in 5 major cities in eastern Pennsylvania. His latest deal closed in July of 2019 when his company purchased a $50 million fixer-upper, multifamily building. Recently Pankaj started Sharma’s Karma, a YouTube channel, as a way to document their investing journey and give back.
In this episode, Pankaj shares his view on generational investing, working with family, details of the $50 million apartment project, and the role meditation and mindset have played on his real estate journey.
Key Insights
● Second Generation multifamily owner/operator, 2000 Units in 5 cities in Pennsylvania.
● His father’s first deal and how Pankaj learned the business from the ground up.
● Pankaj’s spiritual training with Agape International Spiritual Center
● How he turned a distressed foreclosed multifamily building in which there was a shooting and low occupancy into a $10MM asset.
● Investing strategy: buy, renovate, hold long term.
● How he acquired a $50MM, fixer-upper deal
● Take distressed mismanaged properties, and gradually over time with a long patient strategy, put in value add, build tenant-base and collections.
● Business plan and financing on a multi-million dollar project
● How to reinvest cashflow from properties and protect yourself from being over-leveraged
● The Harrisburg Market: Improvements and investments in Harrisburg. Cumberland County is the fastest-growing county in PA.
● How to evaluate a deal and key indicators to look for. You can’t change the neighborhood, but you can change the building.
● Key lessons he has learned managing big projects with a hands-on approach
● Remember: If you don’t pay for it upfront, you’re going to have to pay later and when you pay later, it’s going to come with a late fee.
● Strategies in working with family
● You have to do the right thing, even though sometimes the right thing is uncomfortable, however as a result of doing things that are uncomfortable, you grow.
● Creating generational wealth and bringing the next generation into the family business
● How his spiritual connection fulfills his business and his business helps him grow spiritually
Bullseye Tips:
Apparent Failure:
The main thing in failure, everything is temporary, whatever you are going through this too shall pass.
Digital/Mobile Resource:
Most Recommended Book:
Daily Habit:
Meditation
Wish I Knew When I Was Starting Out:
Should have bought a whole lot more.
What I Wish I knew a Year Ago
That there was going to be a recession because it’s here.
Current Curiosity:
Where his new level of meditation will take him
Best Place to Grab a Bite in Spring City, PA
His house, his wife Ruby is the best cook
Contact Pankaj:
Website: S&S Properties Investment
YouTube: KarmaCast