Inside an $80M Exit, with Veena Jetti

Welcome to the Managing CRE Risk podcast with Jeremy Goodrich. We have a returning guest for today who is an absolute beast in the multifamily world, Veena Jetti. In this episode, we talk about how she creates safe deals, finds good property managers, and has an exit plan that mitigates her risk. By the end of this conversation, you’ll gain insight into how to identify, understand, and manage risk and why it is crucial to have a solid exit plan from the very beginning. Join us!

Learn more about Veena and her journey at shineinsurance.com/managing-commercial-real-estate-risk!

“I can make more seemingly aggressive decisions for our portfolio because I know enough about this field.”

 

03:59

At the beginning of the conversation, Veena explains what the word risk means to her. According to her, without risk, you can’t have reward. However, she considers herself risk-averse and underwrites conservatively for her investors.

 

Veena is an expert in commercial real estate investing so she can make more aggressive decisions because she thoroughly understands the risks involved. She also has a diverse personal portfolio with IRAs, mutual funds, precious metals, and occasionally tech start-up investments.

 

Veena’s advice to mitigate the risk in your investing journey is to surround yourself with experts in each field and create a strong team.

“Doing an $80M deal wasn't really fundamentally that different from doing a $20M deal. It actually was a little bit easier, because we had all our scale in one place.”

 

11:39

Veena is involved in bigger deals with 400-600 door properties. Her first bigger deal was an $80M deal at the beginning of the pandemic. She shares how she mitigated the risks to succeed in this significant deal. 

Her team walked every unit of the property even during COVID. They underwrote the property way more conservatively than usual. They increased their reserves to be able to allocate more capital for possible vacancies. 

“Anything can happen the longer you hold an investment. It's always better to get dollars back in your pocket sooner rather than later.”

 

19:21

Veena explains how a lot of value-adds or forced appreciation comes after the exit. That is why they don’t just look at the cash flow when deciding on exiting a deal. They evaluate the market risk and exit sooner than later if possible.

 

When planning an exit, Veena looks at all possible outcomes and compares them to each other. The most important is which opportunity is the best for their LP investors.

 

At the moment, Veena is interested in new dev multifamily, self-storage, and warehouses mostly in Texas, Florida, Georgia, North Carolina, South Carolina, and Arizona.

About Our Guest, Veena Jetti

Veena Jetti (VEE-nuh JEH-tee) is the founding partner of Vive (rhymes with "five") Funds, a unique commercial real estate firm that specializes in curating conservative opportunities for investors. Veena brings a dynamic perspective to targeting, acquiring, managing, and operating assets using best practices combined with cutting-edge technologies. Her professional expertise includes driving corporate strategy and business development opportunities.

 

After graduating from the University of Illinois at Chicago with a degree in Finance at 20 years old, she pursued her passion for real estate. Veena has over a decade of real estate experience and over $1B+ in real estate assets over her career in both the startup world as well as the corporate world. Because of her diverse background, she is often a panelist and speaker for various podcasts, global conferences, and radio shows.

Mentioned in the show:

https://vivefunds.com/ info@vivefunds.com Her LinkedIn Shineinsurance.com www.shineinsurance.com/managing-commercial-real-estate-risk Jeremy’s LinkedIn

Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: https://www.shineinsurance.com/ballpark/ 

 

Special thanks to Veena Jetti for taking the time to share so many great insights with us   If you enjoyed this podcast, there’s a couple of things we need you to do right now:    SUBSCRIBE to Managing Commercial Real Estate Risk on Apple Podcast, Spotify, or wherever you listen to podcasts    While you there, please RATE & REVIEW the show    SHARE with friends   Finally, please, JOIN the Managing Commercial Real Estate Risk Facebook Group

Then, please share the show with whoever you think it will inspire.

Until the next time, We truly appreciate you listening.

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How To Work A 400 Unit Deal, With Veena Jetti 103: Should I Wait To Buy Apartments? With Jason Yarusi Why A Powerful Vision Matters, With Jasmine Ortiz