Ep. 182: Multifamily, Mindset, and Generational Wealth with Pankaj Sharma

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 with shootings 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