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Dr. Pranay Parikh is a medical doctor who began investing in real estate to grow his income. He bought a four-unit multifamily property but soon realized his time would be better spent focusing on his full-time career and investing 100% passively. He decided to help other doctors, dentists, and healthcare professionals do the same.\xa0

Today, Pranay is the president of Ascent Equity Group, which helps individuals build wealth through low-risk, high-growth multifamily investments in strong markets throughout the U.S. with a focus on healthcare professionals. He owns $200M in CRE, 1,200 units, and four properties as a JV, and is also an LP of over $1B in investments. In this episode, he shares why he believes in managing the manager, his criteria for vetting sponsors and deals, and how he gains leverage with operators.\xa0

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Ever the actively passive real estate investor, Pranay has weekly phone calls with property management. \u201cAnytime there\u2019s more than $1,000 spent, we want to know why,\u201d Pranay says. \u201cAnd we always compare that to pro forma.\u201d He tasks himself with maximizing the profit for his investors by ensuring that the sponsor or operator is sticking to the plan.

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When vetting a sponsor, Pranay looks at their track record first. He prefers sponsors who have been through a recession and who have been working together for at least five years. He likes to meet them face to face and walk the properties as well. Reputation is also a major factor. \u201cIt\u2019s a really small world in real estate,\u201d Pranay says. \u201cYou\u2019d be surprised.\u201d\xa0

When it comes to deal selection, Ascent employs its own asset manager. \u201cUsually allocators like us don't have their own asset management, but we really believe in managing the manager,\u201d Pranay says. \u201cSo we are very selective with the deals we look at.\u201d They underwrite each deal from scratch, then have their asset manager examine it as well before signing on.\xa0

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Ascent typically brings anywhere from 90% to 97.5% of the equity to a joint venture deal. This gives them major decision rights. They have institutional-level oversight over the properties, which allows them to visit sites as often as every other week.\xa0

The number-one priority, Pranay says, is always to make sure the business plan is getting taken care of. \u201cWe have investor overrides for the decisions, buy/sell rights \u2014\xa0we have all of that,\u201d he says. \u201cWe really want the power to make sure our investor is taken care of.\u201d\xa0

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• President of Ascent Equity Group, which helps individuals build wealth through low-risk, high-growth multifamily investments in strong markets throughout the U.S. with a focus on healthcare professionals (doctors, dentists, etc). They do joint ventures with operators to buy value-add multifamily properties.
• Portfolio:
• Joint venture
• $200M in CRE
• 1,200 units
• Four properties
• LP of over $1B investments
• Based in: Los Angeles, CA
• Say hi to him at:
• ascentequitygroup.com
• Facebook
• LinkedIn
• Best Ever Book: Farewell, Godspeed by Cyrus M. Copeland
• Greatest Lesson: If you are honest and transparent with your investors, they will give you the benefit of the doubt. With how turbulent the debt market has been, on our last deal, they tried to change the terms the day before closing. We had to go back and offer our investors the chance to back out (only one did that out of 300 investors).

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