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Navigating Multifamily Investing in a Rising Rate Environment w/ Veena Jetti of Vive Funds

by Jonathan Twombly
Last Updated: February 1, 2023

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Veena Jetti is the founding partner of Vive Funds, a unique commercial real estate firm that specialises in curating conservative opportunities for investors. With a degree in Finance and over a decade of real estate experience, Veena is an expert at driving corporate strategy. She’s heavily involved in the industry as a frequent speaker, panellist, and guest on various shows. Veena is also an avid philanthropist, serving on several boards, and was one of only three women to receive the Politico Woman of the Year award for the efforts in aiding a grassroots Hurricane Harvey disaster response.

In this week’s episode, we explore the following:

1. How to navigate a market in which interest rates are rising quickly and cash flow is getting constrained
2. The advantages of working with a private lender compared to going to traditional lending routes
3. The benefits of partnering with another company to scale in the real estate business.

“Demand is still high for multi family. With inflation going up, multi family is also a great hedge against inflation. We do think that we’re going to start seeing interest rates slow down in how quickly they’re rising.”

Some key points:

(02:28) Many real estate investors have had a lot of trouble getting deals to go through in recent times. Rising interest rates are killing the cash flow of many assets; also the amount of leverage you can deploy has become more limited. Despite this, the demand for multi family is still very strong, due to a combination of factors
(07:22) If we see a rise of interest rates of about another 75 basis points, how will this affect the prices for multi-family? Veena believes cap rates will expand; rent prices will continue to go up. We are becoming a nation of renters.
(13:55) Where does the new rate environment leave retail investors?
Investors will be seeking more clash-flow up front and forego the upside potential in the end
The preference will be determined by the specific investor demographic though
(18:49) Veena breaks down the structure of Vive Funds
(20:46) Partnerships are the key to scale in the multi family business. Vive Funds is busy hiring for in-house talent
(24:56) Everybody tends to have key functions that they are good at and not so good at. One thing Veena doesn’t like is asset management. Veena enjoys the tax, legal and investor relations side of things.
(26:49) Any business, in order to be a success, has to cover the basics of operation really well, in addition to the visionary and entrepreneurial side of things
(30:37) How Veena’s partnership came together
(35:54) How to reach out to Veena and Vive Funds

🌎Reach out to Veena Jetti
Website https://vivefunds.com/home-2/about-us/
LinkedIN: https://www.linkedin.com/in/veena-jetti/

🌎Reach out to Jonathan Twombly
LinkedIn: https://www.linkedin.com/in/jonathandtwombly

Loved this episode? Leave us a review and rating on Apple podcasts by clicking here.

Make sure to also check some of our previous episodes:

Going From Working In Hospitality To Multifamily Investing & Hotel Conversions With Charlie Rushton

Hotel Conversions To Multi Family Housing With David Peters

🎤 Podcast production Everglade Media

Listen now!

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