Multifamily Insights

Analyzing Risk for Alternative Investments with Sandhya Seshadri, Ep. 711


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Sandhya Seshadri is the founder of Engineered Capital, a firm focused on helping professionals grow their wealth through commercial real estate and alternative investments. With a background in engineering, an MBA in finance, and a successful career in stock trading, she became financially independent before shifting her focus to real estate. Since 2018, Sandhya has been an active multifamily syndicator and passive investor in multiple asset classes including oil & gas and tech funds, bringing her analytical skill set and passion for tax-efficient investing to her growing investor community.

Make sure to download our free guide, 7 Questions Every Passive Investor Should Ask, here.

Key Takeaways
  • Sandhya began investing in stocks but transitioned to real estate for better tax advantages and cash flow.

  • She started as a passive investor in multifamily before becoming an active general partner.

  • Rising interest rates reshaped her strategy, leading her to explore oil & gas and technology funds.

  • Passive investing offers the ability to leverage other people's expertise while generating income and appreciation.

  • Asset class diversification and risk tolerance should drive investment decisions, not just projected returns.

Topics

From Engineering to Investing

  • Started in corporate America but pursued investing to achieve financial independence.

  • Learned to trade stocks and used that income to replace her W-2 job.

  • Discovered real estate as a tax-advantaged strategy after hitting a tax ceiling with stock gains.

Why Multifamily and Syndications

  • Skipped single-family due to lack of appreciation and headaches from managing tenants and maintenance.

  • Multifamily appealed due to professional property management, scalability, and the ability to raise capital from investors.

  • Took the "passenger to pilot" approach—starting as an LP, then a co-GP, and finally a lead GP.

Shifting the Strategy: From CRE to Alternatives

  • Rising interest rates, property taxes, and insurance costs eroded multifamily cash flow.

  • Pivoted to alternative investments that better suited current market conditions.

  • Launched tech fund offerings for high-upside, long-term appreciation plays.

  • Invested in oil & gas deals offering strong tax advantages and predictable cash flow backed by mineral rights.

  • Carefully vets all deals personally before introducing them to investors.

Oil & Gas Investing Explained

  • Buys into mineral rights after oil is confirmed, reducing drilling risk.

  • Returns often include 80% year-one depreciation via K-1 and cash flow within 24 months.

  • No depreciation recapture and potential for 2.5–3x returns over a 7-year period.

  • Great option for high-income professionals seeking tax relief and diversification.

Investor Education and Risk Management

  • Every asset class has its risks—invest small first, understand the model, and scale gradually.

  • Focus on understanding the operator, the assumptions behind returns, and aligning with your personal goals.

  • Diversify across asset types, hold periods, and cash flow profiles.

📢 Announcement: Learn about our Apartment Investing Mastermind here.

Round of Insights

Failure that set Sandhya up for success: Tighter margins in recent multifamily deals forced her to become hyper-efficient in asset management and expenses—helping her sharpen operational discipline.

Digital or mobile resource: Calendar tools like Calendly—essential for time management and filtering non-essential calls.

Book recommendation: Lessons from Top Leaders – a collection of leadership stories from industry experts, including Sandhya's own chapter.

Daily habit: Plans her day each morning by prioritizing what would stress her most if it were left undone—this keeps her focused and calm.

#1 insight for investing in alternative assets: Know your risk tolerance and only invest what you're willing to lose—this applies to every asset class.

Favorite restaurant in Dallas, TX: The Fifth

Next Steps
  • Connect with Sandhya on LinkedIn

  • Learn more about Engineered Capital and current offerings at engineered-capital.com

  • Check out the previous Multifamily Insights episode with Sandhya

  • Evaluate your own risk profile and diversify thoughtfully across asset classes

Thank you for joining us for another great episode! If you're enjoying the show, please LEAVE A RATING OR REVIEW, and be sure to hit that subscribe button so you do not miss an episode.

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Multifamily InsightsBy John Casmon

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