Entrepreneur and innovator Shravan Parsi has experience in a variety of industries, including real estate investing and pharmaceutical research. His methodical approach to investing in multifamily and commercial real estate is based on his experience as a pharmaceutical scientist. Forbes Books, a market leader in business print and digital media, released Shravan’s debut book, “The Science of the Deal: The DNA of Multifamily and Commercial Real Estate Investing,” in November 2019. Since his involvement in Texas real estate began in 2003, Shravan has co-invested with private equity firms, family offices, high-net-worth individuals, and accredited investors to acquire 22 apartment complexes totaling 4,400 units as well as a number of commercial properties. Shravan Parsi is the CEO and founder of American Ventures.
American Ventures is positioned for aggressive growth. It offers private equity firms, family offices, and accredited investors access to quality multifamily and commercial real estate investment opportunities.
Early Life Developments
India-born Shravan saw his father, a physician, invest in real estate, which sparked a lifelong interest in business and investing. In 2003, he made his first real estate purchase in Texas. He graduated from Manipal Academy of Higher Education with a bachelor’s degree and St. John’s University in New York with a master’s.
Prior to the first US Grand Prix in Austin, Texas, The Austin American Statesman profiled Shravan as a value investor for his CRE investment next to a Formula 1 racetrack. He will be a featured speaker at the Enlightened Speaker Series event hosted by Texas CEO Magazine. Shravan used to be a member of Entrepreneurs Org. and Tiger 21. (EO). Shravan’s philanthropic efforts revolve around educating underprivileged kids, and he serves on the board of the Austin chapter of Pratham USA, whose mission is Every Child in School and Learning Well.
The Company
American Ventures is a multifamily and commercial real estate investment firm that specializes in the purchase, renovation, and management of properties with added value and core investment assets. It provides accredited investors, family offices, pension funds, sovereign wealth funds, private equity firms, and access to reputable multifamily and commercial real estate investment opportunities.
American Ventures has achieved local, regional, and national recognition in the multifamily & commercial real estate investment sectors for its dedication to its core values.
Best Housing Offerings
The aim of American Ventures® is to provide high-quality housing for hard-working Americans. The company specializes in value-added real estate investments in Texas, including multifamily and commercial real estate.
Private equity firms, family offices, and qualified accredited investors have access to high-quality multifamily and commercial real estate investment opportunities through American Ventures®. With a robust pipeline of planned acquisitions from development in Austin@ famous South Congress district, which is in the entitlement phase, and a 100-acre urban apartment community in San Marcos, Texas, which is part of the company is well-positioned for ambitious growth.
A midrise boutique hotel, condo development in Austin’s famous South Congress district, which is in the sprawling, and a 150-acre urban apartment community in San Marcos, Texas, which is part of the Austin MSA and has mixed-use and apartment communities as well as a build-to-rent community, are some examples.
After successfully selling a multifamily portfolio with more than 4,000 units over the past few years, Shravan’s plans for American Ventures® are to expand and scale. By the end of 2024, he hopes to have one billion dollars’ worth of high-quality assets under their control, either already existing assets that are in the value-add stage or brand-new assets that are in the development stage.
“We are well underway to reach that goal,” Shravan states. “We also have a live deal that investors can participate in now, a cutting-edge 100-acre urban community in the Austin MSA. This will be a very diversified investment opportunity in the single-family, build-to-rent residential real estate space,” states Shravan.
American Ventures® strongly believes that, for the foreseeable future and in any downturn, multifamily real estate will be one of the best performing asset classes.
Changing Methods with Market Shifts
The four guiding principles of American Ventures®, according to Shravan, are to “buy right, build right, finance right, and manage right.” As he explains the fundamentals of finance, he notices how the financial landscape is constantly changing.
It is necessary to specify what investment strategy will be successful in uncertain market conditions like these or in what the American Ventures team considers favorable conditions. For example, what was a good deal at the beginning of 2022 is no longer a good deal today, because the cost of borrowing capital has gone up substantially. For instance, the cost of a 4% loan in January or March 2022 is now between 7% and 8%. Lenders contribute 70% of a project’s funding.
Shravan recalls when they were putting together a particular deal in December 2021. As soon as the lender, HUD, gave them the option to lock the rate, they locked the loan at a 2.96% fixed interest rate for 40 years. By the time the lender funded the deal in May, interest rates had nearly doubled. He shares that under other market conditions, like those prevailing during the 2010s, the company might not have taken advantage of a rate lock, because interest rates were trending lower. The financial landscape constantly evolves. Shravan defines what investment strategy will work in times of market uncertainty like these, or in what people think of as good times.
Work and Life Alignment
According to Shravan, his typical day at work entails managing American Ventures’ management, investor relations, and acquisitions divisions. This entails attending numerous team meetings in addition to outside gatherings, all of which have a very specific agenda and goal, and going over numerous spreadsheets and business plans on various ongoing and potential future investments.
A director of acquisitions, a director of asset management, a director of development, and executive administrator and a director of investor relations make up the core team at American Ventures®. In his own right, each of the people holding these positions is a C-suite executive. The task of directing the work of each of these executives falls to Shravan. He admits that he might discuss the status of raising capital for a project with the director of investor relations on any given day. They may talk about whether their investors have signed any documents in the investor portal, or they may problem-solve regarding the state of the market and how it is affecting the ability to obtain loans. They may then contact three or four lenders for a subsequent project.
They might also discover that they need additional capital on another deal to get it on track, so they have calls with potential investors. Shravan opines, “We just broke ground on a project in Dallas, so we will have calls with the contractors to review what is going right, and whether problems are emerging.”
He remarks that his role constantly switches throughout the day between acquisitions and capital raises, overseeing asset management, development, and investor relations. Shravan spends time reviewing spreadsheets and status reports in face-to-face meetings and on the phone or over video calls. But, on another day, he can be on site, say, in Dallas, wearing a hardhat and walking through a property, making sure all is well.
Shravan admits that he maintains balance in life by following Warren Buffett’s advice, and saying “no” to most things. “My wife and I just had a baby boy in last year. Before the baby arrived, I allowed a certain amount of overlap between my private and personal life, because I devote a lot of time to building and nurturing my network. Now, I have a more defined structure and systematic approach in my professional life, so that I can participate with my wife in raising our baby without relying on outside help. It’s important to me to maintain excellence in American Ventures® and enjoy the experience of being a parent,” he observes.
Words for Futurists
Shravan offers two pieces of advice to aspiring leaders. His first piece of advice is to constantly consider how you can set yourself apart from others in your field. “I innovated early in my real estate career and had some success. But I always wondered how I could achieve more,” he reveals.
The second lesson is that one’s social circle has an impact on how his or her life unfolds. You can more easily live out your values if you have an inner circle or close network that is focused on them. He asserts, “Associating with people who are authorities in their professional fields, and authoritative in their personal endeavors, is crucial to accomplishing amazing things in your life. Your network will help you rise to the challenges you meet.”
To reach American Ventures please email “Invest@americanventures.com”
Written by Steve Sanchez.
