April 2, 2022
Joe Fairless

JF2769: From Tech Professional to Full-Time GP After Starting from Scratch ft. Kavitha Baratakke


Cherry Street Investments founder Kavitha Baratakke was forced to start over with virtually nothing after a divorce in 2007 followed almost immediately by the stock market crash in 2008. Since then, she transitioned from working full-time in the tech industry to passively investing in multifamily, then crossed over to the GP side where she discovered her passion for talking with and educating other investors.

  • Her thoughts on money. Investing has taught Kavitha to treat money simply as a resource. It can be made, and it can be lost, she says. It’s important to remember that you are the creator of money and it doesn’t dictate who you become.
  • Her journey to becoming a GP. Kavitha decided she wanted to buy a small apartment complex for cash flow but quickly realized acquisitions wasn’t her strong suit. After three years of struggling and working with her mentoring group, she met the person who would help her realize what she wanted her role as a GP to look like.
  • What her first deal was like. Kavitha played a small role in closing an Atlanta apartment deal, where she learned that talking to investors, raising capital, and educating others were the things that truly brought her joy. “It’s not so much the size of the deal,” she says. “It’s the quality of conversations I’m having with people and feeling like I’m solving a problem for them.”
  • Why she doesn’t stick to one asset class. It’s all about diversification, and Kavitha is strategic about selecting new asset classes for her portfolio. She began investing in land development last year to complement her multifamily projects because of the equity growth it offers. She then chose to invest in senior living — she predicts a considerable upside in the next 20 years due to the number of people that will be reaching age 65+.
  • Her fail-proof mindset. Kavitha no longer spends much time worrying about money, because she knows she has the ability to recreate what she has built. “It doesn’t matter what the market does. It doesn’t matter what my wealth looks like. I know that I have the ability to do this over again,” she says.

 

Kavitha Baratakke | Real Estate Background

  • Founder of Cherry Street Investments, an investment firm focused on creating multiple passive sources of income through investments in various assets such as apartment complexes, mobile home parks, senior assisted living facilities, self-storage, and more.
  • Portfolio:
    • GP of:
      • 2,200 units across Texas
      • 179 beds of senior living new construction in Florida
      • 1 townhome new construction in Austin MSA
      • 2 land development deals in Austin MSA
    • LP of senior living, land development, energy, and ATM investments; also 200+ doors of new multifamily construction
  • Based in: Austin, TX
  • Say hi to her at:
  • Best Ever Book: The Alchemist by Paulo Coelho

 

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