Engineer-turned-real estate investor Raj Sarangam is an excellent example of someone who has successfully transitioned from an engineering background to a thriving real estate investor. Raj had spent several years honing his Engineering & IT skills, but his restless spirit yearned for something more. He craved a new challenge that would allow him to apply his talents in a novel way, enter real estate. With a single-family home purchase and the establishment of ORP Investments Inc., Raj embarked on a thrilling new journey, one that would test his acumen and business savvy in exciting new ways. Now, as he looks back on his decision, he can’t help but smile at how far he’s come, and the endless potential that lies ahead.
Born and raised in India, Raj Sarangam moved to the U.S. after completing B.S. in Chemical Engineering from BITS, Pilani. He then completed M.S. in Chemical Engineering from Lamar University in 1993. His journey didn’t stop there. After completing his M.S., he began working at Ampacet Corporation and simultaneously pursued his M.S. in Computer Science from McNeese State University and MBA from the University of Houston. With more than two decade’s experience in SAP Business Software Consulting across various management roles, Raj has gained a wealth of knowledge and expertise in the field. Throughout his career, Raj has demonstrated his unique ability to successfully lead large-scale SAP implementations for several top-tier clients, making him a sought-after professional in the industry.
Establishing ORP Investments
Raj started his real estate journey by establishing ORP Investments and acquiring a single-family home. Over time, Raj’s unwavering commitment and proficiency have stimulated the company’s expansion from humble beginning and culminating in an impressive collection of real estate holdings valued at nearly $250 million in assets under management. Having executed over 40 lucrative real estate deals, Raj’s repertoire encompasses various properties, comprising over 40 single-family residences, two shopping centers, and more than ten multifamily apartment complexes in Texas and Florida. Besides his real estate ventures, Raj has also established a thriving hard money lending company and a safety-focused portfolio, bolstering his reputation as a successful real estate entrepreneur.
Under Raj’s leadership, ORP Investments has become a thriving and highly focused real estate investment firm with a proven track record of success. With its focus on Texas and Florida, ORP Investments has gained extensive expertise in various real estate assets, such as retail, single-family rentals, and self-storage.
Bringing Change
Under Raj’s leadership, ORP Investment is fully committed to offering affordable and safe housing options for individuals and families through acquiring and managing single-family homes and multifamily apartments.
“Our focus is on creating value and investing capital wisely, which enables us to deliver consistent and stable returns for our investors. With considerable experience in the real estate sector, our firm has grown from $12 million to ~$250+ million in assets under management, managing over 1,500 units,“- explains Raj.
Raj also takes pride in ORP’s disciplined and performance-driven approach to real estate investment. ORP’s clientele can reap the benefits of its services if they seek a reputable, dependable, and skilled real estate investment company that prioritizes delivering consistent returns and generating value for its customers. Whether the customer is an individual investor or a financial institution, ORP Investments, Inc. can assist them in accomplishing their real estate investment objectives.
Leading the Charge
Raj’s growth and success can be attributed to his modest beginnings and financial discipline. His innovative and ambitious nature has driven him to constantly push the boundaries and find new and creative solutions for complex challenges. Furthermore, Raj’s profound spirituality and dedication have provided him with a solid foundation for his work, enabling him to pursue his business endeavors with a clear sense of purpose and unwavering commitment. These key characteristics have fostered Raj’s growth as a business leader and helped him build a successful and respected real estate investment firm with a rapidly growing assets portfolio.
“Through our focus on value-add investments and disciplined approach to risk management, our firm has grown from $12 million to over $250 million in assets under management. I am honored to be recognized as one of the most innovative business leaders to watch and am excited to continue pushing the envelope in the years to come,“- he says.
Major Challenges
Raj believes interest hikes, lender restrictions, and compressed CAP rates have created an enormous challenge to acquiring new properties. Additionally, finding good resources, high-quality vendors, and tenants creates massive challenges in the industry.
To overcome these difficulties while acquiring new properties, Raj is broadening ORP’s asset base by looking at other investment options, such as R.V. parks near Austin, extended-stay hotels, and farmlands. On the operational front, Raj aims to keep top talent by providing incentives like bonuses, time off, and other benefits.
Additionally, Raj and his team are now looking for innovative solutions to satisfy investor demands, such as increasing Reserves for investor distributions and interest rate fluctuations to counteract the possible effects of interest rate spikes and till lenders ease on the terms.
The Pandemic
The pandemic brought significant challenges for ORP Investments, just like everyone else. Despite having two multifamily properties under contract, lenders, investors, and other private equity individuals vanished, leaving the company in a precarious position. However, Raj and his team managed to renegotiate prices and timelines to close the properties, enabling them to stabilize the situation and re-open communication with lenders. Thanks to their bold and proactive strategy, ORP’s properties became oversubscribed, proving the company’s resilience and commitment to delivering results even in the face of adversity.
The Future
Raj has ambitious plans for the future of ORP Investments. Aiming to increase their AUM by $500 million within the next five years. Particularly focusing on multifamily properties in Texas and Florida. Additionally, he plans to venture into real estate development for build-to-rent (BTR) or build-to-own (BTO) workhorse housing, which is currently in high demand. He also intends to expand into a mixed-use, multi-modal development company. To weather these challenging economic times. Raj has also diversified ORP’s portfolio and purchased an I.T. company primarily operating out of India.
“We have grown from 15 employees to 54 in one short year and are planning to acquire more companies in India which is heading towards being one of the economic powerhouses. We are expanding our services in the U.S. with a very attractive I.T. resource rate of $25+/ hour. We have signed up several projects in this regard utilizing our 20+ years of professional experience in this field,”- he concludes.
