Oleksiy Ihnatenkov: Real Estate & M&A

When it comes to securing funding from banks, many C-Corporations explore various strategies, and one that frequently emerges is utilizing aged shelf corporations. While they can offer certain advantages in terms of creditworthiness, simply owning an aged shelf corporation isn't enough to guarantee funding. Banks are careful, and they look for specific structural elements and financial indicators before approving loans. Here's what C-Corps need to know about leveraging aged shelf corporations, how to structure the company, and the nuances banks care about, including the type of Standard Industrial Classification (SIC) codes banks favor or avoid. An aged shelf corporation is a legal entity that has been incorporated but has not conducted any business. These entities are often several years old and were created to sit on the "shelf" until they are purchased by a company or individual seeking the advantages of an established corporation without the time and effort of starting a new one. Aged shelf corporations can offer several benefits: Increased credibility: Lenders often view older corporations as more stable and trustworthy than new entities. Faster access to credit: An aged corporation might bypass some of the initial "new business" challenges when applying for loans or business credit. Perception of stability: Banks and other business partners may perceive the corporation as well-established, which can be advantageous when building business relationships. However, banks are savvy to this tactic, and simply owning an aged corporation won't guarantee a loan. The corporation needs to be structured correctly and demonstrate financial health to win approval. To successfully obtain funding from banks using an aged shelf corporation, the structure of the corporation must be in alignment with what lenders expect. Here are some key structural elements that can enhance your corporation’s chances of securing funding: Updated Business Filings: Ensure that all corporate filings with the state are current. This includes filing annual reports, renewing licenses, and making sure there are no lapsed compliance issues. Active Operations: While the corporation may have been dormant before purchase, it needs to show activity and a legitimate business presence once acquired. This includes having: An active business address and phone number. Corporate banking accounts that have been active for several months. Website and online presence to demonstrate that the business is legitimate. Board and Officers: Appoint a strong board of directors and officers who can add credibility to the corporation. This demonstrates to the bank that the company is professionally managed. Corporate Resolutions and Minutes: Keep corporate records up to date, including minutes from board meetings and shareholder resolutions. Banks prefer to see companies with strong corporate governance. Financial Statements: Ensure that financial statements are properly maintained. Even if the corporation was previously dormant, once it’s activated, you need to have current financials, such as income statements, balance sheets, and cash flow statements, to present to banks. The Standard Industrial Classification (SIC) code assigned to a corporation plays a significant role in how banks evaluate the risk associated with the business. Certain industries are considered high-risk, and banks may be reluctant to lend to businesses with codes associated with those industries. SIC Codes Banks Like: Low-Risk Industries: Banks are generally more willing to lend to businesses in stable, low-risk industries, such as:These industries are viewed as stable and less prone to financial volatility, making them more attractive to lenders. SIC Codes Banks Avoid: Banks tend to shy away from high-risk industries that have a greater chance of default. https://www.investcapitalrealestate.com/podcast/

Best Strategies to Increase Occupancy Rate Having trouble with high vacancies? Here are some of the best strategies to increase the occupancy rate in a multifamily complex. Suppose you’re involved in a new apartment complex, and you want to figure out how to make the most money out of it. In that case, you have to find ways to get more people into your property; that’s the occupancy rate. If you currently struggle with vacancies, consider the following tips that could help you increase the percentage of rented units. Creating an amazing rental experience is one of the most important steps you can take to keep your tenants happy. Make sure that you are there to help them out and take care of their needs any time they require something. Another one of the best ways to increase the occupancy rate is to focus on promotion strategies. You can reach more potential renters by using digital marketing, rental listing websites, and other social media avenues. By reviewing your rates, you can decide to increase or decrease leases depending on demand. Not only will it help you keep track of the market, but it will also give you an ongoing competitive advantage. If you can get more people to stay longer, you’ll continue to get the cash flow you need. Let them know that if they have other family members that need housing, you have extra units for them. Get the most out of the current occupants; every customer can lead to another. Time passes, and you forget to take new photos and videos of your unoccupied units. Stay on top of it and get a team of professional videographers and photographers to record new media for your listing. Additionally, whenever something changes, make sure to update any information on your listing to reflect its current standing. An effective team can help you find new tenants by following up with prospects, helping with marketing, and lowering your vacancy rates. You don’t have to do it alone. There are professionals out there who can make your life a whole lot easier. So, there you have it! Six great strategies you can use to work towards boosting the occupancy rate of your property. Keep in mind that some may work better for you than others. So, try a few and see what has the highest impact in your situation. Finally, with creativity, effort, and dedication, you should be able to fill those vacancies in no time at all. Be Great,Oleksiy Ihnatenkov Top 6 Occupancy Rate Improvement Tips in Real Estate1. Provide Quality Customer Service2. Focus on Marketing3. Review Rental Rates Periodically4. Retain Tenants5. Update Listings Regularly6. Form a Property Management TeamFinal Thoughts on How to Increase Occupancy Rate https://www.investcapitalrealestate.com/

This podcast title encapsulates the theme of interviewing successful architects, Matias Deroch from MIK Architecture and Oleksiy Ihnatenkov, providing a glimpse into their professional journeys, achievements, and insights.

Creating a "bank" through a trust structure involves setting up a legal entity that operates somewhat like a bank for managing assets, rather than functioning as a traditional bank that offers loans, accepts deposits, and provides other financial services to the public. This setup can offer significant advantages in terms of asset protection, estate planning, and privacy. Here’s a simplified overview of how someone might create their own "bank" using a trust: Identify why you want to create this trust. Common reasons include asset protection, estate planning, privacy, tax planning, and managing wealth for future generations. There are many types of trusts, including revocable, irrevocable, discretionary, and more. Each has its own benefits and limitations. For example, an irrevocable trust offers strong asset protection and estate tax benefits but at the cost of relinquishing control over the assets placed into the trust. The trust agreement is a legal document that outlines how the trust operates, the roles of the parties involved (such as the grantor, trustee, and beneficiaries), and the rules for managing the trust's assets. It's crucial to work with an experienced attorney to ensure the trust meets your goals and complies with legal requirements. The trustee manages the trust's assets. You can choose an individual (such as a trusted family member or advisor) or a corporate trustee (such as a trust company). The trustee's role is fiduciary, meaning they must act in the best interests of the beneficiaries. Transfer assets into the trust. This can include cash, investments, real estate, and other valuable assets. Once assets are in the trust, they are legally owned by the trust and managed according to the terms of the trust agreement. The trustee manages the trust's assets according to the trust agreement. This can involve investing the assets, making distributions to beneficiaries, and performing other actions to fulfill the trust's purpose. Trusts are subject to various legal and tax requirements. This can include filing trust tax returns and paying any required taxes. Proper compliance is essential to avoid penalties and ensure the trust operates as intended. Creating a "bank" through a trust does not mean you can perform traditional banking operations like making loans or accepting deposits from the public without proper licensing and regulation. Instead, it's about creating a structured way to manage and protect your assets. Because of the complexities involved in setting up and managing a trust, it’s crucial to consult with legal and financial professionals who can provide advice tailored to your specific situation and goals. 1. Understand the Purpose2. Choose the Right Type of Trust3. Draft the Trust Agreement4. Select a Trustee5. Fund the Trust6. Manage the Trust7. Comply with Legal and Tax Obligations https://investcapitalrealestate.com/

Welcome to another episode of our podcast, "REAL ESTATE ASSETS," where we embark on the first part of our journey to demystify the real estate investment landscape. Today, we delve into the formula of Cash Flow + Time + Location + Scale = Generational Wealth, unraveling the keys to building a formidable real estate portfolio that can transform your financial destiny. In recent times, the real estate market has undergone significant shifts, presenting both new opportunities and challenges for investors. These changes are reshaping the wealth-building playbook, compelling investors to adapt their strategies for sustained success. Whether you're looking to manage a personal portfolio, engage in real estate syndications, or invest in REITs (Real Estate Investment Trusts), grasping the nuances of property valuation is paramount. Remember, the secret to profitability lies in your purchase decisions. Profits are made when you buy, not when you sell. This foundational principle underscores the importance of accurately assessing a property's value from an investment perspective. While most people are familiar with valuing residential properties like single-family homes or condos through platforms such as Realtor.com or Zillow, the valuation process for investment properties encompasses a broader spectrum. Residential appraisals often employ the market approach, comparing recently sold properties (comps) in the area to establish a benchmark. This process involves adjustments for differences in size, amenities, and other factors to align the value of the appraised property with its comps. However, for real estate investors, understanding how to apply and interpret these principles across different types of real estate assets can make the difference between middling returns and remarkable success. Join us as we explore the intricacies of the real estate valuation process, offering insights and strategies to ensure you never overpay for real estate assets again. Whether you're a seasoned investor or new to the game, this episode will equip you with the knowledge to make informed decisions and leverage market dynamics in your favor. Let's dive in and unlock the secrets to building generational wealth through savvy real estate investments. https://investcapitalrealestate.com/ https://investcapitalrealestate.com/business/

In this enlightening episode, we sit down with two giants of the real estate investment world, Oleksiy Ihnatenkov and Nic DeAngelo, President of Saint with over $206 million in assets under management. These visionary leaders share a common goal: to level the playing field in the investment sphere by democratizing access to strategies once reserved for the elite. Oleksiy and Nic delve into the core elements that drive their mission to open up investment opportunities, leveraging the collective power of individual investors to participate in ventures that promise substantial returns and financial growth. Discover how and Saint are revolutionizing the investment landscape by offering tax-advantaged multifamily and commercial real estate opportunities. They explore the transformative potential of allowing broad participation in the market, breaking down barriers that have traditionally kept average investors on the sidelines. This episode goes beyond the numbers, focusing on the philosophy of inclusion, empowerment, and the impact of collective investment power. Listen as Oleksiy and Nic share their insights on the importance of strategic, long-term financial planning, risk management, and the role of technology in creating more accessible, transparent, and equitable investment platforms. They discuss the challenges and successes of implementing these innovative approaches, providing listeners with practical advice on how to engage with and benefit from these democratized investment offerings. Whether you're an aspiring investor, a seasoned professional, or simply curious about the future of investment, this conversation between Oleksiy Ihnatenkov and Nic DeAngelo offers a rare glimpse into the minds of those who are reshaping the industry. Join us for an inspiring discussion on how the power of many can lead to financial freedom and prosperity for all. Nic DeAngelo https://saintinvestment.com/ Oleksiy I. https://investcapitalrealestate.com/

Due diligence in a multifamily real estate deal is a comprehensive process undertaken by the buyer to assess the viability, profitability, and overall condition of the property before finalizing the purchase. This process involves a detailed examination of various aspects of the property, including financial, legal, physical, and operational factors. The goal is to identify any potential risks, liabilities, or issues that could affect the investment's value or performance. Here is a breakdown of key components and considerations in conducting due diligence for a multifamily real estate deal: Review Financial Statements: Analyze profit and loss statements, balance sheets, and cash flow statements for the past few years to understand the property's financial performance. Rent Roll Examination: Evaluate the current rent roll for tenant mix, lease terms, rent rates, and payment history to assess income stability. Operating Expenses: Scrutinize all operating expenses, including maintenance, management, utilities, and insurance, to ensure they are in line with industry norms. Capital Expenditure History: Look into past capital expenditures to gauge the property's maintenance and improvement needs. Title and Ownership Verification: Confirm the property's ownership and ensure the title is clear of any liens or encumbrances. Zoning and Use Compliance: Verify that the property complies with local zoning laws and its use is legally permitted. Building Codes and Safety: Check for compliance with local building codes and safety regulations, including fire safety and accessibility standards. Property Inspection: Conduct a thorough inspection of the property to identify any structural, mechanical, or environmental issues that could require significant investment to address. Environmental Assessment: Perform an environmental assessment to identify potential hazards like asbestos, lead paint, or soil contamination. Market Analysis: Assess the local real estate market conditions, focusing on demand for rentals, average occupancy rates, and rental trends. Management Review: Understand the property's management structure, evaluating the effectiveness of current management practices and identifying any operational inefficiencies. As part of the due diligence process, engaging with the property owner is crucial to gather firsthand insights and information. Here are several key questions to consider: Why are you selling the property? Have there been any major tenant issues or disputes? Are there any pending legal matters or litigation involving the property? What recent major repairs or renovations have been completed? Can you provide details on any recurring maintenance issues? This structured approach to due diligence is designed to mitigate risks and ensure that the multifamily property aligns with your investment goals and expectations. It's a critical step in making an informed decision and navigating the complexities of real estate investment successfully. Financial AnalysisLegal and Compliance ReviewPhysical InspectionMarket and Operational EvaluationQuestions to Ask the Owner https://investcapitalrealestate.com/

Investing capital in real estate is one of the oldest and most popular forms of investment, offering a variety of ways to generate wealth. This investment avenue can range from directly purchasing properties to investing in real estate investment trusts (REITs) or real estate crowdfunding platforms. Each method has its own set of benefits and risks, tailored to different types of investors based on their capital, risk tolerance, and investment strategy. Here, we'll explore the various ways to invest capital in real estate, highlighting key considerations and strategies for prospective investors. Investing in residential real estate involves purchasing homes, apartments, or condos to rent out or sell at a profit. This method requires significant upfront capital for down payments and ongoing capital for maintenance. The key benefits include potential rental income, property value appreciation, and tax deductions related to property ownership. Commercial properties, including office spaces, retail locations, and industrial sites, offer higher income potential but also come with greater risks and higher initial investment. Leases are typically longer, providing more stable income streams, but the success of commercial investments can be closely tied to the health of the economy. REITs allow investors to put money into real estate without owning physical properties. These trusts are companies that own, operate, or finance income-producing real estate across a range of property sectors. REITs are traded on major stock exchanges, offering the benefits of liquidity, dividend-based income, and diversification. Since REITs must distribute at least 90% of their taxable income to shareholders, they can provide a consistent income stream. Crowdfunding platforms have democratized access to real estate investments, allowing individuals to invest smaller amounts of capital in larger projects, including commercial properties and housing developments. These investments are typically illiquid and have a longer term, but they offer the potential for higher returns compared to publicly traded REITs. This strategy involves purchasing properties at a low price, renovating them, and selling them at a higher price. While potentially lucrative, fix-and-flip requires a keen eye for undervalued properties, a good understanding of renovation costs, and the ability to manage or perform the renovations. RELPs are similar to real estate investment groups but are structured for projects that will eventually be sold. Investors in a RELP are passive, providing capital to experienced real estate developers and managers. This setup can offer high returns but comes with high risks and limited liquidity. Market Research: Understanding local market conditions is crucial for direct property investment and can influence the success of REITs and crowdfunding investments. Diversification: Investing across different types of real estate can help mitigate risk. Liquidity: Direct property investment offers limited liquidity, while REITs provide more flexibility to buy and sell shares. Tax Implications: Real estate investments have unique tax considerations, including potential deductions and capital gains taxes. Investing capital in real estate offers a range of opportunities with varying levels of risk, return, and liquidity. Direct Property InvestmentBuying Residential PropertiesCommercial Real EstateReal Estate Investment Trusts (REITs)Real Estate CrowdfundingFix-and-FlipReal Estate Limited Partnerships (RELPs)Key ConsiderationsConclusion https://investcapitalrealestate.com/ contact@investcapitalrealestate.com podcast@investcapitalrealestate.com