March 19, 2024

JF3484: Bringing In More Capital to Negotiate Higher Returns — the Nuances of Managing a Fund ft. Igor Shaltanov and Nikita Volchek




Igor Shaltanov and Nikita Volchek, founders of Avista Fund, join host Slocomb Reed on the Best Ever Show. In this episode, Igor and Nikita discuss the nuances of operating a fund, including how they align the interests of the investors and fund managers and how funds can negotiate favorable terms for investors.

Igor Shaltanov and Nikita Volchek | Real Estate Background

  • Founder/Managing Partner of Avista Fund
  • Portfolio:
    • 3,200+ multifamily units, cumulative value of over $500MM
  • Based in: Los Angeles, California
  • Say hi to him at: 
  • Best Ever Book: Book: Think and Grow Rich by Napoleon Hill

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Slocomb Reed (01:11.907)
Best ever listeners. Welcome to the best real estate investing advice ever show I'm Slocomb Reed. And today we're joined by Igor Shaltanov and Nikita Volchek. They are founders and managing partners of Avista Fund based in Los Angeles, California. Avista Fund raises capital for value add multifamily deals with an emphasis on making investing opportunities available to both international and U.S. based investors.

Currently in their portfolio are 20 different apartment complexes totaling over 3,200 units and a cumulative assets under management over $500 million. Igor Nikita, can you tell us a little bit more about yourselves and your current focus?

Igor Shaltanov / Avista Fund (02:02.701)
Oh yeah, it was a pleasure. Slocomb, thank you for having us on the show. And yeah, so just to bring us current, we and Nikita got together in 2020, right? Then we said how we can get the best apartment complexes in the United States, right? And that was a challenging, I would say challenging task to solve, right? Then challenging question to work through, right? Because the only way you can do that back then.

Igor Shaltanov / Avista Fund (02:31.673)
You don't own 20, you don't have 20 or 40 million dollars cash, right, to get into the good syndication. So and when I say good syndication, I mean it's trustworthy people, right, they know exactly what they're doing, they've been in business for the last 10 years, they've been through the full cycles, and all of that pushed us to really open the Avista Fund and dig into the operators and dig into the business of syndication in the United States.

Slocomb Reed (03:06.863)
So let me ask then, Igor, what is it you said the best apartment complexes in the US and good syndications, what are those qualifying factors for you all? What makes the properties, what is it that you're looking for in a complex and in the syndicator?

Igor Shaltanov / Avista Fund (03:25.449)
It's a good question, Slocomb. So when we started, I mean, number one, we did a lot of mistakes, right? When we just started. And what I'm saying by mistakes is, because we didn't know which way we should go. And there's a lot of different asset classes, meaning so there's a storage facilities, there's apartment complexes, and there's RV parks, right? And all that looks really nice on paper, right?

And then there's ground up development and then there's, that's on the class of class. And then there's location as well. So there's a Texas and California and then Florida. So, and all of it is a little confusing and then you don't know where to go in the beginning. And the lastly it's operator grade. They might be people who just started. They might be people who's been in business for a while.

So we start to really nail down the parameters of where we wanna be location wise, which states, and then we start to really work through the states. The one being California, is it more on the tenant side or the landlord side? Because if you enter the syndication, you kind of become the landlord, it's a passive landlord, and you want to make sure the local government and local laws are actually in the favor of owning that apartment complex or managing that thing. Find a good investment, that's one thing.

The management piece is huge, right? It's huge, successful. It's a huge factor to the future success of that syndication. So what I'm saying is we start to really search through the operators, and then we found about 350 to 400 different operators, and the next idea was, okay, how we can vet every single operator. So what's going to be the process? We start to create a process of vetting those people, right? Example will be, okay, we want them to be 10 years in business.

They want them to be through the multiple full cycles on their business plan. And then the next part is how many employees, how many partners, what are the quality of these people? And then the best way for us to do that was to place our own capital. So it was our risk and capital of our investors first. And this is exactly what we did. So we started to really engage with operators. And we started to learn how they actually work, how they operate, how they communicate, right? Is that good, bad, ugly? Do they say all of it? Or maybe they hide something? So basically placing your capital first and then testing them through the real deals. It just gives you a lot of insights. You can really understand how they operate and how they work. And then those are just one of the small pieces we started with.

Slocomb Reed (06:18.4)
So are you placing more emphasis on making sure you're investing with the right operators or that you're making or that you're investing in the right kinds of apartment buildings in the right metros with the right laws?

Igor Shaltanov / Avista Fund (06:35.689)
I think it's a balance in between. I mean, team, for us, team is number one, for sure. And again, I'd probably be the same, I mean, probably repeating the same idea, right? Again, if you got a good operator, meaning they trustworthy and they upfront, they communicate straight up, right? Then they take in like bold actions on the problems, right? This might be mediocre deal. It's not really sexy or maybe not the best deal in the country, but because of that, trustworthy operator, they're gonna push it through and they're gonna make it really nice deal out of it.

And then if you got a best, and that's what we, again, that's our personal experience, because not all the deals are going perfect. It's always some challenges. And then you can really understand the partnership of challenges and then, like I said, there's really shiny object, beautiful brand new complex. So the market rates are a lot higher, right? You're going into that project was a, I would say not really good operator and it's might be a disaster, right? Cause they didn't know what to do. So once they got challenged, right? With some obstacle, right? And it's tough for them to swallow that thing and tough for them to push it through, right? And now all of a sudden the best deal possible becomes like very, very mediocre deal, right?

Igor Shaltanov / Avista Fund (08:04.493)
So that's one. And then obviously, right, the asset class. So we start to really think through the asset class. Is it value add? Is it the brand new complex, which is up and coming here? And there's a lot of employees are coming into the area, right? And we know it's gonna be employment opportunities for next 10, 20 years, because like a huge nationwide employer just moved in, right?

And there's a bunch of new ones coming in as well, meaning we can sit out and just appreciate the rents every year. Or it's just a value add and it's just a B minus, let's say, apartment complex, but then it's really good location. And then we can do really deep value add rate and then increase that rent. So, and again, it really depends. We really look at the location, we'll look at the employment and we'll look at the area. I would say, what's the master plan development?

What's going on with that piece of land, I would say, with that bigger picture, I would say, view location-wise. It's not given the state. Maybe it's a certain city, right? Maybe it's certain local areas where there's a lot of development going on and employment moving into the state and moving into that city.

Slocomb Reed (09:27.483)
Thus far, for those of you who are listening and not watching, Igor has done all of the talking. Let me ask between the two of you, how do you what is it that each of you specializes in?

Igor Shaltanov / Avista Fund (09:40.621)
Really good question. You want to start Nikita?

Nikita (09:43.31)
Yeah, thank you. So we are pretty different with Igor. I mean, if I can answer it just in short, I'm about numbers and Igor is about relationships. And it's our nature. I mean, I'm, I'm studied math, pure math when I was young, when in school, I mean, in the university. Yeah. And I love numbers and I love business processes and I love to see everything like a system, you know, and I love to build everything like a system. And Igor, he's about relationships. He's really good at it. And that's the answer. I mean, yeah, that's the simple answer, you know.

Igor Shaltanov / Avista Fund (10:32.149)
Yes, look, so what we did, we actually, if you let me introduce myself a little bit, right, so we start to separate the business process. And there's two very important pieces, right? One is relationship, it's a relationship business, right? You gotta build strong relations with both sides. So I've got operator on one side, which is a business partner, and we've got investor on the other side. And both of those sides should be, right, really tied up with relationships, right? Communication.

Follow-up, right, feedback, and then just adjustments as well. And on my side, it's always relationship, right? And then building new relationships, building new partnerships, and then Nikita's side, it's a structure of his mind. And yeah, if I'm building relationships and we're not structuring that thing, so what's the value of that thing, right? It's not a lot, because after like, I would say a couple months and three months from now, if it's not structured, it's just fading away right away.

And then on a deal specific side, opening up the spreadsheets, analyzing the deal, going through pro forma, right? Because Nikita will tell me, I hear you, blah, send me a spreadsheet. So which is a great cutoff thing. So that's a great check, right? Because I come back sometimes, oh, I got super good deal. The guys are amazing. So he was like, okay, let's look at the spreadsheet. Let's punch it in, right? If it's not working, it's not working. And then we just sit down and sure enough, it's not working.

I was like, okay, I got maybe too excited. And again, this is a really good check and balances in the partnership we have and then the fun. So, because again, it's both pieces always, it's relationship on the structure and the detail wearing and the process.

Slocomb Reed (12:17.751)
Yeah, that makes a lot of sense for sure.

I personally end up more on the people side with a major emphasis right now on identifying people who are trustworthy, who can handle with who can handle the responsibility who I can trust with, with my weaknesses. I am good at math, but definitely wear out looking at spreadsheets much faster than Nikita likely does.

So I get where you're coming from there. I have a couple of, I have a key topic, a theme for our conversation in mind, but I have a couple of questions I need to ask before I can get to it. When you all, when a VISTA fund is engaging with a syndicator, value-add multifamily syndicator, are you part of the general partnership or is the Avista Fund investing purely passively as a limited partner.

Igor Shaltanov / Avista Fund (13:27.909)
So we are a limited partner right now. So then we have no GP positions. And the idea of us, again, it's a fine, so what's a general partner? It's right, you gotta be engaged, all right, and you gotta be doing a certain part of the deal. So meaning, so you either go in on a meeting, so you do an asset management, all this stuff. So what we really focus on, we really focus on being really good at one thing, so just raising capital.

Number one, finding the good deals. Number two, raising capital, all right? And then just that one piece of finding a good deal, it's not, and again, from my experience, it's not easy. So it took us a long time, right, to really understand where we wanna be, number one. Number two, it took us a longer time right now, especially in this environment right now, to find a really good, appealing deal to investors.

So, and then just, you know, speaking of the question, right, we LLP position and there's no JP right now.

Slocomb Reed (14:44.727)
I think what I'm most curious about here personally, and hopefully our listeners will agree or at least follow along with me, I really wanna ask how it is that you are creating alignment of interest with the general partners that you invest with, with the investors whose capital you bring into the fund to deploy into the syndicated department deals that you all choose with the operators that you decide to work with. As 
as fund managers.

Slocomb Reed (15:17.867)
Let me start by asking outside of the capital that you deploy yourselves within the fund and the returns that you get on that capital, how is it that you all as managers of a fund are being compensated?

Igor Shaltanov / Avista Fund (15:37.067)
There's multiple layers on that and yeah there's a couple layers right the one is it's, and probably one of the most important things is how good is the deal? I mean, the deal is good, right? You will find compensation and you'll find a way to compensate yourself always. Right. And this is the hard part on us to find a good deal, meaning everybody wins. The operator wins, the investors win, and then the fund managers, us, we win as well. So. Yes.

Slocomb Reed (16:10.847)
Igor, can I make a couple of assumptions here to kind of lay the groundwork for my questions? Please correct me where I'm wrong, but a major value that you're adding to all of the other parties involved in a transaction is from the point of the general partnership, as a fund, you are able to bring significantly more capital to their deals than you could as individual investors because you have a pool of investors who are looking to you for great opportunities. 

So you can provide a lot more capital than general partners could get otherwise, or just from Igor and Nikita. Part of the value that you're bringing to the people who invest in your fund is that they are getting your expertise and your effort in cherry picking the best opportunities for them to be invested in a part of, as long as they're doing it for your fund. So you're, you're bridging this gap between people who have capital who wants to get it invested and operators who are looking to raise capital for their deals.

So within that understanding that you're creating significant value on both sides, um, in, in making the connection between the capital and the opportunity, uh, that's, uh, I'm, I'm genuinely curious because this is what you're doing is something I have not personally engaged in, in commercial real estate investing yet. As, as fund managers, making the assumption that you've found a good deal, a good operator. You can talk about what makes a deal good if that's what you think is most beneficial. But how is it that as that you're being compensated as fund managers?

Igor Shaltanov / Avista Fund (17:50.509)
Yeah, so and it's very simple actually to respond to that. So again, if the deal is good, right, then we always get better returns because we bring in more capital. It's again, it's a partnership and relationship business, so we always talk to the partners saying, so if we bring in you a million dollars, let's make a million dollar mark, right? So we're getting better rate returns on our money.

So otherwise, they retail investors going directly into the deal, they're not gonna be able to get that type of return, right, or a percentage, or a split, let's say, right? And then from that split, on our fund level, we just compensate ourselves. And at the end of the day, it's becoming even better, more lucrative for investors to go through us, because we have a power to negotiate better terms.

Is that the question?

Slocomb Reed (18:52.479)
It does. I've correct me again where I'm wrong. I've heard this called like the fund of funds model where, uh, individual investors are, are getting a better return because the returns that you can garner from general partners are greater, uh, or the splits depending on how you look at it are greater because of the amount of capital that a Vista can bring by comparison to your average retail investor. 

You know, I want to dive into the nitty gritty, but I really want to make sure I understand first. So you're creating a better return for, um, for the investors and they could get on their own.

And you are negotiating with the general partners, a larger piece of the pie than you are sharing with your investors, and the sliver of the pie that is the difference, you're keeping a part of that for yourselves, is that fair? So.

Igor Shaltanov / Avista Fund (19:53.989)
Exactly. Yes, correct. And then we're not breaking any rules as well because we're doing on our fund level, right? We can do whatever we want inside of our entity, right? And it's not considered the capital raising. And that's one thing.

Slocomb Reed (20:09.535)
Yeah, and assuming that the deal is well executed on and there's a successful exit, everybody wins because the GP got their capital raised, they got it raised more quickly, more efficiently, and your investors got a better return than they would have on their own, not to mention they also benefited from the vetting process that you put the operators through to make sure their money was going to the right place.

Igor Shaltanov / Avista Fund (20:34.309)
That's one example. The other example, right, so the last deal we actually have done, so the partner, the operator, is not even willing to talk to people unless they bring in million dollars.

Igor Shaltanov / Avista Fund (20:51.717)
Like there's no chance, yeah, there's no chance for the retail investors to be part of that deal. And it's a very good deal. It's like, I wouldn't say the first take, let's say it's 20 plus percent IRR, right? So 20 plus, and I'm very conservative on my numbers right now. And they say, so we would love to have person, let's say, and again, million dollars, that's what we want to see from people. So

Slocomb Reed (20:51.895)
So those are opportunities that aren't even available to most retail investors.

Igor Shaltanov / Avista Fund (21:20.353)
And now the question is how many people can afford to get million dollars, right? Cash liquid, right? Cash, right? And then place it capital is this operate.

Slocomb Reed (21:29.695)
And then put it all into one basket and put it all into one deal without any diversification in that million.

Igor Shaltanov / Avista Fund (21:32.021)
That's what I'm saying, that's not a clue.

Igor Shaltanov / Avista Fund (21:36.865)
Like even us, we would probably not put a million dollars in a single deal, right? Cause we know exactly how it goes, right? Sometimes it's amazing. Sometimes it's average. And sometimes, I mean, you don't lose it, right? So maybe one out of 50, you might lose half of the principal, right? We're going to be full principal again, if so, but then what I'm saying is if you bet on a million dollars in one deal, that's my below two risk here, right? You know, stuff you put in one basket.

Nikita (22:10.534)
So and let's don't forget that the first maybe as I want to say that we are searching and searching the good deals so that's a lot of work a lot of work because the first steps are your searching you make like a funnel of the operators so you checking it we have a checklist for this and after that so you build up the funnel for him for deals that's a lot of work, and that's the value for investors.

Slocomb Reed (22:46.755)
So I'd like to talk about, I'm thinking not necessarily for myself, but to have a better understanding of the fund to funds business model and for our listeners who are engaged in this or who are interested, whether it's on the capital raiser side within a general partnership or whether it is with retail investors who are feeling like they need better opportunities to be made available to them.

First, let me reiterate for the listeners that no individual investment opportunities are being made available during this podcast. That's not the point, that's not what we're here for. But I'm curious, there's a margin between the returns you're making available to your investors that's still higher than what they'd get on their own, and the returns that a VISTA fund is getting themselves, and the difference, that margin is where you benefit as fund managers. So give us an idea if you need to use examples that works great. Give us an idea of what that margin looks like on your deals.

Slocomb Reed (24:25.387)
I'm planning to ask these kinds of questions more and more often on the podcast because I find this not only fascinating but very valuable for people to understand, especially if they are not real estate professionals in this space full time, the way that the three of us are.

There are a lot of different ways that I could see fund managers being compensated and a lot of different ways that general partners in capital raises are compensated as well. If you look at the acquisition fee model of compensation, there's there's compensation directly linked to activity that is not directly linked to results.

However, when you look at waterfall distributions, what kinds of splits a deal is on, those tend to, those tend to come into play more often when there has been success. And so looking at other people involved actively in the investment opportunity, if they're taking less compensation upfront and less activity-based compensation, like transactional compensation or liquidity event fees, and more of their return is, more of their opportunity, more of their compensation is tied directly to the performance of the asset and the returns garnered globally, then you have a greater dependence on the success of the deal in order to get paid.

And that can create great alignment of interest for investors who are coming into this completely passively to know that the people who are investing their money, are making money primarily when there has been success and they will see a return. So all that being said, can you give us some examples? Have you all, has Avista Fund gone full cycle yet?

Igor Shaltanov / Avista Fund (26:54.509)
Couple of DLCs.

Slocomb Reed (26:56.235)
Okay. So, uh, could you speak to what the returns look like on those deals?

Nikita (27:04.622)
So these returns was pretty high because the exit was on the 2023. So as I remember, the one exit was for a whole deal, I mean, the distribution with the whole cycle, yes. The distribution plus the back end when we get. So it was, as I remember, about 23 persons.

Nikita (27:40.422)
That was really high. That's not, as we are usually, how to say, waiting from the multifamily. Yes. So we expecting to get on a whole cycle, not less than 15 and just more close to 20% earlier. Per year, I mean. For example, if it's five year cycle, so we can get six preferring term per year with a distribution plus minus and 12 per year, for example. Yep, it's the average that we are looking for, that we are searching. It's about 18 plus percent for the whole cycle per year. So 6 plus 12 per year. It's meant 6 plus 12 plus 60. 6 every year plus 60.

It's about double every four to five years. So double the capital for four or five years. That's our expectation. So one deal, as I remember, was 23 persons per year, but it was short. It was for maybe two and a two and a half years. It wasn't a deal. And the second one, I don't remember, but I think it's about 20.

Slocomb Reed (29:05.071)
So looking at average annual returns of like 20 and 23, those are the global returns for the whole deal.

Nikita (29:12.054)
It's not 23. I'm sorry. I think it's about 18, 20. That's we are just really looking for. 82, 20. Yes. But the third, that's the pair, risk and return. And the risk for us is the first one.

Slocomb Reed (29:20.499)
18 to 20% average annual return.

Nikita (29:36.094)
Okay, so if the risk is below our level that we are looking for, yes, so we are ready to go to look to the yield, to look to the return, okay? So, no, 23, it's a lot of fun. I mean, for a multifamily, maybe in a land deal, that's okay, but for a multifamily, for our risk management, that's a lot. I think from 18 to 20, that's okay.

Slocomb Reed (30:15.683)
When we're looking at average annual returns of 18 to 20% globally, what are those returns going to look like for your investors or what have they looked like for your investors? And what have they, um, let's just start there.

Igor Shaltanov / Avista Fund (30:33.865)
Yeah, I just want to respond to that thing. It's the same thing. So if you look inside of the fund, so we do the sourcing fee. And what is that for us? It's actually the work when we go out and check the operator and we check the project. And I would say it's between 3% and 5%. This is what we're going to charge from the investors. Basically, there's a couple of things we need to kind of up front. There's a couple of things we have to cover.

We can't sustain the fund level, right? It's a legal fee, because we've got to put up the paperwork together, right? We've got to file with each state, wherever the investor came from. So, like you can do it yourself, but we would rather always rely on really good attorney. So that's one. And then the second one, it's a second level, I would say it's distribution. Let's say the retail distribution is 6%, but we actually get eight. There's a delta of 2%, and it's up to us.

We might wanna share 1% saying, we're getting better return for investor. It's not six, it's at seven, and we keep 1% for ourselves. That's another level. Now we've got two levels. And level number three, this is exactly what you said about alignment between us. And again, it's not a huge deal, but we always put our own money into every single deal as of today, right? So every single deal.

This was our own capital, our family capital, right? So, and this is number one, right, alignment, and it's not on the fund level, it's just, I would say it's on a, how do you call that? Maybe on your internal level, right, as a person. So do you trust that deal? I do with my own money. That's why I'm giving that deal, giving that opportunity to investors. And then like I said, the last piece is, it's back-end distributions.

What the split looks like is 70-30. And usually it's like, I see numbers 60-40 to retail investors was 50 or 100K coming in by himself. It could be as low as 60-40. So where he gets 60%, an operator will take 40. Why? Because he's bringing in 50K. How much work do you need to do to accommodate that 50K and talk to that person, right? And then respond to the same question.

Because if a person put down $500,000 and person who put down 50k and I'll speak through the experience a lot of times There's a lot more work with 50k person than five hundred thousand dollars person right because they ask him more questions They just maybe a second time third time into this indication deal So I did not sure they kind of worry the Miami nervous and all that stuff and that comes with questions They always like hit you with a question. Now what's going on here? What's going on?

We missed distributions and now we've got a little bit more. So anyways, what I'm saying is there's a last alignment piece and there's a last split as well. So when we get a better economics on the back end, and this is exactly what you say, this is how we align the investors with our own fund. Meaning if we're not getting better economics, if we're not getting that deal done the way it's supposed to be done, we get zero compensation. Because the priority is investor, it's not us.

So we'll always put the priority as an investor. So if we 60-40, right, let's put it down 70-30. If we had 70-30 and there's not enough of return, right, it's always goes to investor. The full amount goes to investor first.

Slocomb Reed (34:14.103)
That makes a lot of sense. Unfortunately, we're running short on time. So are you all ready for the best ever lightning round?

Igor Shaltanov / Avista Fund (34:20.289)
Oh yeah, for sure.

Slocomb Reed (34:22.839)
What is the best ever book you recently read?

Igor Shaltanov / Avista Fund (34:28.246)
This is one of my favorite questions.

Yeah, so, there's one book I'm reading now, I would say, every single day. There's a Think and Grow Rich by Napoleon Hill. So, and I'll tell you one thing, I started to read that book maybe seven years ago, right? And sure enough, and I'm not making up a thing. I just read the chapter yesterday. And I did audiobook. And then what I found out, I read a lot of books in between, but then this is the one book I come back all the time.

So this is very, I would say, very transformative book. And then, you know, when I feel uncertain or I feel like I'm stuck, or I feel like I need some help or push, I always come back by default to that book, Napoleon Hill, Thinking Grubwich.

Slocomb Reed (35:25.135)
What is your best ever way to give back?

Igor Shaltanov / Avista Fund (35:29.385)
This is my second favorite question. Actually, before we started investing in Abbey Stefanitz also, I was engaging with children, kids. We were coaching kids. And then my first education is PE teacher and coach. And I feel like there's nothing better but learn, sorry, not learn, teach or maybe show or share your personal experience with a person and make them better. This is the best feeling you can get. So what I'm saying is engaging with children. I still coach the team to this day and why? Because I feel like it's my give back to community. I wanna make sure I teach sports, I teach basketball. And then, but really through the basketball, I teach them, okay, how to come through the obstacles, right?

How the life is going to be challenging in the future. And it's not for you to, you know, back out, right? Not for you to give up. It's for you to go through that experience and learn something new. And I think the sports and engaging with children, it's super beneficial. And I feel like I'm giving back to community when I engage with youth.

Slocomb Reed (36:51.075)
Bonus lightning round question, will you all be at the best ever conference in April?

Igor Shaltanov / Avista Fund (37:00.281)
We have no idea, but we will be.

Slocomb Reed (37:06.211)
Gotcha. It is a, um, it's April 9th to the 12th. The information is at a best ever There will be a well a lot projecting around a thousand commercial real estate investors, mostly passive, mostly retail investors, but quite a few operators there. We have some great keynote speakers and panels involved there.

Uh, this year the conference is breaking down the afternoon sessions into passive investing operations and entrepreneurship. So business building effectively within commercial real estate. So they there are opportunities for people who are specialized in each of those things to get exactly the information that they're looking for and network with the other people who are doing what they're doing, not to mention capital raisers, people who are in investor relations having the opportunity to meet a lot of investors and also meet a lot of operators who are operating at a high level whose deals they may be interested in.

I've always been impressed, this will be my third time going, the wide range of people who will be there, the wide range of deals and opportunities, and also, that the fact that you can find people who are seeing high levels of success regardless. You know, in 2022, in spring 2022, it felt like everyone was having success everywhere, but that was not the case in spring of 2023. But there were still people in the room who were seeing very high returns and taking advantage of opportunities they found on market.

That's a best ever and there's a it's in Salt Lake City. Uh, and there's a discount code, um, for the listeners right now, uh, it is connect C-O-N-N-E-C-T, uh, for 15% off tickets. If you don't have your tickets already.

Igor Shaltanov / Avista Fund (39:15.057)
Great, sounds really cool.

Slocomb Reed (39:16.791)
Um, yeah, you should definitely consider going a couple more questions. And then we're actually, I've already got the next guest, uh, sitting in the waiting room, uh, Igor Nikita on the deals that you have funded. What's the biggest mistake you've made and the best ever lesson that resulted from it.

Nikita (39:39.526)
Let me answer maybe. So yeah, when we started, we made a decision to invest only in multi-family projects, but we did not.

So in our five first projects, we have two, I think. One is ground up multifamily and another one is the multifamily with the really, really big construction stuff. Yeah. And that was a fault. Because in these two projects, we have we have issues with the time, we have issues with the construction budget, and so we have all these issues. And we learned that we want to be in an admiral's family with a really low renovation, with a simple renovation only. If we're talking about the fund, if we're talking about our mistakes in our way with our Avista fund. I think.

What do you think, Igor?

Igor Shaltanov / Avista Fund (40:57.601)
Yeah, the brand new construction was the biggest problem for us, right? And then again, we didn't lose the principal but it was shrank pretty much to tens, right? And probably single digits.

Slocomb Reed (41:09.416)
On that note, what is your best ever advice? Oh, go ahead. Yeah.

Igor Shaltanov / Avista Fund (41:13.645)
And the lesson was not to invest in the construction thing, right? So yes, sorry, I wanted second piece and we, we shifted over to existing and it's, you can touch it, it's already built, right? And you might want to touch it as less as possible and, but still, uh, finding the creative way to add the value into that building.

Slocomb Reed (41:39.755)
On that note, what is your best ever advice?

Igor Shaltanov / Avista Fund (41:46.335)
Mine is do not chase shiny objects, and focus on one thing.

Slocomb Reed (41:57.183)
Last question, where can our listeners get in touch with you?

Igor Shaltanov / Avista Fund (42:02.649)
So they can download the ebook. We have a website where they can go to winr Once again, it's and download the ebook, how to become a champion of the syndication business.

Slocomb Reed (42:19.451)
Nice. And that link is in the show notes. Igor Nikita. Thank you. Best ever listeners. Thank you as well for tuning in. If you've gained value from this episode, please do subscribe to our show. Leave us a five star review and share this episode with a friend. You know, we can't buy you to through our conversation today. Thank you and have a best ever day.

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