Why Professional Athletes Need to Invest w/Igor Shaltanov

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Episode Description

Welcome to the Freedom Point Real Estate podcast! Jeremy Dyer welcomes Igor Shaltanov to today's episode to share about his company Avista Fund: why they focus on multi family investments, how they positively impact the community, and what core principles they stick to in order to safeguard investors' wealth.

Igor Shaltanov, founder of Avista Fund, is a former professional athlete turned successful entrepreneur and real estate investor. In 2020, he launched Avista Fund, focusing on raising capital to invest in value-add multifamily properties. The firm provides local and international investors access to US real estate, protecting and growing their wealth. Currently, Avista Fund partners in 20 real estate deals with over 3,200 units valued at $500MM. With conservative underwriting and careful diligence, Igor ensures steady returns for investors while positively impacting communities.

CONNECT WITH IGOR SHALTANOV!

Website: https://avistafund.com/

LinkedIn: https://www.linkedin.com/in/igor-shaltanov-13682b43/

Youtube: https://www.youtube.com/@PROInvestingshow

CONNECT WITH JEREMY DYER!

Website: https://startingpointcapital.com/

Instagram: https://www.instagram.com/startingpointcapital/

LinkedIn: https://www.linkedin.com/in/jeremydyer

Facebook: https://www.facebook.com/startingpointcapital

Book a Call! https://calendly.com/startingpointcapital/discuss-investing-with-jeremy-dyer?month=2023-12

Summary

Tip #1: Invest in Assets, Not Liabilities

"At some point that music is going to stop and I so appreciate you highlighting the importance of investing in assets versus investing in liabilities."
This quote emphasizes the importance of planning for the future by focusing on building wealth through assets that generate income. Professional athletes or high earners often fall into the trap of purchasing liabilities, such as luxury items that depreciate. However, by shifting focus to income-generating assets, individuals can create a sustainable financial future without relying solely on their active income.

Tip #2: Syndication Can Scale Your Real Estate Investments

"One thing struck me like it was 2020, right, and then when I start to sell the things and then rolling into the syndication...it's a true passive investment."

Syndication offers a way for individual investors to scale their real estate holdings without the time and energy commitment of managing properties. By pooling resources, investors can participate in large multifamily projects, which provide better returns than smaller-scale investments. The ability to scale quickly while remaining passive is a major draw of syndication, offering financial growth without increasing personal workload.

Tip #3: Diversification Is Key

"I would rather own 1% of somebody else’s effort than 100% of my own."
This quote by Rockefeller highlights the benefits of diversifying investments. Rather than managing a small portfolio, investors can expand their reach by owning a portion of larger, professionally managed projects. This reduces individual risk and gives investors access to bigger opportunities that they could never handle on their own, making diversification one of the best strategies for wealth-building.

Tip #4: The Power of Teamwork in Syndications

"By the end of the day, count the hours spent, time spent, emotion, energy, you're probably making $10 per hour if so."

Syndication works because it combines the expertise and efforts of a team. Individual investors often lack the time and expertise to handle every facet of real estate management, from acquisition to renovation and tenant relations. By teaming up with skilled operators, you leverage their expertise, which results in a more efficient investment with higher returns for all parties involved.

Tip #5: Reinvest in Communities for Long-Term Gains

"When I see underperforming buildings...and all of a sudden the good legit operator comes in...transform that community."

One of the most rewarding aspects of investing in real estate is the ability to positively impact communities. When properties are renovated, they not only increase in value but also improve the living conditions of tenants. These changes can have lasting effects on a neighborhood, attracting better tenants and increasing the property's income potential, ensuring long-term gains for investors.

Tip #6: Understand the Importance of Property Management

"You're getting reports, you're not getting tenants and phone calls and the toilets, you're getting reports."

Good property management is a cornerstone of successful real estate investment. Passive investors often overlook how crucial property managers are to maintaining and growing their assets. Effective management ensures that tenants are happy, rents are collected, and the property is well-maintained, all of which contribute to the long-term financial success of the investment.

Tip #7: Minimize Construction and Financing Risks

"We do very, very boring value-add projects...minimum construction risk, minimum financing risk."

Igor highlights the importance of sticking to tried-and-true investment strategies with lower risks. Rather than chasing flashy or speculative developments, he advises focusing on simple, cost-effective renovations that add value to the property without overextending on financing or complex construction. This conservative approach minimizes risk and increases the likelihood of steady returns.

Tip #8: Experience Is the Best Teacher

"We did actually lose the money...but we learned a lot."

Failure is part of the learning process, and in real estate investing, making mistakes can be a valuable lesson. Igor’s experience of losing money on earlier projects didn’t deter him—it taught him what not to do, which ultimately strengthened his approach to future investments. New investors should view setbacks as opportunities for growth rather than failures.

Tip #9: Stay Away from ‘All In’ Mentality

“Getting rid of this idea like all in, all out...that’s going to be very beneficial.”

Avoiding the “all in” mentality is critical for preserving capital. Igor advises against betting everything on one investment or asset class. Diversification not only spreads risk but also ensures that investors are more adaptable and can respond to market fluctuations without devastating financial losses.

Tip #10: Learn from Experts and Seek Mentorship

"Seek mentors that are in the space...before you know that have a track record of some challenges, some headwinds, and some successes."

Finding a mentor with experience in the real estate market can be invaluable for new investors. Mentors provide guidance, share best practices, and help you avoid common pitfalls. Their knowledge gained through both successes and failures is one of the best tools for accelerating your investment journey and achieving long-term wealth.