Passive Income & Wealth Generated Through Self-storage Investment
Didenko Capital’s specialty is helping investors maximize their returns through our value-add property investment opportunities cropping up across the United States.
Passive Income & Wealth Generated Through Commercial Real Estate
Didenko Capital’s specialty is helping investors maximize their returns through our value-add property investment opportunities cropping up across the United States.
About
Didenko Capital gives investors the opportunity to enjoy low-risk strategies, which may help generate passive income streams while helping to diversify their portfolios and bring about impressive results. We make it simple for investors of different levels of income to become partners in our deals. We offer Real Estate Investments for Investors, specifically warehouse and self-storage units, with no brokers, banks or middleman fees.
Welcome to Didenko Capital
Didenko Capital offers low-risk opportunities for bringing in passive streams of income while diversifying your portfolios. No matter your level of income, Didenko Capital makes it simple to become a partner in our syndication deals, which will then allow you to:
- Multiply your income with very little added cost
- Make your portfolio stand out with diverse and unique additions
- Generate a steady income
- Finance compound returns more swiftly and easily
When clients of Didenko Capital pool their resources together with other investors, they can make sure that Didenko Capital will treat their investment with the same level of care as we treat our own. We are motivated and ready to ensure the investments work efficiently for everyone involved, backed by longtime partners with more than four decades of experience in the industry.
The Way It Should Be
Didenko Capital puts our investors before anything else. Using our expertise and knowledge base, we aim for perfection every step of the way, from choosing the right real estate in affordable warehouse and storage opportunities and property management teams to resident and employee satisfaction, all of which leads to investors having greater confidence.
Value-Add Approach
Didenko Capital is a private real estate equity firm that emphasizes deep value-add industrial-storage properties in underperforming and distressed commercial properties. The firm was established for the purpose of finding and managing investment opportunities for institutional and accredited investors looking for medium-term investments with a great risk-reward ratio. Looking for a middle ground between risk-heavy angel investments and widely available public funds, we are constantly on the lookout for opportunities that can result in above-average returns with mitigated risk.
The employees of Didenko Capital are experts in construction, acquisition and property management based on years of an analytic and value-added approach. This approach emphasizes asymmetric risk-adjusted returns by way of opportunities that are not always available to the everyday investor. This approach generates a diverse portfolio with both short-term and long-term potential.
Didenko Capital is committed to protecting the interest of those who co-invest with us as partners in assets that have, historically, created higher returns with lower volatility than other types of assets. We take utmost care to manage the capital of our investors, taking advantage of a real estate opportunity whenever it arises ahead of the market, while at the same time remaining transparent in our accountability. Throughout our history, our partners have obtained more than $550 million in property that produces income with a targeted investment size of $15 million to $100 million in total capitalization. There is a focus on generational assets that fit both our long-term and short-term strategies.
How to Begin
- Sign up. To start, create an account on Didenko Capital.
- Connect. Talk to Didenko Capital about your investment goals and locate the best investment opportunities for you.
- Understand and invest. Didenko Capital will help you understand each step along the way, so you can feel more secure investing.
Enjoy. After investing, you can sit back and enjoy the monthly cash flow generated by your investments.
Why Us
Value-Add Strategy
We acquire both Class B and Class C assets below the replacement cost in markets with strong job growth that is currently suffering from under capitalization, maintenance and mismanagement.
Markets
We invest only in markets that have both employment and population growth, strong leadership and high-tenant demand. This has shown itself to be the winning aspect of our investment strategy.
Value Creation
We take advantage of a forced appreciation model that concentrates on increasing value and improving cash flow through expense reduction of materials and labor as well as capital improvements.
Absolute Returns
Our financial strategy puts the focus on quarterly distributions, total returns, tax benefits and capital gains regardless of the volatility of the market.
Passive Income
Investors will get a large portion of their investment back in the way of cash distributions before the projects are completed in the form of tax-free refinance proceeds and quarter dividends.
Lower Risk Profile
Since most investor principal is returned well before the project comes to a close, investors are practically de-risked in the final three years of the deal.
Tax Efficient
Due to our capital improvement strategies, our investors will significantly benefit from the depreciation that comes through an annual K-1.
Limited Liability
Investors are not subjected to any financial or legal liabilities of the investing entity.
Inflation Hedge
Rents often increase at or above the inflation rate, while the debt payments stay the same, which creates an inflation hedge.
Conservative Philosophy
Our approach with conservative underwriting offers accredited investors a few of the best risk-adjusted returns of the asset class.
Frequently Asked Questions
This is the rate at which an available rentable unit is leased out in a certain real estate market during a certain period of time.
These are funds that are used by a company to upgrade, maintain and acquire properties. An expense is thought to be a capital expenditure when it enhances the life of a property and becomes capitalized, which spreads the cost of the expenditure out over the life of the property. This includes both exterior and interior renovations.
The ratio measures the cash flow that is available to pay the debt. This is also known as the DSCR. This is computed by dividing the net operating income by the total debt service. For instance, a DSCR of 1.0 means there is enough net operating income to cover up to 100 percent of the debt service. In an ideal case, the SCR will be 1.25 or higher. A property that has an SCR that is too close to 1.0 is considered to be vulnerable, and any minor decline in revenue or small increase in expenses might result in a lack of ability in servicing the debt.
The equity multiple is the rate of return that is based on the equity investment and total net profit. It is also called the EM. This is computed by dividing the amount of the total net profit, which is the sales proceeds plus cash flow and the equity investment by itself.
An accredited investor is someone who can invest in self storage syndications by meeting one of the net worth or income requirements. Currently, the requirements needing to be met for qualification is an annual income of $200,000, or a $300,000 joint income, for the prior two years. There must also be a reasonable expectation that the same amount or higher will be earned the following year. Otherwise, a net worth of either $1 million with a spouse or individually is required.
Cash on cash return or CoC is the rate of return that is based around the equity investment and the cash flow. This is determined by dividing the cash flow by the initial equity investment.
Cash on cash return or CoC is the rate of return that is based around the equity investment and the cash flow. This is determined by dividing the cash flow by the initial equity investment.
Due diligence is a process that involves confirming that a property is well-represented by the seller and is not subjected to any problems, such as environmental issues. Regarding self storage units syndications, the GP will usually perform due diligence in order to confirm their business plan and underwriting assumptions.
Also called an IRR, this is the rate that is needed to turn the sum of any future uneven cash flow—including sales proceeds, cash flow and principal pay down on a mortgage—to equal the equity investment.
Generating Long Term Wealth and Passive Income Streams
- Genuinely passive
- Attractive investor return
- Tax-efficient income streams
- Cash Preservation
- Steady Cash Flow
- Insurance Simplicity
- Equity Appreciation
- Return Of Investment
- Huge ROI At Exit
- Valuation Potential
- Scalability
- Tax Benefits
- Lowered Risk
- Fewer Loans
- Diversity of Product
- Multiple Investment Mechanisms
- Diversify your portfolio and create a steady income
- Multiply your income with only small amounts of added cost
- Easier to finance compound returns more swiftly Cash Flow
Stability
Real estate tends to be less volatile than other types of investing and has, in history, outperformed the S&P 500.
Tax Benefits
Depreciation is a free tax write-off that will let you retain more profits for yourself.
Leverage
You can leverage real estate, including self storage units, enabling you to complete a purchase of $100 million with only $25 million.
Appreciation
Real estate self storage properties appreciates in value over time.
Cash Flow
Tenants will pay rent each month, which will cover all expenses while bringing a profit to the owners.
Amortization
Tenants pay off the debt, which will increase your equity and generate long-term wealth.
Projected Returns
- Two to three times the equity multiple
- 15 percent to 17 percent IRR
- Five percent to 10 percent Net cash-on-cash
Our Core Values
Investors are what matter most, so they get paid first.
Alignment
We invest in the deal alongside our investors.
Capital Preservation
- Cash is preserved
- 10 percent equity
- Good interest rates between eight percent and 12 percent
Performance
Reasonable asset management fees
Low acquisition management fees