Matthew Iak is the Executive Vice President of the United States Energy Development Corporation, as well as a member of its Board of Directors. Since joining the company in 2005, he has overseen a capital raise of more than $1.6 billion.
Mr. Iak is well-versed in a private placement, Regulation D, as well as estate and tax planning strategies. He has led the development and underwriting of numerous new oil and gas investment structures, including energy 1031 exchange funds, private capital acquisition funds, and, most recently, qualified opportunity zone funds.
In addition to serving on the Board of Directors of the United States, Mr. Iak is a member of the company’s second-generation leadership team, the President of a number of family real estate and property management companies, and the CEO and President of U.S. Westmoreland Capital Corporation are Energy’s Managing Broker-Dealer. Mr. Iak also serves on the Real Asset Advisor board of directors. Prior to coming to the U.S. Mr. Iak worked as a financial advisor for Energy, where he oversaw client assets worth more than $1 billion. Mr. Iak is a Canisius College graduate with FINRA Series 7, 24, 63, and 66 licenses.
Episode Highlights Here:
Matthew Iak:
The easiest way, at this juncture, is to actually just drill new wells, which creates the original use. You’re normally cash flowing within six months.
Pierce York:
You are saying that there is an abundance of land out there in opportunity zones where you can tap into the oil and gas. I’m assuming that’s like some sort of like mineral rights or, like drilling or something like that. How do you generate revenue off of the land and energy?
Matthew Iak:
The opportunity’s own tax, all you have to do, as you probably know very well, do a couple of things, you either have to substantially improve it or put it into original use. The original use concept is really easy when you’re drilling new wells, you can do it through pipelines by building new pipelines, and you can do it through a source of other mechanisms. But the easiest way, at this juncture, is to actually just drill new wells, which creates the original use. You’re normally cash flowing within six months. The only real limitation is because of the outside basis rules, you’re using limiting distributions to whatever rate you can create outside bases, and not get to tax-sensitive, but that’s usually 6%, 8%, 10%, that firms who are who understand zones will limit the distributions. In today’s market, they’re probably earning triple, quadruple, quintuple that amount and reinvesting back into more and more wells. So you got a portfolio growth along with current income is usually very, very hard to do under the normal thought process of how opportunity zones work in real estate.
Pierce York:
Full transparency, I don’t know anything about the oil and gas fields? I don’t know how they work. I see the little like horse drillers, that we got. So, is that we’re talking about? Are we talking about you guys buying a bunch of lands and putting a bunch of like those drills and those rigs on it, that’s basically pumping the oil, and when you’re shipping it off, and you’re selling it?
Matthew Iak:
It’s really what they call EP – Exploration, Production. But it’s pretty much developmental areas, these aren’t high-risk areas, these are the shale plays that you hear a lot about everything from the gas shale to the oil shale plays. In fact, the Permian Basin is littered with opportunity zones, most of it is an opportunity zone, which is the biggest producing base in the US. So, it’s just this great concept that you go drill a well on that census tract. It generates revenue for the community, and taxation for the community. So, you’re doing the part the opportunity zones are supposed to do, and then on top of it, the investors are making fantastic potentially making fantastic returns in the energy space, depending on who they invest with and what the underwriting is.
Pierce York:
Okay, so you’re telling me that there’s an abundance of oil-rich land out there, that you can tap into with an opportunity zone, most of them are in opportunity zones, so you’re not having to go out and find diamonds in the rough or deals that are underwriting 150, 175, whatever deals before you find one, you can literally just like, go up, there’s an abundance of these deals, you’re basically flipping your cash into these opportunity zones, you’re buying rigs, and you’re starting to drill your cash line within six months, and then you’re taking that capital and once that opportunity zone comes, do you have some tax benefits along the way with the oil and with the gas that pair up with the opportunity zones? So ultimately, you have a significant amount of losses at the end, that you can write off against a whole bunch of other assets? Is that what you’re saying?
Matthew Iak:
That’s exactly what I’m saying. It’s a really amazing tax concept. Assuming you like the underwriting and the assets and whatnot, which is a whole technical part of the energy space. Obviously, the tax law butts up with energy, I think better than any other asset class.
Pierce York:
Interesting.
Listen to the full episode here:
Watch the episode here:
Important Links:
About Matthew Iak
Matthew Iak is the Executive Vice President of the United States. Energy Development Corporation, as well as a member of its Board of Directors. Since joining the company in 2005, he has overseen a capital raise of more than $1.6 billion.
Mr. Iak is well-versed in a private placement, Regulation D, as well as estate and tax planning strategies. He has led the development and underwriting of numerous new oil and gas investment structures, including energy 1031 exchange funds, private capital acquisition funds, and, most recently, qualified opportunity zone funds.
In addition to serving on the Board of Directors of the United States, Mr. Iak is a member of the company’s second-generation leadership team, the President of a number of family real estate and property management companies, and the CEO and President of U.S. Westmoreland Capital Corporation are Energy’s Managing Broker-Dealer. Mr. Iak also serves on the Real Asset Advisor board of directors. Prior to coming to the U.S. Mr. Iak worked as a financial advisor for Energy, where he oversaw client assets worth more than $1 billion. Mr. Iak is a Canisius College graduate with FINRA Series 7, 24, 63, and 66 licenses.
