Even the most experienced real estate syndicators often struggle with the high costs of setting up each deal and the hassle of working with different attorneys.
So when Ash Patel heard about the customizable fund model, he wondered if switching to Avestor could help him reduce his costs and accelerate his business’ growth.
Ash Patel is a full-time investor with more than 10 years of experience transacting more than $40M in commercial real estate. He also hosts the Best Ever podcast and leads a commercial real estate mastermind, where he mentors and coaches other investors.
Ash built an incredibly successful business through real estate syndications, but he realized he could grow even faster if he was able to reduce costs by switching to a customizable fund.
Before switching to Avestor, Ash and his partners were spending more than $15,000 on each syndication deal. And because each deal is a separate entity, it took much longer than Ash would like to launch a new deal.
For each deal, he’d have to create a new PPM, file new blue sky filings, and re-onboard investors.
“For each syndication, we would have to figure out [which attorneys] to use. There’s no continuity from the previous deal,” Ash explained. “Before Avestor, it would be a conscious decision on each deal as to who we use and how we negotiate rates with them, and we were at the mercy of their timeline.”
Now that he’s launched the Invest Beyond Multifamily fund on Avestor’s platform, Ash is able to eliminate the need to set up every deal separately.
He’s even able to include multiple asset classes in the same fund, and multiple business models. For example, the fund includes one deal with 22% returns and a 70-30 split, and one deal with 8% preferred returns with a 50-50 split.
“We are non-residential commercial investors, so we do office, retail, industrial, medical, ground-up development, and we have a co-working space. We do everything besides multifamily, RV, self storage, mobile home parks. So each one of our deals is different,” Ash explained.
It’s been less than a year since Ash created his customizable fund, but he’s already impressed by the results he’s seen.
Aside from the significant cost savings Ash has generated for his business, he’s also appreciated Avestor’s ease of use for investors.
“The portal is easy to use for our investors,” he explained. “It’s a super smooth process with not a lot of hand holding.”
Ash continues to recommend Avestor to all the commercial real estate investors in his network, including the members of a mastermind he leads.
“There’s really no reason people should be paying $15,000 per syndication deal when they could just set up a fund through Avestor.”
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