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These platforms can be provided by financial institutions, such as banks and brokerages.

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These platforms can be provided by financial institutions, such as banks and brokerages, or by technology companies and fintech firms.

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Avestor vs. Real Estate Syndications: Breaking Down the Cost Difference

If you've only ever raised capital through syndications, you may not even realize how much time & expense the deal-by-deal model is costing you and your investors. 

But raising capital does not have to be so time consuming and expensive. And by reducing your expenses, you can improve the overall returns for both you and your investors. Keep reading to find out exactly how the costs compare between real estate syndications and an Avestor customizable fund.

Why are Syndications So Expensive?

Many people are drawn to syndications because of the ease of raising capital on a deal-by-deal basis. What they don’t realize, however, is that this ability comes at a high monetary cost. 

Each time you create a new syndication deal, you have to create a new PPM and file new blue sky filings in every state you take investor money from. This creates significant, unnecessary time and expense for the sponsor. It also can take weeks to accomplish, preventing you from hitting the ground running with your fundraising. 

The separate entities associated with each syndication also make investor onboarding much more complicated since investors need to review and sign all these complex documents over and over again. 

Operations are also more complex: You must send your investors ACHs for each individual distribution, and separate K-1s for each syndication deal. 

The syndication model is simply more costly for sponsors and their investors.

What Makes Avestor Different? 

With a customizable fund, you reduce your costs significantly. Rather than paying for new legal documents, blue sky filings, bookkeeping/accounting for each raise, Avestor's model allows you to house all of your deals (including multiple asset classes and business models) in a single, evergreen fund. 

The numbers speak for themselves: 

Shrink Your Expenses and Grow Your AUM

Imagine how much faster your business could grow if you were able to spend time on your next deal and capital raising instead of repeating the same steps for every syndication. Your investors will also save time and money. With the Avestor customizable fund, you don’t have to wonder anymore.

And because Avestor is also a solution that many investors are looking for, you’ll likely find it easier than ever to raise capital for your deals. Learn more about those investor benefits in this article. 

If you’re ready to learn more about how the customizable fund can meet the needs of your business, we’d love to connect. Schedule a demo call today at this link. 

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