What is Avestor?
Avestor is a customizable real estate fund that enables investor to build their own portfolio inside the fund. Investors are able to diversify across different cities/states, property types and time horizons. Investors have opportunity for passive income and/or capital appreciation on real estate investments.
What is the benefit of investing in real estate?
The real estate market has historically performed independent of the stock market. Investing in real estate helps diversify your overall portfolio, provide passive income and opportunities for long-term appreciation.
How does Avestor work?
Accredited investors join a fund with other investors. The fund is structured as a limited partnership. Avestor works as follows:
How is Avestor different than a REIT?
Avestor allocates your capital into investments based on the direction you give us. This results in every investor having a customized portfolio. REITs cannot be customized by an investor to meet their personal investment goals.
What are Avestor's fees?
Avestor charges a annual platform fee of 1.25% on accounts valued up to $100,000 and 1.00% for accounts valued over $100,000. The fee is calculated based on the daily account value and multiplied by either .0125/365 or .01/365 to calculate the fee for that day.
Who manages the partnership?
Avestor Partner Services, LLC, as the General Partner, manages day to day operations of the partnership. Avestor Partner Services, LLC is a wholly owned subsidiary of Avestor, Inc.
How is Avestor different than other real estate platforms?
Avestor is unique in numerous ways from other real estate platforms.
Who is able to invest?
Avestor is only accepting accredited investors at this time. To qualify as an accredited investor, you must meet certain thresholds as defined by the Securities and Exchange Commission under rule 501 of Regulation D. Specifically, you must meet one of the following criteria: (1) Earn an annual income per individual of over $200,000 per year ($300,000 per couple) with the expectation of maintaining such level of income in the future or (2) Have a net worth of more than $1 million (individually or jointly), excluding the value of a primary residence.
What capital is required to join?
Can I add additional capital later?
Yes. Additional capital can be added at any time. The minimum increment is $1,000. We encourage that you add capital on an ongoing basis. This allows you to continually diversify your holdings as new investment opportunities become available over time.
How are investments made in the fund?
How are earnings, profits and losses allocated?
Earnings, profits and losses are tracked at a deal level and are allocated to the Limited Partners that are participating in each specific deal. The actual allocation is calculated by algorithms based on a combination when capital was allocated and how much capital was allocated. More details can be found in the Private Placement Memorandum (PPM) and the Limited Partnership Agreement (LPA).
How many deals will I participate in?
For an initial $25,000 investment, most investors should expect to be allocated at least 25 deals unless you have directed us differently. The number and types of deals that each invidividual Limited Partner varies based on the capital investment they have made in the partnership and what deals were available when they made their capital investment. For each deal, Avestor allocates the deal across multiple investors to reduce risk.
How do I exit the fund?
Unlike investments in publicly traded equities, real estate deals are not liquid. An investor must wait for each deal in their portfolio to complete before the principal and earnings for that deal can be returned. Once an investor seeks to exit the fund, Avestor will determine an estimated timeline based on the their investments. In most cases, fully exiting the fund and the underlying limited partnership will take multiple years.
What types of deals will I participate in?
Avestor invests in both Equity Deals and Debt Deals.
Is Avestor's offering approved by the SEC?
Our funds (limited partnerships) are disclosed to the SEC and any states where we have investors through a Regulation D, Form D electronic filing. We are currently using an SEC 506(c) exemption so SEC registration for this offering is not required.
Is Avestor a Registered Investment Adviser?
Avestor is not a registered investment adviser. We recommend you work with your financial or investment adviser to determine if real estate investments should be part of your portfolio.
Is Avestor a robo-adviser?
While Avestor uses technology to automate our processes, we are not a robo-adviser. Our managing partners review & approve deals at the fund level. Investors are then allocated slices of deals based on their investment direction.
What tax statements do I receive?
Avestor provides a single, consolidated K-1 each tax year to each investor. The K-1 will consolidate all interest income, dividends, business income/losses and real estate income/losses.
When will I receive my tax statements?
Limited Partnerships are complex and require time to ensure accounting is properly done. Investors will be participating in deals where Avestor is dependent on the delivery of partnership K-1s from its sponsors to Avestor prior to being able to generate our consolidated K-1 for investors. Avestor's goal is to deliver individual K-1 to each investor in early April ahead of the tax deadline but cannot guarantee it. Like most real estate investments, investors should plan for the possiblity of delays and filing extensions for their tax return.
What are Residential Debt Notes?
Residential debt notes are short term loans (~12 months) to borrowers to purchase a single family home. Borrowers put 10% to 30% cash down and the note covers the remainder. The borrowers pay either monthly interest on the loan or the interest is accrued and paid in full at the end of the loan term.
What are Commercial Debt Notes?
What is Commercial Equity?
Commercial equity deals provide an opportunity for investors to jointly participate with an active sponsor in the purchase of a larger property. These can include apartment buildings, student housing, self storage, retail centers or other commercial properties.
What kind of investments can an investor participate in?
Avestor focuses on three types of investments - residential debt notes, commercial debt notes and commercial equity. Debt notes have a shorter time horizon (<24 months) and pay interest income. Commercial equity have a longer time horizon (3+ years) and pay cash distributions and a share of profits on the sale of the property.