General

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: 1) You deposit capital into the fund and set your portfolio direction 2) Investors are allocated slices of your capital into active real estate deals 3) Avestor tracks your allocation in each deal, allocates earnings to you and returns principal and earnings to your account for investment into new deals.




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. Additionally, REITs distribute all earnings through dividends while Avestor's limited partnership allows us to pass through profits/losses and appreciation. Consult your tax or investment advisor to understand the tax advantages of our model.




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. Investors in the fund also share in any limited partnership expenses such as regulatory fees, tax/accounting costs. Pro-rata expenses are calculated as an investor's account value as a percentange of the total fund assets. Expenses are projected to be approximately 0.25%-0.50% of an investor's account value. More details on the fees will be available in the Private Placement Memorandum (PPM) and Limited Partnership Agreement (LPA). Avestor does not take any additional Performance fees from Limited Partners.




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. 1) Most platforms focus on individual deals. We focus on helping investors build a custom portfolio of deals. 2) Avestor does not originate deals like other platforms. We evaluate deals across many platforms and sponsors, select the best ones and pre-invest in them. 3) Minimums on some platforms are $25,000 per equity deal and $5,000 per debt deal. On our platform, investors can build a full portfolio for as little as $25,000.





Investing

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?


The minimum capital requirement to join an Avestor partnership is $25,000.




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?


Avestor selects deals that best suit the financial and suitability requirements of the fund as a whole. We do not select investments directly for individual investors. Avestor then pre-invests in the deal. Once a deal is closed, investors may select the deals they want to participate in or request Avestor to auto allocate slices of deals based on their portfolio direction.




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. Equity Deals (you are an "owner") - Longer term investments - 3 to 7 years - Equity stake in the property - Pro-rata share of income distributions - Pro-rata share of profits from sale Debt Deals (you are a "banker") - Short term investments (2 to 24 months) - Participate in financing of a note to borrower - Fixed interest rate based on borrower quality - Pro-rata shre of monthly income or deferred interest - 1st lien on property





Regulatory

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.





Tax

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.





Investments

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. Investors participating in the notes receive their pro-rata share of interest income that the borrower pays for the loan and receive principal back at the end of the term. The sponsor of the note generally holds the first lien on the loan. If the borrower fails to pay, the sponsor can take possession of the property and sell it to return the principal back to the investors holding the notes.




What are Commercial Debt Notes?


Commercial debt notes are short term loans (24 months or less) to borrowers to purchase a commercial properties. These can include multi-family homes, townhomes, mixed use properties, land development projects and other new construction projects. Borrowers put 15% to 35% 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. Investors participating in the notes receive their pro-rata share of interest income that the borrower pays for the loan and receive principal back at the end of the term. The sponsor of the note generally holds the first lien on the loan. If the borrower fails to pay, the sponsor can take possession of the property and sell it to return the principal back to the investors holding the 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. The investments are a minimum of 3 years and can be as long as 7 years. Sponsors may be constructing a new property or renovating an existing property with a goal to increase the income and value of the asset over a time horizon. At the end of the time horizon, the sponsor sells the property and splits the profits with the passive investors. Investors also get the tax benefits of real estate including depreciation. Commercial equity deals are traditionally higher risk deals since banks generally hold the first lien on the property. Returns on successful deals are also higher.




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.





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*Performance estimates not a guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in significant losses. Deals could default resulting in either partial or complete loss of investor principal. These returns are estimates only. Actual returns and term may be materially different from such projections. Individual deal results can vary significantly due to a large number of factors that include market risks, sponsor risks, individual deal risks and other unpredictable events. See our full offering materials (Private Placement Memorandum, Limited Partnership Agreement and Subscription Agreement) for more details on risks.

Avestor is not registered as a broker-dealer or a Registered Investment Advisor. Avestor does not provide investors with any type of investment advice. Investors should determine if investing in real estate is aligned to their investment goals working with their financial adviser.

 

Not all investors invest in all areas. Investors are placed in investments based on the direction they set for their portfolio. Offering through SEC Reg. D 506(c) filing; Investment Company Act Section 3 (c)(1) exemption; Accredited Investors only. Any communication by Avestor Inc. or any of its affiliates (collectively, “Avestor”), through this website or any other medium, should NOT be construed and is NOT intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice. Nothing on this website is intended as an offer to extend credit, an offer to purchase or sell securities or a solicitation of any securities transaction.Investments in private placements are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest. Some investments are highly illiquid and those investors who cannot hold an investment for the long term (at least 5-7 years) should not invest. This website provides preliminary and general information about the our offering and is intended for initial reference purposes only. It does not summarize or compile all the applicable information. This website does not constitute an offer to sell or buy any securities. No offer or sale of any Securities will occur without the delivery of confidential offering materials and related documents. This information contained herein is qualified by and subject to more detailed information in the applicable offering materials. Avestor does not make any representation or warranty to any prospective investor regarding the legality of an investment in any securities.

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