All Forum Posts by: Badri Malynur

Thanks Chris, better to take this discussion offline, yes tech company but when sponsors want to present to Avestor fund managers , a key requirement is that they have to provide enough margins so that investors don't get a better deal if they go directly with sponsor. BTW, now a majority of our clients are not capital allocators but sponsors doing their own deals as they like the investor experience and significant savings vs doing one syndication at a time. (PPM, blue sky filings etc.)

Has anyone considered creating a customizable fund to scale your fix and flip and BRRR business? There are many advantages

*  A customizable fund provides amazing flexibility to raise equity or debt or even a combination of both. With interest rates being so high, raising equity through a fund allows you to spread the risk and reduce the debt amount. 

* The biggest advantage of a customizable fund is that it can be used for very small deals and raising very small amounts. The syndication model will not work for small deals as the legal and compliance costs are not justified for raising small amounts of money.

* The customizable fund can be used for raising money for a single deal or investors can invest in a bucket of properties so their risk is diversified.

Please reach out to me if you would like to learn more. I will also be in BPCON and look forward to meeting many of you there. 

Having launched over 200 funds, I respectfully disagree, from an investor perspective,  the key thing to look for in a fund of funds model is deals where you are getting the same or better terms than if you go directly with the sponsor. At Avestor we train fund managers to find such deals and in some cases find the deals for them. Then it is a win-win-win situation, investor wins because he does not have to go do a lot of research , invest smaller amounts, get a single K-1, sponsor wins because he can raise larger amounts from a single fund of funds entity and fund manager wins by generating income from the spread.

I sent you a message with my email, please respond and I can provide more details about customizable funds.

One of the disadvantages of a traditional fund of funds model is that the investor does not have the ability to pick and choose which deals they want to invest in. Customizable fund of funds like those provided by Avestor allow investors that flexibility.  

@Thomas Lebens Avestor can create a customizable fund for $17500 including PPM, fund LLC, fund mgr LLC , operating agreement Reg D SEC filing etc. The customizable fund combines the best attributes of syndications (such as setting individual deal terms) and funds (such as cost savings and operational efficiencies). This can be a 506b or a 506 c fund. Once you create a customizable fund, there are no additional legal costs for each deal and investors can choose which deal they want to invest in just like individual syndications. Please reach out if you would like to understand this more.

@Jorge Abreu  Good article, as we move towards a recession I think more investors will migrate towards funds as they are more reluctant to make $50K- $100K investments in single deals and are looking for more diversification. Investors are also looking for advice on building their entire portfolio instead of people pitching one deal at a time. 

Customizable funds like those provided by Avestor combine the best features of traditional blind funds and individual syndications, providing individuals the ability to pick and choose individuals deals and still get the benefits of the fund like a single K-1. We believe customizable funds allow fund mangers to build a more holistic relationship with an individual investor and build custom portfolios within a single fund that can match an individual's cash flow and risk tolerance. Blind funds like the ones you mentioned do not provide that opportunity. 

Good post @Taylor L. 

Here is another common misconceptions:

Misconception: A fund does not allow you choose individual deals.  

More than 50 customizable funds offered on Avestor platform combine the best features of syndication deals and traditional blind pool funds offering investors the ability to pick and choose which deal they want and still get the benefits of a fund wrapper including a single K-1.

@Daniel J Risman-Jones  Chris Severny provides a good list , Avestor provides all of these resources (accounting, attorney, software etc.)  under one roof.  Our  model combines the best attributes of syndications (such as setting individual deal terms) and funds (such as cost savings and operational efficiencies). Please connect if you would like to understand this more.

The simplest model for this would be for you to create a customizable fund where you put all these deals and investors will have the ability to choose which house they want to invest in.  

This model combines the best attributes of syndications (such as setting individual deal terms) and funds (such as cost savings and operational efficiencies.

Happy to discuss this more if you want to connect.