Did You Know?
80% of new fund managers overspend $50K+ on legal and compliance hurdles before their first deal closes. Yet, fractional debt funds—with average returns of 8-12%—are reshaping real estate investing by reducing risk through diversification.
For Bobby Sharma, Avestor’s first-ever fund manager, the path to scaling wasn’t about Wall Street connections. It was about strategic structuring and technology-driven efficiency.
“Avestor didn’t just cut costs—it eliminated the friction holding fund managers back,” says Bobby.
Let’s break down his fund’s success story and the data-driven strategies that set his fund apart
Bobby Sharma: Silicon Valley Disruptor Turned Real Estate Innovator
Before launching BetterCapital, Bobby Sharma spent 15 years in Silicon Valley’s tech sector, scaling startups and mastering operational efficiency. His real estate journey began with:
- Several dozen side-hustle properties were acquired between 2010–2018.
- Built a large network of rehabbers, lenders, and property managers.
- A pivot to fractional debt investing after identifying a 300% surge in demand for private lending (2018–2022).
“Tech taught me to scale through systems, not spreadsheets. Avestor was the missing link.”
The $100K Problem: Why Traditional Fund Setup Fails
Bobby didn’t stumble into fund management blindly. With his Silicon Valley mindset—obsessed with efficiency and scalability, he spent months dissecting the traditional fund model.
What he uncovered was a labyrinth of inefficiencies choking innovation. Legal fees alone staggered him. Quotes from top firms ranged from $50K to $150K just for drafting a Private Placement Memorandum (PPM) and navigating SEC compliance. “It felt like paying a ransom to enter the game,” he recalls.
But the bottlenecks didn’t stop there. Industry veterans warned him that structuring a fund could take 6–12 months—time he knew would erode investor momentum. Worse, once operational, funds hemorrhaged $2,000+ monthly on piecemeal tools: investor portals, capital tracking software, and compliance audits.
Then came Avestor.
“I nearly abandoned the fund model until Avestor proved it could be done faster, cheaper, and smarter.”
Learn More: To Debt Or Not To Debt: Should You Start A Debt Fund?
Avestor’s Customizable Fund™: By the Numbers
By adopting Avestor, Bobby slashed barriers to entry:
✅ Cost Reduction – PPM setup for $10K vs. the industry average of $50K
✅ Lower Monthly Fees – $1,500/month covers compliance, reporting, and investor CRM
✅ Faster Fund Launch – 45 days vs. the traditional 8–12 months
✅ Scalability – 1,200+ investors onboarded since 2020
“Avestor turned six-figure headaches into a plug-and-play system. We redirected savings into the deal flow.”
4 Data-Backed Lessons for Fund Managers
- Costs Are a Distraction
Fund managers using Avestor reallocate 80% of saved legal fees into marketing or capital deployment.
- Automate or Stagnate
Bobby’s team processes 50% more deals/month using Avestor’s Master Deal Calculator and auto-compliance tools.
- Community Cuts Risk
Through Connected Capital network, Bobby vetted 90% of sponsors via peer referrals, reducing due diligence time by 40%.
- Transparency Wins Trust
Real-time investor dashboards boosted repeat investments by 65% year-over-year.
Bobby’s Plan for the Future to 3X The Growth
Bobby’s 2024–2026 roadmap includes:
- AI-driven underwriting: Cutting loan approval time from 14 days to 72 hours.
- $50M AUM goal: Expanding into Texas and Florida markets with Avestor’s multi-fund support.
“The winners will leverage tech to scale trust, not just transactions.”
Key Takeaways for Aspiring Fund Managers
- Launching a fund costs 80% less with Avestor’s integrated platform.
- Fractional debt funds attract passive investors 3x faster than equity-only models.
- 92% of investors prioritize consistent returns over home runs.
Ready to Launch Your Avestor-Powered Fund?
Join Bobby and 300+ fund managers who’ve deployed $750M+ using Avestor’s Customizable Fund™.
🚀 Free Strategy Call: Discover how to launch your fund in 45 days—not 12 months.
👉 www.avestorinc.com/book-a-call
