The hotel industry is often overlooked by large real estate investors, but that creates massive opportunities for smaller players looking to excel at one specific niche.
Unfortunately, many hotel investors are stuck growing slower than they need to because they’re using the outdated syndication model. And others hesitate to raise capital at all, either because the barrier to entry seems too high or because they’re new to the space and don’t know where to start.
In this article, we’ll explore the benefits of starting a Customizable Fund for your hotel deals and explain how you can start growing your business even faster. We’ll also compare this model to traditional funds and syndications to help you decide which structure is right for you.
3 Benefits of Launching a Hotel Fund on Avestor
If you’re ready to start growing your hotel investing, a Customizable Fund on Avestor’s platform is an excellent next step.
Customizable Funds combine the flexibility of deal-by-deal investing with the scalability of a traditional fund, all for about 50% less money than a traditional blind pool fund.
Here are 3 of the biggest benefits of the Customizable Fund model for hotel investors:
1. Seamlessly Manage Investor Capital
Whether it’s your first time taking on outside investors or you’ve been doing syndications but want to grow faster, a Customizable Fund makes it incredibly easy to manage investors from start to finish.
Our platform streamlines and automates the processes around onboarding, collecting soft commits, securing capital, delivering tax information, and much more.
Even if you’re brand new to capital raising, you’ll find that investor management is simple with Avestor. Here’s what Yash Ghiya from the Triple Crown hotel fund had to say about his team’s experience with the platform:
2. Set Up Once, Then Keep Adding Deals in the Future
If you’ve done any kind of real estate syndication or deal-by-deal investing, then you know how time consuming (and expensive) it can be to complete the paperwork for every deal — from PPMs to blue sky filings and more. And then when tax season rolls around, you have to issue individual K-1s for each investor and each deal, even if one person participated in multiple deals.
At Avestor, we’ve developed a solution that addresses all of these challenges, so you can grow faster without unnecessary expenses or paperwork. Every deal you add to your fund is tied to one PPM, and you only have to issue one K-1 per investor. This adds up to significant cost savings over time.
And unlike a traditional fund, you don’t have to set an end date for your Customizable Fund. Your fund will never expire unless you want it to, and you can keep adding new deals at any time.
3. Join a Powerful Network of Other Fund Managers
Avestor is more than just software; we’re also a large community of fund managers who want to help each other grow. When you sign up for an Avestor Customizable Fund, you also gain instant access to our Mastermind Community, which includes:
- Weekly deal sharing meetings
- Continuing education through online courses and live trainings
- Access to our annual, in-person fund manager retreat
- A free CRM for managing investor communications
- Preferred terms on certain deals
- And much more!
You’ll also have the opportunity to learn from and collaborate with more than 250 fund manager peers of all experience levels — including a growing network of other hotel fund managers.
To learn more about all the features included in your Avestor Customizable Fund and Mastermind membership, check out this list of all the ways we support you.
We Want to Help You Scale Your Hotel Investing
If you’re one of the savvy investors who has taken advantage of opportunities in the hotel industry, we’d love to work with you.
To learn more about how an Avestor Customizable Fund can work for you, schedule a free strategy call with our team at www.avestorinc.com/demo
