Real estate investing has always been one of the most reliable paths to building long-term wealth, but for many investors, the biggest hurdle isn’t finding good deals, it’s raising the capital to fund them. If you’ve been struggling to scale your real estate portfolio or are looking for innovative ways to build wealth through real estate, you’re about to discover a strategy that could revolutionize how you approach capital raising.
I’m Casey Gregersen, and I’ve been helping real estate investors build wealth through real estate for over a decade. After working for Shell Oil for 12 years while simultaneously building my real estate empire, I’ve learned that the secret to massive success isn’t just about finding great properties, it’s about mastering the art of capital raising. Today, I’m going to share with you the Avestor Customizable Fund that has transformed how I raise capital and manage investor relationships.
Through my journey, I’ve built multiple verticals in real estate: property management, direct-to-seller marketing through my company WIO Houses, and construction through my Revive team. But the fourth and perhaps most crucial piece of the puzzle was learning how to raise capital effectively. That’s where the Avestor Customizable Fund comes in, which provides investors with unprecedented flexibility and transparency.
Before we get into the solution, let’s address the issue that’s keeping most real estate investors awake at night. The Securities and Exchange Commission (SEC) has strict guidelines about raising money from passive investors, and many well-intentioned real estate professionals are unknowingly operating in dangerous gray areas.
I’ve seen this repeatedly in various real estate communities and masterminds, investors bringing in multiple passive investors to fund their deals without properly understanding SEC regulations. People have gone to prison for violating SEC rules. It’s not something you want to mess around with, and the consequences can be devastating.
My securities attorney opened my eyes to several practices that could potentially be perceived as SEC violations. For example, bringing in multiple passive investors to help fund your deals can put you in a gray area. While having a single lender on a deal is typically safe, scaling this approach across multiple deals with multiple lenders could be construed as a securities violation.
The key issue is that when deals are going well, nobody complains. But if a deal goes sideways and an investor feels they were misled about how their investment was structured, you could find yourself in serious legal trouble. This is why having a proper fund structure isn’t just a nice-to-have, it’s essential for protecting yourself and your investors while ensuring you can scale your business without constantly worrying about compliance.
To understand why the Avestor Customizable Fund is so revolutionary, let’s compare it to traditional fund structures. With traditional funds, whether you’re using platforms like Fractional or setting up your syndication, you’re typically locked into one structure for one deal or investment strategy.
With traditional approaches, every time you want to raise capital for a new deal, you need to:
Fractional, while user-friendly for beginners, takes 2.5% in management fees on every deal. If you’re raising $1 million, that’s $25,000 annually. Scale that to $10 million, and you’re paying $250,000 in fees every year.
The Avestor Customizable Fund flips this model on its head. You create one parent fund, let’s call it your “umbrella fund”—and all your investors invest through this single entity. From there, you can deploy capital into unlimited offerings:
The beauty is that each offering is separate and distinct, but they all operate under your main fund structure. Your investors can choose which specific deals they want to participate in, essentially creating a brokerage-style account where they can build their custom portfolios within your fund.
The Avestor Customizable Fund operates by allowing investors to contribute capital into a single fund, which then deploys that capital into a variety of real estate projects. Investors can choose which deals they want to invest in, giving them the flexibility to diversify their portfolios across different asset classes and strategies.
Let’s talk numbers because the cost savings alone make this approach compelling. Setting up an Avestor Customizable Fund costs approximately $18,000 upfront plus about $1,000 in filing fees. This might seem significant initially, but consider the long-term savings.
With traditional fund structures, you pay legal fees every time you want to create a new offering. Even if your attorney reuses some documents, you’re typically looking at several thousand dollars per new fund. I’ve seen investors pay $15,000+ for each syndication they structure.
The ongoing costs are even more compelling. Avestor charges just 0.4% annually for all the technology, backend support, fund-level accounting, bookkeeping, and tax preparation assistance. Compare this to Fractional’s 2.5% annually, and the savings become enormous as you scale.
When I wanted to create my second offering within the Avestor structure, it cost me less than $500. I simply created a new deal disclosure document (7-10 pages), had it reviewed by Avestor’s team, and sent it to my securities attorney for final approval. The entire process took days rather than months.
The Single K-1 for Investors simplifies tax reporting by consolidating all of an investor’s real estate investments into a single tax document, eliminating the need to manage multiple K-1s for each separate deal. Typically, investors who participate in multiple real estate projects receive individual K-1 forms for each investment, which can be cumbersome and time-consuming to track and report come tax season.
With the Avestor Customizable Fund, however, investors only receive one K-1 form regardless of how many deals they are involved in. This greatly streamlines the process, allowing them to easily file taxes without sorting through multiple documents or dealing with complicated paperwork. By reducing the complexity of tax filing, the Single K-1 ensures that investors spend less time on administrative tasks and more time focusing on their investments. It also provides a clearer, more organized view of earnings and distributions, making tax season much smoother and stress-free.
To demonstrate how efficiently this fund works, let me share my experience setting up my second offering. After establishing my initial fund structure, I wanted to create a new debt offering for hard money lending.
The process was remarkably straightforward:
Total cost: less than $500. Total time: under two weeks. Compare this to the months and thousands of dollars required for traditional fund setup, and you can see why this approach is revolutionary.
The deal disclosure document is specific to each offering but operates under the umbrella of your main Private Placement Memorandum (PPM). Your PPM is written with enough flexibility to accommodate various investment strategies, whether real estate, oil and gas, technology, or other asset classes.
If you’re looking to build wealth through real estate, raising capital efficiently is a key step in the process. The Avestor Customizable Fund offers a unique and powerful solution for real estate investors looking to scale their businesses while staying compliant with SEC regulations. By offering multiple investment options, lower costs, and simplified tax reporting, the Avestor Customizable Fund helps you unlock the potential of real estate investment opportunities while providing your investors with a flexible and transparent platform.
The key differentiator is flexibility. While other platforms require you to set up separate funds for each investment strategy or deal, Avestor allows unlimited offerings under one fund structure. This dramatically reduces costs, simplifies administration, and provides investors with more choices within a single platform.
The typical timeline is 2-3 months from initial consultation to launching your first offering. This includes legal document preparation, platform setup, and onboarding training. However, once established, new offerings can be added in 1-2 weeks.
Avestor charges 0.4% annually on assets under management, which covers platform technology, fund-level accounting, investor portal access, and administrative support. This is significantly lower than most alternative platforms that charge 2-3% annually.
Yes, the Customizable Fund structure can accommodate various asset classes, including oil and gas, technology investments, private equity, and other alternative investments. The PPM is written with sufficient flexibility to handle diverse investment strategies.
Liquidity provisions depend on the specific terms of each offering within your fund. You can structure some offerings as evergreen with quarterly or annual liquidity options, while others might be closed-end with specific hold periods. The flexibility allows you to meet different investor preferences.
While fund management requires serious commitment and responsibility, Avestor provides extensive training and support to help newer fund managers succeed. The key requirements are having a deal flow, investor relationships, and the commitment to operate professionally and compliantly.
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