AVANA Debt Funds provide flexibility to accredited investors, institutional investors, and family offices. We empower our investors to earn a predictable fixed income, paid out on a monthly basis, by investing in a portfolio of commercial mortgages that are secured by real estate that is owned and operated by small businesses across America. Our goal is to make sure our debt fund is easy to understand. As Peter Lynch said, “Never invest in any idea you cannot illustrate with a crayon.”
AVANA holds mortgages on commercial real estate properties owned and occupied by American small and mid-sized businesses in specific niche industries.
AVANA funds provide a fixed monthly income based on the interest collected from borrowers in a well-diversified portfolio of loans.
AVANA’s founders, Sundip and Sanat Patel, invest in every loan alongside their investors, so that our interests are aligned with our investors in everything we do.
AVANA provides complete secure online access to all investors that want to look at loan level information in the portfolio at any time. Our state-of-the-art system delivers information 24/7, so investors always know how their capital is performing.
AVANA has built its platform and portfolio over 15 years, so we have learned the market and grown our company in steps and stages using internal profits. This simple discipline has helped us maintain principal losses to less than 0.1% over the $1 billion in loan volume.
AVANA has closed 293,298,823 in loans this year as of September 30th, 2019.
AVANA has committed 126,900,834 in loans which have yet to be funded.
AVANA currently has 53,945,440 in loans in underwriting and 611,519,000 in loans under review. Most of the loan volume will be closed in the next 120 days.
AVANA has paid out 13,644,233 in interest income to investors and is currently providing7.37per annum on total capital deployed.
AVANA Debt Fund platform provides investors with short-term and long-term mortgage investment opportunities. All loans that are extended by our fund to potential borrowers follow the same strict lending principles that are followed by most established and respected banks. We conduct site inspections, real estate valuations and reviews, environmental reviews, borrower background and credit checks, management evaluations, and property due diligence, and we use legal counsel to document all loans in our portfolio. These loans are then offered as a portfolio to our investors, so that every dollar invested is well-diversified and spread across multiple states, various business sizes, and a combination of short-term and long-term loans. There are several other factors that affect your decision to invest in commercial real estate mortgages, and we encourage you to become highly informed about all the key aspects that we look at before funding each loan.
Borrower/Broker reaches out to AVANA. AVANA prepares a pre-screen report to address deal merits.
Loan is underwritten diligently using RMA standards and a credit approval memo is produced to be reviewed by Chief Credit Officer Matt Hunt and CEO Sundip Patel.
Loan is approved by committee at AVANA Capital, and we proceed to closing and funding the loan.
Loan is put into a portfolio of loans, and servicing reviews all covenants, sets up payments with ACH, and mandates property tax and property maintenance impounds.
New loans in the portfolio are seasoned between 60 to 270 days, and sold, at par, to US and non-US investors.
Loans are serviced by AVANA Capital conducting semi-annual site visits, credit updates, and collateral monitoring. Monthly interest payments are collected and remitted to investors.
Depending upon loan maturity, loans are paid back and investors’ principal balance is returned.
The information set forth herein is for informational purposes about AVANA Capital and its lending process only and is not an offer or solicitation for the purchase or sale of any securities. AVANA only makes investment opportunities available to accredited investors through private offerings. Further, any performance data shown regarding returns represents past performance and is not a guarantee of future results. Investment returns may fluctuate and future performance may be higher or lower than the performance data cited.