AVANA Mortgage 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 mortgage fund is easy to understand. As Peter Lynch said, “Never invest in any idea you cannot illustrate with a crayon.”

Why Investors Choose AVANA Capital

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 1% over the $850 million in loan volume.

2017 CURRENT TRACK RECORD

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2017 YTD Commitments

$24,081,000

2017 YTD Commitments

AVANA has closed 24,081,000 in loans this year as of March 31st, 2017.

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Fundings in Progress

$63,872,351

Fundings in Progress

AVANA has committed 63,872,351 in loans which have yet to be funded.

experience

120 Day Pipeline

$255,689,781

120 Day Pipeline

AVANA currently has 27,401,955 in loans in underwriting and 228,287,826 in loans under review. Most of the loan volume will be closed in the next 120 days.

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Average Return Year To Date

6.69%

Average Return Year To Date

AVANA has paid out 1,250,187 in interest income to investors and is currently providing6.69per annum on total capital deployed.

Understanding Commercial Real
Estate Mortgage Investing

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AVANA Mortgage 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.

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KNOW YOUR INVESTMENT PHILOSOPHY

  • CONSERVATIVE

    Investors who identify themselves as conservative typically invest in ST1 and LT1. ST1 provides the investor access to their funds every 90 days with a yield of 3% per annum. LT1 provides the investor access to their funds at the end of the 5th year with a yield of 5% per annum. The funds invested in ST1 and LT1 represent Note A with less than 50% loan to value and therefore the Note A investors are less likely to be be susceptible to principal losses during liquidation unless the value of the property declines by more than 50%.

  • MODERATE

    Investors who identify themselves as moderate risk takers have typically invested in ST2 and LT1. ST2 provides the investor a 6% yield per annum with a 24 month maturity where as LT1 provides the investor access to their funds at the end of the 5th year with a yield of 5% per annum. In our current group of investors classified as moderate we have seen them allocate funds between ST2 and LT1 in order to balance between yield and maturity.

  • AGGRESSIVE

    Institutional investors in our current portfolio best describe the aggressive investor profile. They are most comfortable with the loan to value risk and the longer term maturity risk. Most of the institutional investors and family offices have invested in the ST2 and the LT2 investment product. ST2 generates a 6% per annum yield with less than 24 month maturity while LT2 generates a 9% yield with 60 month maturity. These institutional investors seek to maximize yield both in the short term and long term and have extensive experience investing in Note A and Note B structures in SBA 504, construction and bridge loans.

Choose The Investment Product

Short Term

ST1
Monthly Payout
3 Month Term

3%

Annualized Rate

  • 90-day liquidity.
  • Maximum Loan to Value is 35%.
  • After 90 days, we will automatically reinvest your principal; however, all interest earned is remitted monthly.
  • Investments are in Note A only.
ST2
Monthly Payout
24 Month Term

6%

Annualized Rate

  • 12 to 24-month liquidity.
  • Maximum Loan to Value is 50% to 90%.
  • As mortgages are paid down, we can automatically reinvest the principal if the amount is over $100,000 but all interest earned is remitted monthly.
  • Investments in Note A and Note B.

Long Term

LT1
Monthly Payout
3 Year Term

5%

Annualized Rate

  • 36 to 60-month maturity.
  • Maximum Loan to Value is 55%.
  • Principal and interest are collected and remitted monthly to investor accounts.
  • Investments in Note A only.
LT2
Monthly Payout
5 Year Term

9%

Annualized Rate

  • 60-month maturity.
  • Maximum Loan to Value is 90%.
  • Principal and interest are collected and remitted monthly to investor accounts.
  • Investments in Note A and Note B.

Our Process

  • 1

    Loan Application

    Borrower/Broker reaches out to AVANA. AVANA prepares a pre-screen report to address deal merits.

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  • 2

    Loan Due Diligence

    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.

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  • 3

    Loan Funding

    Loan is approved by committee at AVANA Capital, and we proceed to closing and funding the loan.

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  • 4

    Loan Diversification

    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.

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  • 5

    Loan Seasoning & Selling

    New loans in the portfolio are seasoned between 60 to 270 days, and sold, at par, to US and non-US investors.

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  • 6

    Loan Servicing and Return

    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.

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  • 7

    Loan Maturity

    Depending upon loan maturity, loans are paid back and investors’ principal balance is returned.

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Disclaimer

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.

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