Question 1

How do I get started?

Accepted Answer

Contact us to request a DocuSign with fund documents.

info@avondale-im.com
214-238-4077

Question 2

What is the minimum investment?

Accepted Answer

Our minimum investment is $100,000.

Question 3

Do I need to be an accredited investor to invest in the fund?

Accepted Answer

Yes, fund investors must meet the definition of an accredited investor.  This generally means having a net worth exceeding $1 million (excluding the value of a primary residence), or earning income over $200,000 individually ($300,000 jointly with a spouse or spousal equivalent) in each of the two most recent years with a reasonable expectation of reaching the same level in the current year. Certain professional certifications (such as Series 7, 65, or 82 licenses) and knowledgeable employees of private funds may also qualify. Entities (LLCs and LPs) can qualify if all equity owners are accredited investors.

Question 4

Is the fund open to new investors?

Accepted Answer

Yes, as an open-end, evergreen fund, the fund is consistently taking commitments from new investors.

Question 5

What is the investment period and withdrawal policy?

Accepted Answer

The fund requires that investors commit to an investment period of one year.  Early withdrawals are allowed, subject to liquidity and manager discretion.

Question 6

What are target annual returns?

Accepted Answer

The fund targets annual returns of 9-10%.  Investors are eligible to receive an annualized preferred return of 8%, paid monthly, plus a year-end profit participation that has historically been 1-2%.  The fund has generated 9-12% returns since inception in 2016.

Question 7

How and when do I receive distributions?

Accepted Answer

Our annual 8% preferred return is paid in monthly distributions.  At the end of the year, when we have excess earnings to distribute, we provide a profit sharing distribution to all investors.

Question 8

What is the fund's strategy?

Accepted Answer

Our private lending fund’s primary investment strategy is originating loans secured by interests in residential real estate. We focus on high-quality homebuilders and residential real estate projects located in the Texas Triangle mega-region (Dallas–Fort Worth, Austin, San Antonio, and Houston). Within these markets, we target urban-core submarkets characterized by limited supply, proximity to top-tier schools, and access to high-income employment centers.

Question 9

Can I invest with my self-directed IRA or other retirement account?

Accepted Answer

Yes, we can process investments through self-directed retirement accounts, self-directed IRA custodians, and traditional brokerages such as Schwab.

Question 10

How are investment proceeds taxed?

Accepted Answer

Investment proceeds are taxed as ordinary income with the potential for the 20% Qualified Business Income (QBI) deduction and no Unrelated Business Taxable Income (UBTI) for tax-exempt accounts.  Annual tax statements are reported on a Schedule K-1.

Avondale Private Lending