The Allocator: A New Way to Finance Real Estate

Dr. Adam Gower
The Allocator: A New Way to Finance Real Estate

Discover the world of the real estate capital allocator, a new way to finance real estate that has emerged only in the last few years. A "capital allocator" typically negotiates preferential terms with professional real estate sponsors on a deal-by-deal basis and then solicits individual investors. They either share the delta between the sponsor's original terms and the improved terms with investors or retain the delta as their compensation. In this YouTube/Podcast series, I interview allocators, investors, sponsors, and service providers to offer you an in-depth look at this growing industry. PLUS, subscribe to my free newsletter for real estate investors and gain access to: * Introductions to sponsors, allocators, and investment opportunities. * Insights drawn from my 30+ years of experience in real estate investing. * Hacks and tactics for raising capital to help you scale your real estate portfolio. Visit GowerCrowd.com/subscribe Email: adam@gowercrowd.com Call: 213-761-1000

  1. $11 Million of Equity Raised in Year One!

    HACE 22 H

    $11 Million of Equity Raised in Year One!

    In today’s show, I welcome Bobby Sharma, co-founder of Connected Capital Fund, an exclusive membership organization of capital allocators - people who pool investor capital to negotiate preferential terms with sponsors. Bobby is also the manager of Better Capital Fund, his private money lending fund.   Although Connected Capital Fund is just a year old, the organization has already allocated capital to vetted sponsors across markets including Dallas, San Francisco, and Lincoln, Nebraska, raising and investing $11 million in its first year of operation.   Case Study Bobby explains that the Connected Capital Fund team has reviewed fifty deals but invested in only six so far, illustrating their highly selective due diligence process, mitigating risks that individual investors might overlook while providing them with enhanced returns.   As an example, Bobby shares a case study involving a deal with a self-storage operator. The sponsor initially offered investors a 70/30 split with a 6% preferred return. However, Connected Capital secured a 90/10 split and increased the preferred return to 8%.   These favorable terms were then passed on to Connected Capital Fund members, who promoted them to their networks of investors. Depending on the deal, allocators may either retain the entire delta between the original and negotiated terms or share the benefits with their investors.   Allocator Co-Investment Bobby also discusses the practice of backfilling deals. In this process, after a minimum investment is agreed upon with a sponsor, Bobby acts as the first investor, providing the full amount required to meet the threshold.   He then raises additional capital from other investors, 'backfilling' his initial capital contribution. In 95% of cases, he leaves a portion of his own capital in the deal to maintain alignment with investors though, on rare occasions, if demand is particularly strong, he may relinquish his position entirely, leaving no co-investment in the deal.   Bobby was the first fund manager client of Avestor, a platform designed for capital allocators (whose co-founder, Badri Malynur - who was the first guest in this podcast series). He is highly knowledgeable about the capital allocator industry being an allocator himself as well as leading Connected Capital Fund, an organization of allocators.   Tune in to learn more about this emerging industry of capital raisers in today’s episode - you’ll be glad you did. ***** Explore the world of real estate capital allocators—a fresh approach to financing that’s reshaping the industry.   In this series, I talk with allocators, investors, sponsors, and service providers to give you an inside look at this fast-growing space.   PLUS, subscribe to my free newsletter for real estate investors and gain access to: * Introductions to sponsors, allocators, and investment opportunities. * Insights drawn from my 30+ years of experience in real estate investing. * Hacks and tactics for raising capital to help you scale your real estate portfolio.   Visit GowerCrowd.com/subscribe

    57 min
  2. Demystifying the Capital Allocator Model

    28 ENE

    Demystifying the Capital Allocator Model

    My guest today, Jeff Greenberg, founder of Synergetic Investment Group, is a capital allocator whose business model focuses on identifying, vetting, and providing capital to sponsors by aggregating funds from his network of investors. Aggregating Investor Funds By pooling investor capital, typically $1MM or more, Jeff negotiates preferential terms with sponsors, such as higher preferred returns and better promote splits than individual investors could secure on their own. Through his fund, Jeff offers his investors the opportunity to allocate capital according to their preferences among the offerings he promotes. Negotiated Benefits for Investors Jeff explains that the delta he negotiates with sponsors is partially passed on to his investors through returns that are at least equal to or better than what they would achieve by investing directly with the sponsor. He retains some or all of the delta as compensation for his role in aggregating capital, negotiating terms, and conducting due diligence. Rigorous Due Diligence Together with a group of other capital allocators via the Connected Capital Fund group, Jeff utilizes a 250-point due diligence checklist to select and screen sponsors. This process includes analyzing business structures, assessing team competencies, and evaluating operational controls. Challenges in the Market Throughout his capital allocation activities, Jeff has raised a total of $6–7 million. However, in 2024, he raised only $100,000, reflecting the challenges of the market. When possible, Jeff invests alongside his fund investors to align his interests with theirs. Concerns About the Allocator Model Jeff expressed concern about other capital allocators who lack operational experience and fail to conduct thorough due diligence. This can undermine the quality of deals in the industry and damage the reputation of the allocator model when poorly vetted projects fail. Dispelling Misconceptions He also addressed the misconception that the allocator model is a quick and easy path to wealth. Many new entrants, lured by promises of simplicity, fail to appreciate the effort required to build trust with investors, properly vet sponsors, and manage deals effectively. Listen to this episode, meet Jeff, and learn more about the capital allocator model. ***** Explore the world of real estate capital allocators—a fresh approach to financing that’s reshaping the industry.   In this series, I talk with allocators, investors, sponsors, and service providers to give you an inside look at this fast-growing space.   PLUS, subscribe to my free newsletter for real estate investors and gain access to: * Introductions to sponsors, allocators, and investment opportunities. * Insights drawn from my 30+ years of experience in real estate investing. * Hacks and tactics for raising capital to help you scale your real estate portfolio.   Visit GowerCrowd.com/subscribe

    53 min
  3. Changing the Real Estate Capital Game

    21 ENE

    Changing the Real Estate Capital Game

    In today’s first episode of my new podcast and YouTube show, The Allocator: A New Way to Finance Real Estate, I’m joined by Badri Malynur, co-founder of Avestor. Badri explains how Avestor caters to the needs of the real estate capital formation industry by providing a platform that redefines how funds are created and managed.   What is an Allocator? An allocator is someone who typically negotiates preferential terms (such as higher preferred returns or more favorable promote splits) with a sponsor in exchange for delivering a significant investment into a deal. Once the terms are secured, the allocator pools investments from other individuals to meet the negotiated threshold. They may share the preferential terms with their investors or retain the difference as compensation for their efforts.   How Avestor is Different Unlike platforms such as Juniper Square or IMS, which primarily serve as document management systems, Avestor goes further by integrating these backend processes with a customizable fund model. This model allows sponsors and allocators to create funds that consolidate offerings from multiple sponsors, giving investors the flexibility to allocate their capital as they see fit across various deals within the same fund.   Streamlined Processes Avestor simplifies fund management by providing a single Private Placement Memorandum (PPM) that covers all deals within a fund, along with individualized deal disclosure statements. Investors receive a consolidated K1 at year-end, eliminating the need for multiple documents. By reducing legal fees and administrative burdens, the platform makes fund creation and management more efficient for allocators, sponsors, and their investors.   Additional Resources and Support Beyond fund customization, Avestor provides pre-developed legal templates, accounting support, and optional marketing partnerships. It also offers access to educational content, mastermind groups, and tools to help fund managers grow their businesses, creating a comprehensive solution for those looking to streamline capital raising and fund management.   Badri and I discuss the Avestor platform and the capital allocator industry in detail. This is an episode you don’t want to miss.   ***** Explore the world of real estate capital allocators—a fresh approach to financing that’s reshaping the industry.   In this series, I talk with allocators, investors, sponsors, and service providers to give you an inside look at this fast-growing space.   PLUS, subscribe to my free newsletter for real estate investors and gain access to: * Introductions to sponsors, allocators, and investment opportunities. * Insights drawn from my 30+ years of experience in real estate investing. * Hacks and tactics for raising capital to help you scale your real estate portfolio.   Visit GowerCrowd.com/subscribe

    41 min
  4. How to Find Off-Market Deals With AI-Powered Title Searches

    12/11/2024

    How to Find Off-Market Deals With AI-Powered Title Searches

    Have you ever used title reports to find off-market deals?   My guest today, Tali Gross, explains how his platform, Dono.ai, can be used at scale to uncover off-market opportunities before anyone else – by using AI to read and analyze title reports.   With Dono, you simply enter your search criteria (type of property, liens, divorces, back taxes, etc.), and Dono will help you scan every property that meets your requirements in a target city. You can also access detailed title search results in seconds – with no calls to title companies, no waiting on manual checks, and no human errors.   Here are a few EasyWins you’ll get with Dono.ai:   • Instant Property Insights: Enter an address and get an instant title snapshot. • Automated Risk Checks: Avoid costly mistakes by automatically detecting liens, ownership issues, and title gaps (shadows) within seconds. • Distressed Property Alerts: Quickly identify off-market properties with unpaid taxes or open judgments – a goldmine for off-market deals. • Tailored Search Filters: Narrow down properties by owner, tax status, or location to spot hidden investment opportunities.   Dono.ai is also being used by title companies to grow without increasing manpower.   But what really sets Dono.ai apart? The “Ask Dono” feature – a chatbot that lets you ‘chat’ with title reports using natural language.   Dono.ai is a platform giving innovative investors a significant competitive edge. Tali explains it all in this episode you won’t want to miss. ***** The only Podcast you need on for raising capital in real estate - enhanced by AI. Get immediately actionable strategies and tools to find more deals, connect with accredited investors, raise more capital, and scale faster – with podcast guests who are taking the real estate industry to the next level with AI. And walk away with something you can actually use in every episode. PLUS, subscribe to my free newsletter and get: • practical guides, • how-to's, and • news updates Get immediately actionable strategies and tools to raise more capital, connect with accredited investors, and scale faster—enhanced by AI to stay ahead of the competition. All in just 5 minutes, for free. https://gowercrowd.com/subscribe

    36 min
  5. Transforming Site Selection and Planning with AI

    05/11/2024

    Transforming Site Selection and Planning with AI

    Meet Clifton Harness, the mastermind behind TestFit.io and one of the most innovative thinkers in real estate tech today.   I came across Clifton’s work on LinkedIn, where he shares some seriously impressive images of TestFit’s capabilities.   What TestFit does is simple yet mind-blowing: plug in a land parcel, add your development criteria, and boom – it’ll show you what’s possible and churn out real-time design options, including optimizing the parking configuration for you, tailored to your investment goals, all in seconds.   It’s highly visual, super intuitive, and it’s saving developers and architects hundreds of thousands — even millions of dollars — in pre-development costs.   Clifton gives us a look under the hood of TestFit, explaining how it combines real-time AI with zoning data to make site planning as streamlined as possible.   This isn’t just about filling in some details and hoping for the best; TestFit allows for customization down to specific unit layouts, parking configurations, and even zoning quirks.   It is a truly next-level development tool.   Here are some EasyWins with TestFit.io: Generate Site Plans Fast: Input specs, get multiple optimized layouts in seconds. Perfect Your Parking: Automated layouts reduce wasted space and effort. Stay Zoning-Compliant: Seamless zoning data integration. Customize to Fit: Tailor designs for specific unit and building needs. Preview in 3D: Realistic visuals for streamlined stakeholder buy-in. If you’re in real estate and haven’t tuned into AI-powered solutions yet, this episode will be an eye-opener.   Clifton’s insights on what TestFit can do are nothing short of revolutionary and trust me (I’m a doctor ) this is one tool you’ll want to use. ***** The only Podcast you need on for raising capital in real estate - enhanced by AI. Get immediately actionable strategies and tools to find more deals, connect with accredited investors, raise more capital, and scale faster – with podcast guests who are taking the real estate industry to the next level with AI. And walk away with something you can actually use in every episode. PLUS, subscribe to my free newsletter and get: • practical guides, • how-to's, and • news updates Get immediately actionable strategies and tools to raise more capital, connect with accredited investors, and scale faster—enhanced by AI to stay ahead of the competition. All in just 5 minutes, for free. https://gowercrowd.com/subscribe

    44 min
  6. From Deal to Underwriting in 15 Minutes

    29/10/2024

    From Deal to Underwriting in 15 Minutes

    I have another amazing CRE guest using AI to help real estate pros up their game to introduce you to this week, Thomas Foley, co-founder and CEO of Archer.re   If you’re tired of the long, slow grind of underwriting deals, you’ll love this episode.   Archer.re is leveraging AI in the deal underwriting process, taking it from taking hours down to just a few minutes.   Imagine pulling in all your data, dropping it into your model (yes, your own model – no forced software here), and watching Archer make it happen.   Whether you’re in multifamily or another asset class, Thomas’s platform will open your eyes to what’s possible.   Plus, you’ll see how Archer is using AI to automate not just underwriting but also deal sourcing.   Picture this: predictive factors alerting you when an off-market property is likely to hit the market before it’s listed.   Skeptical? Well, see how Archer has clients like Marcus & Millichap and Starwood using the platform.   Here's what Archer.re helps you do: Data-Driven Insights: Access deep, AI-powered analysis for smart property and investment decisions. Market Trends & Predictions: Stay ahead of trends with advanced forecasting for commercial real estate (CRE) markets. Automated Valuations: Get instant, accurate valuations on target assets, saving you time and increasing precision. Portfolio Optimization: Manage, track, and optimize your own assets in real time. Streamlined Decision-Making: Make faster, data-backed investment decisions with customizable reports and real-time analytics. Archer is another company that will cause you to rethink everything you know about deal analysis – and help you find, evaluate, and buy deals before they even come to market. ***** The only Podcast you need on for raising capital in real estate - enhanced by AI.   Learn how other real estate pros are using AI to get ahead of their competition.   Get early notice of hot new game-changing AI real estate apps.   Walk away with something you can actually use in every episode.   PLUS, subscribe to my free newsletter and get: • practical guides, • how-to's, and • news updates Get immediately actionable strategies and tools to raise more capital, connect with accredited investors, and scale faster—enhanced by AI to stay ahead of the competition. All in just 5 minutes, for free. https://gowercrowd.com/subscribe

    48 min
  7. Chatbots to Capital: An AI Journey

    22/10/2024

    Chatbots to Capital: An AI Journey

    Rod Turner, CEO and founder of Manhattan Street Capital is one of those rare folks who isn’t just talking about AI in finance—he’s making it work.   Rod has embraced the use of Reg A+ (yup, that’s “mini IPOs” to us mortals) to raise capital, including for real estate sponsors.   Most recently, he’s taken it a step further with “RodBot,” a custom AI chatbot, bringing a whole new layer to investor interactions and support.   Rod breaks down how AI is transforming capital raising.   From compliance-minded chatbots that stay in line with securities laws to sophisticated systems that predict investor interest, he’s sharing the good, the bad, and the sometimes hilarious challenges (hello, hallucinating bots!).   Plus, you’ll get insider tips on how AI can streamline responses to those endless investor inquiries and even suggest optimally crafted email replies.   Key Things You’ll Learn: How to use a custom chatbot to enhance investor engagement and compliance in capital raising. The unique benefits of Reg A+ for scaling and attracting non-accredited investors. Insights into AI-driven strategies for streamlining investor inquiries and email responses. The challenges and successes of integrating AI in highly regulated securities environments. Why staying competitive means adopting tech innovations—or risk getting left behind. Rod and I dig into everything from the quirks of training AI to why Reg A+ might be the ultimate funding vehicle for sponsors looking to scale while keeping it accessible for everyone.   If you’re in real estate, finance, or just fascinated by how tech is reshaping capital markets, tune in.   Rod’s journey through the nuances of capital raising—and how he’s harnessing AI to make it all a little smoother—is something you won’t want to miss. ***** The only Podcast you need on real estate and AI.   Learn how other real estate pros are using AI to get ahead of their competition.   Get early notice of hot new game-changing AI real estate apps.   Walk away with something you can actually use in every episode.   PLUS, subscribe to my free newsletter and get: • practical guides, • how-to's, and • news updates   All exclusively for real estate investors that make learning AI fun and easy and insanely productive, for free.   EasyWin.AI

    43 min
  8. From Spreadsheets to Speed: AI for Real Estate

    15/10/2024

    From Spreadsheets to Speed: AI for Real Estate

    Ever get frustrated by all those endless spreadsheets, PDFs, and emails cluttering up your workflow?   This week, I’m exploring the world of data automation in commercial real estate with tech mastermind Parag Goswami, CEO of Clik.ai.   Parag’s got an incredible backstory — from building credit risk systems to founding a firm that revolutionizes the way CRE pros tackle back-office work.   Now, he’s all about Clik.ai, a tool that does the heavy lifting for you with data consolidation, underwriting, and reporting, leaving you with more time to focus on actually running your business (with less stress).   If you’re bogged down by endless Excel sheets or spending hours on financial reviews, this episode is just what you need.   Parag breaks down how Clik.ai helps you stay on top of your portfolio quickly, efficiently, and accurately.   You’ll discover how their “human-assisted AI” integrates seamlessly into your existing systems (no need to reinvent the wheel here) and can even handle messy scans and data formats from multiple sources.   Here’s what you’ll learn: How AI can streamline financial modeling and speed up your deal analysis. Ways Clik.ai automates those mind-numbing manual processes and saves hours on reporting. What "human-assisted AI" really means and how it adds precision to Clik.ai’s automation. The potential of Clik.ai's new "deal dashboard" for effortless deal comparisons and portfolio analysis. Why even small shops can gain huge benefits by automating their back-office tasks. Listen in, level up, and get ready to work smarter, not harder! ***** The only Podcast you need on real estate and AI.   Learn how other real estate pros are using AI to get ahead of their competition.   Get early notice of hot new game-changing AI real estate apps.   Walk away with something you can actually use in every episode.   PLUS, subscribe to my free newsletter and get: • practical guides, • how-to's, and • news updates   All exclusively for real estate investors that make learning AI fun and easy and insanely productive, for free.   EasyWin.AI

    37 min
4.8
de 5
32 calificaciones

Acerca de

Discover the world of the real estate capital allocator, a new way to finance real estate that has emerged only in the last few years. A "capital allocator" typically negotiates preferential terms with professional real estate sponsors on a deal-by-deal basis and then solicits individual investors. They either share the delta between the sponsor's original terms and the improved terms with investors or retain the delta as their compensation. In this YouTube/Podcast series, I interview allocators, investors, sponsors, and service providers to offer you an in-depth look at this growing industry. PLUS, subscribe to my free newsletter for real estate investors and gain access to: * Introductions to sponsors, allocators, and investment opportunities. * Insights drawn from my 30+ years of experience in real estate investing. * Hacks and tactics for raising capital to help you scale your real estate portfolio. Visit GowerCrowd.com/subscribe Email: adam@gowercrowd.com Call: 213-761-1000

También te podría interesar

Para escuchar episodios explícitos, inicia sesión.

Mantente al día con este programa

Inicia sesión o regístrate para seguir programas, guardar episodios y enterarte de las últimas novedades.

Elige un país o región

Africa, Oriente Medio e India

Asia-Pacífico

Europa

Latinoamérica y el Caribe

Estados Unidos y Canadá