If you don’t see an answer to your question below or you need additional information, don’t hesitate to contact us at (215) 550-1322.

For Prospective Investors.

Q. are Advest funds open to new investment?

A. The Advest Short Duration Real Estate fund is open to new investment.

 

Q. What is the investor requirement?

A. Investors must be accredited. To be an accredited investor one must have a net worth of $1,000,000 (excluding the value of one’s primary residence), or have income at least $200,000 each year for the last two years ($300,000 for married couples).

 

Q. Who typically considers investing in private lending funds?

A. Generally, investors in real estate debt funds are high net-worth individuals and institutions who are looking for diversification and stable income. Because this strategy isn’t correlated to the stock market, it’s considered a non-correlated asset class.

 

Q. What is the average maturity of Advest loans?

A. The overwhelming majority of Advest’s loans have terms between six and 12 months. 

 

Q. What is the loan-to-value of Advest’s loans?

A. Not greater than 70% after-repair value (ARV)

 

Q. How could the fund lose money?

A. An investment in the Fund is an investment in a pool of short-term loans collateralized by property. The fund can lose money on an individual loan if Advest has to foreclose on a property and cannot sell it for more than the loan amount. This could happen if there is a sudden steep decline in the real estate market. Losing money on a single loan, however, does not necessarily mean that the overall Fund will lose money. In order for the investor in the Fund to lose money, there would have to be multiple foreclosures and the values on those properties would have to drop by more than 30% in a relatively short period of time.

Q. Can I invest in the fund through an IRA?

A. Yes, but it has to be through a self-directed IRA. Self-directed IRA accounts allow investments in alternative assets like a private fund. Please note, Advest may use leverage in the fund which could generate unrelated business taxable income (UBTI). This may create a tax liability on a portion of the earnings in the IRA account.

Q. Are advest financial’s principals personally invested in the Fund?

A. Yes.

Q. Are the Fund’s financials audited?

A. Yes. Year-end financial statements are audited each year by a top 25 third-party PCAOB auditor.