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Build Your Custom Real Estate Portfolio
Insert logo here
BetterCapital Real Estate Fund
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• No communication by BetterCapital Investments, LLC through this document is intended to be a
recommendation to purchase, sell or hold any investment or a solicitation of any securities transaction.
• Investors must be accredited investors.
• Investments in private placements involve a high degree of risk.
• Real Estate investments can be highly illiquid and investors should be prepared to hold an investment for the
long term (sometimes 5+ years)
• BetterCapital Investments, LLC is not registered as a broker-dealer or a Registered Investment Advisor.
• This document provides preliminary and general information and is intended for initial reference purposes only.
No offer or sale of any Securities will occur without the delivery of confidential offering materials and related
documents.
• Neither the SEC nor any federal or state securities commission or regulatory authority has recommended or
approved any investment or the accuracy or completeness of any of the information or materials provided in this
document.
• Before investing you should:
1. Conduct your own investigation and analysis;
2. Carefully consider all related expenses, risks, including all risks described in offering materials
3. Consult with your own investment, tax, financial and legal advisors.
Legal Stuff
3
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BetterCapital Real Estate Fund, LLC is a new
type of real estate fund where investors can
build their own custom real estate portfolio
inside the fund by investing in slices of real
estate properties and/or deals.
Introduction
Insert introduction
image
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Fund Manager
Bobby Sharma
Fund Management Team
Max Khorasani has been in the real estate industry for over 20
years now with 1B+ in transactions. He prides himself on a
detailed approach to lending, loves to look at new business
opportunities and is always growing in the self-improvement
category. He enjoys long lasting relationships with his clients,
partners and friends.
Max is a real estate investor, private money lender and
business owner. He graduated from UCSB, loves all sports and
enjoys traveling the world.
Bobby Sharma is the Co-Founder and CEO of BetterCapital.us,
a platform that allows real estate investors to track the
performance of their real estate assets. He is a partner in
Voyager Pacific, a private fund that manages $63M in real estate
assets. Runs a real estate networking and educational group
with more than 5K members.
He is an active private money lender for the past seven years.
Prior, was an Enterprise Account Manager at TIBCO. Before
that, spent more than 11 years at WebEx/Cisco, Graduated with
a BS in Computer and Information Science from the University of
S Alabama. Resides in San Francisco and Miami. In his spare
time, he likes to travel.
Fund Manager
Max Khorasani
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How the fund works
Investor A Investor B
Investors set their
portfolio direction
BetterCapital Investments LP researches deals
We pre-invest in the attractive deals
Each deal split
into ”Slices”
BC Investment matches
“Slices” & allocates
to investors
Pro-rata earnings and
appreciation
Investors can
re-invest earnings & returned
principal into
new deals
Investors can
withdraw capital
When deals exit
Offering through SEC Reg. D 506(c) filing; Investment Company Act
Section 3 (c)(1) exemption; Accredited Investors only.
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Insert logo here Offering through SEC Reg. D 506(c) filing; Investment Company Act
Section 3 (c)(1) exemption; Accredited Investors only.
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5 3
2
1
6
Investor Benefits
Transparency
Track earnings and
every deal
Customization
Investors customize portfolio to
align with their investment goals
Diversification
Invest in different states, time
horizons and asset types
Tax Benefits
Passive income,
appreciation & depreciation
passed thru
Liquidity
Reinvest or withdraw earnings
and capital as deals exit
Deal Research & Selection
BC Investments evaluates & pre-invests in
best deals
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Student
Housing
Apartment
Complexes
Retail
Centers
Single &
Multi-Family
Homes
Office &
Mixed Use
Diversify across
property types*
*Not all investors invest in all areas. Investors placed in investments aligned closest to their goals.
6-12
Months
3-5
Years
5+
Years
Invest for your time
horizon
Invest in multiple
markets*
Investor Portfolio Sample
Investment
Capital
Invested
State
Investment Type
Type
Term
Single family home purchase – 7.50%
San Diego, CA
$500 CA Residential Debt 12 months
Single family home refinance – 11.0%
Rochester, NY
$500 NY Residential Debt 12 months
Single family home rehab – 9.75%
Orlando, FL
$500 FL Residential Debt 12 months
Trinity Office Complex – 10.50%
Plano, TX
$1000 TX Commercial Debt 18 months
South Seattle Center – 11.00%
Seattle, WA
$1000 WA Commercial Debt 24 months
South Waterford Apartments – 9.00%
Chicago, IL
$1000 IL Commercial Debt 36 months
Winston Hill Apartments – IRR 17.5%
Raleigh, NC
$5000 NC Equity 4-5 Years
Boston Student Housing – IRR 21.5%
Boston, MA $5000 MA Equity 5+ Years
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*Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in
significant losses. These are estimates only. Actual returns and term may be materially different from such projections. Individual deal results can vary significantly due to a large number of factors that include
market risks, sponsor risks, individual deal risks and other unpredictable events. See PPM for more details on risks. Deals could default resulting in either partial or complete loss of investor principal.
1 – See BetterCapital Investments LLC Private Placement Memorandum for a more comprehensive list of risks. Debt risks include borrowers delay on interest payments, borrowers extend the loan resulting in a
delay of principal return and borrowers default on the loan causing a foreclosure of the property. Equity investment risks include reduced/no distributions due to cash flow issues, investment exit is delayed due to
execution of the business plan or the borrower is unable to sell the property or the property goes into default or bank foreclosure resulting in a partial or full loss of investor principal.
Deal Type
Target
Returns*
(Annualized)
Target Total
Returns*
(3 years / 5 years)
Payment
Timing
Risk 1
Syndication
Deals
13% - 23% 45% - 180%
Quarterly distributions &
Share of Profits at Sale
Own stake in property
Bank has first lien
Real Estate Debt
Loans
6% - 10% N/A
Monthly Interest
or Interest Paid at End
Note Sponsor has first
lien on property
Projected Returns/Risks
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• Fund Management Fee
• 2% annual fee
• Calculated daily based on account value; charged to account monthly for
• Partnership Expenses
• Only expenses tied directly to partnership operations (Delaware fees, Reg D
return, bank fees, etc.)
• Investors pay pro-rata share of expenses based on their account value as a
value
• Pro-rata share of fees for year charged on Dec 31 for the year
• Estimated to be 0.5% to 0.7%
Fund Fees & Expenses
Offering through SEC Reg. D 506(c) filing; Investment Company Act
Section 3 (c)(1) exemption; Accredited Investors only.
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Insert logo here
BetterCapital Real
Estate Fund, LLC
Tax
Consolidation
Debt Investments
1099-INTs from
each sponsor
Equity Investments
K-1 for each equity
investment
Consolidated K-1
for each investor
• For larger investors, taxes get complicated when investing across multiple deals
separately
• BetterCatpial Investment LLC generates a consolidated K-1 for each investor
• Consolidated K-1 provides significant tax preparation cost & time savings
• Management fees paid to BetterCapital LLC and partner pro-rata share of LP expenses
are considered partnership business expenses (line 1 of K-1)
• Passive gains/losses across equity deals can offset each other
Every individual’s tax situation is different. Please consult with your own tax advisor to better understand your advantages.
Tax Simplification
11
Insert logo here
Investor Onboarding Process
• BetterCapital Investment LLC has partnered with Avestor Inc. to utilize
their private fund platform.
• You will receive an email to set up an online account
• As part of online registration, ID will be required and proof of
accreditation
• All fund documents (PPM, LPA, Subscription) will be provided as part of
onboarding process
• Once approved to invest, you will fund your account
• After account is funded, BetterCapital Investment LLC will work with you
to allocate slices of deals to build your custom portfolio
12
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Questions?
13
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BetterCapital Investments LLC
Manages partnership operations
BetterCapital Real Estate
Fund, LP
Investor capital
Limited
Partners
Managing
Partner
BetterCapital
Investment,
LLC
BetterCapital Investments, LLC
invests seed capital
LP invests in
deals
Fund mgmt. fees &
earnings from seed capital
Florida LLC
Delaware LP
Earnings &
Principal returned
1 All Partnership transactions performed through
partnership bank account at Bank of America Bank
Business Structure
Offering through SEC Reg. D 506(c) filing; Investment Company Act
Section 3 (c)(1) exemption; Accredited Investors only.
14
Insert logo here
No communication by BetterCapital Investments, LLC or any of its affiliates, through this document or any other medium, should be construed or is
intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or
compliance advice. Nothing in this document is intended as an offer to extend credit, an offer to purchase or sell securities or a solicitation of any
securities transaction.
Investments in private placements are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment
should not invest. Additionally, investors may receive illiquid and/or restricted securities that may be subject to holding period requirements and/or liquidity
concerns. Investments in private placements are highly illiquid and those investors who cannot hold an investment for the long term (at least 5-7 years)
should not invest. This document provides preliminary and general information about the Securities and is intended for initial reference purposes only. It
does not summarize or compile all the applicable information. This document does not constitute an offer to sell or buy any securities. No offer or sale of
any Securities will occur without the delivery of confidential offering materials and related documents. This information contained herein is qualified by
and subject to more detailed information in the applicable offering materials.
BetterCapital Investments, LLC is not registered as a broker-dealer or a Registered Investment Advisor. BetterCapital Investments, LLC does not make
any representation or warranty to any prospective investor regarding the legality of an investment in any securities.
Alternative investments should only be part of your overall investment portfolio. Further, the alternative investment portion of your portfolio should include
a balanced portfolio of different alternative investments.
Private placement investments are NOT bank deposits (and thus NOT insured by the FDIC or by any other federal governmental agency), are NOT
guaranteed by BetterCapital Investments, LLC or any other party, and MAY lose value. Neither the Securities and Exchange Commission nor any federal
or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the
information or materials provided in this document. Investors must be able to afford the loss of their entire investment.
Before investing you should: (1) conduct your own investigation and analysis; (2) carefully consider the investment and all related charges, expenses,
uncertainties and risks, including all uncertainties and risks described in offering materials; and (3) consult with your own investment, tax, financial and
legal advisors. Such Securities are only suitable for accredited investors who understand and willing and able to accept the high risks associated with
private investments.

Mini fund overview for investors - BetterCapital Real Estate Fund

  • 1.
    1 Insert logo here BuildYour Custom Real Estate Portfolio Insert logo here BetterCapital Real Estate Fund
  • 2.
    2 Insert logo here •No communication by BetterCapital Investments, LLC through this document is intended to be a recommendation to purchase, sell or hold any investment or a solicitation of any securities transaction. • Investors must be accredited investors. • Investments in private placements involve a high degree of risk. • Real Estate investments can be highly illiquid and investors should be prepared to hold an investment for the long term (sometimes 5+ years) • BetterCapital Investments, LLC is not registered as a broker-dealer or a Registered Investment Advisor. • This document provides preliminary and general information and is intended for initial reference purposes only. No offer or sale of any Securities will occur without the delivery of confidential offering materials and related documents. • Neither the SEC nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided in this document. • Before investing you should: 1. Conduct your own investigation and analysis; 2. Carefully consider all related expenses, risks, including all risks described in offering materials 3. Consult with your own investment, tax, financial and legal advisors. Legal Stuff
  • 3.
    3 Insert logo here BetterCapitalReal Estate Fund, LLC is a new type of real estate fund where investors can build their own custom real estate portfolio inside the fund by investing in slices of real estate properties and/or deals. Introduction Insert introduction image
  • 4.
    4 Insert logo here FundManager Bobby Sharma Fund Management Team Max Khorasani has been in the real estate industry for over 20 years now with 1B+ in transactions. He prides himself on a detailed approach to lending, loves to look at new business opportunities and is always growing in the self-improvement category. He enjoys long lasting relationships with his clients, partners and friends. Max is a real estate investor, private money lender and business owner. He graduated from UCSB, loves all sports and enjoys traveling the world. Bobby Sharma is the Co-Founder and CEO of BetterCapital.us, a platform that allows real estate investors to track the performance of their real estate assets. He is a partner in Voyager Pacific, a private fund that manages $63M in real estate assets. Runs a real estate networking and educational group with more than 5K members. He is an active private money lender for the past seven years. Prior, was an Enterprise Account Manager at TIBCO. Before that, spent more than 11 years at WebEx/Cisco, Graduated with a BS in Computer and Information Science from the University of S Alabama. Resides in San Francisco and Miami. In his spare time, he likes to travel. Fund Manager Max Khorasani
  • 5.
    5 Insert logo here Howthe fund works Investor A Investor B Investors set their portfolio direction BetterCapital Investments LP researches deals We pre-invest in the attractive deals Each deal split into ”Slices” BC Investment matches “Slices” & allocates to investors Pro-rata earnings and appreciation Investors can re-invest earnings & returned principal into new deals Investors can withdraw capital When deals exit Offering through SEC Reg. D 506(c) filing; Investment Company Act Section 3 (c)(1) exemption; Accredited Investors only.
  • 6.
    6 Insert logo hereOffering through SEC Reg. D 506(c) filing; Investment Company Act Section 3 (c)(1) exemption; Accredited Investors only. 4 5 3 2 1 6 Investor Benefits Transparency Track earnings and every deal Customization Investors customize portfolio to align with their investment goals Diversification Invest in different states, time horizons and asset types Tax Benefits Passive income, appreciation & depreciation passed thru Liquidity Reinvest or withdraw earnings and capital as deals exit Deal Research & Selection BC Investments evaluates & pre-invests in best deals
  • 7.
    7 Insert logo here Student Housing Apartment Complexes Retail Centers Single& Multi-Family Homes Office & Mixed Use Diversify across property types* *Not all investors invest in all areas. Investors placed in investments aligned closest to their goals. 6-12 Months 3-5 Years 5+ Years Invest for your time horizon Invest in multiple markets* Investor Portfolio Sample Investment Capital Invested State Investment Type Type Term Single family home purchase – 7.50% San Diego, CA $500 CA Residential Debt 12 months Single family home refinance – 11.0% Rochester, NY $500 NY Residential Debt 12 months Single family home rehab – 9.75% Orlando, FL $500 FL Residential Debt 12 months Trinity Office Complex – 10.50% Plano, TX $1000 TX Commercial Debt 18 months South Seattle Center – 11.00% Seattle, WA $1000 WA Commercial Debt 24 months South Waterford Apartments – 9.00% Chicago, IL $1000 IL Commercial Debt 36 months Winston Hill Apartments – IRR 17.5% Raleigh, NC $5000 NC Equity 4-5 Years Boston Student Housing – IRR 21.5% Boston, MA $5000 MA Equity 5+ Years
  • 8.
    8 Insert logo here *Pastperformance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in significant losses. These are estimates only. Actual returns and term may be materially different from such projections. Individual deal results can vary significantly due to a large number of factors that include market risks, sponsor risks, individual deal risks and other unpredictable events. See PPM for more details on risks. Deals could default resulting in either partial or complete loss of investor principal. 1 – See BetterCapital Investments LLC Private Placement Memorandum for a more comprehensive list of risks. Debt risks include borrowers delay on interest payments, borrowers extend the loan resulting in a delay of principal return and borrowers default on the loan causing a foreclosure of the property. Equity investment risks include reduced/no distributions due to cash flow issues, investment exit is delayed due to execution of the business plan or the borrower is unable to sell the property or the property goes into default or bank foreclosure resulting in a partial or full loss of investor principal. Deal Type Target Returns* (Annualized) Target Total Returns* (3 years / 5 years) Payment Timing Risk 1 Syndication Deals 13% - 23% 45% - 180% Quarterly distributions & Share of Profits at Sale Own stake in property Bank has first lien Real Estate Debt Loans 6% - 10% N/A Monthly Interest or Interest Paid at End Note Sponsor has first lien on property Projected Returns/Risks
  • 9.
    9 Insert logo here •Fund Management Fee • 2% annual fee • Calculated daily based on account value; charged to account monthly for • Partnership Expenses • Only expenses tied directly to partnership operations (Delaware fees, Reg D return, bank fees, etc.) • Investors pay pro-rata share of expenses based on their account value as a value • Pro-rata share of fees for year charged on Dec 31 for the year • Estimated to be 0.5% to 0.7% Fund Fees & Expenses Offering through SEC Reg. D 506(c) filing; Investment Company Act Section 3 (c)(1) exemption; Accredited Investors only.
  • 10.
    10 Insert logo here BetterCapitalReal Estate Fund, LLC Tax Consolidation Debt Investments 1099-INTs from each sponsor Equity Investments K-1 for each equity investment Consolidated K-1 for each investor • For larger investors, taxes get complicated when investing across multiple deals separately • BetterCatpial Investment LLC generates a consolidated K-1 for each investor • Consolidated K-1 provides significant tax preparation cost & time savings • Management fees paid to BetterCapital LLC and partner pro-rata share of LP expenses are considered partnership business expenses (line 1 of K-1) • Passive gains/losses across equity deals can offset each other Every individual’s tax situation is different. Please consult with your own tax advisor to better understand your advantages. Tax Simplification
  • 11.
    11 Insert logo here InvestorOnboarding Process • BetterCapital Investment LLC has partnered with Avestor Inc. to utilize their private fund platform. • You will receive an email to set up an online account • As part of online registration, ID will be required and proof of accreditation • All fund documents (PPM, LPA, Subscription) will be provided as part of onboarding process • Once approved to invest, you will fund your account • After account is funded, BetterCapital Investment LLC will work with you to allocate slices of deals to build your custom portfolio
  • 12.
  • 13.
    13 Insert logo here BetterCapitalInvestments LLC Manages partnership operations BetterCapital Real Estate Fund, LP Investor capital Limited Partners Managing Partner BetterCapital Investment, LLC BetterCapital Investments, LLC invests seed capital LP invests in deals Fund mgmt. fees & earnings from seed capital Florida LLC Delaware LP Earnings & Principal returned 1 All Partnership transactions performed through partnership bank account at Bank of America Bank Business Structure Offering through SEC Reg. D 506(c) filing; Investment Company Act Section 3 (c)(1) exemption; Accredited Investors only.
  • 14.
    14 Insert logo here Nocommunication by BetterCapital Investments, LLC or any of its affiliates, through this document or any other medium, should be construed or is intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice. Nothing in this document is intended as an offer to extend credit, an offer to purchase or sell securities or a solicitation of any securities transaction. Investments in private placements are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest. Additionally, investors may receive illiquid and/or restricted securities that may be subject to holding period requirements and/or liquidity concerns. Investments in private placements are highly illiquid and those investors who cannot hold an investment for the long term (at least 5-7 years) should not invest. This document provides preliminary and general information about the Securities and is intended for initial reference purposes only. It does not summarize or compile all the applicable information. This document does not constitute an offer to sell or buy any securities. No offer or sale of any Securities will occur without the delivery of confidential offering materials and related documents. This information contained herein is qualified by and subject to more detailed information in the applicable offering materials. BetterCapital Investments, LLC is not registered as a broker-dealer or a Registered Investment Advisor. BetterCapital Investments, LLC does not make any representation or warranty to any prospective investor regarding the legality of an investment in any securities. Alternative investments should only be part of your overall investment portfolio. Further, the alternative investment portion of your portfolio should include a balanced portfolio of different alternative investments. Private placement investments are NOT bank deposits (and thus NOT insured by the FDIC or by any other federal governmental agency), are NOT guaranteed by BetterCapital Investments, LLC or any other party, and MAY lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided in this document. Investors must be able to afford the loss of their entire investment. Before investing you should: (1) conduct your own investigation and analysis; (2) carefully consider the investment and all related charges, expenses, uncertainties and risks, including all uncertainties and risks described in offering materials; and (3) consult with your own investment, tax, financial and legal advisors. Such Securities are only suitable for accredited investors who understand and willing and able to accept the high risks associated with private investments.

Editor's Notes

  • #6 So how do we do this. We start by assessing a large number of real estate deals across various partners. We select deals that we believe are the best opportunities. Then we invest our capital first. Once we are secured a position in the deal, we slice up the deal into small slices of investment. We partner with you, our investor, to determine your goals and how to invest your capital. Then we allocate slices of deals to you. This model allows us to create a custom portfolio for every investor. Think of this as your own PERSONAL REIT but a lot better.
  • #7 With Avestor, we have come up with a better way. We are building our business on solving the real problems that investors have today. We do this by creating a Managed Portfolio for each investor. Since most investors do not have $75,000 to $100,000 to invest in a property, we have found a way to build a diversified real estate portfolio for $25,000. We can customize the portfolio of your investments based on your risk level. Our model generates passive income & appreciation together. We believe that our model will generate competitive long term returns with less risk. The other big benefit our model has is that your portfolio will have liquidity until like a single real estate investment. Finally, we do this as full service, passive investment with a low management fee. Let me now what you through each of these areas in a little more detail so you understand how we do all this.
  • #9 So the question everyone whats to know is what type of returns can you expect. Like any investment, there are no guarantees of performance but we can provide a range of what current returns look like on real estate deals. This is based on our historical returns having invested for many years. Residential debt deals range from 5% to 10% and have a lower risk of principal loss. Commercial debt deals are a little more risky but provide returns in the range of 8%-11%. Finally, equity deals provide an opportunity for higher returns but also have higher risk. With every investment, there is risk of default and risk of losing your principal. Our goal at Avestor is to minimize this risk by diversifying your capital across lots of investments so even if a few investments go bad, your overall portfolio continues to perform.