A Proven Private Lending Fund
Avondale Private Lending is an established investment fund specializing in short-term, asset-backed private lending. For more than a decade, we have focused on residential real estate loans in Texas, leveraging our local expertise to generate consistent, income-oriented returns.
Since 2016, Avondale has originated over $500 million in loans and delivered stable 9-10% annual returns to more than 160 investors.
Tax-Advantaged, Private Lending REIT
Investors gain access through Avondale Private Lending LLC (the “Fund”), a private lending REIT designed to generate attractive, tax-efficient income. The Fund’s objective is to deliver net annual returns of 9-10% by originating and managing a diversified portfolio of short-term, business-purpose loans secured by first-lien positions on high-end residential properties.
The Fund’s REIT structure allows income distributions to be treated as qualified REIT dividends, which are generally eligible for the Qualified Business Income (QBI) deduction. This enables most investors to deduct up to 20% of distributed income, without income-phaseout limitations.
As a result, the Fund’s targeted 9-10% pre-tax return is comparable to a 10-11% pre-tax return from non-QBI-eligible investments, depending on an investor’s tax profile.
Fund Facts
- Track Record: 10+ years with 9-12% annual returns*
- Target Return: 9-10% annually with distributions paid monthly
- Strategy: private credit backed by high-quality home builders and residential real estate located in the Texas Triangle megaregion (Dallas, Fort Worth, Austin, San Antonio, Houston); urban-core submarkets with limited supply, proximity to top-tier schools and high-income employment centers
- Total Assets: $100 million*
- Minimum Investment: $100,000
- Investors: 165*; Accredited Investors only
- Liquidity: 12-month lock-up period; early withdrawals allowed, subject to liquidity and manager discretion
- Structure: Texas LLC with subsidiary REIT (real estate investment trust)
- Taxation: taxed as ordinary income with potential for 20% Qualified Business Income (QBI) deduction; no Unrelated Business Taxable Income (UBTI) for tax-exempt accounts; annual statements on Schedule K-1
- Term: open-ended, evergreen
- Leverage: conservative use of senior credit facility; maximum leverage of 1x
- Fees: 1.5% management fee, 0.5% origination fee (borrower paid); 50% of profits after investors receive the 8% annual preferred return
- Audit: annual audit performed by Public Company Accounting Oversight Board (PCAOB) firm
*Figures above updated on an annual basis.
Annual Income %
Benchmarks: Bankrate Money Market Accounts, Bankrate 2-Year CD, S&P 500 Dividend Yield, AAA Rated 10-Year Muni Bond. No standard benchmark for private loans.
Private lending is such an underutilized investment strategy. So many people invest in real estate, but very few people invest in loans that are secured by real estate. That is the opportunity.
John Spears, Founder
Why Invest
High-yield, Tax-Efficient Income
Generate consistent monthly income with attractive annual returns, enhanced by potential tax advantages through the 20% qualified business income (QBI) deduction.
Low Volatility
Private lending provides exposure to an income-focused asset class that has historically exhibited lower volatility than public equities and traditional fixed income.
Aligned Interests
Avondale's principals and their families invest alongside Fund investors in the same share class, ensuring meaningful alignment of interests.
Approved Platforms
The Fund is approved for both retirement and non-retirement accounts with Charles Schwab and numerous self-directed IRA custodians.
High-End Residential Collateral
The Fund concentrates on luxury residential real estate, an asset class supported by strong demographic demand, limited supply and resilient long-term fundaments.
Track Record
Since inception in 2016, Avondale has originated over $500 million in loans while delivering stable 9-12% returns through multiple market cycles.
loan examples
Results From Our Loans
We are proud to have funded over 800 loans and over $500 million since inception. Here are examples of some of our renovation and new construction loans.
How to invest
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Testimonials
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