• The Allocator: A New Way to Finance Real Estate

  • By: Dr. Adam Gower
  • Podcast

The Allocator: A New Way to Finance Real Estate

By: Dr. Adam Gower
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  • Summary

  • 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
    Unless otherwise indicated, all images, content, designs, and recordings © 2025 GowerCrowd. All rights reserved.
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Economics Personal Finance
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Episodes
  • Demystifying the Capital Allocator Model

    Demystifying the Capital Allocator Model
    Jan 28 2025
    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
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    53 mins
  • Changing the Real Estate Capital Game

    Changing the Real Estate Capital Game
    Jan 21 2025
    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
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    41 mins
  • How to Find Off-Market Deals With AI-Powered Title Searches

    How to Find Off-Market Deals With AI-Powered Title Searches
    Nov 12 2024
    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
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    36 mins

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