What is Ace Capital Real Estate Fund?

Ace Capital Real Estate Fund is a real estate investment platform that enables investor to build their own custom portfolios.

How does Ace Capital Real Estate Fund work?

1. Accredited investors sign up on portal and go through accrediation approval process.
2. Investors build their portfolio by selecting slices of available investments .
3. For each investment, Ace Capital Real Estate Fund tracks your pro-rata share of both percentage and time in each deal and distributes earnings to you based on that pro-rata share. Earnings and principal returned can be re-invested in new deals.

What is the benefit of investing in real estate?

The real estate market has historically performed independent of the stock market. Investing in real estate helps diversify your overall portfolio, provide passive income and opportunities for long-term appreciation.

How are the funds on Ace Capital Real Estate Fund different than a REIT?

Our platform allocates your capital into investments based on the direction you give the fund manager. This results in every investor having a customized portfolio. REITs cannot be customized by an investor to meet their personal investment goals.

Additionally, REITs distribute all earnings through dividends while limited partnerships allows pass through profits/losses and appreciation. Consult your tax or investment advisor to understand the tax advantages of our model.

How much transparency does Ace Capital Real Estate Fund provide on investments?

Ace Capital Real Estate Fund platform provides a new level of transparency for investors. Unlike a REIT, investors are able to view the performance of every individual investment in their portfolio. For equity/syndication deals, we have all the due dilgence documents (PPMs, Operating Agreements, financial spreadsheets) from sponsors. For debt deals, we have the information available to us that was provided by the sponsor.

How is Ace Capital Real Estate Fund different than other real estate platforms?

Ace Capital Real Estate Fund is unique in numerous ways from other real estate platforms. 1) Most platforms focus on individual deals. We focus on helping investors build a custom portfolio of deals. 2) Avestor does not originate deals. For our funds, we evaluate deals across many platforms and sponsors, select the best ones and pre-invest in them.

What is the Ace Capital Real Estate Fund?

Ace Capital is Ace Capital Real Estate Fund, LP first private, customizable fund. It invests in residential debt deals, commercial debt deals and commercial syndication deals. I

What kind of investments does Ace Capital Real Estate Fund,LLC invest in?

The Ace Capital Real Estate Fund, LLC Fund focuses on three types of deals - residential debt notes, commercial debt notes and commercial equity. Debt notes have a shorter time horizon (<24 data-preserve-html-node="true" months) and pay interest income. Commercial equity have a longer time horizon (3+ years) and pay cash distributions and a share of profits on the sale of the property.

Equity Deals (you are an "owner")

• Longer term investments - 3 to 7 years
• Equity stake in the property
• Pro-rata share of income distributions
• Pro-rata share of profits from sale

Debt Deals (you are a "banker")

• Short term investments (2 to 24 months)
• Participate in financing of a note to borrower
• Fixed interest rate based on borrower quality
• Pro-rata shre of monthly income or deferred interest
• 1st lien on property

Who is able to invest in the fund?

Ace Capital Real Estate Fund LLC is only accepting accredited investors at this time. To qualify as an accredited investor, you must meet certain thresholds as defined by the Securities and Exchange Commission under rule 501 of Regulation D. Specifically, you must meet one of the following criteria: (1) Income Test: Earn an annual income per individual of over $200,000 per year ($300,000 per married couple or spousal equiivalent) with the expectation of maintaining such level of income in the future or (2) Asset Test: Have a net worth of more than $1 million (individually, jointly or with spousal equiivalent), excluding the value of a primary residence or (3) Qualification Test: Passed the Series 7, Series 65 or Series 82 exams administered by FINRA.

What is the minimum investment in the Ariel Fund?

The minimum investment in the fund is $10,000 or a set by individual deal by fund managers.

How many deals can I be in?

As directed by investor in collaboration with fund manager.

How are investments made in the fund?

Ace Capital Real Estate Fund selects deals that best suit the financial and suitability requirements of the fund as a whole. We do not select investments directly for individual investors.

What is the structure of the Fund?

The Ace Capital Real Estate Fund is a Wyomin LLC. Investors join the fund as limited partners.

How are earnings, profits & losses allocated?

Earnings, profits and losses are tracked at a deal level and are allocated to the Limited Partners that are participating in each specific deal. The actual allocation is calculated by algorithms based on a combination when capital was allocated and how much capital was allocated. More details can be found in the Private Placement Memorandum (PPM) and the Limited Partnership Agreement (LPA).

What are the fees for the Fund?

The Ace Capital Real Estate Fund charges an annual platform fee of 1% on accounts valued up to $100,000 and 1.00% for accounts valued over $100,000. The fee is calculated based on the daily account value and multiplied by either .0125/365 or .010/365 to calculate the fee for that day.

Investors in the fund also share in any limited partnership expenses such as regulatory fees, tax/accounting costs. Pro-rata expenses are calculated as an investor's account value as a percentange of the total fund assets. Expenses are projected to be approximately 0.25%-0.50% of an investor's account value. More details on the fees will be available in the Private Placement Memorandum (PPM) and Limited Partnership Agreement (LPA).

The Ace Capital Real Estate Fund does not take any additional Performance fees from Limited Partners.

Do you invest in distressed loans?

Ace Capital Real Estate Fund does not invest in distressed loans.

How are investments made in the fund?

Ace Capital Real Estate Fund selects deals that best suit the financial and suitability requirements of the fund as a whole. We do not select investments directly for individual investors. Ace Capital Real Estate Fund then pre-invests in the deal. Once a deal is closed, investors may select the deals they want to participate in or request Ace Capital Real Estate Fund to auto allocate slices of deals based on their portfolio direction.

How do I exit the fund?

Unlike investments in publicly traded equities, real estate deals are not liquid. An investor must wait for each deal in their portfolio to complete before the principal and earnings for that deal can be returned. Once an investor seeks to exit the fund, Ace Capital Real Estate Fund will determine an estimated timeline based on the their investments. In most cases, fully exiting the fund and the underlying limited partnership will take multiple years.

What are Residential Debt Notes?

Residential debt notes are short term loans (~12 months) to borrowers to purchase a single family home. Borrowers put 10% to 30% cash down and the note covers the remainder. The borrowers pay either monthly interest on the loan or the interest is accrued and paid in full at the end of the loan term.

Investors participating in the notes receive their pro-rata share of interest income that the borrower pays for the loan and receive principal back at the end of the term.

The sponsor of the note generally holds the first lien on the loan. If the borrower fails to pay, the sponsor can take possession of the property and sell it to return the principal back to the investors holding the notes.

What are Commercial Debt Notes?

Commercial debt notes are short term loans (24 months or less) to borrowers to purchase a commercial properties. These can include multi-family homes, townhomes, mixed use properties, land development projects and other new construction projects. Borrowers put 15% to 35% cash down and the note covers the remainder. The borrowers pay either monthly interest on the loan or the interest is accrued and paid in full at the end of the loan term.

Investors participating in the notes receive their pro-rata share of interest income that the borrower pays for the loan and receive principal back at the end of the term.

The sponsor of the note generally holds the first lien on the loan. If the borrower fails to pay, the sponsor can take possession of the property and sell it to return the principal back to the investors holding the notes.

What is Commercial Equity?

Commercial equity deals provide an opportunity for investors to jointly participate with an active sponsor in the purchase of a larger property. These can include apartment buildings, student housing, self storage, retail centers or other commercial properties.

The investments are a minimum of 3 years and can be as long as 7 years. Sponsors may be constructing a new property or renovating an existing property with a goal to increase the income and value of the asset over a time horizon. At the end of the time horizon, the sponsor sells the property and splits the profits with the passive investors. Investors also get the tax benefits of real estate including depreciation.

Commercial equity deals are traditionally higher risk deals since banks generally hold the first lien on the property. Returns on successful deals are also higher.

Is AceCapital offering approved by the SEC?

Any funds on AceCapital's platform are disclosed to the SEC and any states where we have investors through a Regulation D, Form D electronic filings. Funds use a 506(c) or 506(b) exemption so SEC registration for the offering is not required.

Is Ace Capital Real Estate Fund a Registered Investment Adviser?

Ace Capital Real Estate Fund is not a registered investment adviser. We recommend you work with your financial or investment adviser to determine if real estate investments and private funds should be part of your portfolio.

Ace Capital Real Estate Fund. is an Exempt Reporting Adviser in Oregon. More information can be found at the SEC website at https://adviserinfo.sec.gov/firm/summary/305443

Is Ace Capital Real Estate Fund a broker?

Ace Capital Real Estate Fund in not a broker and does not receive any broker compensation.

Is Ace Capital Real Estate Fund a robo-adviser?

While Ace Capital Real Estate Fund uses technology to automate our processes, we are not a robo-adviser.

What tax statements do I receive?

Ace Capital Real Estate Fund provides a single, consolidated K-1 each tax year to each investor. The K-1 will consolidate all interest income, dividends, business income/losses and real estate income/losses.

When will I receive my tax statements?

Limited Partnerships are complex and require time to ensure accounting is properly done. Investors will be participating in deals where Avestor is dependent on the delivery of partnership K-1s from its sponsors to Avestor prior to being able to generate our consolidated K-1 for investors. Avestor's goal is to deliver individual K-1 to each investor in early April ahead of the tax deadline but cannot guarantee it. Like most real estate investments, investors should plan for the possiblity of delays and filing extensions for their tax return.

Why should I trust AceCapital RE Fund? You are a start-up.

Every company starts out as a small company. Some investors are comfortable working with small companies and others are not. If you are not, that’s okay. Join our mailing list and track our progress. When you are comfortable, reach out and we would love to work with you.

Does the leadership team invest in AceCapital's deals?

Yes. As the saying goes, "put your money where your mouth is". We have personal accounts with Ace Capital Real Estate Fund, LP Fund and invest our own capital into deals.

What happens to my money if Ace Capital Real Estate Fund goes bankrupt?

Our legal structure is setup to protect investors. Investors join private funds that are a separate legal entity from Avestor Inc.

Ace Capital Real Estate Fund initial fund, Ace Capital Real Estate Fund, is a limited partnership where Ace Capital Real Estate Fund is the general partner. In the event that Avestor Inc. cannot continue to function as the general partner, the partnership agreement states that Ace Capital Real Estate Fund. will assign a trustee to manage the partnership until all investments exit, investor capital is returned and the partnership can be properly dissolved. In an absolute worst case scenario where Ace Capital Real Estate Fund. did not assign a trustee, the investors, who are limited partners of the partnership, have the right to assign their own trustee.

Bottom line. Our structure is set up to protect investors regardless of what happens to Ace Capital Real Estate Fund. as an entity.

Why does your PPM have so many risks listed?

We believe every investor should invest with eyes wide open. Commecial real estate investing has a multitude of different risks and you can lose your capital on a deal due to a variety of reasons. This can be anything from the deal sponsor failing on their business plan to real estate market conditions. We do our best to help investors build a diversified portfolio so their risk is minimized on any given deal. Bottom line, when an investor seeks high returns, it comes with risks. Please read our PPM carefully before you invest.

I can invest in deals directly. Why should I pay Ace Capital Real Estate Fund fees to be in your fund?

We believe we are providing significant value for the 1.00% annual platform fee that we charge investors. We spend a large amount of time researching deals around the country, talking to deal sponsors and then selecting deals that we believe provide the best return opportunity at the lowest investor risk level. We enable investors to participate in equity deals at a significantly lower investment level than if they went directly to the deal sponsor. Finally, unlike any other platform in the market, we have built a leading edge technology platform that allows investors to build a fully customized portfolio that meets their investment goals.

Are you compensated by sponsors on deals that you invest in?

We do not receive any direct compensation, soft dollars or benefits of any other kind from the syndicators or crowdfunding platforms to invest in their deals.

Are you affiliated with any of the sponsors on deals that you invest in?

We have no financial interests or affiliation in any of the sponsors that we invest your capital.

Am I paying for Ace Capital Real Estate Fund engineering and marketing expenses as part of fund expenses?

Absolutely not. All fund expenses are expenses tied directly to the fund, such as Regulation D filing fees, state fees, bank fees, funding accounting/tax, etc.).

Ace Capital Real Estate Fund., which is developing the platform and marketing Ace Capital Real Estate Fund, is a separate legal entity. The only compensation that Avestor Inc. receives from the fund is the annual platform fees.