Funds or Syndications? – Axia Partners

How’s it going, everyone? Today, we’re covering the interview Lincoln Archibald had with Axia Partners – Funds or Syndications?

Axia Partners is a private equity investment and advisory firm that aims to provide maximum risk-adjusted returns while protecting investor capital by focusing on real estate assets with strong fundamentals and intrinsic value.

Let’s get started on the interview!

Lincoln Archibald: Let’s start by telling me about Axia Partners.

Dave Allred: I used to do a lot of syndications, but then I started investing in real estate funds.

I soon fell in love with the fund model because it mitigates so much risk.

Statistically, the risk of syndicating a single property is 2.7x higher than investing in a diversified real estate fund.

Another thing about us is that our investor base at Axia is unique: all 400+ of our investors are friends and family.

I’ve never paid for a lead or a Facebook ad.

I’m also proud to say that I’ve never lost a dollar of investor capital in any real estate deal I’ve ever done.

With that standard in mind, I decided to launch Axia Partners 2.5 years ago.

I found a few partners that were on the same wavelength and were on the same mission, and it has been a wonderful ride.

Lincoln: Tell me about the products you invest in.

Dave: The primary focus of Axia Partners is mitigating downside risk. We focus on commercial real estate investing with an emphasis in being recession resilient.

The 3 asset types we invest in:

  • Self-Storage
  • Multifamily (our bread and butter)
  • Industrial Warehouse

The reason we choose industrial warehouse is because it’s projected to be the top-performing real estate asset over the next 5 years.

Our first fund a couple of years ago didn’t have any industrial investment, but our current “Value Development Fund” does.

Multifamily is always needed so that’s why we focus on that.

Self-Storage had proven to be the most resilient asset over the last 2 recessions; they generate strong cash flow and create great tax benefits for our partners.

Lincoln: Will a single investment in your fund give an investor exposure to all 3 assets or just one of them?

Dave: Even if an investor came in at $1M, they’d still get exposure to all 3 asset classes and multiple assets within those classes.

This way, we’ve created a low barrier of entry to those that want a diversified investment.

Lincoln: This is interesting because traditionally, funds will segment them by product set, but Axia lets the investor get exposure.

Are there any other key benefits of what I call this “multi-strategy fund?”

Dave: Honestly, it was just working really well for me. All of my investors wanted the same thing: diversified, high-performing yet minimal risk investment.

However, I did get some pushback on the fund model rather than the syndication model.

In a syndication, the investors put their money in a specific product, but in a fund, they put their money in a thesis or strategy – they get less details about their investment.

But, there are a lot of investors that prefer the fund model because of the diversification it creates.

That’s all we’re covering today, but check out Lincoln’s podcast channel, “Funds that Won” to watch the rest!

There’s more content to see on my YouTube channel as well.

However, if you’re wanting to start your own private equity real estate fund, then visit Fund Launch!

Thanks for stopping by,

Bridger Pennington

Want to get direct guidance for your fund? Schedule a time with my Fund Advisors!

DISCLAIMER: This content is for educational and informational purposes only. It is not to be taken as tax, financial, or legal advice. You should always consult a legal professional before taking action. Furthermore, this is not a recommendation to buy or sell any security. The content is solely just the opinion of the author

Leave a Reply