A real estate debt fund pools investor capital to make loans secured by real estate, rather than to own property as equity.
Log in to followThe open-end debt aggregate was up 5.5 percent year to date gross of fees through Q3 2025, against 4 percent for the equity index. Every closed-end bridge fund deck on my desk cit…
A lender who works the next county over offered me a piece of a note at 11 percent on a 1950s three bedroom in a town of about 4,000. First lien, roughly 60 percent of a value I c…
I asked two managers for documents last month and the structures came back completely different, and I can't decide which one is actually safer for a first check. The first is ope…
Running the numbers on an open-end debt fund and I can't make the arithmetic close. Their book is 61 loans, weighted average coupon 8.9%, weighted average LTV 64%, all first mortg…
Two commitments due by the end of the quarter and I've only got $400,000 to split. Fund A, residential bridge, first lien. Coupons 10.5 to 11.5, average loan $480,000, roughly 900…
Posting this because the process was more useful than the outcome and I'd have wanted to read it two years ago. I had $60k that wasn't going into a property. Looked at four reside…
I put 400k into an open-end debt fund in late 2022. Weighted average LTV on the tape was 63, average coupon 10.4, mostly bridge and a slug of construction. Target net was 8 to 9.…
The coupon on this fund was 10.25 percent net. I put 35k in because of one loan on the tape, and that loan is the reason I'm writing this. The fund is residential and small commer…
I've been hunting a specific kind of parcel for about two years, 40 to 80 acres, road frontage, within an hour of a growing secondary market. That money has to be liquid because w…
I've got two open-end debt funds in front of me. Both residential and light commercial bridge, both quoting around 9 percent net, both open quarterly. And I've had to admit to mys…
I own three parcels I intend to hold for a long time. They generate no income and they cost me property taxes, a mowing contract on one, and liability insurance. About 7,400 a yea…
Closing on a small single family rental in three weeks. After down payment, closing costs and the first insurance premium I'll have about $40,000 sitting in savings earning basica…
Working through a quarterly report on a bridge fund. The credit summary says zero loans 60 days delinquent and zero in foreclosure. Then the loan schedule shows 15 of 62 loans wit…
I've been circling the investing side of this industry for about a year without a clear idea of where I'd fit, and the amount of money I have available is small enough that most d…
I came into this from a completely different line of work and had no chance of buying a property with what I had saved. 25k, no local market knowledge, no time to renovate anythin…
I've had four funds' materials open since August and I keep arriving at the same argument with myself. One camp says the tape decides everything. Vintage of origination, weighted…
I've been going through a debt fund's offering documents and I'm stuck on something basic. The fund's schedule of investments lists 41 loans with addresses next to them, and my fi…
The fund is an $900 million open-end bridge lender, mostly first lien, and I've had the loan tape for eight days. Numbers I mostly trust: 148 loans, $2.1 million average balance,…
Two open-end debt funds on my desk and I've been going back and forth for three weeks. Fund A. $740m loan book, 118 loans, weighted coupon 10.4%, weighted LTV at origination 63%,…
Ground-up on a small infill project, $3.2M total cost. Bank offer is 8.25% floating at 55% loan to cost, full recourse, and I'd be writing a $1.44M equity check. A debt fund offer…