Real Estate Backed Lending
The real estate debt funds we offer our clients are Income Funds which make loans secured by commercial real estate and pay interest received from those loans to investors. These funds are primarily created to provide investors with income. The goal of the fund is to provide investors with interest payments net of costs and return the investors principal once the loans mature.
Typically, our fund managers/sponsors originate and service their own mortgage loans. Loans can take the form of Mezzanine financing, senior loans and/or preferred equity. Each type of loan carries a different level of risk and security and should be clearly understood prior to making an investment.
Some of the risks associated with private real estate lending
- Lack of liquidity
- Effective underwriting and servicing practices
- Ability of the borrow to fulfill its obligation under the loan terms
- Real estate values
- Loss of principal
- Conflicts of interest
- Impact of fees on total returns
Investors should always read and understand the risks and benefits associated with this type of investment prior to investing.
For more information or to review a current offering, please call us at 844-427-1031.