Explanation of Real Estate Credit
Can someone explain a little more about real estate credit to me? Is it similar to being a commercial lender / debt fund? Just looking for some clarification and wasn't sure if it was all semantics
Can someone explain a little more about real estate credit to me? Is it similar to being a commercial lender / debt fund? Just looking for some clarification and wasn't sure if it was all semantics
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It’s a fancy word for debt fund. You’ll also hear the term “opportunistic credit”. This basically means a debt fund that lends money to somewhat risky projects at high interest rates or they could be a debt fund that just gives out mezz debt. Debt funds are supposed to achieve higher returns than commercial lending shops.
Is a mortgage reit considered more so debt fund esque than a commercial lending back etc
That’s more of a grey area, but I’d say a mREIT is more of a debt fund.
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often yeah... repo, warehouse lines etc
I usually keep most mreits and debt funds in same bucket... most comp with each other. But it still ranges.
You'll see the debt funds/mreits more in the transitional deals/more heavy lifts/high yielding (also higher in the stack) than most banks
What do you mean by portfolio lending?
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