CMCT (the public REIT of CIM) bought a deal from CIM and is facing a foreclosure on it. Article below.
So they bought their own deal and used retail public investors money to do so; and now could lose the deal because they obviously overpaid for it. Shouldn't this be illegal?
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How is that possible?
CIM doing something that doesn’t quite pass the smell test?
It's not illegal but if you are dealing with two funds backed by institutional LPs (Endowments, Pensions, etc.) they absolutely fucking hate related-party transactions like that. Occasionally there is a rare situation in which an open-ended core fund will by assets from a value add fund in a deal that is truly supported by all LPs involved, or there will be a spin out of assets to seed a new fund or something, but it's always a pain in the ass.
But of course retail money doesn't know that this is even something they should be worried about. It always shocks me just how susceptible retail investors are to getting taken advantage of by people selling them shit on a stick and telling them they're getting access to some exclusive, elite hedge fund / PE strategy
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