RE Debt Fund Strategies
It seems like most debt funds' playbooks consists of mezz, originating a whole note and selling off the A, and construction loans (all of which seem pretty basic).
What are some more complex / creative strategies that debt funds employ? I think I've seen investor decks that highlight investment returns of high teens / low 20s IRRs, which doesn't seem possible solely from the strategies above.
I.e. what is it that real estate "special situations" funds do?
Those returns can be juiced by using leverage on those strategies you mentioned.
Sub/non-performing loans, loan-on-loan financing, CMBS purchases
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