In 2020, we launched our lending business—our Real Estate Debt Fund—building on decades of private lending experience. Seeing a significant demand for reliable lenders who could provide excellent service to high-quality borrowers, we stepped in to meet that need. At the same time, many of our investors were searching for a flexible way to grow their capital while maintaining access to their funds. The debt fund became the perfect solution, offering both borrowers and investors a win-win opportunity.
Our lending business specializes in short-term loans, typically around six months in duration. This allows us to provide the liquidity investors may require while delivering loans efficiently to our borrowers. Since its inception, the debt fund has funded over $373,954,000 in loans through more than 1,830 transactions. As managing partners, we strongly believe in this investment, which is why we have committed over seven figures of our own capital to the fund, letting it grow through the power of compound interest.
Here are three key reasons we choose to invest in the Real Estate Debt Fund—and why you might consider it too:
Harnessing the Power of Compound Interest
Compound interest is one of the most powerful tools for wealth growth. For example, a $100,000 investment growing at 8% interest, compounded monthly, can generate over 17% returns in just 10 years. By allowing your earnings to compound over time, your money works harder for you, multiplying your returns year over year.
Built-in Diversification for Security
When you invest in the debt fund, your capital is immediately diversified across all loans within the fund. This diversification helps reduce risk and provides a better environment for your investment. For those holding large cash balances exceeding FDIC insurance limits, the debt fund offers an alternative to diversify and protect that excess capital while earning consistent returns.
Access to Liquidity When You Need It
Short-term liquidity is a unique advantage of the debt fund. With loans typically lasting six months, investors can access their funds more quickly than with other long-term, illiquid investments like multifamily properties, self-storage, or car washes. This flexibility can be an essential part of balancing your investment portfolio.
Invest Today
The Real Estate Debt Fund continues to provide a consistent opportunity for investors seeking reliable returns. If you’re ready to explore how it could fit into your financial strategy, visit the Current Offerings section on PassiveInvesting.com, scan the QR code, or reach out to our team for more information.
Related passive investing resources
Continue your research with these related guides:
- For a broader overview, see Choosing Between Multifamily Investments and Debt Funds: Finding the Right Fit for Your Portfolio.
- Next, review Three Reasons Why We Invest in the Real Estate Debt Fund.