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Showing posts from April, 2024

Everything Real Estate Equity & Credit (Part I)

Commercial Real Estate Basics, Technicals, and Opportunities Real Estate Basics What is Real Estate Credit (Debt)? Similar to corporate private credit/direct lending, RE credit deals with the origination & management of CRE debt -  Like any credit investment, RE lenders are aiming for stability in cash flows, meaning: -  Large emphasis on reducing risk in terms of creditworthiness -  Looking for longer-term tenant leases, diversified tenant base, strong management -  Strong credit fundamentals, a track record of servicing debt and repaying principal, and healthy debt-related metrics (more on this later) -  Perhaps even examine factors like covenant protection and collateral strength -  Credit shops usually pursue dow