Q&A
Real questions from readers, answered by vetted real estate experts — investors, operators, and proptech builders.
Start with your senior lender's intercreditor posture, because it often makes the decision for you — many seniors will tolerate pref equity but fight a mezz loan that creates a second lien. Beyond that: mezz is debt with a fixed maturity and foreclosure remedy; pref has no maturity but harder control terms on default.…
Read more →Adding to Paul's point — the structural shift nobody mentions: LPs who used to write $5M fund checks now prefer $2M co-invests where they see the asset. Design your vehicle so co-investors can graduate into fund LPs. Your first 'fund' might really be a co-invest club with a management fee.
Read more →Honestly? Probably not at sub-$300M. The rating process is expensive in both fees and the operational overhead it forces — you'll need reporting and risk infrastructure that's heavy for a fund your size. The math flips around $500M+, where the insurance capital it unlocks more than pays for the apparatus. Below that,…
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