Debt Fund Due Diligence: Mastering Capital Protection and Cash Flow in Real Estate Private Lending

Описание: Episode #259

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Dates mentioned in the episode: Feb 18, Feb 25, Mar 3 (check the member dashboard for times/updates)

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This Episode
We’re officially kicking off PassivePockets’ new Debt Fund Due Diligence Series built around what members told us they want most: capital protection and steady cash flow in an uncertain macro environment. Chris Lopez breaks down what real estate private lending actually is (fix-and-flip, bridge, and ground-up construction), why senior debt sits in the “first paid / last to lose” position on the capital stack, and how lending can reduce downside volatility compared to equity-heavy strategies.

From there, Chris gets tactical on how to evaluate debt funds like a pro, starting with the single most important document: the *loan tape*. You’ll learn what a loan tape is, what to look for (LTV/LTC/LTARV, borrower quality, defaults/delinquencies, interest reserves, extensions, leverage, fees, and more), and how real-time portfolio data can change the way you assess track record versus longer-cycle equity deals. Chris also shares a field-tested framework for deeper due diligence, including the on-site audit process: reviewing SOPs, pulling and verifying loan files, confirming recorded deeds of trust, and “follow the money” bank reconciliation to reduce lending and fraud risk.

Finally, Chris outlines what’s next for the series community Zooms, expert panels, sponsor spotlights, and ultimately a community-built Debt Fund DD checklist that lives in the membership area as a continuously updated resource.

Key Takeaways
🞄 Why we’re starting with debt: members’ #1 fear is losing principal and #1 motivation is steady cash flow
🞄 Private lending basics: fix-and-flip, bridge, and ground-up construction loan types—and typical timelines
🞄 Real estate credit is massive: a multi-trillion-dollar market many retail investors still have little exposure to
🞄 Capital stack 101: why senior debt is “first paid / last to lose,” and how it can reduce return variance
🞄 Portfolio strategy: debt often functions like the “bond sleeve” of a real estate portfolio as you rebalance risk
🞄 Two approaches: direct lending (control + concentration) vs debt funds (diversification + passivity)
🞄 The loan tape: what it is, why it matters, and which columns/metrics actually tell you if risk is controlled
🞄 The two risks Chris focuses on: lending risk (staying inside the credit box) and fraud risk (borrower + fund level)
🞄 What “real due diligence” can look like: on-site audits, file pulls, deed-of-trust confirmation, and bank reconciliation
🞄 Series roadmap: kickoff → community Zooms → panels/fund spotlights → group DD → living DD checklist

Disclaimer
The content of this podcast is for informational purposes only. All host and participant opinions are their own. Investment in any asset, real estate included, involves risk. Nothing here is investment, tax, legal, or financial advice; consult qualified professionals. Past performance is not indicative of future results. This podcast may include paid advertisements or promotional materials for sponsors, funds, or offerings and should not be interpreted as a recommendation or endorsement by PassivePockets, LLC or affiliates. Conduct your own due diligence and consider your financial situation before engaging with any advertised products or services. PassivePockets, LLC disclaims all liability for any actions taken based on the information presented.