Dramatic shifts in the macro-environment over the past twelve months have led to a once in a decade dislocation in real estate credit markets. Today, due primarily to significantly higher interest rates, many sponsors are facing liquidity shortfalls and are in need of near term financing solutions to pay down existing loans or recapitalize certain assets. With far more borrowers in search of this kind of capital than there are lenders willing to provide it, the cost of borrowing has skyrocketed. This in turn has created a rare window of opportunity for well capitalized investors willing to fill this gap, and offers some of the most attractive risk adjusted returns of the past ten years.
The Fund intends to capitalize on this dislocation by investing in second trusts, B-notes, rated bonds, asset backed securities, and preferred equity positions with a primary focus on the multifamily and single-family rental markets.
Target Net Yield: 9-11%
Investment in the Fund is limited to accredited investors via the Fundrise website. To verify accreditation, please go to your Account Settings or contact the Investor Relations team at investments@fundrise.com.
To learn more, please read Private Credit Investment Strategy.
