Two fund managers and an allocator walk into a bar:
Allocator: "What returns are you targeting?"
Core fund: "8% net, with 75% from income."
Debt fund: "9% net, all income."
Allocator: "Why would I ever invest in equity then?"
Core fund: "We're only 40% levered."
Debt fund: "But you're in first-loss position."
Core fund: "Fair, but your 9% assumes zero losses."
Allocator: "Good point. What's your loss experience?"
Debt fund: "Our historical loss rate rounds to zero."
Allocator: "Impressive. How long have you been investing?"
Core fund: "40 years."
Debt fund: "Since 2020."
Allocator: "..."
Bartender: "Another round?"
PS -- Real estate cycles are inherently violent and have been for 100+ years. Our FastTrack course teaches frameworks for investing across full cycles, not just the good times. DM us to explore our upcoming cohort.
Allocator: "What returns are you targeting?"
Core fund: "8% net, with 75% from income."
Debt fund: "9% net, all income."
Allocator: "Why would I ever invest in equity then?"
Core fund: "We're only 40% levered."
Debt fund: "But you're in first-loss position."
Core fund: "Fair, but your 9% assumes zero losses."
Allocator: "Good point. What's your loss experience?"
Debt fund: "Our historical loss rate rounds to zero."
Allocator: "Impressive. How long have you been investing?"
Core fund: "40 years."
Debt fund: "Since 2020."
Allocator: "..."
Bartender: "Another round?"
PS -- Real estate cycles are inherently violent and have been for 100+ years. Our FastTrack course teaches frameworks for investing across full cycles, not just the good times. DM us to explore our upcoming cohort.
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