210: Banks Are Pulling Back: Why Private Real Estate Debt Is Surging with Chris Carsley

March 4, 2025

Paul Shannon hosts an in-depth chat with Chris Carsley of Kirkland Capital Group to explore the growing world of private real estate debt. Chris explains how private lending is filling financing gaps left by traditional banks, why short-term “bridge” loans for smaller commercial deals can yield competitive returns, and what operational due diligence steps every LP should take before investing. From the basics of senior debt to navigating leverage, liquidity, and redemptions, Chris shares real-world insights into the risks and rewards of building private credit into a balanced portfolio—especially amid today’s market volatility.

Today’s Episode Takeaways

Why Private Debt Exists: How regulatory changes and market gaps since 2010 have fueled the rise of non-bank lending.
Fixed-Income Diversification: How private real estate debt contrasts with traditional bonds—and the potential for uncorrelated cash flow.
Key Risk Factors: Why valuation, low loan-to-value, and conservative underwriting matter for principal protection.
Due Diligence 101: Questions to ask fund managers about leverage use, past defaults, and changes made after deals go wrong.
Liquidity vs. Illiquidity: Understanding fund “gates,” redemption structures, and how to fit private debt into an overall strategy.

Want To Learn More?

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, so use your best judgment and consult with qualified advisors before investing. You should only risk capital you can afford to lose. Remember that past performance is not indicative of future results. This podcast may contain paid advertisements or other promotional materials for real estate investment advisers, investment funds, and investment opportunities, which should not be interpreted as a recommendation, endorsement, or testimonial by PassivePockets, LLC or any of its affiliates. Viewers must conduct their own due diligence and consider their own financial situations before engaging with any of the advertised offerings, products, or services. PassivePockets, LLC disclaims all liability for direct, indirect, consequential, or other damages arising out of reliance on information and advertisements presented in this podcast.

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jimpfeifer@biggerpockets.com

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