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228: The Capital Stack Is Cracking: Eric Sussman on What LPs Need to Know

July 8, 2025

What do experienced real estate investors do when deals don’t pencil, the capital stack is shifting, and the data feels contradictory? In this episode, Jim Pfeifer and Paul Shannon are joined by real estate investor, CPA, and UCLA professor Eric Sussman to explore how sophisticated LPs should think about today’s economic signals, capital markets, and sponsor behavior.

Eric brings decades of experience across syndications, private equity, and academia to this conversation. He dives into how inflation data, rate policy, and lending trends are impacting both sponsors and investors and why understanding the real risk lies beyond cap rates and projected IRRs. The hosts and Eric discuss debt mismatches, how institutional players are positioning, and why trust and underwriting discipline matter more than ever.

Plus, Eric shares his candid take on why some deals should fail and why that’s ultimately healthy for the market.

Key Takeaways

How to interpret mixed signals in the real estate and macroeconomic data
Why sponsors are struggling to refinance and recapitalize
The impact of capital stack misalignment on passive investors
Why some LPs aren’t getting paid—even when the deal is “performing”
What Eric looks for in a sponsor beyond the deck
How institutional players are preparing for distress
Why a wave of failed deals could actually benefit long-term investors

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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