Private Credit vs. Real Estate Investing | TIGER 21 Chair in Financial Times
“Now that borrowing from the bank isn’t ‘free’ and isn’t easy [to secure], real estate does not have the shine it had before,” explains Rob Fleischman, Boston TIGER 21 Chair.
This brings up the question for many investors today: Why invest in real estate when lending earns 10%? The Financial Times article by Hugo Cox highlights this recent pivot from traditional commercial property investments to engaging as lenders in the real estate sector. With insights from experts including TIGER 21 Boston Chair Rob Fleischman, we see that rising interest rates have wealthy investors switching to find greater opportunities in lending and providing loans.
Leading fund managers typically offer closed-ended and open-ended funds, the former providing higher returns in exchange for longer lock-up periods. However, for more seasoned investors like many TIGER 21 Members, individually negotiated direct lending deals with companies can offer even higher returns.
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