PassivePockets: The Passive Real Estate Investing Show

Deal Review | PIC Debt Fund Breakdown Featuring Whitney Elkins-Hutten

Dec 24, 2024

Whitney Elkins-Hutten, Director of Investor Education at PassiveInvesting.com, joins experienced limited partner Paul Shannon to delve into the PIC Debt Fund. They explore the benefits of incorporating real estate debt into investment portfolios, focusing on stability and diversification. The duo discusses strategies for assessing borrower risk and the complexities of fix and flip financing. They also unravel the intricacies of real estate debt funds, emphasizing due diligence and financial transparency, making it a must-listen for aspiring passive investors.

48:43

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Episode guests

Whitney Elkins-Hutten

Paul Shannon

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Episode notes

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Quick takeaways

The PIC Debt Fund mitigates risks through rigorous borrower evaluations and a low default rate of about 0.2%.

Investors can choose between monthly distributions or compounding returns, with preferred returns ranging from 6% to 10%.

A redemption policy allows investors access to capital with a 90-day notice, enhancing liquidity and confidence in their investments.

Deep dives

Understanding Debt Fund Investments

Investing in a debt fund involves important considerations regarding the type of assets, risks, and expected returns. The PIC Real Estate Debt Fund focuses on residential fix-and-flip properties across the Southeast and Ohio, offering diversification through a pool of approximately 400 active loans. This structure aims to provide stable cash flow to investors while maintaining a relatively low risk profile due to its position in the capital stack. By investing in the lowest tier, the fund can potentially lower volatility while enhancing the overall reliability of cash flow.

Intro

4min

Investing in Real Estate Debt

6min

Strategies for Successful Borrowing and Investment Opportunities

4min

Understanding Fix and Flip Financing

7min

Navigating Real Estate Debt Funds

23min

Understanding K1 Income and Tax Implications for Investors

2min

🌟 Deal Review with Passive Investors | PIC Debt Fund Breakdown Featuring Whitney Elkins-Hutten 🌟

In this episode of our Deal Review Series, we’re joined by Whitney Elkins-Hutten from Passive Investing.com, who’ll present the highlights of their PIC Debt Fund. Together with an expert panel of seasoned Limited Partners, including Paul Shannon (Co-Host of the PassivePockets podcast) and Litan Yahav (Founder of Vyzer), we’ll:

✅ Analyze the Deal – What makes this fund worth considering?

✅ Spot Red Flags – Learn how to identify potential risks.

✅ Ask Tough Questions – Discover how LPs dig deeper into the details.

✅ Gain Actionable Insights – Build confidence in evaluating real estate syndication deals like a pro.

If you’re looking to sharpen your skills as a passive investor, this episode is packed with tips, strategies, and lessons learned from experienced Limited Partners. Whether you're a beginner or a seasoned investor, you’ll walk away with tools to make smarter investment decisions.

Don’t forget to subscribe and leave a review to stay updated on future episodes packed with investment strategies, market insights, and more!

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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 judgement 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.

jimpfeifer@biggerpockets.com