The Best Ever CRE Show JF 3990: Risk-Adjusted Returns, PPM Red Flags, and Fund-to-Fund Insights ft. Mauricio Rauld
Aug 7, 2025
Mauricio Rauld, a prominent syndication attorney and founder of Platinum Legal Consulting, brings his expertise to the table. He discusses the multifamily debt crisis, revealing how many LPs are caught off guard by bridge loans and floating rates. The conversation shifts to the importance of understanding debt structures and conducting thorough due diligence. Mauricio also explores the shifting landscape of fund-to-fund models and how LPs can utilize tools like ChatGPT for enhanced investment evaluation. His insights offer valuable guidance for navigating today’s complex real estate market.
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Bridge Loan Risks Uncovered
- Floating rate bridge loans gave operators high leverage but short durations caused refinancing issues as rates spiked unexpectedly.
- Many LPs lost equity unknowingly due to declining values and lender extensions delaying losses realization.
Understand Loan Assumptions & Risks
- As an LP, always understand the assumptions behind loan products and have a plan B if refinancing or selling isn't possible.
- Use risk-adjusted returns to evaluate deals realistically, not just headline numbers.
Calculate Realistic Risk-Adjusted Returns
- Evaluate each deal's assumptions by estimating the likelihood they will succeed and adjust expected returns accordingly.
- Diversify across many syndications to balance out wins and losses and improve your overall risk-adjusted return.
