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S9E4 - Vicky Schiff | Private Credit and Loan to Cost Investing
In this episode of Real Returns, Andrew sits down with Vicky Schiff, CEO and founder of Avrio Clean Fund and a serial entrepreneur who has co-founded six firms over three decades in real estate. Vicki breaks down how private credit actually works, from senior loans and stretch senior proceeds to the debt yield math lenders use to protect their basis. She and Andrew also dig into why the recent private credit "exodus" headlines are mostly a corporate credit story, how construction cost overruns and rate hikes have squeezed multifamily borrowers, and how Avrio's PACE financing ties sustainability improvements to better loan economics.   Timestamps: 00:00 - Cold Open: When A Loan Goes Underwater 00:48 - Welcome And Meet Vicki Schiff 02:40 - What Private Credit Actually Is 05:02 - Senior Loans, Stretch Senior, And Mezzanine 06:30 - Loan To Cost, Loan To Value, And Debt Yield Explained 09:24 - Why Borrowers Choose Private Credit Over A Bank 13:38 - The Private Credit "Exodus" Headlines, Explained 15:57 - How Construction Costs And Rate Hikes Sink A Deal 18:21 - Where The Opportunity Is Now 21:08 - PACE Financing And The Double Bottom Line 24:55 - How To Connect With Vicky - "Somebody makes a loan to build a multifamily asset. That multifamily asset is supposed to be worth that $120 million that I just mentioned to you. But when it's built, it's worth 90, and it didn't cost 100, it cost 110, because construction costs went up." — Vicki Schiff Connect with Vicky: LinkedIn: https://www.linkedin.com/in/vicky-schiff-46b6361b Avrio CleanFund: https://www.avrio-cleanfund.com/ - For more insights on purposeful investing, subscribe to Real Returns on Apple Podcasts, Spotify, or YouTube. Apple Podcasts: https://podcasts.apple.com/us/podcast/s9e4-vicky-schiff-private-credit-and-loan-to-cost-investing/id1642761377?i=1000792460825 Spotify: https://open.spotify.com/episode/4ewFDu5pBg1VgdSCoulWOb?si=pCj3QMtSQ-iwd3KebFnDZA YouTube: https://www.youtube.com/watch?v=0leuW-VglFE — Subscribe to our monthly newsletter: http://www.realreturnspodcast.com Want to see your question answered on the show? Submit a question via our Q&A form: https://forms.gle/Fy9E6H7BTpzhGPueA — Invest alongside our team with Birgo Heartland Multifamily Fund V, targeting resilient Midwest workforce housing markets: https://birgo.com/fundv?utm_source=youtube&utm_medium=podcast&utm_campaign=s9e4_vickyschiff&utm_content=fund_v Reiturn® is Birgo's new platform* bringing real estate investing to everyday investors, not just accredited ones, with a minimum for the public of $1,000. *The equity crowdfunding round to own a share of the Reiturn® platform is live at https://invest.reiturn.com/?utm_source=youtube&utm_medium=podcast&utm_campaign=s9e4_vickyschiff&utm_content=reiturn_raise
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