Rate Cuts And Lp Accountability: Pulse Check | Bigger Pockets Video

Episode #239

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Chris Lopez is joined by co-hosts Jim Pfeifer and Paul Shannon for the September PassivePockets Pulse Check, our monthly roundup of what’s moving passive real estate, the shifts we’re making in our own portfolios, and what we expect next.

We unpack the Fed’s recent 25 bps cut (what actually changes for fixed vs. floating debt), why many LPs are rotating toward private credit, and the rules-of-thumb we’re using right now for debt funds, multifamily, and development. Paul opens the hood on a heavy value-add 22-unit (50% vacant) targeting an ~11% yield-on-cost in an ~8 cap market, while Jim and Chris break down current debt yields, LTV guardrails, and how to think about liquidity. We also debut the Tool Tip of the Month and have a candid conversation about LP accountability, fraud vs. operator error vs. market risk, and how to use community to get smarter.

Key Takeaways:

🞄 What the Fed’s cut really means: SOFR vs. the 5/10-yr, fixed vs. floating, and prepay/yield-maintenance tradeoffs
🞄 Portfolio mix in today’s market: why many are 30–50% in private credit (9–12%+) while waiting on equity
🞄 Inside a 22-unit heavy value-add: rehab plan, stabilization path, and ~11% yield-on-cost vs. ~8 cap comps
🞄 LP cheat sheet: Debt funds 9–12%+, MF value-add mid-teens IRR w/ 7–8% avg CoC, development 20%+ IRR / 2.5–3.0x MOIC, ≤65% LTV
🞄 New perks & education: Vizor portfolio tracking (free for members) + deep-dive underwriting webinars; plus a frank look at LP accountability

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.