Charles Hutchens, Co-Founder and Managing Director of Thirdline Capital, joined Julie Cooling, Founder and CEO of RIA Channel, at the GTE Wealth Forum to discuss making loans secured by real estate properties.
Thirdline Capital is a real estate interval fund manager that operates the Thirdline Real Estate Income Fund (TREIX). Interval funds are open-end funds with opportunities for quarterly liquidity. Thirdline Capital has the conviction to limit growth to maintain performance. The firm provides private loans backed by real estate assets, which Hutchens believes to be private lending’s lowest risk tranche. Loans secured by real property are backed by more tangible assets than corporate loans backed by the firm’s enterprise value. Thirdline has the ability to own and operate the real estate assets that secure the loans. Hutchens provides an example of a 5-year loan on a multi-family property outside of New York City, with a 20-year ground-floor lease to CVS.
Thirdline seeks close relationships with its investors, which are limited to a small number of RIAs. Close relationships with advisors enable the firm to know when assets are entering and leaving the fund.
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