About this episode
FOR MORE - Debt Fund Due Diligence Hub:
www.passivepockets.com/debtdd
Next Steps
Join the discussion + access links/resources: www.passivepockets.com/debtdd
Attend the community Zooms (or watch recordings later)
Dates mentioned in the episode: Feb 18, Feb 25, Mar 3 (check the member dashboard for times/updates)
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https://get.biggerpockets.com/passivepocketssummit2026/
This Episode
We’re officially kicking off PassivePockets’ new Debt Fund Due Diligence Series built around what members told us they want most: capital protection and steady cash flow in an uncertain macro environment. Chris Lopez breaks down what real estate private lending actually is (fix-and-flip, bridge, and ground-up construction), why senior debt sits in the “first paid / last to lose” position on the capital stack, and how lending can reduce downside volatility compared to equity-heavy strategies.
From there, Chris gets tactical on how to evaluate debt funds like a pro, starting with the single most important document: the loan tape. You’ll learn what a loan tape is, what to look for (LTV/LTC/LTARV, borrower quality, defaults/delinquencies, interest reserves, extensions, leverage, fees, and more), and how real-time portfolio data can change the way you assess track record versus longer-cycle equity deals. Chris also shares a field-tested framework for deeper due diligence, including the on-site audit process: reviewing SOPs, pulling and verifying loan files, confirming recorded deeds of trust, and “follow the money” bank reconciliation to reduce lending and fraud risk.
Finally, Chris outlines what’s next for the series community Zooms, expert panels, sponsor spotlights, and ultimately a community-built Debt Fund DD checklist that lives in the membership area as a continuously updated resource.
Key Takeaways
Why we’re starting with debt: members’ #1 fear is losing principal and #1 motivation is steady cash flow
Private lending basics: fix-and-flip, bridge, and ground-up construction loan types—and typical timelines
Real estate credit is massive: a multi-trillion-dollar market many retail investors still have little exposure to
Capital stack 101: why senior debt is “first paid / last to lose,” and how it can reduce return variance
Portfolio strategy: debt often functions like the “bond sleeve” of a real est
