{"id":170318,"date":"2024-04-08T13:34:26","date_gmt":"2024-04-08T19:34:26","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=170318"},"modified":"2024-06-27T12:13:11","modified_gmt":"2024-06-27T18:13:11","slug":"should-you-invest-in-real-estate-debt-or-equity-right-now","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/should-you-invest-in-real-estate-debt-or-equity-right-now","title":{"rendered":"Is Now a Better Time to Invest in Real Estate Debt or Equity?"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm\/?e=BIGPOC8291856606\" width=\"100%\"><\/iframe>\r\n  \n\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Many investors assume that ownership is inherently safer than debt. I currently own equity in thousands of units and have invested six figures in real estate debts.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">I can tell you firsthand that it\u2019s not\u2014at least not always.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Still, real estate equity and debt investments serve different purposes in your portfolio. Before parsing the risks of equity versus debt investments in 2024, it\u2019s worth reviewing the roles each plays.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">The Role of Debt Investments<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Most debt investments come with a fixed interest rate. You know the return you can expect to earn, assuming the borrower performs.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Real estate-related debts could be secured by a&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/what-is-a-lien\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">lien<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;against real property. If the borrower defaults, the lender can foreclose on the property to recover the money. Or debt may not be secured with a lien but come with a personal or corporate guarantee.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Just a few weeks ago, our passive real estate investing club at SparkRental invested in a 10% note secured with a lien under a 50% loan-to-value (<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/loan-to-value-ratio\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">LTV<\/span><\/a><span data-preserver-spaces=\"true\">) ratio. It came with a rolling six-month term\u2014in other words, we can each terminate our note with six months\u2019 notice. It also came with personal and corporate guarantees from a highly successful real estate investor who owns over a hundred units and flips 30 to 50 homes each year.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Is a 10% return something to write home about? Hardly, when that\u2019s roughly the long-term average&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/real-estate-vs-stocks-performance\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">stock market return<\/span><\/a><span data-preserver-spaces=\"true\">. But unlike stocks, this note pays predictable interest every month and comes with substantial security.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">We\u2019ve also invested in a 15% note, backed by a corporate guarantee from a company that owns about a dozen cash-flowing businesses. It carries more risk but pays a much higher return. (So far, they\u2019ve paid like clockwork).<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Which is the better investment? Are they better than equity investments despite not offering upside potential?&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">These are the wrong questions. Instead, I ask how comfortable I feel with the return versus the risk and whether I currently prefer immediate income or the chance of higher returns in a few years from an equity investment.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">The Role of Equity Investments<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">On the other end of the spectrum, we recently invested fractionally in a 200-unit apartment complex. While it doesn\u2019t need major value-add renovations, the syndicators are converting the units to Section 8, taking advantage of a loophole in the LIHTC rules restricting rents.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">The bottom line: They\u2019ll be able to raise rents by 50% or more. And that\u2019s based on today\u2019s Section 8-approved rents\u2014it doesn\u2019t require future rent growth.&nbsp; &nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">However, it will take a couple of years to replace all the rent-restricted cash tenants with Section 8 renters, so the investment won\u2019t pay distributions for at least two years. But once the rents are stabilized, they plan to refinance the property to return investors\u2019 capital, and then pay distributions indefinitely (one model for \u201c<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/how-to-generate-infinite-returns-in-real-estate\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">infinite returns<\/span><\/a><span data-preserver-spaces=\"true\">\u201d). If the property were to sell in a few years rather than refinancing, we\u2019d potentially be looking at 20%-40%-plus annualized returns.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">In this case, we own a tiny piece of a huge property. We participate in the upside and stand to earn huge returns, but it will take a while. Is this a better or worse investment than the 10% fixed-interest note?&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Again, it\u2019s just a different investment. There\u2019s a loan against this property, so in the event of an unforeseen catastrophe, the lender gets paid first. But we stand to earn far higher returns and potentially&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/rental-property-cash-flow-analysis\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">cash flow<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;to infinity and beyond.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Or you could invest in rental properties mobile home parks, or retail or vacation rentals. We\u2019ve invested in all of these in our Co-Investing Club. We hope that the combination of appreciation and widening cash flow margins deliver 15%-plus returns in the years to come. But these investments come with downside risks as well.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Investing in Debt vs. Equity in 2024<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Real estate is not an elevator that only goes up, as far too many investors have discovered firsthand over the last 18 months.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Broadly speaking, I\u2019ve seen real estate equity investments get hit much harder than debt investments. But that doesn\u2019t mean debt investments have been risk-free, and it doesn\u2019t mean that investments you make today will suffer the same problems as investments made two years ago.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Keep these&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/what-are-investors-ignoring\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">real estate investing risk factors<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;in mind as you consider investing in 2024.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Interest rate risk<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">The interest rate risk investors face today is different from the risk of two years ago.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Two years ago, syndicators played fast and loose with variable interest debt and short-term&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/bridge-loan\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">bridge loans<\/span><\/a><span data-preserver-spaces=\"true\">. Interest rates have been low for decades, and they\u2019ll stay that way forever, right?&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Wrong. Many syndicators got caught with their pants down as rates shot through the roof. It\u2019s caused many deals to implode, with higher loan payments creating negative cash flow.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Today, the risk is more subtle. Everyone just assumes interest rates will fall later this year and throughout 2025. That might happen\u2014or it might not.<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/stop-relying-on-the-fed-and-adapt-your-strategy-for-risk\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">&nbsp;Don\u2019t count on interest rates<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;and cap rates being lower two to three years from now. That\u2019s speculation and a little better than gambling.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Word to the wise: Vet potential investments by assuming higher, not lower, interest rates and cap rates upon exit. If you plan to invest in real estate equity, look for deals financed with long-term, fixed-interest debt.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">And yes, those deals often still cash flow well, despite today\u2019s higher rates. For example, Shaun Martin of&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/webuyhousesindenver.org\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">We Buy Houses in Denver<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;explains: \u201cI recently bought a $2 million property in Golden, Colorado, and financed the whole property at a fixed 7.5% interest rate. This made sense because it still cash flowed and has plenty of potential for forced appreciation to boost equity in the near future.\u201d<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">I believe there\u2019s plenty of opportunity to invest in real estate equity this year. But I steer clear of investments that assume a low exit cap rate or low refinance interest rate in under three years.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Pinched cash flow risk<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Historically, cash flow was more predictable than appreciation. Rents almost never drop, while property values drop more frequently. Unfortunately, the last 18 months have showcased that \u201calmost never\u201d isn\u2019t the same as \u201cnever.\u201d&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">In many markets, rents have either dropped or leveled off. In many others, rents have inched upward, but not enough to keep pace with expenses.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/real-estate-819\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Insurance premiums<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;and labor costs, in particular, have spiked over the last two years. If your insurance premium rises by 50% and your maintenance, repairs, and management labor costs have risen 5%, but your rents have only risen 1%, cash flow gets pinched. Or it becomes negative, transforming your asset into a liability.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Sure, that risk affects both real estate equity and debt investments. But it adds far more risk to equity investments, as owners are the ones coughing up money to make their loan payments each month. If the owner falls behind on loan payments, the lender has the luxury of reviewing the equity in the property and making a judgment call: Modify the loan or otherwise work with the borrower or foreclose to recover your loan amount.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">When the lender\u2019s loan only makes up 50% to 75% of the property\u2019s value, they tend to feel pretty secure in their investment. And sure, in a disaster scenario they might only recover 70% of the property value while having lent 75%. They take a haircut. But they don\u2019t lose everything, like the equity owners do.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Wild Card: The threat of recession<\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">In late 2022, many economists and corporate banks declared a \u201c100% chance of recession\u201d in 2023.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><span data-preserver-spaces=\"true\">Spoiler alert:<\/span><\/strong><span data-preserver-spaces=\"true\">&nbsp;It never came. In early 2024, pundits and investors seem to believe there\u2019s a 0% chance of recession in the immediate future. That seems just as absurd as the 100% recession risk forecast.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">To be clear, I\u2019m not shouting that the sky is falling. I doubt we\u2019ll see a recession in 2024 or early 2025. But that doesn\u2019t mean we shouldn\u2019t consider the possibility at all.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">A recession would create two opposing forces for real estate investments. On the downside, defaults on rents and mortgage loans would jump, as would vacancy rates and presumably foreclosure rates. Those all put downward pressure on cash flow and property values.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">On the upside, JPow and company at the Federal Reserve would cut rates like they\u2019re coeds in a slasher flick. Lower interest rates would pave the way for cheap refinances and lower cap rates after the initial panic passes.&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Debt investments would see higher default risk. But the majority wouldn\u2019t default, and they\u2019d pay higher interest rates than new debt investments after the Fed starts slashing.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Equity investments would likely see a short-term drop in property values, followed by a post-recession rebound. Here\u2019s how home prices have fared during and after recessions over the last 60 years:<\/span><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1318\" height=\"450\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/04\/fredgraph-69.png\" alt=\"Median Sales Price of Homes Sold in the U.S. (1963-2024) - St. Louis Federal Reserve\" class=\"wp-image-170347\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/04\/fredgraph-69.png 1318w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/04\/fredgraph-69-300x102.png 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/04\/fredgraph-69-1024x350.png 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/04\/fredgraph-69-768x262.png 768w\" sizes=\"auto, (max-width: 1318px) 100vw, 1318px\" \/><figcaption class=\"wp-element-caption\"><em>Median Sales Price of Homes Sold in the U.S. (1963-2024) &#8211; <a href=\"https:\/\/fred.stlouisfed.org\/\" target=\"_blank\" data-type=\"link\" data-id=\"https:\/\/fred.stlouisfed.org\/\" rel=\"noreferrer noopener\">St. Louis Federal Reserve<\/a><\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Property owners with negative cash flow could potentially refinance to get back above water and survive the recession\u2014or not.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Real estate investments come with real risk, and you should never forget it.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Verdict: Equity or Debt in 2024?<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">\u201cConsider your own investing goals and risk appetite first,\u201d suggests Annie Dickerson of&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/goodegginvestments.com\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Goodegg Investments<\/span><\/a><span data-preserver-spaces=\"true\">. \u201cUse that as your guiding star, and adjust accordingly based on the greater real estate market. For example, if you typically have a fairly healthy appetite for risk and mostly invest in equity, but you see that the market is pulling back, you might consider rebalancing in the short term to incorporate more conservative debt or preferred equity investments, and vice versa.\u201d<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">In general, I see lower risk in real estate debt investments in 2024. Every single one of my debt investments has performed as promised over the last few years. Meanwhile, I\u2019ve seen some equity investments struggle with negative cash flow, capital calls, and rescue capital stepping in ahead of prior investors.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">But I also believe there\u2019s an opportunity for equity investments. As some past syndication deals from 2021-2022 unravel, they can become bargains for today\u2019s investors.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">When we vet deals as an investment club, we pay close attention to these risks I\u2019ve outlined. We like to see longer-term, fixed-interest debts, ideally assumed from the seller. For example, we invested in a deal that assumed a 5.1% fixed-interest loan with nine years remaining. I don\u2019t know if there will be a good market for selling within the next three years, but I\u2019m pretty confident there will be one within the next nine.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">We also look at rent versus expense forecasts. I get nervous when I see high forecast rent growth with modest insurance and labor cost growth. Instead, I prefer to see some relatively certain reason for higher rents, such as the Section 8 conversion example based on today\u2019s rents. In a different property, the syndicator plans to split the four-bedroom units into smaller units (with a proof of concept already completed and earning higher income).&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Finally, how recession-resistant is the investment? We recently invested in a portfolio of four&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/investing-in-mobile-homes\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">mobile home<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;parks, which had 100% occupancy and a waiting list for entry. In a recession, that waiting list would only get longer.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Consider debt investments for income and predictability and equity investments for long-term upside potential. Just make sure there\u2019s a clear and conservative plan for the equity investments to survive short-term turbulence and last long enough to see lower interest rates and calmer markets.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Most of all,&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/warren-buffett-is-wrong-diversification-is-not-just-for-ignorant-investors\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">diversify your real estate investments<\/span><\/a><span data-preserver-spaces=\"true\">. You don\u2019t need a crystal ball when you&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/dollar-cost-average-real-estate\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">dollar-cost average your investments<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n    \n  <div id=\"visibility-group-block_a1075dca41c7c13e55e92596b910d30a\" class=\"visibility-group  hidden\">\n        \n\n<div id=\"hero-block_60d94b23d2759bbb8be895920b127cca\" class=\"first:mt-0 hero-block py-4  alignwide   has-background has-theme-gold-light-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-theme-gold-color has-text-color has-large-font-size wp-block-paragraph\" style=\"font-style:normal;font-weight:800\">Get the Best Loan Today<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color wp-block-paragraph\" style=\"font-size:16px\">Find trusted, <em><strong>investor-friendly<\/strong><\/em> lenders who specialize in your strategy. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<div id=button-custom-event-block_49849b8623d2923b8ccceb241fc13ba3 class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/business\/finder\/lenders\" x-on:click=\"window.analytics.track(&#039;Blog Block | B2C Marketplace Lender Finder&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/should-you-invest-in-real-estate-debt-or-equity-right-now&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-gold-background-color has-text-color has-white-color\" target=\"_blank\">Find a Lender<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\" first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/08\/Marketplace-Blog-Blocks-Lender-v3.png\" alt=\"investor friendly lender, investor friendly real estate loans\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>\n\n  <\/div>\n  \n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n    \n  <div id=\"visibility-group-block_64dd31c79f00f\" class=\"visibility-group  \">\n        \n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"hero-block_64dd2875dba9d\" class=\"first:mt-0 hero-block py-4    has-background has-slate-100-background-color has-text-color has-theme-slate-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<h3 class=\"wp-block-heading my-0 tracking-tight font-extrabold has-theme-slate-dark-color has-text-color has-large-font-size\">Join the community<\/h3>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color wp-block-paragraph\" style=\"font-size:16px;font-style:normal;font-weight:400\">Ready to succeed in real estate investing? Create a free BiggerPockets account to learn about investment strategies; ask questions and get answers from our community of +2 million members; connect with investor-friendly agents; and so much more. <\/p>\n\n\n\n<div id=button-custom-event-block_64dd2888dba9e class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/signup\" x-on:click=\"window.analytics.track(&#039;Blog Block | Acquisition | Free Membership Signup&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/should-you-invest-in-real-estate-debt-or-equity-right-now&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Sign Up<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n            <\/div>\n<\/div>\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n  <\/div>\n  <\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Many investors assume that ownership is inherently safer than debt. I currently own equity in thousands of units and have invested six figures in real estate debts. I can tell [&hellip;]<\/p>\n","protected":false},"author":158586,"featured_media":170320,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8,7119],"tags":[],"class_list":["post-170318","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-trends","category-biggerpockets-daily"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/170318","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/158586"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=170318"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/170318\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/170320"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=170318"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=170318"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=170318"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}