Benefits of Investing in CRE Private Credit

  • November 6, 2023

When it comes to investing, there are many levers that could be pulled. Stocks, bonds, real estate… It becomes a matter of knowing which lever to pull, and, more importantly, when to pull it. 

In today’s investing landscape, experienced investors are avoiding some levers and opting for others that haven’t been touched in years.

Case in point: Private Credit 

What paints itself as a formidable investing landscape has simply given rise to opportunities in private credit that (1). haven’t been seen in decades, and (2). offer investors greater stability and yields. 

Sanat Patel, Co-Founder and Chief Lending Officer of AVANA Companies, elaborates on this point, stating: “As traditional investment options (equities and bonds) fluctuate with market volatility, investing in private credit stands out as a reliable income generator. At AVANA, we combine our private credit and commercial real estate lending expertise in a way that leverages the current banking and real estate landscapes, ultimately benefiting both investors and borrowers.” 

Simply put, now’s the time to invest in private credit. By partnering with AVANA on private credit investments in CRE, investors will experience some exciting benefits.  

Approachable CRE Investing

Interest rates are at their highest in 22 years, and, as a result, directly investing in commercial real estate may not be the preferred option for many investors. 

Investing in private credit via AVANA’s commercial real estate loans that are funding projects is an approachable and opportune alternative. 

With private credit, savvy investors can get involved on the other side of these commercial real estate deals by participating in CRE loans offered by AVANA to borrowers. This provides a lower barrier to entry, a manageable allocation of capital and an enticing income from the yield on the loans – thereby attractive returns paid to investors on a monthly basis. 

Attractive Returns

Despite the misguided volatility in headlines, there are still incredible investment opportunities in commercial real estate. In fact, the valuations of CRE projects are expected to see an annual growth rate of 3.03% from 2023-2028

Thus, in the current lending environment, investments in CRE private credit can show superior risk-adjusted returns compared to traditional fixed-income investments, such as bonds. 

Predictable Monthly Income

Private debt can be an incredibly appealing play for income-seeking investors. When investing in CRE private credit with AVANA, investors receive a predictable monthly payment, unlike equities indices (which are volatile, long-term play). 

How so? As our well-qualified, carefully selected borrowers make repayments on their private CRE loans, AVANA and our investors receive predictable income in the form of interest payments over the duration of the repayment period. That payment period on average is only 2-4 years. 

Vigilant Due Diligence

When you invest in CRE private credit through AVANA, you’re investing in the commercial real estate loans that we have originated ourselves. This unique approach gives cautious investors peace of mind and security. 

That’s because we fund a portion of this debt with our own capital. We do so only after we carefully underwrite the loan to protect ourselves and our investors. In fact, our due diligence is so vigilant that we currently have a 0% delinquency rate.  

With our careful oversight and decades of expertise, our goal is to put the power of real estate to work in today’s unique market dynamic. In return, savvy investors can seize an extraordinary investment opportunity that won’t be around for long. 

To take advantage of these unique market opportunities and diversify your holdings, contact AVANA Capital today.


About AVANA Companies

AVANA Companies is a comprehensive impact private lending and fractional investment asset management platform serving entrepreneurs and investors. Comprised of a dedicated and diverse team with a unified mission – to create jobs, stimulate economies and contribute to clean energy – AVANA’s Family of Companies is focused on supporting American businesses and providing impactful, socially-driven investment opportunities that preserve wealth and create growth.

Contact us today to learn more.