You do not have to chase home runs to build long term wealth.
Private credit is where I go when I want steady income instead of chasing the biggest possible return.
I invest in real estate backed private credit through funds that focus on mezzanine debt and preferred equity.
In simple terms, these investments sit above common equity in the capital stack. That means they are paid before equity investors when money is distributed.
The tradeoff is that your upside is limited. You are not investing for a huge home run.
Instead, the goal is consistent income.
These investments commonly target annual returns of 12 to 14 percent. Around 9 to 11 percent is often paid as cash income, while the remaining return builds over time.
For me, private credit plays a specific role. It provides reliable income while other parts of my portfolio focus on growth and tax efficiency.
Does your portfolio include investments that are built for steady income?