In this episode of the Collective Genius Podcast, I sit down with Mike Zlotnik—veteran real estate fund manager, CEO of TF Management Group, and host of the Big Mike Fund Podcast. Mike brings over 24 years of investing experience and pulls back the curtain on what’s actually working in today’s high-rate, high-uncertainty environment. Whether you’re syndicating, operating, or deploying capital, this conversation is loaded with critical insights for navigating a tighter lending and investing landscape.
We cover everything from the real risks in the current market cycle to how Mike is underwriting deals differently in 2025. He shares why funds are still thriving, how he’s adjusting preferred returns and deal structures, and what operators need to do right now to stay investable. If you raise capital, run deals, or want to understand where sophisticated investors are putting their money next—this one’s required listening.
Timeline Summary
[0:00] - Introduction
[1:40] - Mike’s background and the rise of TF Management’s diversified real estate funds
[5:15] - Why market corrections are healthy—and how to position yourself in one
[9:20] - The three must-have traits for a fundable operator in today’s environment
[13:00] - Deal structures that still work in a high-rate market (and which ones don’t)
[16:40] - Adjusting preferred returns: what investors expect in this new cycle
[19:50] - Why capital raising is harder—but also more selective and strategic
[24:30] - The biggest underwriting mistake operators are making right now
[29:10] - Mike’s prediction on how long the current cycle will last
[34:00] - When to pivot, hold, or wait—and what Mike’s funds are doing with dry powder
[38:00] - Building investor trust through transparency and active communication
[41:10] - What separates elite capital allocators from average ones
[45:20] - Advice to operators looking to survive and scale through the next 18 months
5 Key Takeaways
1. Correction ≠ Crisis – Mike sees the current market cycle as a necessary correction, not a crash. Smart operators adjust, adapt, and capitalize.
2. Fundability Is the New KPI – Track record alone isn’t enough. Investors want communication, transparency, and real-time responsiveness from operators.
3. Preferred Returns Are Evolving – Adjusting expectations and structures around prefs is key to keeping both operators and LPs happy.
4. Underwrite for Pain, Not Perfection – Overly optimistic underwriting is one of the biggest risks right now. Conservative assumptions win.
5. Capital Goes to the Calm – In uncertain times, investors flock to leaders who communicate clearly, stay steady, and make data-driven decisions.
Links & Resources
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