Debt investments refer to financial instruments in which an investor lends money to an individual or entity with the expectation of receiving regular interest payments and the return of the principal amount at a specified maturity date. Unlike equity investments, where investors become full or partial owners, debt investors act as lenders, providing capital and debt financing in exchange for the promise of repayment with interest.

For more details, check out Real Estate Debt vs. Equity Investments Comparison Deep Dive.