#10 - Unlocking the Capital Stack: A Deep Dive into Real Estate Financing
- Author
- Steven Arita
- Published
- Fri 17 Nov 2023
- Episode Link
- None
In today's episode, we delve into the crucial concept of the capital stack—the financial layers comprising debt and equity that fund a real estate transaction. I share my own journey of feeling overwhelmed to gradually mastering these layers of investment. This isn't just a real estate investing term but a universally applicable business concept that can be your trusty tool in any industry. Irrespective of whether you're a seasoned investor or a beginner, join us to learn what the capital stack is, why it matters, and how it can contribute to your investing journey. Understanding the capital stack is a game-changer for investors, providing a roadmap to navigate the intricate world of real estate finance
Show notes:
[5:38] Introduction to the capital stack and its importance
[6:32] Explanation of senior debt, the bottom layer
[7:45] Mezzanine debt and its position in the stack
[8:38] Preferred equity's role as a flexible layer
[9:28] Common equity, the riskiest but most profitable layer
[10:00] Practical application—how to use the capital stack in a real estate deal
[13:41] Quick episode wrap-up
[18:10] Outro
—
Share this with your tech friends who you think will benefit from this podcast. Please also rate and subscribe so this podcast can reach more audiences.
For more resources and guides, check these out:
- Investor 101 https://www.aritacapital.com/investor-101-resource/#
- Due Diligence Resource https://www.aritacapital.com/dd-checklist-resource/
If you want to learn more, reach out at:
Email: [email protected]
LinkedIn: https://www.linkedin.com/in/aritasteven/
