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What Is Mezzanine Debt and Why It Matters for Real Estate Investors?

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Quick Take: Mezzanine debt is a hybrid form of financing that sits between senior debt and equity in a real estate capital stack. It bridges …

Preferred Equity vs Common Equity: Key Differences for Real Estate Investors

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Quick Take: Preferred equity and common equity are two ways investors participate in real estate deals, but they come with very different risk and …

What is Senior Debt in Real Estate Investing?

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Quick Take: Senior debt is the lowest-risk layer in a real estate investment’s capital stack. It is the first to be repaid and is …

Why Preferred Equity is a Good Commercial Real Estate Investment

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Quick Take: A preferred equity real estate investment occupies the middle tier of the capital stack, sitting below debt but above common equity. For accredited …

What Is the Capital Stack in Real Estate? How It Works Explained

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Quick Take: The capital stack in real estate is the structure that defines how a property is financed, including debt and equity layers. Each …

How Debt Financing Benefits Commercial Real Estate Investors

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Thanks to rising interest rates, increasing construction costs and climbing property prices, returns in commercial real estate investments have been harder to generate. To …

What Should I Do with My Money While I’m Waiting for Capital Calls?

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Investors who regularly invest in private equity real estate funds understand the problem of managing liquidity. Private real estate investors typically commit a fixed …

What are Private Equity Waterfalls, Clawbacks & Catch-Up Clauses?

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Quick Take: Waterfalls, clawbacks and catch-ups are terms used in private investing that define how distributions flow from the investment to the partners, what happens …

What You Need to Know About a Capital Call Fund

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When an investor joins one of our real estate funds for the first time, they are usually surprised when we ask them to keep …

The Impact of Leverage on Real Estate Returns

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The goal of any private investor is to find opportunities that generate the highest returns possible with the least amount of risk. One key …

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