#10 - Unlocking the Capital Stack: A Deep Dive into Real Estate Financing

Path To Passive: Real Estate Investing For Technology Professionals

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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
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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/

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