Real Estate Capital Stack and Debt Quiz

The real estate capital stack is the collection of capital sources, both debt and equity, used to fund an investment.

A typical real estate capital stack includes one or more slices of equity and one or more slices of debt.

Types of debt in real estate include the senior mortgage (i.e. 1st lien position secured by real estate), secondary or junior mortgage(s), and more.

<p>The debt slice(s) is usually, but not always, larger than the equity slice(s) in the real estate capital stack.</p> Signup and view all the answers

<p>A discussion of the real estate capital stack is important in a real estate debt course because it provides an understanding of the different sources of capital used to fund real estate investments.</p> Signup and view all the answers