How Commercial Real Estate Deals are Funded [The Capital Stack]

How Commercial Real Estate Deals are Funded // Depending on the size of a property, commercial real estate can often be priced at $10 to $50 million (or more), which can make it extremely difficult to make these investments completely by yourself.

This is why most commercial real estate deals are funded with multiple capital sources, commonly referred to in the industry as the "capital stack".

And since this subject can get a little bit complex, this video breaks down how commercial real estate deals are typically funded, and some things you’ll need to consider if you’re weighing different options to capitalize a real estate investment.

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Capital Source Videos:
https://www.youtube.com/watch?v=7hWd0RAx42o&t=177s&pp=ygUcYnJlYWsgaW50byBjcmUgd2F0ZXJmYWxsIDEwMQ%3D%3D
https://www.youtube.com/watch?v=x8oEfdKo-og&t=87s&pp=ygUfYnJlYWsgaW50byBjcmUgcHJlZmVycmVkIGVxdWl0eQ%3D%3D
https://www.youtube.com/watch?v=RWmYNZLSTyY&t=403s&pp=ygUTYnJlYWsgaW50byBjcmUgZGVidA%3D%3D

🕒 Timestamps 🕒
0:00 Introduction
0:48 Capital Source One
2:43 Capital Source Two
4:13 Capital Source Three
5:49 Capital Source Four

#commercialrealestate #commercialrealestateinvesting

*Nothing in this video should be construed as tax, legal, accounting, valuation, or financial advice or recommendation. All information in this video is intended solely for educational purposes, and you are advised to consult with your own personal professional advisors regarding your personal investment decisions.

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Research and articles referenced in this video:
https://www.crowdstreet.com/resources/investment-fundamentals/preferred-equity-101


Did you miss our previous article...
https://trendinginrealestate.com/commercial-real-estate/when-cap-rates-are-lower-than-interest-rates