#157 - Who Gets Paid First? How Real Estate Deals Are Actually Structured
About this episode
The episode discusses the structure of real estate deals and the importance of understanding the capital stack for investors.
Tait Duryea and Ryan Gibson break down one of the most important but often misunderstood parts of real estate investing: the capital stack. They explain how senior debt, mezzanine debt, preferred equity, and common equity shape risk, returns, and who gets paid first. For pilots and high-income professionals evaluating passive income opportunities, this episode offers a practical framework for understanding leverage, deal structure, DSCR, private credit, and why projected returns do not tell the whole story. Show notes: (0:00) Intro (1:10) Ways investors get paid (3:08) Capital stack basics (4:11) Debt drives real estate risk (7:32) All-cash versus leveraged deals (10:31) Common equity explained (18:50) Preferred equity position (21:10) Checking debt ahead (27:39) Rescue capital versus healthy deals (35:36) Operator view on structure (42:05) DSCR and cash flow cushion (57:18) Outro Related Episode: #2 - Invest Passively in DST and Opportunity Zones with Brandon Bruckman If you’re interested in participating, the latest institutional-quality self-storage portfolio is available for investment now at: https://turbinecap.investnext.com/portal/offerings/8449/houston-storage/ —…
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Turbine Capital
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