Capital Stack

In real estate, the capital stack refers to the various sources of funding that are used to finance a real estate project. These sources can include equity, debt, and other forms of financing, and they are typically arranged in a hierarchy, with each level of the stack representing a different level of risk and potential return. The capital stack is an important concept in real estate finance, as it helps investors understand the risk-reward profile of a particular investment and make informed decisions about where to allocate their capital.