common equity<\/u><\/a>.\u00a0<\/b><\/p>If the property in question is being sold, the first to get paid would be the senior debt and the last to get paid would be common equity. Below is a basic example.<\/b><\/p>
Let\u2019s say that you as a real estate investor purchase a property worth $800,000 with a twenty-five percent down payment. This is what the capital stack will look like:<\/b><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t