
Decoding Capital Structure: Financial Foundations for Successful R.E. Development
A well-structured capital stack is the backbone of any successful real estate development project. This workshop dives into the components of real estate capital structures, offering insights into equity, debt, and alternative financing strategies. Participants will learn how to optimize financial resources, mitigate risks, and secure funding for projects of varying scales.
KEY LEARNING OBJECTIVES
1. Understand Capital Structure Components:
Explore the layers of the capital stack, including senior debt, mezzanine financing, preferred equity, and common equity.
2. Evaluate and Compare Funding Options:
Analyze traditional and alternative financing sources, such as banks, crowdfunding, private equity, CDFI’s, REITs, Gov’t, impact funds and assess their pros and cons based on project size, risk, and market conditions.
3. Analyze Risk and Return Dynamics in Deal Structuring:
Learn to balance risk and return for investors and developers, while understanding key financial metrics like loan-to-value (LTV), debt service coverage ratio (DSCR), and equity multiples.