Equity versus debt
This area covers how a property deal balances owner capital against borrowed money. It looks at loan sizing and at the lien position and terms that decide who gets paid first.
Readers can test how much debt a stabilized apartment property can support by working through debt service coverage and loan to value. They can weigh a senior loan against preferred equity, or a seller note against a family office mortgage. Security gets close attention. A lender expects a loan agreement, a guaranty, an appraisal and a title report. Each document shifts risk. Sponsors and family offices can judge whether a projected return covers the risk sitting behind a loan. The aim is a clear view of what each side gives up and what it keeps.
- An 11 Percent Renovation Return: What Collateral Covers
A veteran look at an 11% three-year return on a $2M apartment renovation raise: what the collateral covers, which claims rank ahead, and a worked stress test. - Collateral and Downside Protection in Property Deals
Collateral, negative controls, takeover rights and payment order each protect investor capital differently. A worked example shows how much collateral recovers. - Cross Collateralizing a Property Portfolio
Cross collateralization ties property loans to a shared collateral pool. A worked example compares pooled and separate loans and lists the document questions. - Evaluating Seller Carry and Retained Equity
How a seller note and retained equity change closing cash and payment priority, with a worked acquisition that compares a base case and a stressed exit. - How Much Debt Can a Multifamily Deal Carry?
Apartment debt capacity rests on stressed coverage and refinancing proceeds. A worked example shows how a modest occupancy and cap rate shift can erase equity. - When a Family Office Lends Against Property
Family offices lend against property to hold a capped repayment claim. A worked case shows how senior debt and sale costs decide what the lender recovers.