What is Preferred Equity? - EP. 13

Today’s episode is all about preferred equity — so we’re going to
try and keep it light and fun. 


Firstly, we talk about what equity is and how preferred equity
differs from it — then, we get into common reasons for using
preferred equity in a real estate or private equity deal. We also
give some examples of the differences between it and common
equity and explain why, more and more, we’re seeing preferred
equity in deals.


Preferred equity may not be sexy — but it can be sexy when the
payments are coming to you.


Key Takeaways:


[:13] About our topic today: preferred equity.


[:55] What is equity?


[1:40] The two types of capital: debt and equity.


[2:29] An example of common equity in a real estate project.


[3:49] What is preferred equity?


[4:30] An example of preferred equity in a real estate project.


[6:42] Why do we typically see preferred equity in deals?


[8:00] Another reason for preferred equity.


[9:16] Expect to see preferred equity in your future deals and do
more research on the topic!


Mentioned in this Episode:


Capital Stack


Preferred Equity


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TheAlternativeInvestorShow.com


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