Real Estate Debt and Vehicles
Free CAIA Level I lesson in Real Assets. 48 min read, ~7,215 words.
Capital stack runs senior first mortgage, B-note, mezzanine, preferred equity, common equity: lowest-risk lowest-return to residual. Mezzanine is secured by a pledge of ownership interests, not by a property lien: UCC foreclosure, not real-property foreclosure. Fulcrum security is the least-senior debt tranche still in the money: its owner controls the...
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What this lesson covers
- Content
- Example 1
- Example 2
- Example 3
- Example 4
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- natural resources
- land
- timber
- farmland
- contagion indices
- timber farmland returns
- commodities no futures
- term structure
- rolling contracts
- backwardation contango
- commodity diversification
- expected returns
- commodity indices
- commodity returns
- commodity producers
- mlps
- infra overview
- infra classifications
- investing infra
- infra risks
- ip overview
- ip cash flows
- art
- patents
- re categories
- cre advantages
- re styles
- re office
- re industrial retail
- re multifamily
- cre debt
- cre equity leases
- mortgage underwriting
- commercial mortgages
- cre financing
- cre vehicles
- liquid cre
- re development
- cre valuation
- income approach
- public re vehicles
- reit returns
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