You don't need LPs to think in capital stacks — separating senior debt, mezz, and equity sharpens every investment decision.
Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice
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Senior debt
Senior debt — 65–72% LTV, fixed rate, 5–10 year IO when available.
Mezzanine or HELOC
Mezzanine or HELOC — short-term bridge; never permanent.
Equity reserves
Equity reserves — minimum 20% of equity held outside the deal as portfolio reserves.
Frequently Asked Questions
How does capital stack strategy for individual operators affect institutional decision-making?
Institutional operators weight this factor through their Investment Committee process — quantifying it explicitly with our score keeps individual investors disciplined.
How is this scored on CalculateRealEstateROI?
We blend deal-level metrics with portfolio-level context, then surface the result through the Institutional Score and Premium Reports.
Keiron Brown is the founder of Relationale LLC and the editor of CalculateRealEstateROI. He is a psychologist by training. He is not a real-estate broker, agent, appraiser, lender, accountant, or attorney, and nothing on this site is investment, financial, tax, or legal advice.
How these numbers are produced: This site publishes property-investment calculators and reference material. Every calculator states the formula it applies, and definitions follow standard industry usage rather than our own interpretation. What the tools cannot know is your deal — your financing, your market, your condition assessment, or your tax position. Methodology.
Last reviewed: by Keiron Brown. Pages carrying rates, tax figures, or market data are reviewed quarterly. Definitions and explanatory content are reviewed annually. Corrections are made promptly when an error is reported. Report a correction.