Lending & investment · Defined
Capital stack
The layers of debt and equity funding a real estate investment, with different payment priorities, economics, and rights.
Why it matters
A project may have senior debt, subordinate financing, preferred equity, and common equity. Total capital shown on a presentation does not establish how much remains available to complete construction.
In practice
A project example
A lender and an equity partner read the same completion forecast but evaluate exposure under different financing agreements.
General educational guidance from KOW Building Consultants. Examples are illustrative, not project records. The applicable contract, standard, program, and jurisdiction control the requirements for a specific assignment.