The canonical guides.
Deep-dive articles on commercial real estate acquisition, the Stack Method, acquisition fees, and preferred-equity structures. Everything we teach, public.
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What Is the Capital Stack in Commercial Real Estate?
A clear definition of the capital stack, how debt and equity layers are structured in commercial deals, and why understanding it is essential for any serious investor or wholesaler.
How Commercial Real Estate Acquisition Fees Work
What an acquisition fee is, how it differs from residential wholesaling, and the specific deal structures that generate $50,000 to $200,000+ per transaction.
What Is Preferred Equity in a Real Estate Deal?
How preferred equity sits between senior debt and common equity, why investors seek it, and how operators use it to close deals with less of their own capital.
The Stack Method Explained
A step-by-step breakdown of the Stack Method — the acquisition framework used by Capital Stack Community operators to close commercial deals with institutional-grade execution.
How to Wholesale Commercial Real Estate
The difference between residential and commercial wholesaling, how to find and underwrite commercial deals, and how to connect them with the right private equity buyers.
Terms defined.
- Capital Stack
- The layered composition of debt and equity that funds a commercial real estate acquisition. Typically senior debt, mezzanine, preferred equity, and common equity in order of seniority.
- Acquisition Fee
- The fee paid to a wholesaler who assigns a purchase contract to an end buyer. In commercial wholesaling these routinely reach six figures per transaction.
- Preferred Equity
- A tier in the capital stack that has priority over common equity but sits below debt. Typically receives a priority return with a cap. The signature tier in the Stack Method.
- Credit Sponsor
- A partner whose credit strength and balance sheet support a commercial loan. Often used when the operator wants to close without putting their own credit on the hook.
- LOI
- Letter of Intent. A non-binding document that outlines the proposed terms of a commercial transaction and kicks off the formal negotiation toward a purchase agreement.
- OM
- Offering Memorandum. The packaged deal book a seller circulates to qualified buyers. Clean OM production is part of the Stack Method.