Commercial Financing & Capital Stack
Every debt product a CRE investor needs to know
From conventional bank loans to CMBS, agency, bridge, mezz, and preferred equity — the full capital stack explained in plain English. You'll learn when each product fits, how to shop lenders, and how to structure a deal that gets you the best leverage without boxing yourself in.
Download the Commercial Financing & Capital Stack Workbook
Printable PDF with exercises, worksheets, and fill-in notes designed to go alongside every lesson in this course.
What you'll learn
- Understand the differences between conventional, SBA 504/7a, CMBS, agency, bridge, and hard money debt
- Build a capital stack with senior debt + mezz + equity for larger deals
- Calculate LTV, LTC, DSCR, and debt yield from a lender's perspective
- Shop and compare loan term sheets
- Know when to use interest-only, partial recourse, or non-recourse
Lessons
- 01
The Capital Stack Explained
How commercial real estate deals are actually funded — the layers of debt and equity that sit between the buyer's check and the purchase price, and why each layer behaves differently.
11 min - 02
Conventional Commercial Bank Loans
How conventional bank loans work for commercial real estate — terms, structures, underwriting standards, recourse vs non-recourse, and how to shop community, regional, and national lenders.
11 min - 03
SBA 504 and 7(a) Loans
How the SBA 504 and 7(a) loan programs work for commercial real estate — eligibility, structure, terms, and when each program is the right tool versus conventional financing.
12 min - 04
Bridge Loans and Hard Money
Short-term high-cost commercial financing — when bridge loans and hard money make sense, how they're structured, what they cost, and how to use them without getting trapped.
11 min - 05
Agency Debt — Fannie Mae and Freddie Mac Multifamily
How Fannie Mae and Freddie Mac multifamily loans work — the lowest-cost, highest-leverage debt in CRE, with non-recourse standard and the structures that make them dominate apartment financing.
11 min - 06
CMBS and Life Insurance Company Loans
How CMBS conduit loans and life insurance company loans work — institutional non-recourse debt for larger commercial properties, with the structures and quirks every CRE investor should understand.
11 min - 07
Mezz, Preferred Equity, and Building the Capital Stack
How to layer mezzanine debt and preferred equity above senior debt — when to use each, what they cost, and how to put together a capital stack that survives stress and produces target returns.
12 min
Up next — Course 12
Commercial Real Estate Negotiations
LOIs, term sheets, and the deal points that win or lose millions