#157 - Who Gets Paid First? How Real Estate Deals Are Actually Structured

Tait Duryea and Ryan Gibson break down one of the most important but often misunderstood parts of real estate investing: the capital stack. They explain how senior debt, mezzanine debt, preferred equity, and common equity shape risk, returns, and who gets paid first. For pilots and high-income professionals evaluating passive income opportunities, this episode offers a practical framework for understanding leverage, deal structure, DSCR, private credit, and why projected returns do not tell the whole story.

Show notes:

(0:00) Intro

(1:10) Ways investors get paid

(3:08) Capital stack basics

(4:11) Debt drives real estate risk

(7:32) All-cash versus leveraged deals

(10:31) Common equity explained

(18:50) Preferred equity position

(21:10) Checking debt ahead

(27:39) Rescue capital versus healthy deals

(35:36) Operator view on structure