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

(42:05) DSCR and cash flow cushion

(57:18) Outro

Related Episode:

#2 - Invest Passively in DST and Opportunity Zones with Brandon Bruckman

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*Legal Disclaimer*

The content of this podcast is provided solely for educational and informational purposes. The views and opinions expressed are those of the hosts, Tait Duryea and Ryan Gibson, and do not reflect those of any organization they are associated with, including Turbine Capital or Spartan Investment Group. The opinions of our guests are their own and should not be construed as financial advice. This podcast does not offer tax, legal, or investment advice. Listeners are advised to consult with their own legal or financial counsel and to conduct their own due diligence before making any financial decisions.