Capital structure refers to the composition of capital invested in a property, reflecting the interests of those who contributed both debt and equity capital.
Debt capital refers to money loaned on a long-term basis that is used to finance an investment, including real estate. Unlike equity capital, debt capital must be repaid to the lenders with interest.
The Debt/Equity Ratio is a measure used to evaluate a company's financial leverage, calculated by dividing its total liabilities by stockholders' equity.
Mezzanine financing is a hybrid form of funding positioned between senior debt and equity, offering higher returns to lenders due to its subordinate status in the capital structure.
