Financing multifamily can be like climbing a mountain today. Debt and equity are two fundamental components of the capital stack, each with distinct features and implications.
Debt represents borrowed capital that must be repaid over a predetermined period, typically with interest. Lenders, such as banks or institutional investors, provide debt financing in exchange for regular interest payments and the eventual return of the principal amount.
Equity represents ownership in a company or project. Equity holders, also known as limited partners (LP) are shareholders or investors. These LPs participate in the profits and growth of the syndication of real estate, they also will bear the risk of potential losses.
There are other sources and options for financing these assets in different market conditions. Keep an open mind regardless if you are the seller or the buyer. For more details on passive investing in multifamily download my free E-book: