The Capital Stack Explained (And Why Deals Break)

What is a capital stack? If you’re a community real estate developer trying to get your project funded, the capital stack is the foundation of every deal — and most developers don’t fully understand what’s in it until something goes wrong. In this video I break down every layer of the capital stack: predevelopment funding, equity, gap funding, senior debt, and permanent financing. I show you how the layers work together, what happens when one layer is missing, and why most deals fall apart before they ever get to a lender. If you’ve ever been told your deal isn’t ready or your financing doesn’t pencil, this video will show you exactly why. Watch this first before you talk to any funder. Ready to know what’s actually wrong with your deal? A Capital Stack Audit will tell you. Learn more at dominiqueandersonconsulting.com