Safe cash flow and some equity upside.

I think a lot of newer investors underestimate how different these two tools feel once you’re actually inside a capital stack.Here’s the way I usually explain it to operators:Mezzanine = Debt with a seatbeltIt’s basically a second-position loan pretending to be equity.You’re paying a stated interest rate, payments are expected, and if you miss them, the lender can enforce remedies.

Our niche the last 14 years is doing equity deals.. but not in junior position only first position.

We have had multiple transactions in the building in the 10 years we’ve been there, and no issues with any lenders previously for 80 percent first position stuff (including our own).

@Clinton Grady, I love that you're taking advantage of using the equity and making moves.

Was wondering with each month how much equity we were building up as we did our P/I payments to the bank.Forget the downpayment. 

We’ve talked with a few operators in the Co-Investing Club who’ve partnered with private equity groups.

Target returns of 20-49% IRR and 2.1-2.5x equity multiple.

@Ginger Olinghouse You’re in a strong position with your rental’s equity and low mortgage rate, but I understand how the higher interest and low reserves on your primary can create pressure.

Your parents could gift you equity in the property without triggering gift tax, as long as the value of the equity doesn’t exceed the annual exclusion limit ($19,000 per parent in 2025).