What are the Different Types of Equity?
If you're going to be a real estate developer or investor, you've got to understand the different types of equity. That's why, in this video, Scott Choppin, Urban Pacific Founder and CEO lays them all out for you.
Scott: Then you start to get into equity. Equity fundamentally means that your money does not have a trust deed, although you do generally own a piece of the deal; but then, there's different grades of that. So, in the first, we had lender, first trust deed; second, maybe the mezz. That's grades of lending. Now, we go ... We're now out of the debt position into the equity, and now you might have a mezz equity piece, which basically stands in first position above any other equity. So, they might be a mezz equity investor.
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