Investing Glossary

4 terms
  • Secured vs Unsecured Position

    A secured position in the Capital Stack retains the right to foreclose on a property in the event of a default, or non-performance. Unsecured creditors do not have the right to foreclose on the property, and therefore have less collateral backing their investment claim.
  • Senior Debt

    Senior debt generally secured at the “base” of the capital stack. Because it sits at the base of the capital stack, it must be repaid first.
  • Sponsor

    An individual or firm in charge of finding, acquiring, and managing a piece of real estate.
  • Step-Up In Basis

    A step-up basis is the adjustment of a cost basis for an asset for an investor. Certain factors may initiate a step-up in an investor’s original cost basis, thereby reducing their realized capital gain and associated tax liability.