Preferred equity that sits behind your existing loan, so you keep your rate and terms while pulling capital out of a cash-flowing property, a portfolio or contracted sponsor fees.
Value you've built that you can't easily reach. A cash-out refinance would mean giving up a below-market rate, paying a prepayment penalty, or taking a smaller loan at today's rates. Preferred equity reaches that value while the senior loan stays in place.
Refinancing a 3%–4% loan at today's rates would cost more than the cash it frees up.
Yield maintenance, defeasance or step-down penalties make paying off the senior loan expensive.
Appreciation, rent growth and principal paydown have left substantial equity sitting idle.
An investor wants their capital back, and you'd rather buy them out than sell the asset.
Signed development, management or acquisition fees pay out over months or years.
A new acquisition, GP co-investment or capital project needs cash before your current assets can be sold.
The preferred-equity investor takes a priority position in the ownership entity with a set return, ahead of the common equity and behind all debt. You keep control of the asset and buy out the preferred position when you sell or refinance.
| Cash-out refinance | Mezzanine loan | Preferred equity | |
|---|---|---|---|
| Existing senior loan | Paid off and replaced | Stays in place | Stays in place |
| Position | New first lien | Debt behind the senior loan | Equity behind all debt |
| Typical combined leverage | Limited by today's rates and coverage | Up to about 75%–85% | Up to about 80%–85% |
| Senior lender view | Not applicable | Must allow subordinate debt | Often allowed when mezzanine is not |
| Best when | Rates and penalties are favorable | Senior loan permits mezzanine | You want to keep the senior loan and its terms |
Leverage ranges are typical market illustrations; actual structure and pricing depend on the asset, cash flow, sponsor and senior loan documents.
Enter rough numbers for a single property, a portfolio, or contracted sponsor fees. The worksheet shows your equity, cash flow after existing debt and combined leverage with the new capital.
For a portfolio, use the combined value.
Payoff balances, not monthly payments.
Taxes, insurance, utilities, repairs, management. Exclude debt payments.
Signed contracts only.
Illustration only, not a valuation, approval, commitment or funding limit. Nothing here is saved or sent until you submit the request form.
The asset or fee contracts, current debt, cash flow, and how much capital you need and why.
We look at value, coverage, your senior loan documents and any consent needed, and match it to the right preferred-equity partners.
If it fits, you receive terms, we complete diligence and documentation, and coordinate with your senior lender to close.
Tell us about the asset and the capital you need. We'll review it with our preferred-equity partners and reach out within one business day. Submitting is not a credit application and does not pull credit.
Equity or cash flow you can't easily reach: value built up in a property, a low-rate senior loan you don't want to refinance, a loan with a prepayment penalty or defeasance cost, or sponsor fees under contract that pay out over time.
A cash-out refinance replaces your senior loan. Preferred equity sits behind it, so you keep the existing loan, its rate and its terms in place while still pulling capital out of the property.
Mezzanine is debt secured by a pledge of the ownership interests. Preferred equity is an ownership position with a priority return. Preferred equity is often used when the senior lender, such as an agency lender, does not allow mezzanine debt.
Often, yes. Many loan documents limit transfers of ownership interests or new subordinate capital. We review your loan documents early and coordinate any required consent.
Business purposes such as a partner buyout, recapitalization, capital improvements, a new acquisition or GP co-investment, a liquidity reserve, or working capital for the sponsor's business.
Yes, case by case. Portfolios are reviewed on combined value, debt and cash flow. Contracted development, management or acquisition fees can be reviewed on the signed contracts, remaining term and any assignment restrictions.
Combined leverage generally runs up to about 80%–85% of value, case by case. Pricing depends on the asset, cash flow, sponsor and position in the stack, and is typically a priority return above mezzanine pricing. Every request is underwritten individually.
Straightforward requests on cash-flowing property can close in a few weeks once diligence is complete and any senior lender consent is in hand. Portfolios and fee-based requests take longer.
Preferred equity is arranged through Win-Win Capital Funding's network of capital partners; Win-Win may be compensated. This page is not a commitment to lend, an offer of securities, or legal, tax or investment advice. All terms are subject to underwriting, senior lender consent and approval. Business purposes only.
