Kevin Romney serves as the chief investment officer of Camino Verde Group in Henderson, Nevada. As such, he finds and acquires multifamily properties around Las Vegas and oversees property management at these assets. Kevin Romney of Las Vegas is also responsible for the capital stack of each property Camino Verde Group handles.
In real estate, the capital stack refers to all the capital that has financed a transaction. This can include senior and mezzanine debt and common equity. These investments are associated with varying rates of return and risk and are organized in specific ways depending on their rates of return and risk. Common equity typically rests at the top of a capital stack because it carries the most risk. When an investor purchases common equity, he or she is procuring an ownership stake in a real estate project. However, such an individual is compensated for his or her investment only after investors at other levels in the capital stack are paid. Under common equity is preferred equity. Investors at this level receive payments before common equity holders, along with a share of the project’s capital gains. But they are exposed to greater risk than mezzanine and senior debt investors. Mezzanine debt investors demand more returns than senior debt investors in return for their unsecured position in the capital stack. These investors only get repaid once all senior obligations are satisfied. Meanwhile, senior debt is the foundation - and typically the largest portion - of the capital stack. The property secures senior debt since it functions as collateral for the loan, so risk is kept low compared to all other layers in the stack.
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AuthorBased in Las Vegas, Nevada, Kevin D. Romney is a skilled professional in the fields of business development and franchising. Kevin D. Romney currently holds the position of President of The Romney Group, a consulting services company located in Las Vegas. Archives
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