Sources and Uses of Funds

Commercial Real Estate (CRE) Investor Question #56: I am looking at a CRE deal. Can you explain the sources and uses of funds?

Sources and uses of funds is a summary view of capital needs of the deal (uses) and how the capital will be raised (sources). This should be a key part of any pitch of the sponsor and should give a high level idea of the capital stack (debt vs. equity) and the overall costs including fees to close the deal. An example snapshot is provided in the featured image.