This week marks the beginning of a new semester for our Debt & Equity Optimization course at The Academy of CRE. It’s one of my favorite times of year as we welcome a new group of students who are eager to sharpen their skills and build a deeper understanding of the capital stack.
Why? Because in today’s market, mastering debt and equity isn’t just a skill. It’s a survival strategy.
We’re in an environment where interest rates remain elevated, maturities loom large, and equity partners are more cautious than ever. For many CRE firms, what used to be “business as usual” is now a series of difficult decisions: refinance at higher rates, restructure with new terms, or wait and risk liquidity crunches. At the same time, inflationary pressures, shifting valuations, and investor expectations demand clarity, transparency, and confidence in how decisions are made.
That’s why our course goes beyond theory and into practical frameworks for mastering the capital stack. Debt and equity are not independent silos; they are interconnected levers. The decisions you make about one side of the stack directly impact outcomes on the other. When you understand this interplay, you gain the ability to not only protect equity but also to unlock growth, accelerate promote, and deliver stronger returns.
So, what are we teaching, and what should every CRE professional be thinking about right now?
1. Get ahead of maturities. Waiting until the last minute forces you into defensive negotiations. We emphasize modeling multiple scenarios early: straight refinance, supplemental loans, partial paydowns, or recapitalization structures. When you proactively create options, you maintain control instead of ceding it to the lender.
2. Analyze the blended cost of capital. Too often, leaders focus on a single loan rate or equity term. But your real cost is the blend across the entire stack. A cheap loan with restrictive covenants or an expensive pref equity piece can shift outcomes dramatically. Students learn to see the full picture and make calls that balance cost with flexibility.
3. Leverage intelligence: BI + AI + HI. This is a theme I often talk about. Business intelligence organizes the data. Artificial intelligence models and predicts outcomes quickly. Human intelligence applies judgment and experience. In the course, we put all three together, showing how tools like Lobby AI can cut 40+ hours of manual prep while surfacing scenarios that otherwise might be overlooked.
4. Communicate early, often, and with data. Lenders and investors alike reward transparency. Bringing clean, consolidated analysis to the table builds trust and strengthens negotiating power.
5. Think long-term, not just short-term. The “cheapest” capital today isn’t always the best capital for tomorrow. Sometimes paying slightly more now preserves optionality, positions you better for a future refinance, or accelerates promote. Understanding trade-offs is critical to building durable success.
In short, mastering debt and equity today is about becoming both a strategist and a tactician. You need to see the big picture while executing precisely on the details.
The operators and investors who do this well are seeing real results:
And perhaps more importantly, they are creating resilience and the ability to navigate volatility without losing momentum.
The start of this semester is a reminder to me of why I launched The Academy of CRE in the first place. Our industry doesn’t just need more deal-makers. It needs leaders who can think holistically, manage capital intelligently, and build sustainable organizations that thrive across cycles. It’s not just about models and math, but about mindset. It’s about teaching the next generation of CRE professionals how to lead with clarity, confidence, and purpose when facing some of the most complex capital decisions of their careers.
As we kick off this semester, I’d encourage you to ask yourself: How confident are you in your debt and equity strategy today? Are you optimizing the entire stack, or just reacting to the next maturity?
The answers to those questions may define not just your year, but your long-term trajectory.