What Is a Sources & Uses Table?
A Sources & Uses table is the single most important document in a real estate capital request. The Uses side lists every dollar the deal needs (land, hard costs, soft costs, closing costs, reserves, contingency). The Sources side lists every dollar coming in (senior debt, mezzanine, preferred equity, sponsor equity, LP equity). The two sides must equal — to the dollar — before a deal can close.
The Standard Capital Stack Order
- Senior Debt — first lien, lowest cost (5–8%)
- Mezzanine Loan — second lien or pledge of equity (10–14%)
- Preferred Equity — non-recourse, equity-priority (10–13%)
- Sponsor (GP) Equity — 5–20% co-invest, earns promote
- LP Equity — passive capital, earns pref + share of remaining cash flow
Why Balance Matters
Any variance between Sources and Uses signals a capital gap — and capital gaps kill deals at the closing table. Lenders, LPs, and JV partners will all read the Sources & Uses table first. A balanced stack with clean math telegraphs sponsor competence; a sloppy one ends the conversation.
Pair this with the LTC Calculator, the Waterfall, and the IRR + Equity Multiple to build the full sponsor memo.