Equity VS Debt Funds (Lender)

excuse my ignorance as this isn’t really my specialty. If one were looking at a lending opportunity against an equity REIT with moderate leverage or a debt REIT with high leverage, how do you evaluate?

I’m getting hung up on the embedded and credit facility leverage at the debt fund level. Surely it’s not as simple as debt > equity in the capital stack.

What are some ways that lenders should evaluate relative risk/price a loan.

Thanks a ton to the crew that knows more than me on RE.

 

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