Final answer:
In a real estate investment, debt holders typically have the first claim on cash flows. Equity holders have a residual claim that is subordinate to debt, and among equity holders, preferred equity often has priority over common equity.
Step-by-step explanation:
The superior claim on cash flows in a real estate investment generally depends on the structure of the investment and the rights of various stakeholders involved. Primarily, the debt holders or lenders have the first claim on cash flows in the form of scheduled interest and principal repayments. Equity holders or investors have a residual claim, meaning they receive cash flows after the debt holders have been paid. Within equity holders, preferred equity may have priority over common equity. Special arrangements like waterfalls exist where the hierarchy of claims can get more complex, with different tiers of equity receiving payment based on previously agreed-upon conditions.