The word “Mezzanine” means the semi-floor (a little up the stairs but not exactly at the top), that in retail establishments is utilized for pretty much everything. In real estate funding and the “capital stack,” the first floor is debt, and the second floor is straight equity. Mezzanine financing real estate is every kind of financing that can be imagined, in the middle.
Mezzanine (center) financing can appear as debt or equity, particularly in the case of:
- Junior debt, for example, a second home loan
- Favored equity
- Convertible debt
- Participating debt
Organizations normally look for mezzanine real estate debt funds for particular development tasks or acquisitions. One of the advantages for an organization in acquiring mezzanine financing is that it is less demanding. Since banks feel that an organization with long term risk-takers are more trustworthy and reliable, they are more inclined to give out loans to that organization.
From bridge or swing loans and mezzanine financing to adjustable or fixed rate loans, UT Financial Services, LLC, has been helping businesses and investors find the right type of financing to build their empires for more than 20 years. We promise a new, better type of hard money source.
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