Mezzanine Loan 

If you are missing a portion of the funds required by your construction lender, or if your first mortgage falls short of your needs. It may be time for a Mezzanine Loan.

Mezzanines are fast-closing commercial equity loans that can be structured as short-term, interest only instruments. Available with or without equity participation, these loans start as low as $1,000,000.

LOAN AMOUNT:  $1,000,000 and up.

BORROWER:  Owner/developer with track record.

LOAN TERM:  1 to 3 years, interest only.

PREPAYMENTS:  Loans may be prepaid at any time, after a possible lockout period, most with no prepayment penalties.

INTEREST RATE:  Rates start at 12%.  Interest is paid monthly on the amount drawn based on the disbursement schedule.

COLLATERAL:  First mortgage on land, existing structures, and future structures.

LTV RATIO:  Up to 75% of the as-is value and up to 100% of development costs.

USE OF LOAN:  Proceeds may be used for construction costs, real estate acquisition and related costs.

ITEMS NEEDED:  Completed loan application, title report, appraisal, project overview, proposed building plans, cost projection for disbursement schedule, exit and re-payment plan, proof of funds for purchase of land and occasionally some other financials.

FEES: Varies from project to project

Request Information