Different Types Of Commercial Mortgage Loans – Mezzanine Loans, More Than Just 2nd Mortgages

Many people, even some experienced commercial real estate developers, mistakenly believe that a mezzanine loan is simply a 2nd position commercial mortgage loans against a commercial property. It is not, mezzanine financing is a highly sophisticated form of lending that requires specialized business and banking knowledge. Many acquisition and development projects require additional financing beyond a traditional first mortgage. The simplest, fastest and least expensive method of borrowing in these situations is to have the seller or another lender write a traditional 2nd mortgage. Unfortunately, especially in today's era of tightened credit, 2nd position liens are often impossible, due to an ... Read More »