Mezzanine Financing – Leave it to Professionals

An excellent Blog Article for the uninitiated about Mezzanine Financing. It reminds us WHY we need to leave it to the professionals!

Unlike a mortgage, a mezzanine loan is not a lien against a piece of commercial real estate. It is a loan secured by the assets of a business entity. A title search will not turn up mezzanine loans because they are not attached to a properties ownership documents. In this way they do not violate any provisions of a 1st mortgage that precludes a 2nd.