Can someone help me with an actual or mock example of mezzanine financing at work? I'm educating myself on this and need a little bit of clarification.
Financing that can fill in the gap between the amount that a lender will lend (say $750,000 on a $1M property) and the downpayment (say $150K). In this case the mezzanine financing required would be roughly $100K.
Financing that can fill in the gap between the amount that a lender will lend (say $750,000 on a $1M property) and the downpayment (say $150K). In this case the mezzanine financing required would be roughly $100K.
This may help:
http://www.bizjournals.com/houston/stories/2002/08/26/focus9.html[ Edited by hibby76 on Date 12/02/2004 ]
Thanks Hibby76. That's explains things for me.
Just read the mezzanine article that you gave me. That's great!!