In most cases, this is the type of non-recourse loan that Real Estate developers get to secure supplementary financing for their projects, but it can also be used for the financing of a start-up company. Whether short or long term, fixed or floating rate, amortized or standing, we will help you choose the right option. Our products allow you to maximize Loan-to-Values up to 90% of the purchase price.
To maximize your leverage, a creative option is to enter a profit participation agreement with a lender – also known as equity kicker. Depending on the terms of your mezzanine loan, you may be required to share 18% to 22% or 23% of the profit on the project once completed and all of the units, in the case of a condo building, are completely sold.