Capital from Mezzanine

Get Capital from Mezzanine for Your Loan

Mezzanine debt financing is an amazing option that combines features of traditional equity capital arrangement with your repayment requirements to secure debt capital hotel financing. In combination with senior loans, you can use mezzanine loan in combination with your senior loans to provide additional capital to the property owner.

 Pros and Cons of Capital from Mezzanine

There are pros and cons related to securing capital from the Mezzanine. Be sure to consider the source of capital carefully.

Pros

  • Even as an owner, you may lose some independence; you will not lose the entire control over your property.

  • The flexibility of this capital is one of the biggest bonuses

  • More suitable for long-term investors

Cons

  • Requires investors to relinquish some control of their investment property or other collateral

  • You may be forced to accept restrictions on how and where you spend the money you borrow. 

  • It is a long and arduous process.