What is Mezzanine Financing? -
Site Loader

Mezzanine financing is an important funding tool for real estate transactions.

METRIC AMOUNT
Annual operating income for the property $100,000
5% annual interest on the $600,000 senior loan $30,000
Pre-tax income $70,000
Annual pre-tax return on $400,000 equity investment 18%

Data source: Author’s calculations.

METRIC AMOUNT
Annual operating income for the property $100,000
5% annual interest on the $600,000 senior loan $30,000
10% yearly interest on the $200,000 mezzanine loan $20,000
Pre-tax income $50,000
Annual pre-tax return on the $200,000 equity investment 25%

Data source: Author’s calculations.

Post Author: admin

Leave a Reply

Your email address will not be published.

DISCLAIMER
Xpress Loans 911 is a Business Lender and only Lends for Business Purposes Only

Rates advertised are the lowest offered. Actual rates and offers may vary based on approval criteria, including but not limited to borrower FICO score, previous experience, period of ownership, etc.

100% Purchase is subject to experience, liquidity, credit score. It subject to complete underwriting based upon program guidelines. These guidelines and programs are subject to change at any given time.

**Leverage advertised is the highest offered. Actual leverage and offers may vary based on approval criteria, including but not limited to borrower FICO score, previous experience, period of ownership, market conditions, etc.

Advances are made directly by Xpress Loans 911 Your actual rate depends upon credit score, advance amount, advance term, and credit usage and history. Repayment terms range from 4-84 months depending on the type of loan taken out and the loan amount. Advances will not impact personal credit score.