Learn the Pros and Cons of Mezzanine Financing from Gelt Financial
Mezzanine financing is a type of capital that is used to finance a variety of different types of commercial real estate projects. Unlike traditional loans, which are secured by the property itself, mezzanine financing is typically structured as a hybrid between debt and equity. This means that it is often secured by the equity in the property, as well as the personal guarantees of the property’s owners.
One of the key benefits of mezzanine financing is that it allows property owners to access additional capital without giving up control of their properties. Because mezzanine financing is structured as a hybrid between debt and equity, lenders do not have the same rights to foreclose on the property as they do with traditional loans.
It’s important to note that mezzanine financing is not without its risks. Because the loan is structured as a hybrid between debt and equity, the lender has the right to convert the loan into equity if the borrower defaults on the loan. This means that property owners who take out mezzanine financing need to be careful to ensure that they are able to make their payments on time and in full.
Overall, mezzanine financing can be a useful tool for commercial real estate investors who are looking to access additional capital without giving up control of their properties. By carefully considering the potential risks and rewards, investors can determine whether mezzanine financing is the right financing option for their specific needs.
Private Money Lender – Related posts
When a company is going bankrupt, there are things they can sell other than its assets. For one, they can also sell their debt. What is Distressed Debt? Distressed debt [...]
Gelt Financial was recently featured in BadCredit.org's article, "Private Lending That Produces Money-Making Wins," highlighting our commitment to delivering swift and reliable financing solutions. In the article, H. Jack [...]
ANOTHER DEAL DONE! Gelt Financial recently closed on a purchase of a non-performing loan collateralized by a medical office building in Tampa, FL. The note was purchased at PAR [...]
Small business is the heart of America, so we jumped on the opportunity to provide first mortgage financing on a mixed use building in VA, when someone approached us saying [...]
Jack attended the Crittenden Financing Conference in Miami, Fl September of 2018 and was there meeting with industry leaders, people speaking about the latest trends, challenges, and opportunities with his [...]
JUST CLOSED IN MANHATTAN, NEW YORK! Gelt Financial is proud to announce that we just closed a $200K First Mortgage on a stunning condo on Park Avenue in Manhattan. [...]
TRIPLE-NET DEAL CLOSED IN ALABAMA, OHIO, AND TEXAS! Gelt Financial is excited to announce we just closed on a $500K Mezzanine Loan on an NNN Portfolio in Alabama, Ohio, [...]
As prices in several markets dip for the year 2019, a lot of people are reminded about companies going bankrupt. Consumers are not the only ones affected by this - [...]
As the world faces an unpredictable crisis we on the Gelt Financial team are preparing for the worst and hoping and praying for the best. We are reaching out to [...]
DEAL CLOSED IN CINCINATTI, OHIO! Gelt Financial is excited to announce we just closed on a $100K first mortgage on a Multifamily property in Cincinnati, OH. Our borrower requested [...]
Closed Loan: After being frustrated by other lenders we were pleased to help another real estate investor in Washington DC on the refinancing of his 4-unit multifamily property. We [...]
Gelt Financial was able to arrange to finance for the hard-working owners of a business and commercial real estate a sports retailer using their commercial real estate as collateral [...]
Closed loan in 9 days, residential vacant property in New York for sale, no appraisal all cash-out, no income verification. When your bank says no we say Yes. 561-221-0900 or [...]
JUST CLOSED IN MIAMI, FLORIDA! Gelt Financial is happy to announce we just closed on a $250,000 Land Loan in Miami, FL. This piece of land is zoned for [...]
JUST CLOSED IN FIVE BUSINESS DAYS! Gelt Financial is excited to announce we just closed an $840K First Mortgage on an office building in Orlando, FL. This project was [...]
Written by Beth Mattson-Teig of WealthManagement.com contributing expert Gelt Financial The increased capital flowing to the preferred equity space far outweighs the volume of available deals. Real estate investors looking [...]
Even though mortgage rates are reaching record lows, business owners and self-employed professionals are having difficulties participating in the financial opportunity. Leading news outlets are reporting that it is continuously [...]
DEAL CLOSED IN LAKE WORTH, FLORIDA! Gelt Financial is excited to announce we just closed on a $900K First Mortgage on a retail strip center in South Florida. The [...]
Gelt Financial, was pleased to provide 100% of the financing to a new investor who found a great deal on a single-family property in Coral Gables, Florida, in need of [...]
We are pleased to provide first Mortgage Bridge financing on a Single tenant Humana Health Care deal in Dayton, OH. The borrower came to us who owed a free standing [...]
JUST CLOSED IN QUEENS, NEW YORK! Gelt Financial is excited to announce we closed a $300k First Mortgage on a Single Family Investment Property in Queens, NY. The borrower [...]
You are debating receiving your real estate loans from either a bank or a private lender. There’s been a lot of talks lately about private lenders like us here [...]
DEAL CLOSED IN INDIANA! Gelt Financial provided a $200K First Mortgage on a Mobile Home Park Investment Property in Indiana. A hard money broker brought his client to our [...]
About 18 months ago we received a referral from a workout attorney, he had a client who owned a multi-location small business. Their current lender a local bank had [...]
Jack Miller and Marcy talk a little about marketing basics for commercial mortgage brokers.
Michael talks about the financing Gelt Financial provides owners of Funeral Homes and other business. Remember when your bank says NO, we say YES!
Jack Miller and Marcy talk about how to value commercial and investment real estate. Gelt has been helping commercial real estate and investment borrowers since 1989. When your bank says NO, [...]
An email from a borrower after he paid Gelt Financial off. This is an every day event at Gelt and we are so grateful to our borrowers and love helping them succeed. [...]
In the video Jack explains the concept of phantom income in real estate investing. Phantom income refers to situations where investors may not receive cash distributions despite owning a share of [...]
A must-watch for everyone who wants to be a commercial mortgage broker or who is one. A simple, easy tool that everyone should have and is easy to get. What do you [...]
In Foreclosure Bail Out, commercial Property in Brooklyn NY, it discusses Gelt Financial's provision of foreclosure bailout loans for commercial properties in Brooklyn, New York. It emphasizes our ability to quickly [...]
Marcy and Jack talk about a new closing on a day care center in Georgia. "Jack: I think we're on. Hello, this is Jack Miller, and this is Marcy Berger. How's [...]
In the video, Jack shares his top 11 reasons to be in the mortgage business. These include no formal education requirement, a consistent demand for mortgage services, high income potential, and [...]
Marcy, Michael and Jack talk about bridge lending on 1031 NNN deals that Gelt Financial Provides. "Jack: Hello, it's Jack Marcy and Michael. Marcy: Hello. Michael: Hello. Jack: So, I wanted to [...]
In Bridge Mortgage Loan Paid Us Off | Bridge Loans the video discusses a successful payoff of a bridge mortgage loan from Gelt Financial. The borrower owned three properties but had [...]
Gelt Financial is lending and busy, while the secondary market is almost shut down and a lot of other lenders are not lending. We are busy providing commercial and investment mortgages [...]
We made this for our borrowers and mortgage brokers, we all know in life things do not always go as planned or smoothly. We are here to help and work with [...]
Gelt Financial closes a refinance on 2 small multi family properties in CT. "Jack: Hello, this is Jack and Marcy at Gelt Financial again, super excited. We're always excited here, but [...]
In the video, Jack shares a valuable tip for investors: many people and businesses fail because they take on too much and lose focus. He advises caution, emphasizing the importance of [...]
It's important for Mortgage Brokers to focus and find a Niche, be an expert get in the heads of borrowers and lenders. Focus, Focus, and Focus. "Jack: Hey Jack and Marcy [...]
Gelt Financial helped an Auto Body Shop in St Louis, Missouri with credit challenges with a no-income qualification mortgage with a 3-year term. "Hello, this is Jack Miller of Gelt Financial. I [...]
The video discusses how a small loan payoff of $65,000 made to an ethnic family who owned a bodega in Atlantic City. Despite not making much profit on the deal, Gelt [...]
Mortgage and Real Estate Professional Tip: If you have a corporate entity like an LLC or Corporation, get your documents in order prior to trying to refinance or sell a property, [...]
Gelt Financial just closed a fast and easy mortgage for a cannabis retail property in New Jersey. If you’re looking for reliable financing for your cannabis real estate investment, we’ve got [...]
We just provided with a experienced investors 4.3 Million bridge Mortgage on 3 credit tenant deals as part of a 1031 Transaction. This borrower will refinance with a bank, but a [...]
What is a LTV Loan to Value and how do we calculate it? This is not a cut and dry question. "Marcy: Hey Jack Jack: Hey Marcy, let's talk today about [...]
Gelt is excited to partner with a local real estate investor. We provided 100% debt and equity in a deal where we purchased an office building and leased it out to [...]
Gelt Financial provided a new first mortgage foreclosure bailout loan on a mixed use property ion Brooklyn, NY. The mortgage broker called us and we approved and close the loan without [...]