With mezzanine loans your real estate projects can continue on without waiting on the others to completely settle.
For many clients the risk is worth the reward.
Mezzanine debt is essential in real estate despite carrying higher costs than traditional real estate finance from a senior lender. The injection of mezzanine capital could easily facilitate a substantial increase in the return on private equity in the firm.
This by far outweighs the expense associated with gaining the loan for the development project.
There is substantially more strategy that is involved in commercial loan options. It is far more complex than the interest rate alone. For development lending even with a higher interest rate and risk, the potential return could be substantially higher.