Mezzanine Loan

A mezzanine loan, or mezzanine debt, is a form of junior debt sometimes used in real estate lending. A mezzanine loan can blend debt and equity. It’s ranked below senior debt but above equity in the debt recovery process. Investors in mezzanine debt will recover their money only after all senior debt owners have been repaid in full. This elevated risk comes with relatively high interest rates and, often, flexible repayment terms. Explore debt seniority and other real estate loan types in our review of investment types in real estate crowdfunding