Mezzanine Loans: What You Need to Know

If you are familiar with a second mortgage, then understanding mezzanine loans isn’t going to be a difficult task for you. Mezzanine loans are quite similar to the second mortgage but with a few major variations. The mezzanine loans are absolutely not secured by any real estate property, however, the stocks that your company does hold that essentially own the real estate is what secures a mezzanine loan. It is to be kept in mind that the real estate property has already been made use of in order to secure the primary loan.