Where to get mezzanine debt?

Question

I have some investors, I have access to buy the properties I want (multi fam 1mm to 2mm), I have the source for primary debt... I'm always short like 5 to 15% on ever deal i try to do and I'm stuck scrounging around trying to figure it out.

What kinds of lenders actually offer this? Do deals need to be securities? My equity sources are savy hands on guys so JV has been the easy solution. Am i missing a better way to close the funding? Sure just raise more capital or borrow more from primary is another solution but its not always so simple.

any pointers appreciated

Chris Seveney · Answer

it exists but it is going to be very expensive.

Garry Miller · Answer

But you're gonna need some private money relationships to increase your close rate on these. I hate losing deals for not having 5% here or there, especially when you've already raised 1M....you're going to develop some friends who will help out to close these deals that are going to charge you just for that...stepping on the scale when you need it most!

Garry Miller · Answer

Bridge loans to close these types of deals, refinance the properties after the first year or two once you've done some cosmetics/rent increases to raise value and cash flow and then you refi to pay back your bridge loans. That or you can try going DSCR out the gate.

Where to get mezzanine debt?

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