What is Mezzanine Funding in REI? How does it compare to Seed Capital?

@Tyler Horton Mezz debt is typically a second position on an asset to raise the leverage on the deal and raise returns to equity.  Interest rates are very high because a second portion is essentially worthless if you default on the first position debt.  In a foreclosure in the first position debt, the mezzanine debt will be wiped out.

What do you mean by "seed capital"?  Are you talking about the equity downpayment on the asset?

Well, I am pretty sure that Mezzanine funding is for building a mezzanine in between two floors. Seed capital is a totally different story, that is the money you use to buy seed for your lawn. 

Jokes aside, I am fairly certain that a quick google search will confirm Jonathan Twombly's assessment of mezzanine debt as accurate.

Originally posted by @Tyler Horton :

What is Mezzanine Funding in REI? How does it compare to Seed Capital?

 Tyler, I think mezz is covered fairly well in this forum at this point - but when you say seed capital ? What specifically is the application ?

Does anyone invest in mezzanine debt? Seems fascinating.

I have tried to invest in Mezzanine funding, however it seems to complicated to me. Is this a good fit for beginning investors?

@Account Closed That is quite fascinating, do you have a lot of experience investing in this type of funding?

 @Jack McTavish   I tried in my early investment reals. Mezzanine isn't a good funding fit for junior investors. There's a lot involved. Personally, I wouldn't go back to it.

@Craig Baker , can you tell us a little more about your experiences with Mezzanine funding?

Jonathan Twombly said it well. Mezzanine funding isn't for the faint of heart. It's a more advanced concept, so stay away unless you understand the ins and outs.