They don’t usually foreclose like mezz— they take over control rights if things go sideways.Ideal for:Ground-up or heavy value-add where cash flow is lumpyDeals where senior lenders cap leverageSponsors who need flexibility on timing of returnsThe real deciding factor: cash-flow timing vs. controlIf you can make regular payments but don’t want to dilute ownership → MezzanineIf you can’t guarantee near-term cash flow but need capital to close the gap → Preferred EquityIf your senior lender forbids mezzanine (which happens often) → Preferred Equity is the workaroundOne more nuance most posts miss:Preferred equity comes in two flavors:Soft Pref – economic preference, no takeover rightsHard Pref – essentially mezzanine equity with control triggersUnderstanding which version you have matters just as much as the return.Both tools are powerful, if you pick the wrong one for the wrong project, it can wreck your risk profile.

This is just bad banking practice and FTC should be aware of digital platforms like Baselane in many ways abusing their powers and washing their hands off. 

One thing I wish I knew early on is how powerful relationships are in this business.

 Cody, why not just focus on doing more of those deals?

A 3–5 gallon tank heater is cheap, tough, and works every timeThe small tanks:✔ Use very little power✔ Plug into standard 120v or small 240v✔ Cost $150–$250✔ Are easy to replace✔ Heat water fast✔ Require no fancy wiring✔ Don’t care about flow rate swingsEven though they keep water hot all day, the total kWh usage is tiny because the water mass is so small.For sporadic sink usage, the cost difference on your electric bill is negligible.5.

@Jordan Ray we focus on Orlando/central florida and Jacksonville.

They are a large company that has buying power and a network of contractors realtors and others to do the work. the owner, Zach also here on BiggerPockets and has a stellar reputation for customer serviceFor cons - people will view some companies in a negative light because of this, but the reality is the individual who is thinking negatively is typically inexperienced and doesn't understand the businessbut....this is a reality as someone who has been in this space for almost 30 years.Contractors realtors, and others one day could be an A player and do great work.

If you've done something different, why did you choose to focus on that different funnel?

Because it's not only saving them $ on their monthly right off the bat, it's now giving them more power to make $ on the borrowed $ itself.

Quote from @Tracy Thielman: Noticing that cash flow-focused properties tend to be easier to keep stable through tenant turnover.