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.

Some investors love heavy rehabs for higher margins, others prefer quicker, lighter flips.What’s been your strategy lately — and how do you decide which projects to take on?

I would prefer to try Fee For Service (FFS) and then see how things goes before moving to monthly subscriptions.

I have been toying with the idea of beginning to pay off properties with rates above 6%. 

I have this crazy debt ratio without any bad debt (no credit card debt, no car loans, no personnel loans, no toy loans (I have various ritually every toy: 7 cars, 2 boats, a motor cycle, beach house - still missing a plane)).Dave Ramsey’s advice is correct for many/most Americans but is hindering to most BP users.best wishes

I’ve been picking up performing first-position notes lately and noticing a split — some folks love the steady income, others prefer the quick capital.

If I remember right they were asking for 40% of the initial investment and it was basically a preferred equity fund of 3-5 properties if I remember right. 

I’m curious — for those investing in multiple markets, do you usually look for local lenders or are you comfortable working with out-of-state funding partners?
What’s been your experience so far?

The new shiny toy is ai. 

I don't really have a preference of one over the other - I may lean slightly towards Redfin but they are not in all locations its either Redfin or Zillow - rare I use realtor.com