New Revenue Procedure currently necessitates that new mezzanine lender need a promise of your own guarantee appeal of one’s entity you to possess loan places Pilot Station the underlying a property. Which requirement contemplates only just one level of mezzanine financial support. Used, yet not, one mezzanine financing is often perhaps not enough to fill the brand new whole gap in the financial support heap, whereby new borrower get see a minumum of one junior mezzanine fund. A junior mezzanine financing is structurally subordinated on the older funds, much like the mezzanine loan illustrated regarding artwork a lot more than, but it’s further taken out of the underlying real estate inside new business framework. Such as for instance, the new junior mezzanine debtor generally speaking possess 100% of your own very first mezzanine debtor, in addition to first mezzanine borrower is the owner of 100% of the LLC one to keeps the real house. Lees verder →