Mezzanine loans are not unusual in the world of commercial real estate. However, due to their unique structure and purpose, local commercial real estate investors have a difficult time finding Carmel, IN mezzanine loans. Add to the rarity the fact that very few people fully understand loans, and it makes for a lot of confusion. As a business that deals regularly in Carmel, IN mezzanine loans, Liberty Commercial Capital has put together this article to clear up misconceptions.
How Carmel, Indiana Mezzanine Loans Work
Carmel, Indiana mezzanine loans are a form of hybrid financing. The first part of a mezzanine loan is the subordinated debt component. In the case of commercial real estate, this means that Carmel, Indiana mezzanine loans are often unsecured, and rank lower on the hierarchy of creditors. The terms can be customized to fit the commercial real estate transaction, instead of having a rigid structure. The second part of Carmel mezzanine loans is the equity component. Lenders want to see a property transaction to fruition, so that commercial real estate investors can start generating revenue quickly. Since Carmel, Indiana mezzanine loans are unsecured, investors usually take an equity stake in the transaction. One of the main differences between mezzanine loans and traditional lending channels is that mezzanine lenders have years of experience in the commercial real estate market. The equity component means commercial real estate investors will have someone on their side who knows how to sidestep any potential pitfalls, and maximize profitability without cutting any crucial corners.
When To Use Mezzanine Loans
Carmel, Indiana mezzanine loans are not designed for local fix and flip projects. Mezzanine loans are used for larger transactions, such as purchasing and renovating entire apartment complexes, or acquiring large office space and industrial plants. Additionally, mezzanine loans can be used to development projects on raw land. Mezzanine loans can also be processed faster than traditional financing, which helps when time sensitive business opportunities are in your sights.
Get The Best Mezzanine Loans In Carmel, Indiana
At Liberty Commercial Capital, we offer the most comprehensive mezzanine loans in Carmel, IN. Our team of experts have the experience and depth of knowledge about local commercial real estate markets to structure solutions to meet your needs. Contact our team today, and we will work with you to understand what you need, where your goals are, and provide the mezzanine loan you need to make your next project a profitable success.