What Is a Mezzanine Investor in a Residential Mortgage Warehouse?
A potential borrower researching information about residential and commercial mortgages, commercial loans, and business loans may wonder about the roles that mezzanine investors play in these processes.
A mezzanine investor or mezzanine broker in a residential mortgage warehouse is a financial broker specializing in brokering a mezzanine capital structure. Mezzanine financing is a hybrid of equity and debt funding that allows a lender to change debt into equity interest in case of default and is placed at a lower importance than senior notes.
Mezzanine loans assist borrowers and business owners in funding extensions, renovations, and projects they would otherwise be unable to fund. These loans can help businesses display a higher bottom-line profit and generate more capital while also allowing for increased equity returns.
Mezzanine financing allows businesses to have access to funds without having access to documents showing tax returns, financial statements, and income proof. A mezzanine investor can easily be found by searching online or speaking with mortgage brokers and lending specialists.
At Mortgage House, our lending specialists can walk potential borrowers through loan applications and the buying process while providing specialized advice for individual business owners and investors. Contact us today for more information on Mezzanine loans and financing.
In conclusion, a mezzanine investor in a residential mortgage warehouse is a financial broker specializing in mezzanine capital structure brokerage. Mezzanine funding allows businesses access to funds without proof of income, financial statements, and tax returns.