A Mezzanine loan is subordinate to the first mortgage and comes in various forms, and provides financing up to 85-90% of the required capital. The cost of this type of financing fluctuates based upon how high in the capital structure the financing is provided, what kind of asset is being financed, whether it is a stabilized asset or an asset that is being either repositioned (lower) or developed (higher). Mezzanine loans run from 10% for stabilized apartments or stabilized in-fill shopping centers to 18-20% for hotels and value-added plays, condominium conversions and development, and higher for land.

A hard money loan can be defined as a unique type of asset-based financing, where based on the current market value of the commercial real estate property, the borrower receives a certain amount of financing. Typically, because of the increase in risk, hard money loans possess higher interest rates than the traditional commercial real estate loans.

A hard money loan can be defined as a unique type of asset-based financing, where based on the current market value of the commercial real estate property, the borrower receives a certain amount of financing. Typically, because of the increase in risk, hard money loans possess higher interest rates than the traditional commercial real estate loans.

While there are many types of raw land, raw land is basically undeveloped, unimproved, and unused land.