That way you are incentivized to pay him off rather quickly but have some options if either the property or financing market blow up in the meantime.

Your property being in LA mean you are already in one of the best appreciation markets in the world

But the best thing about it is that I own this amazing house with all brand new big components.

This way I can contribute to this knowledge center.

Can anyone who has actually done this confirm, because my understanding was that it doesn't work that way.

This whole forum is way overblown.

Im not otherwise concerned about it breaking since I have other ways to heat the home. also A/C is only a few years old.

By carefully balancing the collateral and ensuring rigorous underwriting standards, it is possible to mitigate potential downsides while capturing the upside potential, providing a compelling investment proposition in a competitive market.Uses of Mezzanine Debt CapitalMezzanine debt can be deployed effectively in several ways, including:- Liquidity Provision: Providing liquidity to set aside interest reserves for first lien lenders and tax and insurance escrows required by the first lender.- Property Improvements: Funding additional property improvements such as renovations, HVAC work etc.- Operating Shortfall Coverage: Addressing operational shortfalls during challenging periods.Objectives of Mezzanine DebtThe primary objectives when using mezzanine debt include:- Project Stabilization: Completing renovations, construction, or improvements and then stabilizing the property with 90%+ occupancy.- Interest Rate Management: Buying time until interest rates normalize or decline.

Being the creditor is, in many ways, just as hard, if not harder, than being the equity syndicator.

That was the best decision we ever made.