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The use of a mezzanine loan in the purchase of a commercial property has all of the following impacts on the borrower except A. increases
The use of a mezzanine loan in the purchase of a commercial property has all of the following impacts on the borrower except
A. | increases the borrower's expected first year return on equity. | |
B. | requires the borrower to pledge an equity interest in their company (e.g., LLC) as collateral for the loan rather than pledging the property. | |
C. | allows the borrower to increase their financial leverage in the purchase of the property. | |
D. | mitigates the risk of financing for the borrower. |
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