Since Banks Seldom Loan 100 Percent of Construction Costs, Developers

Multiple Choice

Since banks seldom loan 100 percent of construction costs, developers often turn to mezzanine financing to obtain necessary funds. With mezzanine debt, which of the following entities is typically pledged as collateral to the lender?

A) Land
B) Ownership shares in the development entity
C) Personal assets of the developer
D) Construction materials