Contributed By Allen Matkins Leck Gamble Mallory & Natsis LLP
The classic real estate financing vehicle is a real property secured loan, which is secured by a first deed of trust. This technique is used for 95% of investments.
If an acquisition is large enough, there may also be pledges of ownership interest in the borrower as well, in addition to a first deed of trust; this makes it easier to foreclose. This is called mezzanine financing.