Sometimes as a merchant builder looking to maximize your IRR, you need to maximum leverage as the cost of equity is often more expensive than non-recourse debt. Other times you simply need more leverage so as to keep liquidity available for other opportunities. When looking to build your capital stack, the first place to go is mezzanine financing and preferred equity. Although multifamily and commercial mezz lenders often prefer to have a recorded second mortgage as security, a pledge of stock is also an option for securing your mezzanine financing; this is commonly referred to as preferred equity, and although there usually isn't any true equity or waterfall requirement, the security itself is equity. 

Sample Mezzanine Financing Loan Terms For Multifamily and Commercial Property
Terms as of August, 2016

Amount:                     $3 million and up

Term:                          Coterminous with first

Interest Rates:           9% - 16% interest only

Fees:                          3% - 6%

Maximum LTC:            85%