Mezzanine financing is supplemental debt financing that is either (1) wrapped around an existing first mortgage, like a bridge loan or second mortgage; or (2) a single debt instrument tranched (split) into a first mortgage component and a mezzanine, earnout, subordinated, or "B-rated" component. Generally, mezzanine financing is flexible and customized and provides for a high loan-to-value ratio (ratios in excess of 90 percent are not uncommon) or a below-market interest rate. In return, the provider of mezzanine financing receives interest payments and a significant portion of a property's future appreciation. Additionally, the mezzanine financing provider may receive other "equity-like" rights, including management contracts and affiliation agreements. A mezzanine financing arrangement, which generally includes a sharing of future appreciation, can be structured so that appreciation sharing is a percentage split, pre- determined fees paid upon maturity, or as a negative amortization loan. Mezzanine debt is usually short term (two to five years). Mezzanine financing can be used in the following ways and under the following circumstances: