Posts tagged refinancing
The Wall of Maturities

Many people are not aware that most loans for commercial properties are not fully amortizing. Typically they are on a twenty five year amortization schedule, but the loan comes due in 7 or 10 years. What this means is that when the loan comes due, then the owner must pay it off, either through cash reserves, or by refinancing the loan. Most investors do not have the funds to just payoff the loan, so instead look to refinance the balance.

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