January 28th, 2014 11:44 AM by Chuck Green
One of my favorite new commercial products is designed for all of those investors out there who have been buying and buying properties ever since the 2008 mortgage market collapse.
It is a simple concept really. One big commercial loan is created, and it pays off all of your existing loans – even hard money – on all or at least most of your properties. Each of your properties then becomes collateral for the new loan. Since the rates for this loan can be in the fives, you usually end up well ahead.
If you have a property already financed at a low rate, then just leave it alone. It is your choice which properties to finance with this loan, and which to leave out.
The loan requires full documentation, personal financials, leases, tax filings, appraisals for every property, and possible safety inspections as well.
Once the new commercial loan is in place, if you then later sell a property that is encumbered by the loan, the lender will do a partial release so you can complete the sale. If you find a new property then just let us know and we can expand the existing loan to help you bring this property into the existing portfolio.
We have one client closed, and another almost closed – in each case the savings are in the thousands of dollars every month.It is a very exciting product, and most folks have never heard of it.