Fully amoritzing vs balloon commercial loan

[Prashant Sharma]

Hello investors,

I was listening to real estate guys podcast the other day and a commercial lender/broker mentioned about a fully amortizing 25, 30, 35 yr term HUD FHA commercial loan product. Anyone knows if such a product exists in today's market and if so where/who should I start talking to about this. Having a loan that is going to come due in the next 5, 6, 7..years doesnt give me the warm and fuzzies.

Thanks,

Prashant 

[Christopher Phillips]

@Prashant Sharma

HUD multifamily products are for $2,000,000 to $100,000,000 or more.

Any lender can do a regular commercial loan product up to 30 years, but there is a lot of risk in doing so because they keep commercial loans on their balance sheets. You'll have to pay higher interest rates that usually don't make it worth it.