Interest Only Commercial Loan

[Zahid Aziz]

I was entertaining the idea of doing a hybrid loan potentially doing interest only for 5 years or so. In-order to raise cash quicker for the next deal. Has anyone ever done this?

I called around and it seems very few lenders would be willing to do an interest only loan. What is the specific criterion that would make a loan agent go with an interest only? Assuming there is already an investment grade tenant in the building are they looking for a specific CAP rates? Or does it have to do with the net worth on who they are lending to? Repeat customer with a specific loan agent? Any information would be helpful. Thank you