My 10 unit has a time bomb balloon payment and I need to move it. Ideas???

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Hello everyone,

I manage a 10 unit complex here in north Georgia. We just had a commercial appraisal come back at $850,000. We owe $518,000, but it's a balloon with 3 years left. We are trying to figure out how to move it over to a long term fixed. The bank we are with is too small and won't do the refi for us.

Any suggestions?

Thanks! 

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A commercial lender is probably going to give you a 7 to 10 year term with a 20 to 25 year amortization schedules. That rates will be a 1 or 2 points higher than residential mortgages. I'd look for a bank that's a portfolio lender, meaning they keep some loans in house.

Equally important is the preparing the loan package. Make sure you've got good records: 24 month of rent rolls, maintenance schedules etc.