Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Multi-Family and Apartment Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 4 years ago,

User Stats

135
Posts
97
Votes
John Blanton
  • Investor
  • Apex, NC
97
Votes |
135
Posts

Underwriting assumptions Refi in 5 years I/O terms

John Blanton
  • Investor
  • Apex, NC
Posted

Currently looking at an investment as an LP and the sponsor is assuming a refi at the end of year 5 with a I/O term of 36 months.

To me this feels like they are doing that to juice the returns in the pro forma and errs on the side of being too aggressive. But I also am not an expert in I/O lengths lenders have given in recent history (last 10-15 years)

Do you feel the 36 months of I/O in five years is realistic or aggressive?

Knowing that is a loaded question, can anyone share insight as to what the historical I/O term lengths for agency and conduit lenders?

Loading replies...