Short term note, Long term note. Which is better?

[CL Ziegler]

I’m a little conflicted about different borrowing strategies. (this is kindof a follow-up post to my earlier threads on 20% and payoffs)

If it’s better to borrow indefinitely, then why doesn’t EVERYBODY always do 30 year notes, all the time? (referring to landlords here, not flippers)

What is the advantage of a five year commercial loan, if it cost you more with A---higher monthly cash flow, and B---higher interest rates? I don’t get the advantage to doing one of these five year commercial notes, except maybe for wholesalers who are planning to get in and out of the loan quick. But, why would a landlord want to do these? (I am referring to the kind of note that is 60 months but amortized over 30 [sometimes you cover the interest only] then when you hit term it rolls over to be renewed)

In my recent transaction, the lender had options of 15 year and 30 year amortizations, or the 60 month rollover option. (he may have had others but those were the three he presented me with)

Again, if it’s better to borrow over long term, then why would you hurt your own cause by borrowing on a fifteen loan, punishing yourself with and higher payments? (thereby reducing your own cash flow) ......I do not get this.

As always, thanks in advance. You guys are really great. One by one I will track you all down someday to buy you a cup of coffee!