Nervous about commercial loans for growth

[Dan Bass]

Hello everyone!

I currently have 8 homes and looking to grow my portfolio in the new year as things settle down. I am nervous about taking the next step and wrapping some homes in a commercial loan as I’m betting on inflation down the road with all of the stimulus and there is no way to know where rates will be once it is time to refi the commercial loan again.

I know this is the next step to take, but nervous as I have seen many loans that need to be refi in 3-7 years. That seems to be just outside the Fed timeline of keeping rates low.

Are there lenders that lend for longer periods on a commercial loan so I can let the loan pay down more before refinancing again in just 3-7 years?

Other option I’ve considered is to pay the smaller loans off and let those Cashflow and buy more expensive rentals on 30 year fixed.

Thank you again!

[Stewart Beal]

Hi Dan, many of the local banks in the Ann Arbor area offer 10 year terms, I recently did one with 3.6% interest rate, 10 year term, 20 year amortization.  Go to your local banks first and see what they have to offer you.  They are hungry for deals.