Coming out of deferment

[Nick Maly]

Hello, figured I have a valid inquiry and time to jump in. I have several loans on our various properties.

I decided to put 2 in deferment for a few months due to coivd.

Now, I'm ready to move on.

The root of my question is that I will be doing a 1031 exchange on one and want to look ahead and be in the best shape to get a new loan.

I have the cash to just pay up all missed month's. This is the cleanest option as it as if nothing ever happened. Downside, takes away cash. (Yes, I 100% known I need to pay back at some point no matter what.)

I've thought about holding the cash on hand and being in a position to exchange into an even larger next property (or really, to have max flexibility with extra cash around).

The banks will push off the repayment with the missed payments held in a second account due later.

My biggest concern is; will banks look at these deferments negatively? IE higher rates or lower LTV?

Basically, is my cash better to square up with the banks or have more cash on hand?

Let's say it is 50k, if I have to put an alextra 5k down due to this 'blackmark'- then I'd rather just settle up. However, if I could but a bigger next deal, this added 50k could say spit off 5k/yr (simple 10% cash on cash estimate) and allow me to find deals upto 200k larger (assume 75 ltv)

Assumptions: I've done several transactions and 1031 exchanges and have good financials otherwise.

Bankers: if I was current and am now current with over 3 months of being current, does this extra added account cause a blackmark on future loans?

Thanks,

Nick