Looking into a commercial loan. How is balloon payment handled?

[Steve S.]

I can work with the higher interest rate and try to find deals that fit the added expense, but if you do a CL on a 20 year amor with a 10 year balloon, how do most people handle this?

1) do they simply save up the case to pay off the loan at 10 years?

2) do they refinance?

- if yes, what are some examples of typical CL refinance terms at 10 years?

3) what other scenarios could be utilized as i would think most people don't typically pay off the CL at 10 years as that would greatly reduce their leverage and ability to do more deals.