Commercial Loan Terms

[Denise Cook]

Hi All,

I am considering buying my next investment property under an LLC to protect my personal assets. I understand that commercial loan terms are typically shorter than those of consumer loans. The maximum commercial loan term I've come across is 20-years. Are there any lenders offering commercial loans with terms of 25 to 30-years?

Thanks!

Denise

[Jessica Zolotorofe]

Hi Denise Cook There are lenders that offer 30, but they're typically on properties with very long term national tenant leases. 10 or 20 isn't bad if there is no prepay penalty and you can refi any time. Also, I prefer with commercial to get a loan that amortizes based on 30 yr schedule so you pay less now and refinance the balloon at the end. Keeps costs down while you're getting started and most commercial lenders are ok with it. Good luck!