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All Forum Posts by: Jason Kim

Jason Kim has started 3 posts and replied 5 times.

Post: Possible to refinance balloon payment early?

Jason KimPosted
  • Posts 5
  • Votes 0
Originally posted by @Daniel Federico:

@Jason Kim

What type of pre payment structure is associated with the current loan you have?

 This is just a conceptual question, not one tied to an actual loan I carry. 

Post: Possible to refinance balloon payment early?

Jason KimPosted
  • Posts 5
  • Votes 0
Originally posted by @Jaysen Medhurst:

@Jason Kim, I assume you're referring to commercial loan? I thought residential loans couldn't have balloon payments any longer.

It's possible to refinance early. A commercial loan may have a pre-payment penalty attached. The biggest drivers are interest rates and if you need to tap into equity.

If you think interest rates are going to stay steady or decline and you aren't trying to get at some equity, there's really no reason not to wait the year.

 Yes I'm referring to a commercial loan. Do you know what a typical penalty would be?

Post: Possible to refinance balloon payment early?

Jason KimPosted
  • Posts 5
  • Votes 0

For example, lets say the original bank loan has the balloon payment due in one year from today.

Would it be possible or prudent in some cases to refinance the loan immediately rather then wait for the balloon payment date to arrive? 

Wondering if my partner and I both sign on for a commercial loan for our LLC, is our stated income / credit score considered in the provisions of the loan agreement? If so, how are they weighted/calculated?

Thanks and best

Post: LLC or no LLC for partnership?

Jason KimPosted
  • Posts 5
  • Votes 0

Several weeks ago a friend of mine and I decided to begin our real estate journey.

What are the pros and cons associated with the following paths towards securing financing? 

1. Incorporating as an LLC and attempt to get a commercial loan at the slightly higher rate

2. Individually getting conventional loans or FHA loans (this is a viable option for us as we live in a duplex that is half owned by my partner) and hoping that if we do decide to incorporate at some point in the future and hope that due on sale doesn't bite us in rear.

I've seen a lot of opinions on this website about the pros and cons of incorperating as an LLC or not when starting out and I was hoping to get some more clarity on the position in relation to a partnership between two people.

Thanks and best