All Forum Posts by: Jason Kim

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

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

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

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