This will have a 3/5/7 year balloon and terms get revised. 

In 30 years the balloon payment is due to the seller and that's when the taxes are due.Coupling a monetization loan to an installment sale accomplishes the same thing but puts cash in the sellers hands that can be re-invested.

I of course would need to look for the deals and do letter of intents on properties and find them and they would come with me to the closing table pulling out equity and then getting the cashflow.

@Grant Shipman, I will say, I have not explicitly seen anyone violate these rules (that I know of), but more commonly there are a lot of people who have comfort operating at the margins.I.e. compliance officers/attorneys that stop at the letter of the law may say: "investment manager X, you can advertise your company all you want.  

Their clear incentive is to bet on falling interest rates between now and debt maturity.A small handful of owners are forced to sell due to a looming balloon payment that a refi won't cover, but you're not going to find one of those by driving the market when any commercial broker can just look up properties on that basis and start making calls. 

Call owners directly and send letters/mailers.  

I hope the transparency is helpful to investors.Note: I have received an "Online Defamation" letter from the Blake Capital Group.   

We also sent a letter to CA AG Bonta's office. 

Most of our loans are fully amortized and those that aren't, are 10 year balloons where we'll have more than 50% equity (at the purchase price) upon loan maturity in 2030+. 

@Drew Sygit  has a nice write up on classifications by letter  A B C D F.