The difference is actually the fight between short term financing vs long term financing …you just can’t beat the fixed rate long term debt vs short term 5 years IO loan only with floating debt.If office sector could have 30yfrm their asset would be stable.

And to @Carlos Ptriawan point about fixed debt, there are are syndicators that are in certain levels of trouble, not because of floating rate debt, but because their loans went from IO to amortizing at exactly the wrong time.  

For example if you borrow 300k at 9.99 with IO payments, your monthly payment would be 2497.50. 

Typically interest only for a couple years, rate a little higher but i/o payment lower.

But is IO product good ?

Hey Gang,So I've been a mortgage broker for several years in the CRE Lending space, and I have capital partners I work with who offer 100% CLTV funding for bridge loans or short term, I/O financing.

Hi @Selina Giarla, great questions.I want to clarify that DSCR loans have 30 year fixed rate options (as well as ARMs, IO, 40 year terms etc.). 

the cap rate for single family in san jose is maybe 1-2% ; DSCR is 0.25 ; but with very creative strategy we can make it into 0.8-1.1 but the key is using more tenants per unit, also home that has basement and ADU like me, the unit can be rented and while my dscr is above 1.0 but banks can't use it so we kinda stuck to leverage but this creativity of multiple tenants per single family.i am now trying 40 year IO program from one of the lenders such as yours to quality, also i will try no-ratio DSCR at some point.Seriously, by combining hefty cash position + flip program + rent out to multiple tenants ; and sell it few years later, this is the less riskiest project we can do as landlord/flipper.

Just industrial, 5 properties, about 140k sq ft and 14 acres of IOS.

I would not want to be 60, 70, or 80 dealing with tenants, if I can help it.For me, I go with those metrics and it often leads to short/medium term financing, amortized for 30, and often I/O.