There will also be a loan documentation fee of $300 due at closing.Prepayment Fee: During the Permanent Period, any portion of the Loan which is prepaid will be subject to a prepayment penalty as calculated below: During first year of loan term 5% During second year of loan term 4% During third year of loan term 3% During fourth year of loan term 2% During the fifth year of loan term 1% Please note the prepayment penalty will not be enforced if the property is sold through an arms length contract.Loan Cost: The cost of the Loan, including, but not limited to, insurance, document preparation, attorney fees and filing fees, will be borne by the BorrowerHazard Insurance: Required on all insurable collateral. 

During lease negotiations a prospective commercial tenant has suggested that in year 2 ( two ) they would be willing to prepay the full year but would like a discount for doing so.

What is the industry norm, as far a...

Tell you what though if you fell a little shady, make that purchase with a major credit card instead of a debit or cash or whatever.

LOCs are great and use just like cash for the most part, my bank even has a debit card for the LOC which makes purchases from vendors or HD easy.

Debits and credits are made for each party, then funds are disbursed, the trans/lender gets their money back plus any fees earned.

At closing:Debit new property basis $12,000 Credit cash $11,000 Credit AP-Property Taxes $1,000Tax installment #1:Debit AP-Property Taxes $750 Credit cash $750Tax installment #2:Debit AP-Property Taxes $250Debit Property Tax Exp (sched. e) $500 Credit cash $750

I also recommend you have your buyer bring a 1 year pre-paid insurance policy to the closing table which would replace the existing insurance.

This is paid back to my IRA including the interest earned and is directly debited from my paycheck.If option #2 makes sense, it is just a matter of calling your IRA vendor and having the discussion with them.

To "protect the tenants", the maximum deposit amount a landlord can charge is two months of rent where a prepaid rent is considered deposit.

(Automatically recurring payments via checking/credit/debit, and the ability to add extra charges when needed.)