I currently have 4 commercial properties in escrow with seller finance.
1) Interest Rate: Varies from 6, 7, 7.5, 8.
2) Years Amortized: On large loan amounts 15 years, 20 years. Maybe 30 years but due in 15 or 20 years.
3) Prepayment Penality: 5 years with 6 month's interest due. I have another Seller stated 4% of unpaid balance at time of payoff on initial loan amount of $600,000.
Cheryl the seller is carrying a partial note for you for 30 years? I was thinking that a max. of 3-5 years for a SCB was customary - just long enough for one to refinance. I am attempting to reduce the out of pocket downpayment.
It is called "amortized" for the 10, or 15, 20 or 30 years ... but "due" in then your 3 or 5 years.
If you amortized the loan for only the 3 or 5 years ... otherwise you will have an extremely high payment that would make the income property not profitable.
I currently have 4 commercial properties in escrow with seller finance.
1) Interest Rate: Varies from 6, 7, 7.5, 8.
2) Years Amortized: On large loan amounts 15 years, 20 years. Maybe 30 years but due in 15 or 20 years.
3) Prepayment Penality: 5 years with 6 month's interest due. I have another Seller stated 4% of unpaid balance at time of payoff on initial loan amount of $600,000.
Cheryl Lopez
Cheryl the seller is carrying a partial note for you for 30 years? I was thinking that a max. of 3-5 years for a SCB was customary - just long enough for one to refinance. I am attempting to reduce the out of pocket downpayment.
fmmp
It is called "amortized" for the 10, or 15, 20 or 30 years ... but "due" in then your 3 or 5 years.
If you amortized the loan for only the 3 or 5 years ... otherwise you will have an extremely high payment that would make the income property not profitable.
Cheryl Lopez