Page 19 - How To Refi Cashout Your Commercial Property Before The Bank Says....

In closing, a commercial loan from a traditional source is not in the business of

holding these loans on their balance sheet for an extended period of time. The
reason for this is because commercial loans from traditional lenders pose a huge
risk to the internal regulators and shareholders of the bank.

These loans in their eyes are risky, speculative, and high leverage. This is the

reason why they expect you to pay the note off every 5-7 yrs thru a balloon
payment for the full balance which makes it very difficult for you to run your

business.

By structuring these loans this way the bank takes on less risk while putting you
and your investment at risk every 5-7 years to pay off a large loan balance in a
short amount of time. In the event like a 2008, downturn cycle, or merger by

another bank the banks can call these notes due without offering extensions on the
loan.

Without the offering of an extension on the loan your left scrambling trying to find

a refi loan only to be put into another loan with a balloon payment in the future and
the cycle continues.