30-year Commercial Money? Yes!
W. Karl Baker, CPA When discussing commercial financing needs with prospective clients, one of the first things we get asked all the time is “What’s the rate?” That depends on a lot of factors, such as property address, the borrower’s credit score, net cash flows from the lease agreement, leverage and a few other factors. We also remind clients that “rate” is important but is not always the most important factor if cash flow is the goal. It’s certainly not the only factor to evaluate. We also are asked, “What’s the term of your notes?” Many people are surprised that it is possible to obtain 30-year commercial money, especially if their only experience is what banks offer. So there’s usually a follow-up question when we tell them about our 30-year fixed rate commercial mortgages: “Is it really FIXED for 30 years, and it’s a commercial note?”, said with some astonishment! Our response is “YES! You really can get a 30-year fixed-rate commercial note!” We advise clients to take a