EPISODE · Jul 3, 2017 · 6 MIN
ASK MIKE MONDAYS - Interest Only Needed? What you should expect
from Old Capital Real Estate Investing Podcast with Michael Becker & Paul Peebles
Interest only can certainly help the cash-on-cash returns on your investment. If you are purchasing a broken property- deferred maintenance, bad management, bad occupancy; you need some type of payment relief during times of weak cash flow. Having an interest only period during the renovation is certainly typical for a BRIDGE type of loan. Banks typically don't like to do lots of interest only…because the bank regulators don't like interest only. Most community banks on bridge loans will only do 6-18 months of interest only during the rehab…then it will modify into a principal and interest payment.
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ASK MIKE MONDAYS - Interest Only Needed? What you should expect
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