Why Seek the Help of a Real Estate Agent

When you get concerned in commercial real estate, you become caught up in a more complicated method of investing your money. Commercial real estate and commercial Dubai property loans have a lot of “moving parts” and the approach that commercial lenders take is far different from those in residential lending.

In light of this information, the 30 due in 10 would be a terrible loan. It’s likely that such an investor would be ready to sell the property in the 3rd year to take advantage of the 1031 Exchange holding period and provide a stabilized leasing history to a new buyer. He’d only face a 1% pre-payment punishment using the 3/1 ARM, something he could easily factor into his “costs.” The fixed rate loan with its Yield Continuation pre-payment penalty could accurately cost him hundreds of thousands of dollars, depending upon market conditions, when he goes to sell the property. In fact, it would likely contain a “lock out” clause entirely preventing a payoff for up to 4 years. That loan would have to be understood by the new buyer and the difference made up in cash, preventive the potential pool of buyers for that property.