It’s what I’ve heard from commercial lenders and also from a few horror stories.
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All makes sense. Which is why I said “if the terms are right…”.
If a seller is willing to carry paper AND the terms are equal to or better than what is available in the open market, there is no downside. And the thing is, in many commercial lending markets there have been many time periods where there simply was no such thing as fully amortized loans. They were all due in 3-10 years. I believe, with only minor exception, that is still the case today pretty much across the board. The markets I’ve been most in touch with over the last 6 months, which is big apartments and public storage (and to a lesser extent office buildings), I know thats the case. Ten years is about the best available, and sometimes that’s hard to find. Same is true even if it’s commercial owner-occupied, unless the SBA is involved.
