If You are Doing a 30 Year, It Really Isn't 30 Years?

So when you're doing like a 30-year, is it not really 30 years? Does it just go to 5 years? 'Cause I've been listening to a lot of like podcasts just trying to learn and all that, that you're gonna get a lot of people that are in trouble, I guess, that overreached. And like, so there should be a few like apartments coming on the market where people have to get rid of them. Is it because like, Is it only— let's— even if you get a 30-year, is it only go to 5 or 7 or 10, or can you get one that's kind of like a mortgage, which would be a 30-year?

You can get fully amortized debt. So you have two things. You have your term, which is your amortization, and then you have the balloon. In commercial debt, your most common debt products are— and there's all sorts of flavors of this, but your most common ones are going to be 3, 5, 7, and 10 years. Those are going to be the most common balloons. The most common amortizations are 25, 30, and 35 years. And you'll see a blend of all of those. There are debt products out there that are exceptions to that. Caleb and I are working right now on a debt product that is— I just got the term sheet today, right before this. It is 5.5% interest, 90% loan-to-value, 35-year amortization, 35-year debt on 80-unit building. which is crazy. Uh, that being said, they're out there. So there's— there are a lot of debt products. Your most common ones though are going to be right now in today's market, they're going to be in the low to mid 6s for interest rate, and they're going to be a 5 to 10 year amortization. Most, most commonly, uh, 25 to 30 year amortization, 5 to 10 year balloon.