Wayne Courreges IIIManaging Principal, CREI Partners, CREI Partners, CREI Partners, LLC · Disciplined Passive Real Estate. Transparent Leadership.

Benefits of Interest Only Periods in Commercial Real Estate Loans 2 of 2

Name: Benefits of Interest Only Periods in Commercial Real Estate Loans 2 of 2
Uploaded: 2023-09-15T00:02:29+00:00
Duration: 44 s
Channel: Wayne Courreges III
Description: A short excerpt from a YouTube video by Wayne Courreges III, CPM® explaining the benefits of interest-only (IO) periods in commercial real estate loans…

15 Sept 2023 · 1 min

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0:44

A short excerpt from a YouTube video by Wayne Courreges III, CPM® explaining the benefits of interest-only (IO) periods in commercial real estate loans. The speaker notes IO is common and negotiable — often 1–2 years for bridge loans and Fannie/Freddie financing — and gives an example of an RV/boat storage development requesting 24 months of IO so renovations and construction can finish while distributions to investors continue.

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And once the renovations are done, that means more distributions to our investors. So we like the interest only. Absolutely. What we typically see in today's market is maybe 1, 2 years of IO and then you'll start seeing principal and interest having to be paid typically again for bridge loans and even Fannie Freddie. You typically see a two year, two year loan or two year interest only. It's on negotiable. And what's going on in the marketplace? We've got an RV boat storage facility. We'll have 24 months of interest only. It allows us to get the property developed and complete and only have to worry about the interest only instead of interest and principal.