Benefits of Interest Only Periods in Commercial Real Estate Loans 1 of 2

So is interest only, period, a benefit to the buyer or something that bank asks for? Oh, it's a great question. It's a definite, it's a definite benefit to the buyer. And the reason is, is because when we first buy a property, say it's a, you know, value add property, which term sometimes can be used loosely. I view value add as truly going in a distressed property or property that needs work renovating and pushing value. Right. And if I have two years of interest only payments, then my debt service is going to be less for those two years, which allows me breathing room to renovate the property. So if I can get a three year interest only, then that money is I'm only paying interest. And then the money that means more money line to the asset.