“I’ve been involved in many large real estate loans. What this article intentionally doesn’t point out because it is so busy trying to disparage the REIT...”
Cool to have someone who was (or is) an insider, and I’ll admit that my bias was formed in run-up to 2008 with those INSANE Option ARMs, which should have NEVER been used for residential real-estate, much less for ‘qualifying’ people who didn’t have a prayer in getting a 30 year fixed.
which should have NEVER been used for residential real-estate, much less for ‘qualifying’ people who didn’t have a prayer in getting a 30 year fixed.
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You are exactly correct!
And, 30 years is too long. 15 years makes a higher payment but it effectively is a savings account that you force upon yourself as it will save about half the interest of a 30 year loan.
Most people don’t know it but in LARGE commercial loans “personal liability” is, ordinarily, just not even talked about anymore. The one thing you (the signor on the note) can and likely will be held personally liable for are taxes and also insurance premiums. On a 750 million dollar building, that’s a huge number.