Connect the Investor Property Payment With the Full Repayment Obligation

Investors evaluating financing for 1–4 unit non-owner-occupied properties should understand both the scheduled payment and the obligation remaining later. Don McClain, Founder of Medro Advisors, examines repayment structure in his October 8 article. Applied to an investor property, the questions include when payments begin, what can change, how principal is reduced and what the documents require at maturity or early payoff. A planned sale or refinance should be supported by explicit assumptions and a review of potential delays. The discussion provides an educational starting point for evaluating actual terms with the appropriate financing and professional advisers. Related reading: the forthcoming book FUNDED.

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