Balloon Payments on Creative Deals

[Heidi Christensen]

How are you navigating balloon payments on creative finance deals in 2025? Refinancing, extending, or something else?

[Jay Hurst]

Quote from @Heidi Christensen:

How are you navigating balloon payments on creative finance deals in 2025? Refinancing, extending, or something else?

If you are a lender or a borrower, you better have a out plan on a balloon loan, BEFORE you close on the loan.  I have borrowers tell me all the time they only need money for some short period of time, but then when pressed they have only a half baked plan to get out of the short term note.   We do a lot  of short term buy before you sell loans on the consumer side and underwrite every deal based on the take out plan. if they take out plan is not solid we do not do they deal. This is of course to protect us, but the borrower as well.