Demand Feature on Commercial Loan

[Connor D.]

Hey All,

I recently purchased my first duplex using short-term financing and am now in the process of refinancing into a portfolio loan (as the property is held in an LLC).

I have found pretty favorable terms (4%, 80% LTV, 25-year amort, no balloon, adjustable every 5 years with caps). However, at the closing table, when I received the documents, I was surprised to find that the loan contains a demand feature that allows the lender to call the note due for any reason (not just in an event of default).

Is this common for commercial loans, and do you have any tips for convincing a lender to remove this provision? 

Thanks!

Best,

Connor