I would like to borrow a sum of money whereby I pay the interest monthly or quarterly, and pay the full principle back at maturity along with the final interest payment.
For example, a 5% monthly-pay $100K loan for 5 years would be paid back as follows: 60 $416.67 monthly interest payments, plus the return of $100K on the 60th month.
Do the above terms (forgetting the interest rate) exist anywhere? If so, where?
BTW, this payment scheme is how a typical fixed-rate bullet bond contractually pays.
I don't know specifically about a 5 year term but interest only loans are common in this business. You just have to find the right lender. Or perhaps the right kind of lender, a hard money lender would be more likely to do an interest only loan but won't like the 5 year term.
Private lender IRA money is available but you need to recruit it. And it takes time and it's not easy. I keep saying this over and over, you should be looking for motivated sellers and private lender money all day long. Getting Cash Buyers and owner financing Buyers is not that hard.
Without private lender money and joint venture money you really can't do real estate
Google "TRUST.ETC private lender concept"
Buy the book by Patrick Rice on Amazon called "iRA Wealth"
Center of influence marketing works well, I hand that book to CPAs and financial planners
You can use that book to create a PowerPoint presentation
Be careful of SEC rules on marketing a security
One my favorite sayings is,
"don't diversify your investments and Wall Street,
diversify by having some money in Wall Street and some money in Main Street,
do you want something crazy issue in China or the price of oil to drop your mutual funds by 20%?
You won't get those swings on Main Street Real Estate"
Yes, it is available, and yes, you can even get a five year term. It just depends on what type of deal you are doing and then matching the right lender to the deal.
As an example, I borrow money all the time from private individuals for houses I'm fixing up and reselling. I've done it several hundred times, borrowing between $80K and $800K usually for terms up to two years with interest only payments and the balance due upon sale.
For a portfolio of rental homes I borrowed over $4 million from a private equity firm that specializes in lending to owners of portfolios. I have interest only payments and the balance is due in full in five years (I'll sell them all before then).
For an apartment complex, I borrowed over $10 million from a REIT with interest only payments and the balance due in three years but I can extend as long as five years. I'll refinance into a permanent loan before it comes due.
For a self storage I borrowed on interest only terms from a commercial private money lender with five year interest only terms. I am in the process of refinancing that with a local bank right now and will have an amortizing loan once the refi is complete.
So as you can see, it can be done...but as you can also see there are a variety of sources out there and you have to find the right match. Don't try to fit a square peg in a round hole by looking for residential lenders to finance a commercial property and don't try to get a REIT to fund your flips. Shop around, but target your shopping to lenders that are targeting your strategy.