Tom and Nick Karadza are real estate professionals that are focused on helping real estate investors in the Greater Toronto and Golden Horseshoe areas create income to live life on their terms. They are active real estate investors and in 2008 they launched Rock Star Real Estate Inc., a Canadian real estate brokerage focused exclusively on real estate investments. Together with their team of professionals based in Oakville, ON, Tom and Nick have worked with investors to help acquire over 2 Billion dollars of investment in real estate and implement profitable investing strategies across southern Ontario.
Hey Tom, Nick and the RS Team! A BIG CONGRATS on moving into your OWN space soon! That's fantastic! The space looks awesome and I look forward to my next trip to Toronto (and nearby) to come for a visit!
I am a little confused by your Commercial financing topic of payments changing and the payments being larger at the beginning and then getting smaller over time. We haven't ever had this issue (unless I misunderstood you) on our commercial properties (no residential component). They were regular 25 year amortization at X % rate and the payments have stayed the same for years (unless we refinanced them to pull out equity...which we did to re-invest in other commercial properties!). Is this more an issue on your side because your are doing construction financing? Because that's a whole different thing. Actor Dave needs to know more! : )
Cheers and keep on being AMAZING!
Dave!
Figures a Canadian actor living his dream in L.A. would be the one to point this out!
Your real estate expertise is still strong!! 🙂
And you're right of course, I should have been much more specific and explained that you can get "regular" style repayment structures but we chose not to.
Here's the breakdown that we got back via email from our commercial mortgage contact...and we went with "straight line" b/c of course we hate fixing our rates! With the straight line structure our payments are front loaded pretty heavily.
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It all depends on the loan repayment structure. Typically they fall into one of the following 2:
Straight line:
- principal payment same every month over life of loan
- interest payment fluctuates monthly depending on # of days in months and interest rate (if on floating rate)
- this repayment option is typically only available to floating interest rate
- total month payment (cash flow) requirement is typically higher
- total interest cost over life of loan is lesser than blended repayment (see below)
Blended repayment:
- typically fixed interest rate chosen on specific term
- fixed monthly payment over the interest rate term (ie, 5 years)
- better cash flow management
- total interest cost higher than above option as more payment applied to interest at early stage of loan
- Tom