Key takeaways
- Wrong product for asset stage.
- Adjustable rate without exit.
- Balloon without refi plan.
- Single-lender concentration.
- Skipping prepayment terms.
Core concepts
Product mismatch
Bridge for hold; conventional for flip — opposite of right.
Rate mismatch
ARM in rising market without exit.
Term mismatch
5-year balloon on 10-year hold.
Step-by-step framework
- 1Audit current loans against hold periods.
- 2Plan refi for any mismatched loan.
- 3Diversify lender base.
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Common mistakes to avoid
- Picking lender by rate alone.
- Ignoring prepayment penalties.
Frequently asked questions
Worst financing mistake?
Balloon without refi certainty.
Bad PPP?
Yield maintenance — punishing.
Single lender risk?
Concentration if they pull back.
Refinance cost?
1–3% of loan typically.
Action checklist
- ☐Term audit.
- ☐Refi plan.
- ☐PPP reviewed.
- ☐Lender diversified.
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