Members National Association of Realtors®
International Commercial Realtors Network
Visit our website >> Commercial Real Estate
International Commercial Realtors Network
Visit our website >> Commercial Real Estate
We provide global brokerage, property management, and commercial real estate services.
Glossary of Terms
Bullet Loan - Any short-term, generally five to seven years, financing option that requires a balloon payment at the end of the term and anticipates that the loan will be refinanced in order to meet the balloon payment obligation. Essentially, should the refinancing not be available, often due to the property not performing as anticipated, the borrower is "shot" and the property is subject to foreclosure. An example of this is when a developer borrows to cover the costs of construction and carry-costs for a new building with the expectation that it would be replaced by long-term (or "permanent") financing provided by an institutional investor once most of risk involved in construction and lease-up had been overcome resulting in an income-producing property.
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