Assumable Loans Explained [Pros & Cons] // With interest rates higher than they've been in over 15 years, one of the only ways commercial real estate deals are getting done right now is through existing loan assumptions. In these scenarios, the buyer of the property is able to assume the existing mortgage and takes the place of the seller to service the remaining debt, which can be huge opportunities for buyers to lock in interest rates we haven't seen in over 2 years. However, the interest rate alone doesn't paint the whole picture when it comes to assumable loans, and this video covers some key things to consider when assuming an existing loan, and some of the potential downsides of going this route in today's market environment. 💻 TRAINING & COURSES 💻 Enroll in the FREE Break Into CRE Real Estate Financial Modeling Crash Course here: https://www.breakintocre.com/free-crash-course Enroll in any Break Into CRE course here: https://breakintocre.com/courses/ Get access to all Break Into CRE courses, all models, and additional one-on-one support with a Break Into CRE Academy membership: https://breakintocre.com/the-academy **💰 MY FAVORITE REAL ESTATE INVESTMENT PLATFORMS 💰 EquityMultiple: https://equitymultiple.4drrzr.net/c/2975738/751081/10943 Crowdstreet: https://crowdstreet.4cl7.net/c/2975738/592761/9753 RealtyMogul: https://realtymogul.pxf.io/c/2975738/1008102/13202 ** 📰 MY FAVORITE REAL ESTATE NEWSLETTER 📰 Thesis Driven (20% off a paid subscription): https://www.thesisdriven.com/breakintocre ** 🏬 RESIDENTIAL RENT DATA & ESTIMATES 🏬 RentCast: https://rentcast.io/?via=breakintocre 🕒 Timestamps 🕒 0:00 Introduction 0:53 Defining a Loan Assumption 2:29 Pricing Adjustments & I/O Periods 5:41 An Example 7:22 Fees & Flexibility #realestateinvesting #commercialrealestate *Nothing in this video should be construed as tax, legal, accounting, valuation, or financial advice or recommendation. All information in this video is intended solely for educational purposes, and you are advised to consult with your own personal professional advisors regarding your personal investment decisions. **AFFILIATE DISCLOSURE: Some of the links in this description are affiliate links, meaning, at no additional cost to you, we may earn a commission if you click through and make a purchase and/or create an account. Research and articles referenced in this video: https://www.cbre.com/insights/figures/q4-2023-us-lending-figures https://www.northmarq.com/financing/rates-spreads https://www.wsj.com/real-estate/late-mortgage-payments-pile-up-for-giant-apartment-lender-a2b008d5?mod=real-estate_lead_story https://www.cbre.com/insights/viewpoints/the-office-sector-debt-funding-gap-is-likely-to-increase https://www.marketwatch.com/story/mortgage-rates-rise-to-highest-level-in-two-months-and-may-stay-higher-for-longer-freddie-mac-says-dac5f5f6