Just curious, how do you guys pull out accrued equity in a commercial real estate or multifamily (greater than 5 units) property? From what I can gather, HELOCs on these types of properties are rare. Cash out refinance would be another possibility but is there not a prepayment penalty in the first 5 years of a commercial loan?
@Nitanth Vangala You'll find many lenders willing to offer cash out refinances on 5 + multifamily and commercial properties although you are correct these will have prepayment penalties. Typically, you'll see yield maintenance, 5 year stepdowns or sometimes, for an upward pricing adjustment, you can find a 3 year step down. (3,2,1).