I purchased a 6 unit last year that I spent the last year rehabbing and renting out. Based on area cap rate, I believe I increased the value to around 475K from a purchase price of 340K. I was hoping to refi it to get some cash out for another acquisition, but I'm having trouble finding a small bank that will do it?
Does anyone have suggestions?
In Connecticut I have done some cash-out refi's, but never on a commercial property. They were 2 and 3 families.
Maybe someone from CT or MA can chime in with a lender that does cash-out refi's for commercial properties.
@Samson Kay I just tried to do it on one of our properties. Similar situation to yours, we bought it last november at a good price and fixed it up and upped the rents.
What issues did you have? Because mine were the fact its in a LLC with me and my partner. They wanted it under our names only and they would only do it with existing customers. The mortgage is with another bank now. All in all they did not seem interested.
Interested to find out what people are doing as well.
I am one town over in Dracut. I have refinanced deals with Justin at Lowellfive. Tell him I sent you. Paul Donoghue
A. Justin McCarthy III | Assistant Vice President-Construction/ Commercial Lending The Lowell Five Cent Savings Bank | 34 John Street | Lowell, MA 01852
p: 978-441-6417 f: 978-934-0921 | | www.lowellfive.com
I tried with the current mortgage bank on my mixed use commercial after 2 yrs of owning it. They were not interested in refinancing because I borrowed at 80% LTV even though I spent considerable capital and increased rents. I would love to shop around but my current loan has me locked in for 6yrs else I face prepayment penalties.
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