Anyone else have experience cash out refi a commercial building?

2 Replies

Have a commercial building that was purchased about 4.5 years ago with a private mortgage.  In 6 months the mortgage has a call option if I want to refinance.  The remaining balance is around $70k and the building market value is around $350k.

I would like to cash out refinance to lower monthly payments, lower current interest rate of 8%, extend the term, and leverage the additional equity.  

The commercial building is one of many properties owned in an LLC, however the LLC has claimed a loss for 7 consecutive years. Are there any options for refinancing? Should the property be transferred to my personal name for loan qualification? Which banks or online lenders are a good place to start? Anyone else have experience cash out refinancing a commercial building?

I would recommend you contact a local commercial bank. If this were my market I could get 65 LTV cash out around 5.25 with a 20 year am (or less) and 5 year’s fixed. Try looking for bankers at local banks and build relationships with them. If one turns you down just keep trying. Good luck!

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