Refinancing apartment complex (10-20unit)
Looking for advice/suggestions. I currently have loan with a bank on my small apartment complex. I've owned it for a year now, I am wanting to refinance and cash out. I have good relations with my existing bank, is it a good idea to ask your existing lender that you are interested in doing a cash out refinance? Pros/cons?
Yea, It is fine to ask current lender. It won't make him accelerate or demand repayment immediately if that is what you are thinking. However see what terms you have, perhaps you have to pay a point if you do it this early.
Happy to give you some quotes down the line if you want.
Quote from @Sean Ross:
Yea, It is fine to ask current lender. It won't make him accelerate or demand repayment immediately if that is what you are thinking. However see what terms you have, perhaps you have to pay a point if you do it this early.
Happy to give you some quotes down the line if you want.
-Sean
Parkimagesolutions.com
Thanks, that is good advice.
Quote from @Joseph Harris III:
If your current lender will not refinance, I have a
lender that may do a cash out refinance. I am a private money broker.
Thanks will keep that in mind..
Quote from @Sasha Mohammed:
freddie has small balance commercial with really competitive rates right now. these loan types will compete with banks, last update i saw was low-4s, and depending on the area, you may qualify for "affordability" discounts which can reduce the rate.
If you don't want to jump through the hoops of a full-doc commercial loan, you can also do DSCR financing. @Alex Bekeza would be my suggested contact for a no-tax-return-no-income-verification cash-out on this one.
Either way, compare options, crunch numbers. doesn't hurt to ask your existing institution, but you might find either a) a better rate elsewhere, or b) a better fit for your needs elsewhere.
Awesome, thanks Sasha.
Hi Amir: In my experience it is important to develop a relationship with your banking or financing relationship. I would definitely speak with your bank about your real estate goals and see how they can help you. If your goals is to create operating capital to acquire additional properties, you should let them know that.
If your current mortgage is advantageous, I would be reluctant to refinance it. Rates are rising and the refinance could be at a higher interest rate. Maybe, your lender can give you a business line of credit, allowing you to have the capital you need without refinancing your existing mortgage. If you are going to refinance your existing mortgage than banks and credit unions will have the most competitive rates. Some of the funding companies who are comfortable in the multi unit greater than 8 space will be competitive. But they are likely to be at least 2 percent over the banks rate. Banks usually will not be fixed rates and will not extend past a 20 or 25 year amortization. Where some funding companies will go 30 years fixed on small cap commercial.
I have always ascribed to the idea that you should have a relationship with independent mortgage broker who is familiar with all of your options and can consult with you on your goals and help achieve them. Good luck.
Quote from @Steven Goldman:
Hi Amir: In my experience it is important to develop a relationship with your banking or financing relationship. I would definitely speak with your bank about your real estate goals and see how they can help you. If your goals is to create operating capital to acquire additional properties, you should let them know that.
If your current mortgage is advantageous, I would be reluctant to refinance it. Rates are rising and the refinance could be at a higher interest rate. Maybe, your lender can give you a business line of credit, allowing you to have the capital you need without refinancing your existing mortgage. If you are going to refinance your existing mortgage than banks and credit unions will have the most competitive rates. Some of the funding companies who are comfortable in the multi unit greater than 8 space will be competitive. But they are likely to be at least 2 percent over the banks rate. Banks usually will not be fixed rates and will not extend past a 20 or 25 year amortization. Where some funding companies will go 30 years fixed on small cap commercial.
I have always ascribed to the idea that you should have a relationship with independent mortgage broker who is familiar with all of your options and can consult with you on your goals and help achieve them. Good luck.
Thanks Steven, currently the mortgage is with a bank.