Real Estate Investor · Boca Raton, FL · Member since 2013 · 42 posts · 23 votes
I'm in the process of refinancing a multifamily property of mine in Fort Myers, Florida and I'd like to listing the property on Loopnet at the same time. Wondering if anyone out there in the commercial mortgage market can let me know if this is a no no.
I do know that in the residential market, listing your property on the MLS will more than likely kill your refinance. I don't plan on listing the property on the MLS...just Loopnet.
Any thoughts from the finance crowd would be appreciated.
Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
5y
@Frank Chirkinian, I am more confused as to why? Do you think you the property will take a while to sell? Is your mortgage coming due?
The refi will cost you money, and many commercial loans have prepayment penalties, so why refi and spend the money just to turn around and sell the asset anyways?
Specialist · Crossville, TN · Member since 2018 · 73 posts · 27 votes
5y
@Frank Chirkinian hey Frank I actually did a refinance about 6 months ago on a multi family ( 4 units ) and then put it in the MLS about three months later. I had no problem at all because my local bank was aware of the transaction. My loan was a portfolio loan from my local bank that I use for everything so maybe this had something to do with me not having issues. I would not imagine that putting it on loopnet would cause any problems if you are in good with your lender.
Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
5y
@Frank Chirkinian, I am more confused as to why? Do you think you the property will take a while to sell? Is your mortgage coming due?
The refi will cost you money, and many commercial loans have prepayment penalties, so why refi and spend the money just to turn around and sell the asset anyways?
Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
5y
"I'm in the process of refinancing a multifamily property of mine in Fort Myers, Florida and I'd like to listing the property on Loopnet at the same time. Wondering if anyone out there in the commercial mortgage market can let me know if this is a no no."
Not getting why you want to pay the fees for a re-fi since 90% odds a buyer will just do their own financing?
Real Estate Broker · FL · Member since 2018 · 149 posts · 96 votes
5y
Hello Frank,
Great question. My preference is to always work with my lender to get their okay. Before refinancing, ask them how the process of getting approved once and ask if having it on LoopNet would have any effect. But I do agree with most comments as to why refinance just before selling. You would essentially pay double the closing costs.
Real Estate Investor · Boca Raton, FL · Member since 2013 · 42 posts · 23 votes
5y
Hey thanks all for the responses. I've been out of town and not checking biggerpockets or I would have responded earlier. The main reason I'm looking to refi the property ahead of selling it is this window we're in looks like an opportunity to get a great price for the property. At that same time, we're in a great time to finance the property. Soooo, my thought it refi the property while attempting the find the right buyer, which may take a bit longer than the refi process. The right buyer who is willing to pay the right price will more than make up for the $14k it's going to cost to refi the property. If I don't find the right buyer, then I'm still in a good situation having refied.
Also, there's the possibility of getting another wave of another COVID strain hitting us, and with my limited ability to find local banks to refi the property (and since this is a loan under $1 million, small community banks are the only ones that will lend), I don't want to lose the opportunity to refi now before that window possibly closes as it did 8 months ago.