Updated over 3 years ago on . Most recent reply
All cash purchase or Financing
Hello All: Just joined BP tonight and am excited to learn and contribute where I can. I have a purchase agreement on a commercial condo with a closing date of July 31st. The purchase price is $500K. I have just enough liquidity to purchase outright but this would leave me a bit tight. I have an option of an SBA 7A loan that could get done in time or just paying cash and then looking for a cash out refi later. The SBA loan has high fees and is prime +2% with a 5-3-1 prepay (not excited about that). A conventional would take longer and I would have to ask for an extension to the close(not sure how this would be accepted). Are there any con’s to doing a cash out refi vs.putting financing in place from initial purchase? Any advice would be appreciated. Thx- Greg