Commercial loan advice
this may be a stupid question, but is there any way to take out equity in a commercial property without doing a refi?
I developed the land, built a warehouse, leased it up with a 5 year tenant, and currently have an NOI of 234k annually. My cost basis is at 2.1 mil and at a conservative cap rate for my area would be a 6.7%. Therefore, I have close to 1.4 of equity in the property. I have a great rate of 3.95% with the bank that wont mature for another 5 years or so.
Is there any way to get the equity out of the property without doing a refi? I am assuming I would lose the great loan rate and go up to 6.5%, likely more. I really dont want to sell the building, but it would be nice to get the equity out to built my portfolio. Suggestions??
We don't offer this, but I can broker your request to a colleague that offers second liens. DM me your contact and more particulars.
Here to help.
@Derek Bell Sent PM
@Derek Bell With having that much equity in the property, you could do a revolving LOC secured with the commercial property. These typically are only 12 month terms or so, but they are interest only, can be easily renewed & can free up some room without having to do a full cash-out refi. The rate is usually based off of WSJ Prime +/- some variation. Sent you a PM & let me know if you have any questions!
@Derek Bell...just adding my $0.02 to the crowd. You could get a HELOC on the building or you could get a 2nd. I wouldn't touch your first. What are you trying to do with the equity? Go rinse, repeat?
- Jared Rine
