Questions on cashout refi on a 15k sq ft warehouse building

2 Replies


Newbie here - my first post.  

I recently rented my 15,000 sq ft warehouse to a multi-state, A credit tenant. It is only a 1 year lease with renewal options because the tenant does contract work for Duke Energy and does not want a long term lease in case their contracts don't get renewed. I have more than 50% equity in the building due to sweat equity and the fact that it is currently financed on a short term from the seller of the building. It cash flows decently even with an 8 year term but I'd like to get about $125k out (75% LTV) and go to a 15 year term. This would still provide a lower payment than I have currently. I have excellent credit and no debt except real estate. Current rent is $3,850, theoretical value is $370k and I owe $150k with 6.5 years left.

1. What type of prospectus or portfolio documentation should I prepare prior to contacting lenders?

2.  Where can I find a lender willing to work with me even though the tenant has a "short" term lease?

3. Do I have to have another property / deal identified prior to cashing out and tell the lender where the money will be going?  I have several opportunities and would like to just have the money available to move quickly.

Thanks in advance.


@Jonathan Clark I'd recommend calling some local portfolio lenders and run this by them. I think because of the lease term the underwriting will probably lean heavier on your personal finances.

PM me and I can send you some recommendations in the Midlands area. I know of several that you can check in with.