Commercial property loan
Danny MuroPro Member
Member since 2023 · 23 posts · 14 votesHii! My name is Danny out of California, I was wondering if anyone can give me advice on a loan hope to get . I own a triplex and two house but they are on one lot and are considered "commercial" in California. Anything over 4 properties on one lot is commercial. Im hoping to pull some cash out to reinvest. I can't get a HELOC Loan but I was hoping someone can give me advice or can direct me to the right place to find the loan I need . I'm hoping I can find one that doesn't require 30% down .if anyone can help I would really appreciate it . Thank you
Danny m.
That's commercial territory since you've got 5+ units on one lot, so residential lenders and HELOCs are off the table. What you want is a commercial cash-out refi through a local bank or credit union, ask for their commercial lending desk specifically. Most will lend up to 70-75% of the appraised value on a stabilized property so if there's solid equity in there you should be able to pull cash without bringing anything to the table. The 30% you're running into is probably a purchase requirement, cash-out on something you already own is a different conversation.
Hii! My name is Danny out of California, I was wondering if anyone can give me advice on a loan hope to get . I own a triplex and two house but they are on one lot and are considered "commercial" in California. Anything over 4 properties on one lot is commercial. Im hoping to pull some cash out to reinvest. I can't get a HELOC Loan but I was hoping someone can give me advice or can direct me to the right place to find the loan I need . I'm hoping I can find one that doesn't require 30% down .if anyone can help I would really appreciate it . Thank you
Danny m.
@Danny Muro Have you talked with any local community banks or credit unions? They may only require 25% down.
That's commercial territory since you've got 5+ units on one lot, so residential lenders and HELOCs are off the table. What you want is a commercial cash-out refi through a local bank or credit union, ask for their commercial lending desk specifically. Most will lend up to 70-75% of the appraised value on a stabilized property so if there's solid equity in there you should be able to pull cash without bringing anything to the table. The 30% you're running into is probably a purchase requirement, cash-out on something you already own is a different conversation.
That's commercial territory since you've got 5+ units on one lot, so residential lenders and HELOCs are off the table. What you want is a commercial cash-out refi through a local bank or credit union, ask for their commercial lending desk specifically. Most will lend up to 70-75% of the appraised value on a stabilized property so if there's solid equity in there you should be able to pull cash without bringing anything to the table. The 30% you're running into is probably a purchase requirement, cash-out on something you already own is a different conversation.
Thanks for your response. I hide look into the Cash out refi although o don’t want to cash out that much money at the moment. I just want a small loan to reinvest in my business and also a small amount of cash 10k to put Down on a seller financed home . I’ve been working a on deal but just need the money to close . I heard about a line of credit or business loan . I just don’t know to much about them .
If the triplex and the two houses are all on one lot and the lender treats it as a commercial property, that’s pretty normal. Once properties are structured like that, most banks stop offering residential products like HELOCs and it moves into the commercial loan world.
In situations like yours, investors usually look at either a commercial cash-out refinance or a DSCR loan. Those loans focus more on the income the property produces rather than your personal debt-to-income ratio, which is why they're commonly used for rental portfolios.
The main thing the lender will look at is whether the rents support the new loan payment (the DSCR). In simple terms, if the property's income comfortably covers the mortgage payment, it usually qualifies.
A few things that might help you set expectations:
- Most lenders will allow around 75% loan-to-value on a cash-out refinance, meaning you need roughly 25% equity in the property.
- Qualification is largely based on rent income and the property’s value, not W-2 income.
- Credit still matters, but the property performance usually drives the approval.
If the property has decent rents and enough equity, there’s a good chance you can pull cash out without selling it and redeploy that capital into another deal.
Business LOC or unsecured business loans are outside my wheelhouse, I'm on the mortgage side. But for $10k, you might be overcomplicating it. If you have decent personal credit you can probably get a personal LOC or credit card for that amount without tying it to the property at all. For the seller finance deal specifically, a lot of folks just use credit cards or personal LOCs for the down payment when it's a small amount like that. If the commercial property has real equity and you end up wanting to tap more later, the cash-out refi I mentioned is still your best bet on the real estate side, but you don't need to pull a huge amount if you don't want to.
Hello Danny,
Thank you for reaching out—great question, and you’re definitely not alone in this situation.
Since your property is classified as commercial (5+ units on one lot), traditional residential options like HELOCs typically won’t apply. The good news is, there are still several strong financing options available to help you pull cash out and reinvest:
1. DSCR (Debt Service Coverage Ratio) Loans
This is one of the most common and investor-friendly solutions for your scenario. DSCR loans qualify you based on the property’s rental income—not your personal income.
2. Commercial Cash-Out Refinance
You can refinance your current property and pull equity out, but lenders will focus heavily on:
3. Bridge / Private Money Loans
If speed or flexibility is important, private lenders can:
Important to Know
How We Can Help
At Atlanta Private Money Group, we specialize in helping investors like you:
If you’d like, we can take a quick look at your property details (value, rents, loan balance) and point you toward the best loan option with the least amount down/equity required.
Looking forward to helping you,
Atlanta Private Money Group
https://atlantaprivatemoneygroup1.media
Hii! My name is Danny out of California, I was wondering if anyone can give me advice on a loan hope to get . I own a triplex and two house but they are on one lot and are considered "commercial" in California. Anything over 4 properties on one lot is commercial. Im hoping to pull some cash out to reinvest. I can't get a HELOC Loan but I was hoping someone can give me advice or can direct me to the right place to find the loan I need . I'm hoping I can find one that doesn't require 30% down .if anyone can help I would really appreciate it . Thank you
Danny m.
Hi Danny,
I’ve seen the amount you’re looking to pull out, and this is definitely something we work with.
I'm a private lender, and given the way your property is structured (triplex + additional units on one lot), there are still solid options available, even outside of traditional HELOC routes, and often without the typical 30% down requirement.
Happy to walk you through what this could look like and explore the best structure for your situation.
Send me a message if you’re still interested in moving forward 👍