Cash-Out Refinancing -- Commercial Property

7 Replies

Hello All.

I own a 3-family residential house in Medford, MA that has a Commercial Unit attached. The Commercial unit is currently being rented out as a Convenience Store. The mortgage on the property is paid off and there is just a small HELOC. The building is fully rented and has amazing cash flow. The most recent appraisal is around $1.2mm. I am looking to do a $400k cash out re-fi, but am having trouble finding a lender due to the commercial aspect.

Does anyone know of any lenders or regional banks in the area that you have used in the past that you think may be a good idea?

Thanks in advance for your help!

Paul

@Paul F Russo , do you own it in your own name or an LLC. I would think a refi at 1/3 the value shouldnt be an issue at all if its in an LLC. Just get a commercial mortgage. Any small local bank would most likely be willing to do that. Good luck.

@Paul F Russo because of the commercial influence, you wont be able to get residential financing (typical fannie 30yr fixed type of financing).  You'll be looking at a commercial loan, which will have varying terms based on what lender funds it.  With strong cashflow and a low loan to value it shouldnt be too difficult.  But if you would like my help to find a lender for you just let me know. 

Originally posted by @Paul F Russo :

Hello All.

I own a 3-family residential house in Medford, MA that has a Commercial Unit attached. The Commercial unit is currently being rented out as a Convenience Store. The mortgage on the property is paid off and there is just a small HELOC. The building is fully rented and has amazing cash flow. The most recent appraisal is around $1.2mm. I am looking to do a $400k cash out re-fi, but am having trouble finding a lender due to the commercial aspect.

Does anyone know of any lenders or regional banks in the area that you have used in the past that you think may be a good idea?

Thanks in advance for your help!

Paul

 This is a very simple scenario based on the information that you're providing.  As long as the property is cash flowing and shows this on the books you should be fine.  It looks like you're a CPA so i'm sure you have rents etc documented.

FHLMC ( Freedie Mac ) has a huge presence in the commercial game and rates and terms are actually very similar to 1 - 4 unit residential pricing.

Make sure you do your home work and find a broker or loan officer that has knowledge and the tools to help you get this done right the first time.

I hope this helps and have a great day Sir.