Commercial refinancing may seem complicated at first glance. Here at Stonebriar Mortgage, we strive to make it as easy as possible. In this week’s blog post, we are here to help you understand how to make the right choice when you refinance. Refinancing is a crucial step to accomplishing the financial goals of small businesses and real estate investors. Our team is here to discuss commercial mortgage refinancing options and programs available in California and Dallas, Texas.
Using Commercial Refinancing Programs
Many owners face ballooning commercial loan rates, especially after the mortgage crisis earlier this decade. These borrowers are often asked to pay a large sum in a short amount of time. For this reason, they need to refinance quickly or gain fast access to cash. You can even refinance one property to pay off a ballooning rate on another. Obtain a statement from your lender of the ballooning rate and submit it as a deal to broker the best option.
Refinancing Tips and Tricks for Commercial Loans
You will need to demonstrate what collateral you have to obtain financing for your deal. Obtain details on the type of property, its location, its size, and its value. Rent rolls will also be requested if your building has a lot of tenants. Speak to the lender and obtain exactly what they need in order to approve your refinancing. By making things easier for the lender, you’ll ensure the process is faster and more favorable.
Cash-Out Refinancing for A Commercial Loan
Cash-out refinancing is a type of loan used by commercial borrowers. Many have great reasons to use this system. Some use the cash to pay off other debts and begin to consolidate their mortgages. Be sure to be clear exactly how much money you need. Your cash may come from borrowing against the equity that is currently in another property.
When using cash out refinancing, you are essentially borrowing money you already paid, including interest. However, in some situations it makes the most sense to create cash flow from what you have already invested. For example, if you are using the funds to purchase a second property. If this is something you’re considering, be sure to include the agreement of sale. In other situations, the cash can help you make needed repairs to an existing property. Be sure you have detailed cost estimates to submit with your refinancing package.
Many Great Ways to Use Commercial Refinancing
Other commercial borrowers use refinancing to generate working capital for another business. Perhaps you have a great investment opportunity in front of you and need access to the cash quickly. Whatever your reason, Stonebriar Mortgage is here to help. Take advantage of the great commercial refinancing options available today in California and Dallas Texas.