Making a Case for Commercial Mortgage Cash-Out

By: Zack North

Cash-Out Realities in today’s market

The cash-out refinance is a common tactic for investors and business owners who want to tap into the equity they have in a commercial property.

It’s a smart option for anyone looking to improve their property or those who need cash to make another investment.  Unfortunately, it isn’t always easy for borrowers to get access to their equity.

That’s because banks and other traditional lenders typically cap the amount of cash borrowers are able to take out of their existing mortgage.  Lenders are also likely to limit the ways in which this cash can be used.  As a result, borrowers are often unable to achieve their original goal for the transaction.

 A Commercial Direct solution in Boston, Massachusetts

An investor in Massachusetts recently faced this exact issue.   As the owner of a retail center in Boston, this borrower had equity in the property that they wanted to access.  Their request: a $1,500,000 loan that included a significant amount of cash-out.  The problem: the investor’s local bank was not comfortable providing the amount of cash-out requested.

That’s when the investor took their loan request to Commercial Direct.  Our loan programs do not limit cash-outs in the same way that most banks do, meaning borrowers are able to enjoy greater flexibility during the refinance process.

As an added bonus, our team of mortgage experts was also able to approve this investor without seeing tax return documentation.  When borrowers work with Commercial Direct, they have the ability to choose between loan programs with varying levels of documentation requirements.  For investors who struggle to produce tax return documentation, this can make a huge difference in when it comes to the loan approval process.

Looking for a more flexible cash-out refinance solution?

If you’re struggling to secure the type of solution your business or investment strategy requires, it could be time to try Commercial Direct.

Simply visit our Refinance page to learn more about our solutions.  From there, you can leave some basic information regarding your specific needs.  One of our mortgage experts will then reach out and provide some quick next steps to help you get the cash-out you need.

Author: Zack North

Zack North is the Director of Marketing for Commercial Direct.  As a regular contributor to a number of top industry publications, Zack enjoys writing about topics that help investors and business owners approach commercial mortgage financing with confidence.

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