Commercial loan refinance with cash out is becoming the preferred method for rehabilitation projects or for the funding to purchase additional commercial properties. Whether the property is multifamily, retail/shopping center or office building, using a commercial loan refinance to pull cash out is becoming the preferred method of obtaining capital for expansion of real estate portfolios.
Slight economic improvement is causing upward pressure on rates. Savvy real estate investors and real estate asset managers are realizing that now is the time to use an aggressive strategy of commercial loan refinance. Using a commercial loan refinance to cash out equity in the property and to use that liquidity to make additional acquisitions while asset prices are still low is a smart move today.
Asset prices for multifamily have risen quickly recently but there are still some excellent prices in strong secondary markets in Class B and Class C assets. Additionally, the ability to lower the basis of shopping center, retail centers and office buildings makes for an attractive acquisition target in the current economic environment. By using a commercial loan refinance to turn equity that is locked up in the property into usable, liquid cash through a cash out refinance strategy, sponsors can make the purchases now while the market is still priced aggressively, lower the basis in assets and undercut the market to fill the space.
Additionally, using a cash out refinance strategy is a great way to further improve and remodel current portfolio assets. Grow your commercial real estate portfolio using the correct commercial loan refinance strategies and juice your returns with today’s low interest rates on commercial loan refinances. Contact the experts at Dividend America Commercial Lending for more information. Michael Gross, President, 404-819-4511, email him at .. apply online with the Online Easy App.
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