Work with the top commercial mortgage broker in the country to access highly competitive financing programs that can provide a cash out refinance on your commercial property. We have no stipulations on cash outs, meaning you get the cash at closing and are not required to hold it with the lender. Also, since our lenders are not held to such strict regulations as local banks, we are able to achieve much greater LTV’s, getting our borrowers the most out of their properties.
Get A Commercial Cash Out Refinance With Us
We typically finance property with loan amounts in the $1 – $50 million range. On occasions our programs will go higher or lower, but most of our transactions are in this space.
The maximum LTV we can offer on a first mortgage is 80% LTV, and that is typically reserved for multifamily properties. By adding additional loan products like mezzanine and preferred equity we are able to get more loan dollars, but not for every scenario.
The most common fixed periods are anything up to 10 years, however we have products that will go far past that, up to 30 years.
Most of the loans we arrange have amortization options up to 30 years. Also depending on the LTV and property type, we can build interest only periods into the front of the loan term. At the right leverage points, typically 65% and below, we can offer full term interest only.
We are able to offer non-recourse loan structures for most property types and scenarios. However sometimes there is no way around requiring a recourse guarantee on a loan.
Our programs are available in all markets nationwide. Smaller markets may be subject to tighter underwriting and loan to values.
Mortgage loan refinancing includes a transaction category commonly termed “commercial cash out refinance”. It occurs when the new mortgage advance from the lender exceeds the existing mortgage loan amount + loan settlement costs. The way commercial cash out refinancing works is that the original mortgage is retired and a new mortgage is created, with the difference between old and new now being made available as “cash out” to the property owner. It is, of course, based on loan to value and debt ratios upon approval and generally awards appreciation for long-term holding. Commercial real estate borrowers typically reflected in partnerships, trusts, corporations, LLCs, Delaware Corporations, estates, and even foreign nationals are able to take advantage of this funding vehicle to release trapped equity in their properties and re-employ it for other secured purposes.
A big advantage in cash out refinancing through Clopton Capital is that we place no restrictions on what the released funds are used for. In contrast, bank lenders typically either don’t countenance commercial cash-out refinancing at all or alternatively they impose severe restrictions on the “freed” money applications. When you work cash-out refinancing with us, you can be assured that the funds will be immediately available at closing. There will be no strings attached even if there are issues involved in other loan arrangements such as foreclosures, principal repayment, unfulfilled collateral requirements, or drawing down lines of credit.
A commercial cash out refinance example:
Property value = $4 million
Existing loan balance = $2 million
Refinance loan amount = $3 million (75% LTV)
Proceeds given to owner = $1 million
Chicago based Clopton Capital is a national commercial mortgage broker dedicated to matching borrowers interested in industrial, commercial, and mixed-use real estate to lenders aligned exactly with their needs for asset-backed funding. We specialize in providing private investors, small/middle market real estate entities, and family offices everywhere in the US with commercial mortgages, bridge loans, construction loans, mezzanine financing, preferred equity, and real estate private equity. We give them on-demand access to the most competitive commercial mortgage lenders in the business. Applicants for $1 million or $50 million enjoy the same focused attention and open-book communications with our loan officers without preference or discrimination.
As a dedicated loan broker we’ll ensure that your cash out refinance serves your unique investing needs as it relates to your investment property portfolio. With hundreds of loans and several $ billion of advances secured for our clients over 10 years, we’re equipped to locate the cash-out refinancing option that fits your situation best. This means matching you with a mortgage payment, calculated on your loan/value ratio, linked to monthly payments you can manage and clear explanations of your principal and interest commitments.
Commercial Cash Out Refinance dilemmas: some real client case studies resolved by us.
Case Study 1: An estate borrower contacted us looking to refinance a maturing $3 million business loan for a retail trip center investment property in North Carolina. The estate had purchased the property over 10 years prior and it had substantially increased in value. In next to no time we arranged a cash out mortgage based on 75% of the new appraised value, resulting in a $6 million loan upgrade – thus putting over $2 million of cash out proceeds into the owners pocket after settlement costs. We managed to transition the estate into a refinanced loan with non-recourse, 10-year fixed, with a very competitive rate, and a 30-year amortization.
Case Study 2: An LLC borrower referred to us wanted to cash out refinance an office building in Indiana, with the idea of rearranging a long-term fixed-rate deal for loan redemption. Even though tenancy stability was a little uncertain we were able to organize a $2.8 million refinance based on a 15-year amortization and fixed rate of interest with one of our close-relationship insurance companies. The borrower realized almost $1 million in cash out proceeds and a new manageable loan containing a competitive interest rate and redemption terms.
Case Study 3: A partnership entity had purchased a commercial retail center in Wisconsin for all-cash. At the same time, it had entered an acquisition commitment to invest in multifamily apartment buildings with a very short time-line and an all-cash closing. Essentially, the client was relying on us to very quickly recapitalize the retail center to extract a substantial refinance cash-out as the only means of funding the new real estate. We moved into action, finding a trusted lender to advance over $4 million to the partnership based on a 75% LTV non-recourse loan, thus allowing him to acquire additional properties on time.
Contact Clopton about our commercial cash out refinance programs
To understand more about cash out refinancing for commercial loans, contact one of our commercial mortgage lenders by calling 866-647-1650 or using the Contact Us form available from the menu. We’re always happy to work with investors to find the right loan rates and repayment plans to suit your needs. And with low closing costs attached to a straightforward documentation and underwriting process, your commercial loan process will be stress-free.