Cash-Out Loans for Commercial Real Estate Properties
Commercial real estate investors often face challenges in securing the right financing to align with their unique investment strategies. At The Madison Group, we work on your behalf to source alternative loan options from the nation's leading lenders, ensuring you have access to optimal financing for your long-term investment goals.
As trusted commercial finance consultants, our commitment is to provide superior market expertise and highly competitive loan products that help our clients create and preserve wealth. Through our extensive network of trusted lenders, we offer the most effective solutions for your commercial real estate investment goals.
What is a Cash-Out Loan?
A cash-out refinance allows you to refinance an existing mortgage for an amount greater than your current loan balance. The difference between the original loan and the new refinance loan is paid out to you in cash, based on the equity you've built in the property. These funds can be used for a variety of purposes, enabling you to leverage your real estate investment for greater flexibility.
Why Consider a Cash-Out Loan?
Cash-out loans provide a powerful tool for unlocking the equity in your commercial real estate investment, allowing you to reinvest in your business or pursue other growth opportunities. Some common reasons for utilizing a cash-out refinance include:
- Property Acquisition: Purchase additional commercial real estate or diversify your investment portfolio.
- Buy Out a Partner: Use the funds to buy out a business partner or restructure ownership.
- Tenant Improvements: Finance upgrades or improvements to attract higher-quality tenants and increase rental income.
- Property Rehab: Fund renovations or repairs on distressed properties to improve value and marketability.
- Business Expansion: Use the funds for working capital, a business line of credit, or to purchase inventory, equipment, or other assets.
- Debt Consolidation: Pay off outstanding bills or liabilities, improving cash flow and financial stability.
- New Construction: Finance the building of new structures or the expansion of existing properties.
| Loan Limits |
Starting at a minimum of $1,000,000 |
| Rates |
Competitive market pricing, with both fixed and floating rate options |
| Terms |
5, 7, and 10 years |
| Amortization |
25-30 years |
| Prepayment |
Multiple prepayment options, including no prepayment penalties |
| Recourse |
Recourse and non-recourse options available (subject to standard carve-outs) |
| DSC |
Minimum 1.25 DSC |
| LTV |
Up to 70% LTV/LTC (sometimes restricted by your total cost basis) |
| Assumable |
Yes, to a qualified borrower. |
| Property types |
Industrial, warehouse, office showroom, office warehouses, multi-tenant or single-tenant, individual or multiple buildings, entire parks, |
| Geographic areas |
Available in most states across the U.S. |
How You Benefit from Working with The Madison Group:
- Increase Cash Flow: Benefit from tailored financing solutions designed to maximize your cash flow.
- Save Time: Let TMG source the best rates and terms, allowing you to focus on your investment strategy.
- Avoid Pitfalls: Our in-depth analysis ensures you avoid costly surprises and make informed decisions.
- Access Multiple Lenders: Receive financing offers from a variety of top lenders, giving you access to diverse loan programs.
- Expert Guidance: Our experienced team of commercial real estate lending professionals is with you every step of the way.
By partnering with The Madison Group, you gain access to the expertise, resources, and support necessary to secure the best financing solutions for your office building investment.
Contact Us Today
If you're considering a cash-out loan for your commercial real estate investment, The Madison Group is here to help. Our team of in-house experts will work with you to explore the best loan options, ensuring that you receive the capital you need to fuel your next opportunity. Contact us today to learn more about how a cash-out refinance can enhance your investment strategy.