Cash-Out Refinance

For a cash-out refinance, a hard money lender may be the answer.

 

Recently, we were able to help a borrower who found himself in this exact situation.  He owned a free and clear, fully-leased commercial property and approached a local bank to make him a $500,000 loan, equal to about one third of the property's value.  Borrower had a good financial statement and a good credit score.  Because the loan would be a cash-out refinance, the bank said no but offered a solution for the borrower.  The loan officer told the borrower to go get a hard money loan for $500,000, let the loan season for a few months and then come back to the bank.  The bank would then have no problem refinancing the $500,000 hard money loan at a lower rate because the bank's loan would not be a cash-out refinance.  Twisted thinking on the bank's part since the end result is the same.  The borrower ends up with $500,000 in cash-out loan from the bank.  The borrower just has to jump through a couple hoops to get it accomplished.

Posted in Cash Out, Hard Money