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Unlock the Equity in Your Commercial Property
Turn your property's built-up equity into working capital without selling. Fund expansion, renovate, consolidate debt, or acquire another property through bank, SBA, and private lender options.
6 Ways to Use Cash-Out Equity from Your Commercial Property
Cash-out refinancing replaces your current mortgage with a larger one — and you pocket the difference. Here’s how property owners put that capital to work.
Business Expansion
Open a second location, hire, invest in equipment, or scale operations — all without giving up equity to investors or taking on high-cost debt.
Tenant Improvements & Renovation
Upgrade your building to attract better tenants, increase rents, or meet ADA/code compliance. Construction costs funded from existing equity.
Consolidate High-Cost Debt
Pay off MCAs, credit lines, or short-term loans with 30–60% APR by rolling them into a 6–9% commercial mortgage. Immediate cash flow relief.
Acquire Another Property
Use equity from Property A as the down payment for Property B. A proven strategy for building a commercial real estate portfolio over time.
Working Capital Reserve
Create a cash cushion for seasonal slowdowns, unexpected expenses, or bridge financing needs without applying for new credit.
Partner or Investor Buyout
Access capital to buy out a business partner or investor stake without liquidating the business or the property itself.
Cash-Out Refinance Options by Loan Type
The right cash-out structure depends on your property type, how much equity you’re pulling, and whether you want a fixed or floating rate.
What to Know Before You Cash Out
Cash-out refinancing is powerful but not risk-free. Consider these factors before pulling equity.
Higher Loan Balance = Higher Payments
Your new mortgage will be larger than your current one. Make sure the cash-out proceeds generate enough return or savings to justify the increased monthly payment.
LTV Limits May Cap Your Cash-Out
Most lenders cap LTV at 65–75% for cash-out. If your property appraised at $2M and your balance is $1M, you may access $300K–$500K — not the full $1M difference.
Appraisal Required
Lenders order a new appraisal to determine current market value. If the property appraises lower than expected, your cash-out amount drops proportionally.
Prepayment Penalties on Current Loan
Check your existing loan for prepayment penalties, yield maintenance, or defeasance requirements. These costs affect whether the refinance makes economic sense.
Do You Qualify for a CRE Cash-Out Refinance?
How CRE Cash-Out Refinancing Works
Estimate Your Available Equity
Start with your property’s estimated current value minus your existing loan balance. Most lenders allow cash-out up to 65–75% of appraised value.
Submit Application
Share your property address, current loan balance, estimated value, and how you plan to use the cash-out proceeds. No hard credit pull at this stage.
Advisor Review
Jason Kim reviews your deal to determine the best structure — conventional, SBA, DSCR, or bridge — and identifies which lenders are most likely to approve the cash-out amount you need.
Lender Matching & Offers
We submit to matched lenders and return competing term sheets. Compare rates, LTV, fees, prepayment terms, and cash-out amounts side by side.
Appraisal & Underwriting
Lender orders an appraisal to confirm property value. You submit tax returns, P&L, rent roll (if applicable), bank statements, and existing loan payoff statement.
Close & Receive Funds
New lender pays off your existing mortgage. The difference — your cash-out — is wired to you at close. Timeline: 30–60 days for conventional, 60–90 for SBA.
Ready to Access Your Property Equity?
No credit pull. No commitment. Find out how much cash you can access from your commercial property.
Frequently Asked Questions
A CRE cash-out refinance replaces your existing commercial mortgage with a larger loan. The difference between the new loan and your old balance is paid to you in cash at closing. You can use the funds for business expansion, debt consolidation, property improvements, or any business purpose.
Most lenders allow cash-out up to 65–75% of the appraised value for conventional loans. SBA programs may go up to 85% for owner-occupied properties. For example, if your property is worth $2M and your current balance is $800K, you may access $500K–$700K in cash at 75% LTV.
Cash-out refinances may carry slightly higher rates than rate-and-term refinances — typically 0.25–0.50% higher. However, if your original loan was at a higher rate, you may still end up with a lower rate even with the cash-out premium.
Yes. Investment properties with tenants and stable NOI are eligible for cash-out refinancing through conventional loans, DSCR loans, or CMBS. LTV limits are typically stricter (65–70%) compared to owner-occupied properties.
Most lenders require 6–12 months of ownership (seasoning) before approving a cash-out refinance. Some bridge lenders may waive this requirement. If you recently purchased or renovated, the lender may use the original purchase price rather than current value until seasoning is met.
Standard documents include: current loan payoff statement, 2 years of tax returns, year-to-date P&L, rent roll and lease copies (for investment properties), 3–6 months of bank statements, and a property appraisal ordered by the lender.
More CRE Financing Resources
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Disclaimer:
BestLoanUSA operates as a business financing advisory and coordination platform. We are not a direct lending institution. All financing offers are subject to lender credit approval and specific terms. Interest rates, fees, and terms vary by lender and are subject to change without notice. Rates displayed represent average or typical offerings and individual terms may differ based on creditworthiness, business qualifications, and market conditions. Loan amounts, approval timelines, and product availability vary by lender.