How to Refinance Warehouse?
May 15, 2021
As an real estate investor looking to refinance a mortgage or cash-out refinance a warehouse property, timing is everything. This is especially true when interest rates are low making it more attractive to pull equity from the properties.
Of course there are a number of other reason to refinance such as:
- Purchasing new investment properties
- Using the capital for much needed repairs
- Enhancing the properties to increase rental income
- Increasing financial security
The reasons why could be endless. But for the avid investor, aligning with a mortgage broker whose expertise is solely refinancing investment and rental properties should be of the outmost priority.
How long does it take to complete the refinance process?
The Refinancing process can take as little as a few to complete. This all depends on the complexity of the refinance deal. More times than none, having little to no code issues is a significant factor towards insuring the process goes without delay.
If you are aware of any known code compliance issues, incumbrances or other issues that could cause a delay in the refinance process its probably best that you bring it up with your refinance agent.
Is it better to cash-out refinance or refinance?
When it comes to cash-out refinance or conventional refinancing its always best to plan ahead to understand how best to capitalize on opportunities. Typically, the purpose of Refinancing Investment and or Rental Properties is to either lower payments which increases overall cash flow. Another reason is to utilize equity from the property for a number of reasons. As an investor, “cash is king”. Having the additional capital enables an investor to expand their real estate holdings footprint.
Whether you are looking to cash-out refinance or go through a conventional refinancing, the process is relatively the same. The only difference is amount your are looking to refinance has to be coincide with the appraised value of that property. Typical commercial real estate refinancing lenders look at the LTV (Long to Value) of the property to ensure it is at least 75% LTV.
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