Cash Out Refinancing Advantages for Commercial Real Estate in Texas
Cash out refinancing is one of the most powerful tools available to Texas commercial real estate owners. By refinancing your existing property for more than you owe and taking the difference in cash, you can unlock equity that’s been building in your properties for years.
Top Cash Out Refinancing Advantages
- Access Equity Without Selling: Your property has appreciated, but selling would trigger capital gains taxes. Cash out refinancing lets you access that equity while maintaining ownership.
- Fund Property Improvements: Use proceeds to renovate, expand, or upgrade your property — potentially increasing its value and rental income.
- Acquire Additional Properties: Leverage equity from one property to fund the down payment on another.
- Consolidate Higher-Rate Debt: If you have higher-rate business debt, a cash out refinance at commercial rates can lower your overall cost of capital.
- Fund Business Operations: For owner-occupied properties, cash out refinancing can provide working capital for expansion or equipment purchase.
- Potential Tax Advantages: Loan proceeds are generally not considered taxable income, and mortgage interest may be deductible. Consult your CPA.
How Much Can You Cash Out?
For commercial properties, most lenders allow cash out refinancing up to:
- 75% LTV for most commercial property types
- 70% LTV for some special-use properties
- 80% LTV for multifamily (5+ units) in some programs
Cash Out Refinance Programs Available
Commercial Loans of Texas offers cash out refinancing through conventional commercial, hard money, stated income, DSCR, and select SBA refinance programs.
Is a Cash Out Refinance Right for You?
Cash out refinancing makes sense when your property has significant equity (LTV below 50–60%), you have a clear and profitable use for the proceeds, the payment increase is manageable, and you plan to hold the property long enough to recoup closing costs.
Interested in accessing the equity in your Texas commercial property? Call 877-895-3634 for a free cash out refinance analysis. No upfront fees. Direct lender since 1998.