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June 25, 2025Texas Commercial Cash Out Loans: Buy Real Estate with $0 Down
What Are Texas Commercial Cash Out Loans?
Texas commercial cash out loans allow property owners to refinance a commercial property and extract equity as cash. Unlike traditional refinancing, these loans prioritize liquidity, making them ideal for funding new real estate purchases without requiring a large down payment. In Texas' dynamic economy, Texas commercial cash out loans are popular for properties like retail centers, offices, or multifamily units, especially in high-growth areas.
How to Use Texas Commercial Cash Out Loans for $0 Down
- Refinance Existing Property: Use a Texas commercial cash out loan to pull equity from a property you already own. For example, if your property is worth $1M with a $500K mortgage, you could refinance up to 80% LTV ($800K), netting $300K cash to fund a new purchase.
- Combine with Seller Financing: Pair the cash-out funds with seller financing for the new property. The seller carries a note for the remaining balance, reducing or eliminating your down payment.
- SBA or HUD Loans: For owner-occupied or multifamily properties, combine Texas commercial cash out loans with SBA 7(a) or HUD 223(f) loans, which allow up to 90% CLTV. Use cash-out funds to cover the 10% equity requirement.
- Private Lenders: Texas-based lenders like CommercialLoansOfTexas.com offer high-LTV cash-out loans (up to 80-90%) for rehab projects, enabling $0-down purchases when paired with secondary financing.
Benefits of Texas Commercial Cash Out Loans
- No Down Payment: By leveraging equity, Texas commercial cash out loans reduce upfront costs, freeing capital for other investments.
- Flexible Funds: Use cash for acquisitions, renovations, or operational needs with minimal restrictions.
- Competitive Terms: Texas' competitive lending market offers favorable rates (7-10%) and terms (5-30 years).
- Market Advantage: Rising property values in cities like Dallas and Austin increase equity, maximizing loan amounts.
Eligibility and Application
To secure Texas commercial cash out loans, lenders evaluate:
- Property Value: Appraised value determines loan size, typically up to 75-80% LTV.
- Credit and Income: A 680+ credit score and strong business financials boost approval odds.
- Property Type: Retail, office, or multifamily properties qualify, with strong cash flow (DSCR ≥ 1.25).
Submit financials, appraisals, and a loan purpose statement. Work with Texas lenders like Texas Gulf Bank for streamlined processes and compliance with state regulations, such as homestead laws.
Key Considerations
- Costs: Expect higher rates (7.5-12%) and fees for high-LTV loans. Ensure cash flow supports payments.
- Risks: Over-leveraging can strain finances if property values dip.
- Exit Strategy: Plan to refinance or sell to manage high-rate debt.
Why Texas?
Texas' booming economy, driven by tech, energy, and logistics, makes Texas commercial cash out loans ideal for investors. Cities like San Antonio, Houston, Magnolia, Galveston, Dallas and Fort Worth offer appreciating properties, increasing equity for cash-out opportunities.
Conclusion
Texas commercial cash out loans enable $0-down commercial real estate purchases by unlocking property equity. Combine with seller financing or SBA/HUD loans to minimize upfront costs. With careful planning and local lender expertise, you can leverage Texas' vibrant market to grow your portfolio. Contact a trusted lender today to explore Texas commercial cash out loans.