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working capital, and taking advantage of a sweet deal to double your money by using the
savings and retirement account.

Even if things go south such as a market crash, you file bankruptcy, face a foreclosure, unpaid
property taxes, or even face a lawsuit, it shouldn’t stop you from getting a loan because of a
past financial challenge.

At the end of the day your an investor, a business owner, and you want to take care of your
family no matter what and we all are not perfect all the time.

And I believe that you should get saluted for that and get the financing you need without the
hassle.

Banker’s Terms:

Typical financing terms from a traditional lender for commercial cash outs look like this:
(*Note each bank and institution is different and depending on your state and local area these
terms can be drastically different.)

● LTV’s can go to 75% depending on the bank, but they are likely going to be at 65% or
lower depending on your property type, and financials.
● Rate can be as low as 4.5 to 8.5%
● Term is a hybrid at 5 yrs or 7yrs.
● Usually 5 year term with balloon at a 10 or 15 year amortization,
● 7 y balloon at 15 yr amortization (video on the faulty assumption of extending must follow
the rules first in life things happen and business happens)
● Amortizations can go up to 25 yrs, but most banks offer 10 yr to 15 years amortization
loans. (Rarely 30 yrs amortizations
● Deposit account may be required
● Annual reporting may be required
● Tax returns and full doc of income from personal and business are required
● And you have to find them to do it…(Not every local bank, credit union, or commercial
bank offers refi-cashout.

The Truth About Traditional Lenders

In closing, a commercial loan from a traditional source is not in the business of holding these
loans on their balance sheet for an extended period of time. The reason for this is because
commercial loans from traditional lenders pose a huge risk to the internal regulators and
shareholders of the bank. These loans in their eyes are risky, speculative, and high leverage.
This is the reason why they expect you to pay the note off every 5-7 yrs thru a balloon payment
for the full balance which makes it very difficult for you to run your business.