Page 36 - How To Refi Cashout Your Commercial Property Before The Bank Says...
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Alternative vs Traditional
For the 70% LTV cash out the alternative source Monthly payment is a $37
cheaper than the traditional source…
And you don’t have to worry about a balloon being due after year 7…
On the other hand at 80% LTV you put an extra 50,000 check in your pocket...
And you can use those funds without restrictions, or annual reporting
requirements...
As you can see the cashout by the alternative lender vs the traditional lender has a
distinct advantage…
The overall loan term from the alternative lender is better despite the rate being
higher…
The traditional loan terms are not bad terms but the overall loan term is shorter and
its a balloon which makes it less than ideal for someone looking for stability…
And I know what your thinking you would just refinance before the terms ends
with an extension…
Well that may be the case…
But, with commercial mortgages traditional lenders at their discretion can deny the
extension if you fail to meet their annual reporting requirements or violate their
loan agreement…
If you don’t fit the loan agreement schedule while your servicing the loan the
lender can call the loan due…
