The borrower’s previous note was maturing, and Borrower was seeking a cash-out refinance. Borrower successfully pulled out cash that could be used for business purposes.
When deciding whether to unlock the equity in commercial real estate, we recommend the borrower run a simple ROI analysis by looking at where those funds could be applied in the business. How much additional income can be generated by increasing business capacity, buying more inventory to sell, purchasing additional properties, or expanding the business into new markets?
For more, see our post, Should I Pull Cash Out of My Real Estate?