Finding a creative financing solution could mean the difference between a stalled plan and scalable growth. Recently, Barrington Commercial Capital worked with a client who owned a mixed-use property in rural New York.
Our client wanted to tap into the liquidity of the existing property to move on to her next deal, but she ran into a major roadblock: In small communities, commercial lending options are limited, and higher rates are the norm. This is where a commercial cash-out refinance strategy comes into play.
Learn how Barrington Capital can get the deal done in situations like this where traditional lenders often say no.
Strong Asset, but Limited Options
Our client purchased a $1 million mixed-use property outright in a small community in rural New York. The asset was stable and generating cash flow. However, the client lacked access to competitive traditional financing.
That’s a common challenge with commercial real estate in rural markets. Owners of these properties must overcome barriers like:
Despite these hurdles, our client saw an opportunity in the mixed-use property’s equity, and we agreed.
The Strategy: Cash-Out Refinance for Growth
Rather than letting capital sit idle, we explored a commercial cash-out refinance to access liquidity. The goal was to use the cash to fund the client’s next deal.
Even with the higher asset-based lending rates typical in rural markets, the main question is simple: “Does the deal still cash flow?”
In the case of this client, the answer was yes. The property was generating enough consistent income to support the new investment loan.
Why Our Approach Works
Barrington Commercial Capital helps borrowers like this rural property owner explore all of their commercial real estate loan options and determine whether a particular funding approach is the right fit. We think outside of the box, looking for ways to:
Flexibility matters most, especially when working in underserved markets.
When a Cash-Out Refinance Is the Right Idea
Are you considering a similar commercial real estate refinance to fuel your next investment? Ask yourself these questions:
At Barrington Commercial Capital, we help you answer the important questions. Our goal is to get deals done when others can’t, so you can take advantage of more opportunities.
Connect With Barrington Commercial Capital to Learn More
Want to see which commercial asset finance or refinance loan options are the best fit for your portfolio and goals? We think outside of the traditional lending box to find solutions that make sense. Whether you need a line of credit, more options for refinancing commercial real estate or something else entirely, contact us today and let’s chat.
