Cash-Out Refinancing for Commercial Real Estate
Unlock the equity in your stabilized properties to fuel future growth.
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What Is Cash-Out Refinancing?
Cash-out refinancing allows property owners to replace their existing loan with a new, larger loan — pulling out equity in the process. The difference between the new loan and the old payoff amount is released as cash, which can be used to reinvest, expand, or strengthen liquidity.
For commercial real estate investors, developers, and business owners, cash-out refinancing is a powerful tool to:
- Access equity tied up in stabilized properties
- Reinvest into new acquisitions or developments
- Pay off higher-cost debt
- Improve balance sheets and reserves
At Nelson Funding, we structure cash-out refinance loans across multifamily, office, retail, industrial, hospitality, and mixed-use properties — with terms up to 30 years.
Why Choose Cash-Out Refinancing?
- Unlock Equity
Put the value of your stabilized property to work for you instead of leaving it trapped on paper. - Fund Growth
Use proceeds to acquire new properties, finance construction, or expand operations. - Pay Off Debt
Refinance short-term or high-interest loans into stable, long-term financing. - Improve Liquidity
Build reserves for future opportunities, tenant improvements, or operating flexibility. - Lower Payments
Lock in long-term fixed rates that reduce monthly debt service.
Common Use Cases
- Multifamily Investors:
pulling equity from stabilized apartment buildings to acquire new properties. - Developers:
refinancing construction or bridge loans after completing projects. - Business Owners:
using equity in owner-occupied real estate to fund expansion. - Portfolio Investors:
unlocking capital to diversify holdings. - Family Offices & Private Equity:
redeploying capital without selling assets.
Loan Highlights
- Loan Sizes: $1M to $50M+
- Terms: 5 to 30 years
- Fixed and floating rate options
- Non-recourse options available
- Leverage: Up to 75% LTV (loan-to-value)
- Nationwide coverage
Cash-Out Refinancing vs. Other Options
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vs. Standard Refinancing
Standard refi lowers rate/term only.
Cash-out refi provides capital to reinvest.
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vs. Bridge Loans
Bridge = short-term, higher cost, fast closings.
Cash-out = long-term, lower cost, equity release.
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vs. Selling a Property
Selling creates liquidity but removes the asset.
Cash-out lets you keep the property while still accessing cash.
Example Scenario
Borrower Profile
Multifamily investor in Dallas, TX
Project
180-unit stabilized apartment complex valued at $25M
Challenge
Original bridge loan carried a 10% rate. The investor wanted to lower costs and free up equity to buy a second property.
Solution
Nelson Funding structured a $20M cash-out refinance at 6.5% fixed, 10-year term, non-recourse. $5M in equity was pulled out, which the investor used to acquire a new 120-unit property nearby.
Instead of selling, the investor unlocked equity and expanded their portfolio.
Who Benefits Most from Cash-Out Refinancing?
- Multifamily Investors: scaling portfolios without selling core assets
- Commercial Developers: refinancing completed projects into long-term loans
- Business Owners: leveraging real estate equity for growth capital
- Private Equity & Family Offices: redeploying equity into new opportunities
Why Work With Nelson Funding
Borrowers across the U.S. choose Nelson Funding for cash-out refinancing because we:
- Offer Multiple Capital Sources: banks, life companies, CMBS, and private lenders
- Structure Creative Deals: fixed, floating, non-recourse, portfolio financing
- Move Quickly After Stabilization: fast transitions from bridge or construction loans
- Provide Nationwide Reach: funding across markets and property types
- Deliver Results: $100M+ in loans closed for investors and developers
“We help investors unlock equity so they can grow without selling.”
FAQs Cash-Out Refinancing
Typically up to 65–75% of the property’s current value, depending on lender and asset type.
Multifamily, office, retail, industrial, mixed-use, and hospitality — as long as they’re stabilized.
Once the property reaches stabilized occupancy and income levels, permanent cash-out refinancing is possible.
Both options are available. Many institutional lenders offer non-recourse permanent loans.
Most loans are structured for 5, 7, 10, or up to 30 years.
Unlock the Equity in Your Real Estate
Don’t let your property’s value sit idle. Nelson Funding structures cash-out refinancing loans that free up equity, lower costs, and provide capital for future opportunities.
Apply Now
