Commercial Cash-Out Refinancing
Your property has appreciated. Your plans need capital. A cash-out refinance turns trapped equity into working funds — if the file is built for it.
Why equity-rich owners still hear no
Commercial owners build equity two ways: paying down the loan and riding appreciation. After a few strong years, it's common to sit on a property worth far more than the debt against it — while the business or portfolio that equity could fund goes wanting. A cash-out refinance is the straightforward answer, but banks treat cash-out requests with more suspicion than purchases, and their policies quietly cap how much you can take out and what you can use it for.
The friction points are predictable: the bank wants a detailed use of proceeds it approves of, seasoning since acquisition or the last refinance, tax returns that support the new payment, and an appraisal that validates the higher value. Owners with strong equity but complicated income, recent purchases, or plans the bank doesn't like — buying another property, paying off a partner, funding a business — end up declined or offered a fraction of what the equity supports.
Why cash-out refis get stuck
What cash-out lenders look for
How Denali approaches cash-out refinances
Denali Commercial Mortgage has structured cash-out refinances since 2012 from Happy Valley, Oregon, in the Portland metro, with 40+ years of combined commercial lending and finance experience on the team. We see the full range: owners funding their next acquisition, partners buying each other out, investors pulling capital for renovations, and business owners putting building equity to work in the business.
We start with the three numbers that define the deal — current value, existing debt, and the amount you actually need — then match the file to programs that allow real cash-out proceeds with sensible seasoning requirements. Stabilized properties route to permanent and conduit debt; properties mid-plan route to bridge structures that cash out now and refinance again later. Every transaction receives individual review, and terms are quoted per deal — request current terms for your scenario.
How It Works
- 1
Get Qualified
- 2
Consultation
- 3
Documents
- 4
Review
- 5
Term Sheet
- 6
Underwriting
- 7
Conditions
- 8
Closing
Common Questions
How much cash can I actually take out?
Most commercial cash-out programs cap total leverage at 65-80% of current value depending on the property type and program. Subtract your existing balance and closing costs from that ceiling and the remainder is your gross proceeds. The stronger the property's income, the closer to the top of the range you land.
Does it matter what I use the money for?
Yes. Lenders want a specific, credible use of proceeds — acquiring another property, renovating this one, buying out a partner, or funding business operations. 'General purposes' invites scrutiny. A clear plan with numbers attached moves through underwriting noticeably faster.
I bought the property six months ago. Is it too soon to refinance?
At a bank, usually — seasoning requirements commonly run 12-24 months. Non-bank programs are more flexible, and bridge lenders regularly refinance recent acquisitions where value has been added through renovation or lease-up. Expect value to be tested carefully when ownership is short.
What about my prepayment penalty?
Defeasance and yield maintenance on existing loans can change the math significantly. We model the penalty into the net proceeds before recommending a structure — sometimes waiting out a penalty window beats paying it, and sometimes the new loan's benefit is large enough to absorb it.
Tell us about your deal. We will tell you what fits.