Antonio Hachem gives his insight to Connect Media regarding capital markets and the availability of cash-out financing in the current environment.
What qualities are necessary in an asset for a borrower to realize cash-out proceeds?
Lenders are more likely to be open to cash-out refinancing when the borrower is substantially invested into an asset. A borrower’s original basis in the property no longer matters. For example, in our recent Sacramento financing, the borrower had invested in extensive capital improvements and value-add renovations to keep the property competitive alongside market rate multifamily assets in the region. The lender sees this as substantial “skin in the game,” and is more apt to reward that investment with cash-out financing.
Click here for the full article, “How to Realize Cash-Out Opportunities in Today’s Economy”: https://www.connect.media/how-to-realize-cash-out-opportunities-in-todays-economy/