Our Simple Approach to Refinance a Multifamily Property Loan

November 3, 2022

Fluctuations in the real estate market have led to an increased demand for multifamily properties all across Texas. As a result, investment property owners are eager to add more properties to their portfolios, make improvements on current properties, or get better financing terms for existing loans.

Texas Gulf Bank is proud to offer strategic, reliable financing solutions to investment property owners and developers throughout the Gulf Coast region. Discover the various advantages that come when you refinance multifamily property loans and our straightforward refinancing process.

Why Refinance Multifamily Property Loan? 

In order to meet the current high demand for multifamily homes, investors are searching for ways to expand or improve their current property portfolio but might be limited by unfavorable terms for existing loans. Refinancing a multifamily property loan can provide you with several distinct benefits as you look to expand your property holdings.

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1. Cash-Out Property Equity

If you need funding to pay for investment opportunities, cashing out some of your property equity through refinancing may be worthwhile. A cash-out refinance may provide you with the necessary funds for a down payment on new property acquisitions, property renovations, or construction costs for new builds.

A refinance may allow you to cash out a large percentage of your property’s loan-to-value ratio without accumulating additional debts or delaying essential investment opportunities. A cash-out refinance may be an excellent funding solution if your goal is to expand your property holdings as soon as possible.

2. Make Valuable Property Enhancements

In order to become a successful multifamily property investor, it might take more than just acquiring properties – making them as attractive and appealing as possible could potentially pay off in a big way. To do so, you may need to make upgrades and increase amenities on-site in order to attract more tenants who might be willing to pay for these improvements.

Refinancing your multifamily property loan may provide the funds needed to pay for high-demand amenities that include:

• Kitchen upgrades
• Exercise rooms
• Upgraded pools and recreational areas
• Security guards
• Video monitoring systems for enhanced safety

Improvements to individual units and shared facilities could potentially raise the property’s overall value, providing you the ability to charge monthly rent commensurate with the amenities offered. 

3. More Favorable Loan Terms

A significant benefit from refinancing multifamily property loans might mean you end up with overall favorable loan terms, which may improve the strength of your investment business and property portfolio.

Too often, newer and less experienced property investors might be saddled early on with a business loan with excessive interest rates, short repayment windows, and limitations and fees that restrict growth. If your business has grown and thrived over the years, you should have property loans that reflect your company’s stability and success within the market.

Refinancing might provide a fixed interest rate instead of a variable rate, a longer repayment window, and more favorable terms and conditions. 

Our Simple Loan Refinancing Process 

At Texas Gulf Bank, we believe in offering quality financing solutions to help businesses and property investors thrive. We offer a straightforward application process for those interested in refinancing their business multifamily property loans, whether they are owner-occupied or non-owner-occupied property types.

To begin the refinancing application process, your business will need to provide:

• Completed loan application
• 3 years of historical financial information and credit scores
• 3 years of tax returns for business and any owners guaranteeing the note
• Current profit & loss statements
• 3 years of financial statements 
• Existing multifamily property loan information
• Current property deeds, land surveys, and proof of property insurance
• Current tenant information and rent projections
• Contractor information, construction budgets, and contracts for renovations

The ideal refinancing candidate should be able to demonstrate sufficient cash flow from their properties, equity in their current properties, and adequate liquidity to offer a down payment – if needed. Experience with managing multi-family properties may also be a plus.

Including our initial assessment and review of the required documentation, the entire loan approval, closing and funding process may take approximately 30 to 45 days to complete. As a local banker, we are able to offer in-house reviews and approvals for a faster application process.

Choose Texas Gulf Bank for Your Refinancing Needs 

Texas Gulf Bank has proudly served the Gulf Coast region for over 100 years, and our combination of strategic loan programs, competitive rates, and exceptional client service make us the best choice for your business banking and lending needs.

Contact Texas Gulf Bank today to refinance a multifamily property loan. Discover an excellent lending experience working with our community-based bank.

All Loans Subject to Credit Approval