A commercial cash-out refinance replaces the existing mortgage on real estate your business owns with one larger loan in first position, pays off the old balance at closing, and releases the equity above it to you as cash for a business purpose. The amount depends on the property’s value, the payoff, and the loan-to-value the lender is comfortable with. At BuildUp Capital, loans run $100,000 to $10,000,000 on real estate in Texas, Colorado, Utah, Nevada, Arizona, Oklahoma, Idaho, Montana, or Wyoming, rates from 10%, with a term sheet typically within 5 business days and closing typically around 10 days once diligence items are received. Rates depend on term, collateral, lien position, and borrower profile, and are subject to change. Not every borrower qualifies for the lowest rate.
Start with the mechanics, because they decide everything else. Your building is worth some amount; you owe some smaller amount on it. A cash-out refinance borrows against the gap: the new lender funds one loan, the old lender is paid off out of it at closing, and what remains after the payoff and closing costs is wired to you. There is one lien on the property afterwards, in first position, held by the new lender. That is the structure, whether the lender is a bank or a private lender like us — the differences are in who qualifies, how long it takes, and what it costs.
How much cash you can take out is a loan-to-value question. The lender sets the maximum loan as a percentage of a conservative value for the property; subtract the payoff of the existing mortgage and you have your proceeds. Two things move that number in your favor: a low existing balance and a property with proven market demand. Two things move it against you: a value that depends on a best-case appraisal, and an exit that is not yet credible. We show the loan-to-value after payoff in the fit check on this site before asking for a single contact detail, because it is the number that decides the conversation.
What it costs at BuildUp: rates from 10%, priced to term, collateral, and borrower profile; a 1–4% origination fee stated in your term sheet before you proceed; monthly interest-only payments across a 6–18 month term with principal due at your exit; prepayment allowed. Rates depend on term, collateral, lien position, and borrower profile, and are subject to change. Not every borrower qualifies for the lowest rate. Once you accept the term sheet, we collect an underwriting deposit before diligence begins, and it is credited toward your closing costs at closing. It exists so both sides are committing real resources to a deal we intend to close — the amount is stated in your term sheet before you sign anything. Beyond our own fees there are third-party closing costs — title, escrow, appraisal, recording, legal — which we neither set nor collect, and the payoff statement from your existing lender is the long pole in the timeline.
Why a short-term private cash-out is often the right tool: a bank treats a cash-out as a new underwriting from scratch, on its calendar, against its checklist — and the checklist is where good operators get stuck. A short-term first-position loan is built for the six to eighteen months in which you use the cash for the thing that makes the business worth refinancing conventionally: the expansion, the acquisition, the partner buyout, the retirement of expensive short-term debt. We underwrite that use and the exit alongside the building, and we plan the exit with you from day one.
What a cash-out is not: it is not a second lien. If you want to keep your existing mortgage in place and borrow behind it, that is a different product, and for us it is the exception, considered case by case on the equity above both loans. One first-position loan is simpler and does not depend on another lender’s terms — but it refinances your whole existing balance at our rate, so compare the total cost, including any prepayment terms on your current loan. The fit check on this site asks what happens to your existing loan and gives you a straight read either way.
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Related: Cash-out refinance · Lending in Texas