Refinancing Investment Real Estate: How Stronghill Can Help Your Borrowers

Although rates have risen rapidly, from historic lows, US real estate markets remain relatively active and for certain owners of investment real estate, refinancing still makes sense.

As most know, a “refi” is the process of satisfying one loan and replacing it with another. Property owners refinance for numerous reasons. These might include a note maturity, pursuit of more favorable terms or a desire to access equity through a cash-out refinance.

Regardless of reason, refinancing an investment property can be beneficial and Stronghill is here to help.

Benefits of Refinancing Investment Property

  • A new start: Some borrowers face near term note maturities or balloon payments. Proactively seeking out fresh mortgage capital will help them avoid costly legal battles and the potential of losing their properties.
  • Access to liquidity: Many investment properties have appreciated over the course of the last few years, resulting in owners building substantial equity. Converting that equity into liquidity, through a cash-out refinance, might allow your borrowers to act on investment opportunities that they otherwise wouldn’t have been able to.
  • More favorable terms: Whether it is amortization, loan term, prepayment penalty or interest rate, having optionality and flexibility from Stronghill can help your borrower achieve their goals.
  • Permanence: Perhaps your borrower currently has an adjustable-rate mortgage. It might be advantageous to transition into a long-term fixed rate option from Stronghill.

Best Practices

When considering a refi, your borrowers will need to conduct a cost benefit analysis. Some things to consider:

  • Your borrowers will incur expenses. Refinancing a commercial property comes with a variety of costs, including fees for appraisals, credit/background checks, title and legal. Help your client make sure the advantages of a new loan outweigh the costs.
  • Not all investment real estate loans can be refinanced. In some cases, prohibitive prepayment penalties in the form of lockouts, interest guarantees, defeasance and/or yield maintenance might prevent your borrower from being able to refinance.

The Stronghill Advantage

Applying for a loan isn’t always easy. The process requires significant documentation and a time commitment. As the nation’s leader in borrower-friendly, light-doc mortgage loans, Stronghill Capital works hard to make the process as painless as possible.

Here are important ways borrowers and brokers can ensure a hassle-free closing:

  • Submit a complete package. Contact a Stronghill Originator to understand exactly what this means.
  • Share the complete story. The more we know, upfront, the more likely we’ll be able to close your loan.
  • Respond quickly and work hand in hand with your Stronghill partners.

At Stronghill Capital, we strive to protect our clients’ best interests. We do this by making the process faster, easier, and more efficient. To learn more about “The Stronghill Advantage” and how we can help you close more loans,  contact one of our Originators today.

For more information, contact us at or 888-879-8713.