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Interested in Refinancing Business with Real Estate

I purchased a Residential Care Facility for the Elderly (RCFE) business 9.5 years ago for $1.2 million (business only), with an SBA loan. That loan will be paid off in 2013. When I purchased the business, I also separately took possession of the LLC which owned the titles to the four houses which are used by the RCFE. There are however mortgages on each of those houses, and there is currently no equity in these properties in relation to the mortgage balances (the mortgage balances are currently $3.0M total for all four houses).

My questions are:

(1) Would it be possible to refinance the entire package (the business and the real estate), using the equity in the business-only portion as the down-payment on the properties?

(2) Would a new SBA loan (which this time includes both the business and real estate) make the most sense?

(3) How much should I expect to need in liquid cash to complete the above transaction(s)?

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Answers (4)
Connell Benjamin
Dr. Connell Benjamin Loan Service
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Sep 20, 2017
Allan Stevens
It's Lunch Time by Platinum Marketing
"We Deliver Lunch"
Bernalillo County, NM

Hello Brad,

Having qualified already for a SBA loan you may want to take that path first. Although the underwriting and qualifying criteria have stiffened in the last 9 years.

I think the Business Finance Suite would be a good fit for your situation.

We specialize in obtaining funding for business owners, both new and established, including loans, credit lines, business credit cards, and much more.

Visit us at: http://www.businesscreditcenter.us and view the Business Finance Suite "VIP Tour" video.

This is a proven, no nonsense approach to get you money and business credit lines for your business that does not fail.

Talk soon,

Allan Stevens
Business Cash & Credit Line Center

Aug 30, 2013
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The BAF Group LLC
MD

Call me. Don Barrick at (410) 715-0700.

Dec 21, 2012
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I should add to the above:

(a) I'm under an obligation to refinance the properties into my name in 2013 (the mortgages are currently under the former owner's name, though I am responsible for all payments).

(b) The current mortgages on the properties have high interest rates (in relation to today's rates), and so there is an additional incentive for me to move these mortgages into my name.

Dec 20, 2012