Skyrocket potential by leveraging commercial property equity secrets
How to Access Your Commercial Property Equity
Accessing your commercial property equity typically involves refinancing your existing mortgage or obtaining a loan against your equity. Refinancing can allow you to adjust your loan terms, potentially lowering your interest rate and monthly payments. Alternatively, a HELOC provides a revolving line of credit that you can draw from as needed, offering flexibility in managing your finances.
Before proceeding, it's crucial to assess your property's current market value and the amount of equity you have. This can be done through a professional appraisal or by consulting with a real estate expert. Once you have a clear picture of your equity, you can explore the various financing options available to you.
Real-World Examples and Data
For instance, a company in New York leveraged its commercial property equity to secure a $500,000 line of credit, which it used to renovate its facilities and increase production capacity. As a result, the business saw a 20% increase in revenue within the first year1.
According to the National Association of Realtors, commercial property owners who effectively leverage their equity can see significant returns over time. In 2022, commercial real estate investments yielded an average return of 10.3%, demonstrating the potential financial benefits2.