Real Estate Refinance Pros and Cons - What You Should Know

Real Estate Refinance Pros and Cons - What You Should Know // If you own a real estate investment property and you've built up equity over time, you may have thought about refinancing the property and pulling that equity out without actually selling the deal. But what are the positives and what are the negatives of a real estate refinance, and what's the right choice for you? That's what we'll cover in this video.
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[@BreakIntoCRE]

Any other big pros or cons I missed? Let me know in the comments below. Thanks for watching!

[@robertstarkey4869]

Another awesome video Justin! I recently "broke into CRE" 1.5yrs ago, and I must admit that I felt super lost and intimidated by the learning curve at first, but your videos and courses have been game-changing. Can't thank you enough :) The other minor con with refinancing is the fees and penalties lenders may charge you if you you have time left in the loan term. If you're switching to a different bank or credit union for the new loan, these can be pretty hefty and not inconsequential for smaller deals.

[@BreakIntoCRE]

Hey Robert, great to hear my videos and courses have been helpful! Excellent point and I totally agree on the loan fees. Thanks for posting this!

[@theorb21]

Am I correct in thinking that another pro for the GP of refinancing is that this capital event could result in the Gp realising their promote earlier than anticipated, resulting in increased GP returns?

[@surferguy331]

Hey Justin, wouldn't you have the opportunity to give a larger down payment for smaller principal and therefore even better rate? Wouldn't con #2 be mute if your LTV was 60% or even half, is this common at all??

[@jcbry4555]

I still don’t understand how the loan amount can increase to 5k per month???

[@BreakIntoCRE]

Paying loan payments on $1,050,000 loan balance vs. $700,000 loan balance.

[@xzzdm]

Hi Justin, great video. In reality, with an increased property value, are you able to keep the same LTV ratio when you refinance it? Or does the bank requires to lower the LTV a little bit. What is common practice in the real world? (Assuming multifamily property, for example)? Thank you!

[@viacheslavsavateev6522]

7:40 not quite sure what are you doing here ...

[@BreakIntoCRE]

Hey Viacheslav, the $1.05 million loan amount is 70% of the new $1.5 million property value mentioned at 5:37 in the video.