What is it? (plain English)
An investor refinance loan is business-purpose financing that replaces existing financing on an investment property — to improve terms, or to pull equity back out as cash (cash-out) to redeploy into the next deal. It's a common step in the BRRRR strategy.
Who is it for?
Investors who have stabilized a property (often after a renovation) and want to move off short-term financing, or pull their invested capital back out to reuse.
When might it make sense?
When a flip or rehab is complete and rented, and you want to refinance a short-term loan into longer-term financing — or recover your equity to fund the next acquisition.
Good to know
Cash-out on investment property is typically capped at a more conservative loan-to-value than a purchase, and lenders look at the property's value (and, for rentals, its cash flow), seasoning, your credit, and reserves. The new loan's terms have to leave the deal still working.
Potential advantages
Moves you off higher-cost short-term capital; can recover invested equity to redeploy; can convert a project into a long-term hold.
Potential limitations
Cash-out LTV is usually capped lower; seasoning and reserve requirements; the property has to support the new loan; cost and terms depend on the deal.
Documents you may need
Property financials, lease or rent details (for rentals), current financing details, entity documents, reserves, appraisal.
Questions to ask before you choose
- Am I refinancing to improve terms, to pull cash out, or both?
- What LTV can the property support?
- Does the deal still work at the new terms?
- Is the property seasoned enough?
How Kyon helps
We help you decide whether and when to refinance, run the numbers on a cash-out, and arrange (or fund) the right structure for your strategy.