BreakThru Realty

For Owners

Your Commercial Loan Is Coming Due. Sell, Refinance or Extend?

A maturity date is a deadline. The owners who do best decide months before it arrives.

Your loan matures soon, and the new loan a lender offers may be smaller or cost more than the one you have. You have three ways forward: refinance, ask the lender to extend, or sell. All three start with the same figure: what the property is worth today on the income it earns today.

Review Buyer Interest in My Commercial Property · (786) 914-1017

BreakThru Realty · Founder and Broker of Record: Tyson E. Sam, Florida License 3565210

Your first step: Commercial Property Value and Buyer Match Review

Start With a Commercial Property Value and Buyer Match Review

Investors and owner users price your building three ways: against the competition, against closed sales and on its income, and the investor who buys it may already be working with BreakThru Realty. The review shows you all three prices, where they meet, whether the property fits the acquisition requirements investors have given us, and the ways to sell that fit your timing and your tax position.

What you receive

  • A check of the property against the acquisition requirements investors have given us: location, asset type, budget, occupancy, income and return, with no investor named
  • A broker's opinion of value from closed sales, competing listings and, for an income property, the rent roll and the cap rates buyers are paying
  • The documents buyers and lenders will ask for, and which to prepare before listing
  • Disposition options: open market sale, confidential sale, sale leaseback or a 1031 exchange, with the tradeoffs
  • The buyer profile for your property type and how we would reach it
  • A written summary of the figures behind the opinion, with an estimate of your proceeds where the figures you share allow one

What happens next

  1. Tell us the address, the property type and how the building is occupied.
  2. A commercial agent pulls the closed sales and the competing listings, checks the investor requirements on file and prepares the review.
  3. We call within one business day to walk through it.
  4. You decide whether, when and how to sell.

Free and confidential. It is a broker's opinion of value, not an appraisal, and we never publish an estimate for a specific property. A potential investor match is a conversation, not an offer, and no investor learns about your property without your consent.

Review Buyer Interest in My Commercial Property · How commercial property is valued

Why the New Loan May Be Smaller Than the Old One

A lender sizes a loan on today's net operating income, today's interest rate and a new appraisal. Two tests decide the amount. The debt service coverage ratio is the property's net operating income divided by the yearly loan payments, and the lender sets a minimum. The loan to value ratio caps the loan at a share of the appraised value. When rates are higher or income is lower than on the day you borrowed, the same building supports less debt. The difference between your current balance and the new loan is cash you would bring to closing.

Your Three Options

Each option answers a different goal, so start with what you want from the property over the next few years.

  • Refinance: you keep the property. It works when the income supports a loan you can carry and any cash you must add is money you are willing to invest.
  • Extend or modify: you ask the current lender for more time. Lenders consider it when the property still earns income and the owner raises the subject early. Expect a fee, a paydown or new terms.
  • Sell: you pay the loan from the proceeds and keep the equity. It fits when the gap is too large, when income is falling, or when your equity would work harder in another property.

The Numbers to Have Before You Choose

Four figures settle most of the decision. The value of the property today, from closed sales and its income. The payoff, with any exit or prepayment charge your loan documents carry. The net proceeds of a sale after closing costs. The tax on the gain, and whether a 1031 exchange into another property would defer it. Consult a commercial lender about loan terms and a tax adviser about the tax on a sale. The broker's part is the value and the proceeds.

Count Backward From the Maturity Date

A sale has stages, and each takes time: assembling the rent roll and statements, marketing, the buyer's inspections and lease review, the buyer's own loan, and closing. An owner who starts a few weeks before maturity negotiates under pressure, and buyers can tell. Our recommendation is to run the numbers at least six months ahead, so a sale stays a choice and never becomes the only option left.

How BreakThru Realty Helps

A broker first checks your property against the acquisition requirements commercial buyers have given us. If no buyer on file fits, the review sets out the plan that takes the property to the wider market: the MLS commercial listing, the commercial pages on this site, cooperating brokers and direct outreach to likely buyers. The plan is built around your maturity date and the amount you need to net.

Related Pages

Questions you may be asking

Do you already have a buyer for my building?
We say so only after a specific investor has reviewed the property and confirmed interest. The review first checks your property against the acquisition requirements investors have given us and tells you, under confidentiality, whether anything fits. If nothing does, it sets out how we take the property to the wider market.
Can the sale be kept confidential?
Yes. Financials go only to buyers who sign a confidentiality agreement, tours are by appointment, and a tenant occupied building can be marketed without disturbing the tenants. The review sets out the options and the MLS rules that apply.
What does it cost to sell?
The commission is negotiable and agreed in writing in the listing agreement before anything is marketed. Other seller costs usually include title and closing charges and Florida documentary stamp tax on the deed; your closing agent confirms the figures.
I am thinking about a 1031 exchange.
Tell us before you sign anything: the exchange has to be set up before the sale closes. The review covers the timing, and your CPA and a qualified intermediary handle the tax side.
How long will it take?
Longer than a home. Pricing, marketing, a due diligence period that commonly runs 30 to 60 days and financing all take time. The commercial market pages show how long listings like yours have been on the market today.

Request a Broker Pricing Review

On this page you can tell us: the address, the loan balance and the maturity date, occupancy and net operating income, what you want to keep or cash out.

Call or text (786) 914-1017 or email sales@breakthrurealty.com. A licensed BreakThru Realty agent follows up within one business day.

Your Next Commercial Buyer May Already Be Working With BreakThru Realty

Investors, owner users and business owners across Florida work with BreakThru Realty with defined requirements: the asset type, the size, the location, the price and the return they need. If you own commercial property, a broker can review it against those requirements before you list, and if no buyer on file fits, explain the marketing that reaches the rest of the market.

Before you list, a broker reviews what you own, the market around it and whether an existing buyer's requirements match. If none does, you see how we would position it to reach other qualified buyers.

Find Out If We Have Your Buyer · Discuss Selling With BreakThru Realty

A potential match is a conversation, not an offer, until the buyer sees your property and makes one. No buyer is named and nothing about your property or business is shared until you decide to proceed.

Frequently Asked Questions

Should I sell or refinance my commercial property?
Refinance if the property supports a new loan you can carry and you want to keep it. Sell if the new loan would need cash you would rather not add, if income is falling, or if your equity would earn more elsewhere. Compare the two in figures: the terms of the new loan against the net proceeds of a sale.
What happens if I cannot refinance before the loan matures?
The loan is in default at maturity unless the lender agrees in writing to extend it. Speak with the lender and with an attorney well before the date. A sale that closes before maturity pays the loan in full and ends the question.
How long does it take to sell a commercial property in Florida?
There is no fixed time. Preparation, marketing, the buyer's due diligence, the buyer's financing and closing each take weeks. An investor paying cash usually closes sooner than a business owner using an SBA loan. Start early enough that the slowest likely buyer still closes before your deadline.

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