What it is
A cash-out refinance replaces the existing loan on a stabilized property with new senior financing sized to today's value and today's income. The existing debt is retired, closing costs are paid, and the remaining proceeds go to the ownership entity as free capital.
The mechanics are straightforward. The judgment is not: how much to take out, how it affects coverage through the next hold period, and what it costs in flexibility later. Pulling the maximum available is almost never the same decision as pulling the right amount.
When to use it
The window is usually defined by two things — the asset has proven its income, and there is something better to do with the capital than leave it in the walls.
- A repositioning or lease-up finished and the asset now supports permanent financing.
- Value has grown materially since the original acquisition or the last financing.
- An existing loan is approaching maturity and the refinance can do double duty.
- Capital is needed for the next acquisition, a development, or a capital improvement program.
- A partnership needs liquidity for a buyout or a distribution without selling the asset.
How Ordeg structures and places it
We start with the trailing operating statements and the rent roll, because that is what a lender will start with. We normalize the financials, verify the income the market will actually credit, and model coverage under conservative assumptions rather than optimistic ones — so the proceeds figure we discuss is one that survives underwriting.
Then we run the trade-off explicitly: proceeds against coverage, term against flexibility, and prepayment structure against the likely hold. A sponsor planning to sell in three years and a sponsor planning to hold for fifteen should not sign the same loan, even on the same building.
We package the file so the story is clear on the first read, take it to capital that matches the asset profile, and negotiate the points that determine what you can do next — proceeds, recourse, reserve requirements, prepayment, and the release provisions that matter if the plan changes.
Who it's for
Owners of stabilized multifamily, hospitality, and industrial assets across Miami-Dade and Broward who want to recycle equity into the next deal instead of selling into a tax event.
It is also one of the most common needs among international owners. Investors from across Latin America who bought South Florida real estate years ago often hold significant unrealized value and want to redeploy it locally. We handle those files bilingually and account for the entity and documentation questions that come with foreign ownership before they become obstacles.