Commercial Real Estate Loan FAQ

Straight answers on refinancing and buying commercial property in Texas and Florida, from Darrin Shahan, founder of Metric Asset Finance. Last updated October 2026.

What does a commercial loan broker do?

A commercial loan broker shops one loan request across many lenders so the borrower doesn't have to. Metric Asset Finance reviews the property and borrower, packages the deal, sends it to banks, debt funds, DSCR and bridge lenders that fit, and negotiates terms. The broker does not lend its own money; the borrower closes with the lender.

Why use a broker instead of going straight to my bank?

A bank can only offer its own loan programs, and it may decline deals outside its credit box: newer owners, lease-up properties, cash-out requests or tight debt coverage. A broker compares several lender types at once, which often uncovers better leverage, a longer interest-only period or a lender willing to close a deal the bank passed on.

What is a DSCR loan for commercial or investment property?

A DSCR loan is underwritten mainly on the property's cash flow rather than the owner's personal income. The lender divides net operating income by the annual loan payment. A ratio of 1.25x means the property earns $1.25 for every $1.00 of debt service. DSCR loans suit investors whose tax returns understate their real income.

What debt service coverage ratio do commercial lenders require?

Banks and conventional commercial lenders commonly look for a DSCR of about 1.20x to 1.25x or higher. Some private DSCR lenders will go to 1.0x, and bridge lenders may lend below that when there is a clear plan to raise income. Requirements vary by lender, property type and leverage, so the same deal can qualify in one place and not another.

How much can I borrow when refinancing commercial real estate in Texas?

Most commercial refinances are capped at roughly 65% to 75% of appraised value, and cash-out refinances are usually at the lower end of that range. The final amount is the lower of the loan-to-value limit and what the property's income supports at the lender's required DSCR. Property type, occupancy and borrower experience all move the number.

My commercial loan is maturing. When should I start the refinance?

Start six to nine months before the maturity or balloon date. A commercial refinance needs an appraisal, environmental review, title work and lender underwriting, which often takes 45 to 90 days once a lender is chosen. Starting early leaves time to compare offers and avoids paying extension fees or default interest to the current lender.

Can I do a cash-out refinance on a commercial property?

Yes. Many lenders allow cash-out on stabilized commercial property, usually at lower leverage than a rate-and-term refinance and sometimes with a seasoning requirement, meaning you must have owned the property for a set period. Owners commonly use the proceeds to buy another property, fund improvements or pay off higher-cost debt.

What documents are needed to refinance a commercial property?

Expect to provide a current rent roll, a trailing 12-month operating statement, the last two years of property and business tax returns, a personal financial statement, entity documents for the borrowing LLC, the current loan payoff or mortgage statement, and proof of insurance. Lenders order the appraisal and environmental report after terms are accepted.

Does Metric Asset Finance arrange loans in Florida as well as Texas?

Yes. Metric Asset Finance is based in Katy, Texas, and arranges commercial real estate refinance and acquisition financing for property owners and investors in both Texas and Florida, working with lenders that actively fund in each state.