In today’s evolving real estate market, loan maturities and refinancing strategies have become front and center for many property owners. We’ve had several conversations this year alone with clients looking to get ahead of their upcoming loan deadlines. The common theme? Timing, strategy, and understanding the full financial picture.

The first step is clarity: knowing when your loan matures and assessing the current state of your asset. What’s the cash flow like? Are you coming out of a bridge loan? Are you preparing to refinance, or are you positioning for a sale? These questions guide the initial conversation and determine the right path forward.

Ideally, these discussions should happen at least one year before maturity. This allows time to explore options thoughtfully—whether that’s connecting with a lender for refinancing or preparing the property for sale. Even three or four years out, if your loan is assumable, you might have valuable leverage in the market.

However, it’s important to acknowledge that today’s market looks very different than it did in 2021 or 2022. Debt markets have tightened, cap rates have expanded, and many sellers are surprised to find that even after executing their business plans, property values may have dipped. Buyers are no longer paying premiums based on pro forma projections—they’re focusing on current, “as-is” performance. Setting realistic expectations early helps avoid rushed decisions as maturity dates approach.

When it comes to structuring financing, flexibility is key. Traditional agency loans offer long-term stability, but with prepayment penalties and higher commitment periods. On the other hand, shorter-term loans may come with higher rates but offer more agility with little to no exit costs. It’s a balancing act: evaluating the cost of capital versus your desired hold period and market projections.

No two deals are alike. Some investors aim for a cash-neutral refinance, while others may need to raise additional equity – especially in bridge-to-bridge scenarios. Understanding current cash flow, property performance, and your overall portfolio can unlock better financing solutions. In fact, providing a complete schedule of real estate owned can help identify other assets to use as collateral, which improves your position with lenders and can lead to more favorable terms.

Ultimately, the more information you share with your financing team, the better they can align strategies with your goals. Early and proactive planning, combined with a clear-eyed view of today’s lending landscape, ensures you’re not just reacting to market shifts but positioning yourself to navigate them successfully.