Should I Refinance This Deal

I recently purchased my first Commercial Property. Its a vacant 7000 sq fts 2 story Retal/Office building in redeveloping downtown Houston. Its a prime location, right across from The Astros Minute Made Park and in the middle of cluster of office buildindings. I purchased the building for 899,000. Paid 90 K down and got mortgage for 809,000. 30 years fixed at 8.99% with 10% prepay penalty. Property was appraised for 1.1 mil. I have a plan to open up a Restaurant and Bar with a renovation cost of 400,000. I am planning to finance the renovation with 2nd loan. I don't know if its possible. A local bank willing to refinance the project upto 1.4 mil. but I have to pay the 10% prepay penalty to my current Mortgage co. Any suggestions.

10% prepay? What were you thinking?

Guess I'd be looking for somebody to give you a rehab loan second behind this first.

I'm a little confused-- "I am planning . . . . but I don't even know if this is possible." You are on the hook for a million bucks (more or less) and you don't even know if your plan is minimally do-able?

Have you received a loan commitment from your proposed bank with a loan structure outlining the rate and terms for your renovation?

It is a longshot but you might want to approach your current lender to see what they might do.

You might try something like ****Must participate a while before posting URL's***

You might try something like ****Must participate a while before posting URL's***