All cash purchase or Financing

[Greg Heden]

Hello All:  Just joined BP tonight and am excited to learn and contribute where I can.  I have a purchase agreement on a commercial condo with a closing date of July 31st.  The purchase price is $500K.  I have just enough liquidity to purchase outright but this would leave me a bit tight.  I have an option of an SBA 7A loan that could get done in time or just paying cash and then looking for a cash out refi later.  The SBA loan has high fees and is prime +2% with a 5-3-1 prepay (not excited about that).  A conventional would take longer and I would have to ask for an extension to the close(not sure how this would be accepted).  Are there any con’s to doing a cash out refi vs.putting financing in place from initial purchase?  Any advice would be appreciated. Thx- Greg