Short Term Loan for Carmichael Retail Property Purchase

Several weeks  ago Rubicon Mortgage Fund funded a $1,430,000 short-term loan for the purchase of a 44,000 square foot retail property in Carmichael, Sacramento County. The property has 3 units, one of which is a fitness center. The Borrower, a repeat client of ours, is a gym operator. He plans to take over the existing gym and create a successful business, as he has done at other locations. The other 2 units in the building are tenant-occupied and will continue generating rental income for the Borrower. He put up 40% cash for the purchase of this property so our short-term loan is just 60% LTC (loan-to-cost). The loan term is 2 years.

Loan Amount: $1,430,000

Loan Term: 24 Months

LTC: 60%

Loan Position: First Deed of Trust