$3,000,000 Refinance in Santa Rosa, CA
Private Money Refinance Loan:
How RMF Closed a $3M Hotel Deal in 30 days
Loan Amount: $3,000,000
Loan Term: 7 Year Amortization due in 5 Years
LTV: Sub 30%
Lien Position: 1st Deed of Trust
For investors looking to complete their capital stack, a private money refinance loan can be an attractive and strategic option. Whether you need to bridge a funding gap, satisfy a maturing obligation, or move quickly on a time-sensitive transaction, private lending offers the speed and flexibility that conventional financing often cannot. That is exactly the role it played in this 170-key, full-service hotel deal.
What is a capital stack? A capital stack refers to the layers of financing used to fund a real estate transaction. It typically includes senior debt (such as a bank loan), mezzanine or bridge financing, preferred equity, and common equity. Each layer carries a different level of risk and return. When one layer of the stack is incomplete or comes up short, a private money loan can step in to fill the gap and allow the deal to move forward.
*Rubicon Mortgage Fund, LLC lends in the senior position only. Subordinate financing is considered on a case by case basis and requires prior approval.*
The Deal at a Glance
This is our second transaction with this borrower, a relationship built on performance, transparency, and a shared commitment to closing deals the right way. The property is a 170-key, four-star Tapestry Collection by Hilton hotel set on 10.05 acres and featuring a restaurant, swimming pool, and tennis club. Newly renovated and operating at a four-star standard, the hotel caters to corporate travelers, events, and weddings. The food and beverage program is operated by a well-known restaurateur from San Francisco’s Marina District, lending the property a hospitality credibility that extends well beyond a typical hotel flag.
The Problem: A Maturing Bank Loan and a Funding Gap
The original acquisition was structured as an all-cash purchase. However, the equity raise came in short, leaving a gap in the capital stack. When the bank loan came due, the borrower needed a fast, reliable solution to bridge the shortfall and protect the asset.
This is precisely where a private money refinance loan earns its place in sophisticated real estate finance. Banks operate on timelines that don’t accommodate urgency. Private lenders do.
The Solution: A $3M Private Money Refinance Loan, Closed in 30 Days
RMF stepped in with a $3,000,000 private money loan to complete the capital stack. Timing was critical, and we delivered. This transaction closed within 30 days, giving the borrower the liquidity needed to satisfy the maturing bank obligation and stabilize the asset.
Key loan features included:
• Sub-30% Loan-to-Value (LTV): Exceptional collateral coverage providing strong downside protection for the lender and favorable terms for the borrower.
• Built-in Amortization Schedule: A structured repayment plan was incorporated into the loan, aligning with the borrower’s cash flow and exit strategy.
• Clear Exit Strategy: The plan is to pay off the private money loan in full and refinance with a conventional bank loan, a clean, well-defined path that minimizes risk and maximizes efficiency.
• Repeat Borrower Relationship: This is our second deal with this borrower, which accelerated underwriting, trust, and execution speed.
Why Private Money Refinance Loans Work for Time-Sensitive Situations
Traditional bank loans are governed by committee approvals, regulatory timelines, and rigid underwriting requirements. When a bank loan matures and the borrower needs capital now, those processes simply aren’t fast enough.
A private money refinance loan offers:
- Flexible underwriting focused on the asset and borrower strength
- Closings in 30 days or less
- Ability to complete capital stacks when equity raises fall short
- Bridge financing while the borrower secures permanent bank financing
- Relationship-driven terms that reward experienced, repeat borrowers
The Borrower: Experience You Can Count On
Not all borrowers are created equal. This borrower has deep experience in hotel ownership and operations, and that experience matters to us as a lender. A knowledgeable borrower understands occupancy dynamics, capital expenditures, and how to manage a complex, full-service asset like this one.
The hotel’s positioning is strong: a newly renovated Tapestry Collection by Hilton property spanning 10.05 acres, with a nationally recognized restaurant operator, a diverse mix of corporate, event, and wedding demand drivers, and a premium amenity set including a pool and tennis club. Tapestry Collection is Hilton’s independent-spirit brand, designed for travelers seeking unique, character-driven experiences backed by Hilton’s global loyalty and distribution platform. This is not a distressed asset. It is a high-quality, differentiated property with a temporary capital structure challenge that private money was built to solve.
The RMF Approach: Relationship-First Private Lending
At RMF, we evaluate every transaction through the lens of three fundamentals: the asset, the borrower, and the structure. When all three align, as they did here, we move decisively.
A sub-30% LTV on a stabilized, branded hotel with an experienced operator is the kind of collateral that lets us act quickly and with confidence. Pair that with a repeat borrower relationship and a clear refinance exit, and this deal represents exactly what private money lending is designed to do.
Is a Private Money Refinance Loan Right for Your Deal?
If you are facing a maturing bank loan, a gap in your capital stack, or a time-sensitive acquisition that conventional lenders can’t close in time, a private money refinance loan may be the right tool.
We work with experienced borrowers on commercial real estate assets where speed, structure, and certainty of close matter. Whether it is hospitality, multifamily, retail, or mixed-use, if the fundamentals are strong and the borrower is qualified, we want to hear from you.
Contact RMF today to discuss your private money refinance loan needs.
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