Rubicon Mortgage Fund recently facilitated a $550,000 Cash-Out Refinance Loan on a building in Berkeley, California. The property in question is a stabilized 5-unit building under the ownership of a local long-term real estate investor. The loan became necessary due to the impending maturity of the existing mortgage.

The borrower’s initial loan application with a traditional bank was declined primarily due to structural concerns related to the building’s foundation. Like many older structures in Berkeley, this building’s brick foundation presented a risk factor that conventional lenders deemed challenging.

The banker handling the transaction recommended Rubicon Mortgage Fund for the cash-out refinance loan, given our specialization in asset-based lending. We successfully settled the borrower’s outstanding note/debt, providing the necessary liquidity for renovations, notably reinforcing the brick foundation.

Upon completion of the renovations, the borrower intends to transition back to their traditional banking relationship, underscoring our role as a bridge lender in this context.

Furthermore, the property’s location in a family-friendly neighborhood enhances its appeal and investment potential, reflecting positively on its overall value.

Loan Amount: $550,000

Loan Term: 12 Months

LTV: 44%

Loan Position: First Position Deed of Trust