$640,000 Refinance in Hayward, CA
Private Money Loan for an Industrial Property in Hayward, California
Loan Amount: $640,000
Loan Term: 12 Months
LTV: Under 60%
Lien Position: 1st Deed of Trust
Rubicon Mortgage Fund, LLC funded a $640,000 first deed of trust private money loan for the owner of a collision repair shop in Hayward, California, whose conventional bank loan had matured and was not renewed. The financing paid off the borrower’s existing debt and included a small cash-out for shop improvements. The loan gave the borrower a defined runway to arrange long term financing.
The Situation
The borrower has owned and operated a collision repair shop for 20 years, running an established business out of an industrial property in Hayward, California. The building had a conventional bank loan against it, and that loan had reached maturity.
The borrower had already worked through several short term extensions and was facing a firm timeline to pay off the balance. The loan was not renewed, which meant the full amount would soon come due while the borrower was not yet positioned to refinance conventionally.
This is the kind of transition where short-term financing does its clearest work. The business was sound and the borrower had operated it for two decades. What they needed was a financing partner who could look at the property and the situation directly, and provide the capital to retire the maturing obligation on a workable timeline.
The Financing
Rubicon Mortgage Fund, LLC funded a $640,000 first deed of trust on the property. The loan did the following:
- Paid off the borrower’s existing debt on the property, including the matured bank loan.
- Included a small cash-out for improvements to the shop.
The transaction closed in roughly two months, working within the borrower’s timeline. Because Rubicon is an asset-based lender, underwriting centered on the property and the borrower’s equity rather than a conventional documentation package, which is what allowed the deal to move forward on the required timeline.
The short-term structure gave the borrower a defined term to stabilize the business’s financing and transition into a long term solution.
Why a Private Money Loan Fit
A maturing loan that will not be renewed puts a business owner on a clock. The balance comes due whether or not conventional refinancing is ready. A private money loan is built for that gap. It replaces the maturing obligation, keeps the property in the owner’s hands, and provides a runway to arrange permanent financing without the pressure of a hard payoff date.
Here, the loan also consolidated the borrower’s existing debt into a single first position financing and added modest capital for improvements. For a business that had been operating steadily for 20 years, the goal was continuity: keep the shop running and the property secured while the longer term financing came together.
About the Property
The collateral is an industrial property of approximately 8,303 square feet on a 0.64 acre lot in Hayward, California. It sits in an industrial neighborhood surrounded by similar industrial properties, a location well suited to an automotive repair use. The property serves as both the borrower’s place of business and the security for the loan.
Rubicon's Approach to Short-term Commercial Lending
Rubicon Mortgage Fund is a California private money lender focused on short term real estate financing. This transaction reflects how the firm operates: asset-based underwriting, a fully in-house process, and structures shaped around the borrower’s actual circumstances rather than a fixed checklist. That flexibility is often what allows a deal to close when a conventional loan has reached the end of its term and the balance is coming due.
Frequently Asked Questions About a Private Money Loan
What happens when a commercial bank loan matures and is not renewed?
The full balance becomes due. If the borrower is not ready to refinance conventionally, a private money loan can pay off the maturing loan and provide time to arrange long term financing.
Can a private money loan pay off a maturing commercial mortgage?
Yes. In this transaction, the $640,000 first deed of trust loan paid off the borrower’s existing debt and included a small cash-out for improvements.
Does Rubicon lend on owner-user industrial properties?
Yes. Rubicon Mortgage Fund lends against commercial and industrial real estate in California, including owner-user properties such as this auto body repair shop.
How does asset-based underwriting help in a situation like this?
Because the underwriting centers on the property and equity, Rubicon can move forward on a firm payoff timeline when a maturing conventional loan needs to be replaced quickly.
How long did this loan take to close?
It closed in roughly two months, within the borrower’s payoff timeline.
Talk to Rubicon about short-term financing
If you own a commercial or industrial property in California and are facing a maturing loan, a payoff deadline, or a financing transition, Rubicon Mortgage Fund, LLC can review your scenario. Reach out to discuss how a private money loan might fit your situation.
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