$4,000,000 Refinance in San Jose, CA
Refinancing a Legacy Gas Station
Through a Cash Out Refinance
Loan Amount: $4,000,000
Loan Term: 12 Months
LTC: Under 55%
Lien Position: 1st Deed of Trust
Some deals are not about fixing a problem. They are about unlocking what is already working.
This $4,000,000 cash out refinance involved a long owned gas station in San Jose and a borrower who has spent more than 15 years building a high performing, volume driven business.
When a new opportunity surfaced next door, the right financing made it possible to move quickly.
A Generational Operator with a Strong Business
The borrower is a generational operator whose family has been in the gas station business for decades. Over the years, he built this location into a high volume operation by focusing on competitive pricing and steady traffic rather than margin alone.
Located along a major corridor, the station benefits from strong visibility, consistent demand, and repeat customers. The borrower’s approach mirrors large scale operators like Costco, prioritizing aggressive pricing and throughput to drive performance.
The property consists of a 1,224 square foot building situated on approximately 0.40 acres and is supported by a well established operating business with a UCC 1 in place.
Why the Cash Out Refinance Was Needed
After owning the gas station for many years, the borrower identified an unexpected opportunity. A neighboring residential property went to probate and was offered through a competitive bidding process.
To secure the property, the borrower needed capital quickly. Rather than selling assets or bringing in outside partners, he chose to leverage the equity in his existing business.
This cash out refinance allowed the borrower to pull equity from the gas station and redirect the proceeds toward the purchase and renovation of the newly acquired home, which is planned as a fix and flip.
Why Private Capital Made Sense
Timing was critical. Probate sales move quickly, and bidding environments leave little room for financing delays.
Traditional lenders were not a fit for the borrower’s timeline or the structure required. The refinance called for a lender comfortable underwriting both the real estate and the operating business.
Rubicon Mortgage Fund, LLC structured a cash out refinance that allowed the borrower to access capital without disrupting daily operations. The loan was secured by a proven asset with a long operating history, strong traffic counts, and consistent performance.
A Clear Exit Strategy
The planned exit strategy for this transaction is a refinance into conventional financing once the borrower completes the fix and flip and stabilizes the overall balance sheet.
This approach allows the borrower to use short term capital strategically while maintaining long term ownership of a legacy asset that continues to perform.
Using a Cash Out Refinance to Create New Growth
This transaction highlights how experienced operators can use a cash out refinance as a growth tool rather than a last resort. By leveraging a well run, high traffic gas station, the borrower was able to pursue a new investment without slowing down his core business.
For borrowers with strong operating assets and a clear plan, private capital can provide the flexibility needed to move when opportunity appears.
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