$300,000 Refinance with Cash Out in Brentwood, CA
Refinance with Cash Out:
A Strategic Solution for Construction Completion
Loan Amount: $300,000
Loan Term: 12 Months
CLTV: 55%
At Rubicon Mortgage Fund LLC, we understand that construction projects donât always go exactly as planned. Unexpected costs can arise, requiring additional funds to bring a project to completion. Thatâs why we recently provided a $300,000 refinance with cash out loan to a repeat borrower who underestimated the funds needed to finish their construction project. Thanks to the substantial equity in the property, we were able to structure a solution that kept the project moving forward without unnecessary delays.
The Challenge: Additional Refinance with Cash Out Funds Needed to Complete Construction
Our borrower initially secured financing through Rubicon to kickstart their project, which involved a mix of unique properties, including an auto dealership lot and a non-owner occupied residential duplex. While construction was progressing, the borrower realized that their initial budget was not sufficient to bring the project to completion.
This situation is not uncommon in the world of real estate development. Whether due to rising material costs, unforeseen structural challenges, or changes in project scope, borrowers may need additional capital to ensure their investment reaches its full potential. Instead of seeking alternative financing, which could be costly and time-consuming, the borrower turned to Rubicon once again for a refinance with cash out solution.
The Collateral: A Mix of Properties with Strong Equity allows for a Refinance with Cash Out
One of the key factors that made this loan possible was the value of the collateral. The borrower had multiple assets in play, including an auto dealership lot measuring 7,429 SF, a non-owner occupied residential duplex, and a piece of land that was in the process of being subdivided and sold. Because these properties retained strong equity positions, Rubicon was able to extend additional funding with confidence.
This deal also leveraged cross-collateralization. The borrower pledged multiple properties as security, allowing us to structure a deal that provided the needed funds while maintaining a clear exit strategy. The proceeds from the sale of a portion of the land will be used to repay the loan, ensuring that both the borrower and Rubicon are protected.
The Solution: Refinance with Cash Out
Rather than pursuing an entirely new loan or looking for alternative lenders, we structured a refinance with a cash-out loan that provided the borrower with an additional $300,000. This approach allowed them to secure the funds they needed without disrupting their construction timeline.
Refinancing with cash out is a powerful financial tool for real estate investors who need to access liquidity while maintaining a manageable repayment structure. In this case, our ability to assess the borrowerâs equity position and overall financial strategy allowed us to offer a quick and efficient solution.
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Why Refinance with Cash Out?
For real estate investors and developers, refinance with cash out loans provide several advantages:
- Access to Additional Capital â Allows borrowers to tap into their propertyâs equity to cover construction costs, renovations, or other expenses.
- Avoids Project Delays â Instead of pausing construction due to a lack of funds, borrowers can keep their projects on schedule.
- Maintains Investment Control â Rather than bringing in new partners or securing additional financing from outside sources, borrowers can retain control over their projects.
- Flexible Repayment Terms â By structuring a deal based on equity and collateral, repayment can be aligned with the borrowerâs overall financial strategy.
The Exit Strategy: Ensuring a Secure Loan Structure
At Rubicon Mortgage Fund LLC, we always ensure that our loans are structured with clear exit strategies. In this case, the borrower intends to repay the loan using proceeds from the sale of a subdivided land parcel. This approach provides both parties with confidence in the dealâs security and repayment timeline.
Cross-collateralization played a crucial role in this loan, as it allowed us to provide additional funds while maintaining strong risk mitigation strategies. The borrowerâs ability to leverage multiple properties as security gave them access to the capital they needed without overextending their resources.
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Why Choose Rubicon Mortgage Fund LLC?
Navigating real estate financingâespecially when dealing with construction loansârequires expertise, flexibility, and strategic thinking. At Rubicon, we specialize in creating customized solutions that help our clients achieve their investment goals. Whether youâre looking for an initial loan, a refinance with cash out, or a cross-collateralized lending structure, we have the knowledge and resources to make it happen.
Our deep understanding of the California real estate market allows us to assess each projectâs unique needs and structure loans that provide real value. We work closely with our borrowers to ensure that their financing aligns with their long-term success.
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Conclusion
This recent loan underscores the importance of strategic lending solutions in real estate development. When unexpected costs arise, having access to a refinance with cash out option can mean the difference between project completion and costly delays. By leveraging cross-collateralization and assessing strong equity positions, Rubicon Mortgage Fund LLC was able to provide a seamless solution for our repeat borrower.
If youâre facing similar financing challenges or are looking for a trusted private lender to support your real estate projects, contact Rubicon Mortgage Fund LLC today. Our team is here to help you navigate complex lending scenarios and provide the funding you need to bring your vision to life.
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