$2,500,000 Cash-Out Loan in Cathedral City, CA
Cash-out Loan on Two Free-and-Clear Commercial Properties in Cathedral City, California
Loan Amount: $2,500,000
Loan Term: 12 Months
CLTV: Under 60%
Lien Position: 1st Deed of Trust
Rubicon Mortgage Fund, LLC funded a $2,500,000 straight cash-out loan for a repeat borrower against two commercial properties in Cathedral City, California, both owned free and clear. The loan is secured by both assets and gave the borrower liquidity to redeploy into new investments.
Deal overview
This is a straight cash-out loan for a total of $2,500,000. The borrower owned two commercial properties free and clear, with no existing debt against either one. Rubicon placed new financing across both assets and returned the proceeds to the borrower as usable capital for investment purposes.
Because the loan is secured by two properties rather than one, it was structured as a cross-collateralized facility. That structure let the borrower pull liquidity from both free-and-clear assets in a single transaction.
The properties
The collateral is a pair of commercial properties in Cathedral City:
- A multi-tenant retail strip center of approximately 6,000 square feet on a 0.8 acre lot, with one suite currently vacant.
- A ground lease on a drive-thru coffee pad (Dutch Brothers) of approximately 950 square feet on a 0.63 acre lot.
Both properties were held free and clear, which is what made a straight cash-out possible against their full equity.
A repeat borrower with a clear playbook
This is the borrower’s twelfth loan with Rubicon. The sponsor is a developer who pools capital from groups of investors to acquire commercial real estate, add value through repositioning and tenant changes, and sell the improved assets. It is a repeatable playbook the borrower runs deal after deal.
That relationship and track record shaped the transaction. The borrower is a well-capitalized sponsor who invests real equity and acquires assets that pencil, and Rubicon has seen that discipline across a dozen loans. The financing was arranged directly with the borrower, and the existing relationship gave both sides certainty on execution. As a repeat borrower, the sponsor also received favorable pricing.
Why a cash-out loan fit
When an investor owns commercial real estate free and clear, that equity sits idle until it is put to work. A cash-out loan unlocks it. Here, the borrower wanted capital to pursue new acquisitions, and a straight cash-out against two unencumbered properties was the most direct way to free it up without selling the assets first.
The borrower’s exit strategy is to liquidate the assets over time. The cash-out financing supports that plan by providing liquidity now while the properties are prepared and positioned for sale.
Rubicon's approach
Rubicon Mortgage Fund, LLC is a California private money lender focused on short term real estate financing. This transaction reflects how the firm works with established sponsors: asset-based underwriting, a fully in-house process, and structures shaped around the borrower’s actual plan. For a repeat borrower with a proven track record, that means financing can be arranged with confidence on both sides.
Frequently asked questions
Can you get a cash-out loan on a commercial property you own free and clear?
Yes. When a property has no existing debt, a cash-out loan can place new financing against its equity and return the proceeds to the owner as usable capital. In this transaction, Rubicon funded a cash-out loan against two free-and-clear commercial properties.
Can a single loan be secured by more than one property?
Yes. This loan was cross-collateralized by both properties, which allowed the borrower to draw liquidity from two free-and-clear assets in one transaction.
What can cash-out loan proceeds be used for?
The proceeds are the borrower’s to deploy. Here, the sponsor used the capital for investment purposes, funding new acquisitions as part of a buy, reposition, and sell strategy.
Does Rubicon work with repeat borrowers?
Yes. This was the borrower’s twelfth loan with Rubicon Mortgage Fund. An established track record gives the fund confidence in the sponsor’s plan and can lead to favorable pricing on future deals.
Talk to Rubicon about a cash-out loan
If you own commercial real estate in California and want to put its equity to work, Rubicon Mortgage Fund, LLC can review your scenario. Reach out to discuss how a cash-out loan might fit your investment plans.
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