Accessing Equity in Commercial Real Estate Through a Cash-Out Refinance
A cash-out refinance on a commercial property replaces an existing loan with a larger one, with the difference paid to the borrower at closing. For property owners who have built equity over time, a cash-out refinance is one of the most efficient ways to redeploy that capital without selling the asset. The proceeds can be used for virtually any business purpose: capital improvements, a new acquisition, a partner buyout, or working capital.
Rubicon Mortgage Fund, LLC provides cash-out refinance loans up to 65% of the current market value of the property. We are a direct private money lender based in Lafayette in the San Francisco Bay Area, serving commercial real estate owners throughout Northern California, the Bay Area, Sacramento, Los Angeles, Orange County, San Diego, and statewide since 2008.
How Rubicon Structures Cash-Out Refinances
Each cash-out refinance is structured around the current value of the property and the amount of equity available within our 65% LTV limit. Rubicon physically inspects every property before committing to a loan. We review the existing debt, the property's condition and income characteristics, and the borrower's intended use of the proceeds. No personal credit check, tax returns, or income documentation is required.
Loan terms are tailored to the borrower's exit strategy, whether that is a sale, a conventional refinance once the property stabilizes, or a longer hold with a renewed private money facility.
Common Uses for Cash-Out Proceeds
- Capital improvements or renovations to increase property value or occupancy
- Down payment or full acquisition of an additional investment property
- Tenant improvement allowances to attract or retain commercial tenants
- Working capital for an operating business
- Partner or co-owner buyout
- Payoff of junior liens or other obligations
Lending Criteria
- Loan amounts from $500,000 to $15,000,000
- Up to 65% loan-to-value (LTV)
- First position only
- All commercial property types across California
- No credit check required
- Loan terms from 6 months to 24 months
Get Started
Contact Rubicon Mortgage Fund, LLC with your property address, approximate current value, existing loan balance, and intended use of proceeds. We serve commercial property owners throughout California including the Bay Area, Northern California, Sacramento, Los Angeles, Orange County, and San Diego. We typically provide an initial response and preliminary terms within 24 hours of inquiry.
Rubicon Mortgage Fund writes cash-out refinance loans on California commercial property, releasing equity that is sitting in an asset the owner has no intention of selling.
Why Owners Use Cash-Out Refinance Loans Instead of Selling
Equity in commercial real estate is real money that does nothing until it is either sold or borrowed against. Selling converts it at the cost of the asset, the income, and — in California — often a property tax basis that would never come back.
The basis argument
Under Proposition 13, a long-held California property can carry an assessed value far below market. Sell it and buy something comparable, and the replacement is assessed at today’s price. That difference is permanent and recurring, and it is frequently larger than the cost of borrowing against the property instead.
This is the single most under-weighted factor when California owners debate selling to raise capital.
Speed is often the whole reason
Cash-out refinance loans are commonly raised against a deadline: a purchase under contract, a partner who wants out by a set date, a tax bill, or a contractor who needs mobilising. A bank cash-out on a commercial property is not a fast product. Ours is.
The proceeds are not scrutinised line by line
Conventional cash-out underwriting frequently asks what the money is for and disallows uses it does not like. We are lending against the property for business purposes. What the capital does next is your business decision, not an underwriting condition.
What Owners Do With the Proceeds
- Buy the next property. Cash-out on an owned asset funds the down payment on an acquisition, often making an all-cash offer possible.
- Buy out a partner or a sibling. Especially where inherited property has several owners and only one wants to keep it.
- Fund improvements that make the property bankable. Our Stockton self-storage borrower replaced debt and funded improvements under a new management agreement in one transaction.
- Cover a capital call or a business need where the real estate is the strongest collateral available.
- Settle an estate without forcing a sale of the property.
Full parameters are on our borrowers and lending criteria page, and closed deals are listed under funded loans.
What to Think Through Before You Borrow
A cash-out refinance increases the debt on the property and the payment that comes with it. Two questions are worth answering honestly before starting.
Does the property carry the new payment? If the answer depends on a lease that has not been signed, say so at the outset. We would rather structure around that than discover it later.
What repays the loan? Short-term cash-out financing is repaid by a refinance into permanent debt, a sale, or the business result the capital produced. A clear answer here is what separates a good use of equity from an expensive one.
Cash-Out Refinance Loans: FAQs
Do I have to say what the money is for?
Tell us the outline, because it usually explains the timeline and the exit. But the use of proceeds is not an approval condition, provided it is a business purpose.
Can I take cash out on a property I own free and clear?
Yes. An unencumbered property is among the most straightforward files we see.
Do you require an appraisal?
No, on any loan. Someone from Rubicon inspects the property in person instead, which is a large part of why we move quickly.
Can I cash out to buy another property?
Yes, and it is a common structure. Cross-collateralization across both properties is also available where it improves the outcome.
Will this work if the property is not fully leased?
Often, yes. We underwrite the asset rather than trailing income, though occupancy affects what the property will support.
Can a trust or an LLC borrow?
Yes. We lend to individuals, LLCs, corporations, trusts and partnerships.
Are cash-out refinance loans regulated in California?
Yes. Rubicon lending is made or arranged pursuant to California Financing Law and overseen by the California Department of Financial Protection and Innovation. All loans are business purpose and secured in 1st position.
What do you need to quote it?
The property address, any existing loan balance, your estimate of value, and how much you want to take out.