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Category: Acquisition

Discover the benefits of commercial acquisition loans from our private hard money lender, offering fast funding and flexible terms. Rubicon Mortgage Fund can provide funds in as little as two weeks in many cases.
Funded Loans, Acquisition, Short-Term Loan

$2,550,000 Short-Term Loan in Orinda, CA

Short Term Loan in Orinda, CA

short-term loan orinda California

Loan Amount: $2,550,000

Loan Term: 11 Months

CLTC: 60%

Loan Position: First Position Deed of Trust

Rubicon Mortgage Fund recently provided a $2,550,000 loan for a prime property in Orinda, CA. The borrower needed funds to secure their new purchase before selling their existing property. By leveraging equity, we structured a loan that allowed them to move forward with confidence. Once their original property sells, the loan will be paid off. Rubicon specializes in fast, asset-based lending solutions, helping borrowers secure funding when traditional financing isn’t an option.

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Orinda loan

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Funded Loans, Acquisition, Short-Term Loan

$1,700,000 Acquisition in Berkely, CA

The Role of Private Lending in Commercial Real Estate Acquisitions

commercial real estate acqusition

Loan Amount: $1,700,000

Loan Term: 12 Months

LTC: 60%

Loan Position: First Position Deed of Trust

Rubicon Mortgage Fund recently funded the acquisition of a vacant Bank of America building in Berkeley, marking the third such purchase by a single family. This family specializes in operating neighborhood markets, strategically selecting former bank buildings for their central locations and ample parking—essential features for retail success. The subject property is an 11,677-square-foot retail building, commonly referred to as a “dark BofA,” meaning it is no longer in operation. With a loan amount of $1,700,000 and a loan-to-cost (LTC) ratio of 60%, this acquisition presents a promising investment opportunity.

Why Former Bank Buildings Make Prime Acquisition Targets for Commercial Real Estate

Bank branches are often situated in high-traffic areas with excellent accessibility, making them ideal candidates for retail conversion. These properties typically include dedicated parking, a rarity in urban settings, and are designed to be highly visible to passing consumers. This particular acquisition in Berkeley follows the same strategy that has proven successful for this experienced borrower—transforming vacant bank spaces into thriving retail establishments.

By financing this deal, Rubicon Mortgage Fund supports the adaptive reuse of commercial real estate, facilitating economic growth and revitalization in the community. The borrower’s success with previous acquisitions underscores their ability to convert underutilized properties into productive assets, demonstrating the potential in repurposing vacant bank buildings for retail use.

Strategic Acquisition in a High-Value Commercial Real Estate Market

Berkeley is known for its diverse economy, vibrant commercial districts, and high demand for retail space. The city’s central location in the Bay Area makes it an attractive market for both investors and business operators. This acquisition aligns with Rubicon Mortgage Fund’s commitment to funding strategic real estate investments that contribute to the sustainability and growth of local economies.

This deal is similar to a previous transaction Rubicon Mortgage Fund financed—a vacant Bank of America building in San Francisco’s Mission District. That property, spanning 6,400 square feet with over 30 parking spaces, was acquired with the intent to establish a local ethnic grocery store, catering to the needs of the diverse neighborhood. The borrower’s ability to identify and execute on high-potential acquisitions reinforces their expertise in commercial real estate development.

Financing the Acquisition of a Vacant Bank Building in Berkeley

Traditional bank financing is not always the best fit for unique acquisition opportunities, particularly when the asset requires repositioning or a rapid close. Hard money loans provide the flexibility and speed needed to secure properties in competitive markets. Rubicon Mortgage Fund’s ability to quickly underwrite and fund acquisitions gives borrowers a significant advantage, allowing them to seize opportunities before they disappear.

By providing a $1,700,000 loan at an LTC of 60%, Rubicon ensured the borrower had the necessary capital to move forward with confidence. This structure also mitigates risk by maintaining a conservative loan-to-value ratio, ensuring both the lender and borrower are well-positioned for success.

Transforming Underutilized Properties into Thriving Businesses
As the retail landscape continues to evolve, creative adaptive reuse strategies are becoming more common. Converting vacant bank buildings into retail stores, grocery markets, or mixed-use spaces breathes new life into communities, creating jobs and increasing foot traffic in commercial districts. The success of previous acquisitions by this borrower serves as a strong indicator of the potential for this Berkeley location.

Why Rubicon Mortgage Fund?
Rubicon Mortgage Fund specializes in financing commercial real estate acquisitions, construction projects, and refinances across California. With a deep understanding of market trends and a commitment to flexible lending solutions, Rubicon is a trusted partner for real estate investors and developers seeking to capitalize on unique opportunities.

This latest acquisition further cements Rubicon’s reputation as a go-to lender for commercial property investors looking for tailored financing solutions. By funding strategic acquisitions such as this one in Berkeley, Rubicon helps investors unlock the full potential of commercial real estate assets.

Conclusion
The acquisition of this 11,677-square-foot former Bank of America building in Berkeley represents another successful transaction facilitated by Rubicon Mortgage Fund. With a seasoned borrower at the helm and a proven strategy of repurposing vacant bank buildings into neighborhood markets, this project is poised for success.

Rubicon Mortgage Fund remains committed to supporting real estate investors with fast, flexible, and strategic financing options. If you are looking for funding for your next commercial real estate acquisition, contact Rubicon today to learn how we can help bring your vision to life.

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Funded Loans, Acquisition, Commercial, Investment, Short-Term Loan

$1,800,000 Acquisition Loan in Yuba City, CA

Why Private Money Loans Are the Key
to Unlocking Multifamily Investments

private-money-loans-yuba-city-rubicon-mortgage-fund

Loan Amount: $1,800,000

Loan Term: 18 Months

LTC: 62%

Loan Position: First Position Deed of Trust

When traditional banks fall short, private money loans provide the flexibility and speed to close time-sensitive deals. A recent $1,800,000 acquisition loan facilitated by Rubicon Mortgage Fund for a 26-unit multifamily property in Yuba City, California, exemplifies the critical role private money loans play in the commercial real estate market.

The Challenge: Below-Market Rents and Bank Limitations

The borrower, an experienced real estate developer and attorney, specializes in operating multifamily units in the greater Sacramento area. Securing traditional bank financing wasn’t feasible for this property due to one key factor: the current rents were significantly below market—nearly 50% lower. Due to the current rents bank financing was not able to provide the adequate leverage needed for this transaction.

 

The Solution: Rubicon’s Flexible and Streamlined Approach
Rubicon Mortgage Fund stepped in to provide an 18-month bridge loan, allowing the borrower to execute his business plan. The borrower’s strategy includes:

  • Marking Rents to Market: As leases turn over, the borrower will implement minor renovations and adjust rents to market rates, significantly increasing the property’s income potential.
  • Streamlined Closing: Rubicon’s ability to close the loan within 30 days highlights the speed and efficiency private money loans bring to the table, especially in competitive real estate markets.

A Trusted Referral and Strong Relationships
This deal was referred to by a reputable local mortgage banking firm, with whom Rubicon Mortgage Fund has completed numerous transactions. This long-standing partnership underscores Rubicon’s commitment to building and maintaining strong relationships with industry professionals. These trusted connections enable Rubicon to consistently deliver tailored solutions that meet the unique needs of each deal.

Why Private Money Loans Are Essential

Private money loans from lenders like Rubicon Mortgage Fund are uniquely positioned to help borrowers seize investment opportunities that traditional banks cannot accommodate. Here’s why:

  1. Flexibility: Private lenders can assess a property’s potential beyond its current cash flow, focusing on the borrower’s experience and the property’s future value.
  2. Speed: With a streamlined underwriting process, private lenders can close deals in a fraction of the time it takes traditional banks.
  3. Customized Solutions: Each loan is tailored to fit the borrower’s specific needs and business plan, ensuring a seamless execution of their investment strategy.

The Exit Strategy: Returning to Traditional Financing

Once the borrower’s business plan is implemented, the exit strategy is to refinance through traditional bank financing. By increasing the property’s income through market-rate rents and minor upgrades, the borrower will position the property to meet the underwriting standards of conventional lenders, ensuring a smooth transition.

 

Conclusion

This $1,800,000 acquisition loan in Yuba City demonstrates how private money loans from Rubicon Mortgage Fund empower experienced operators to unlock the full potential of their investments. By providing fast, flexible financing solutions and leveraging strong industry relationships, Rubicon continues to support clients in achieving their real estate goals.

If you’re facing challenges with traditional financing, consider the advantages of partnering with a private money lender. Contact Rubicon Mortgage Fund today to explore how we can help you turn your vision into reality.

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Funded Loans, Acquisition, Commercial, Short-Term Loan

$3,660,000 Acquisition Loan in San Francisco, CA

Exploring Private Money Lending: $3.66 Million
Acquisition Loan for SRO Hotel in San Francisco

San Francisco Commercial Lending

Loan Amount: $3,660,000

Loan Term: 12 Months

LTC: 60%

Loan Position: First Position Deed of Trust

In the bustling heart of San Francisco, just south of Market Street, an experienced operator has secured a $3,660,000 private money loan to acquire a well-maintained SRO (single-room occupancy) hotel. This recent transaction underscores the pivotal role private money lending plays in enabling real estate professionals to capitalize on opportunities that demand speed, flexibility, and tailored solutions.

 

The Property: A Versatile Investment
The acquired property is a mixed-use building that serves as a prime example of how strategic investment can maximize value. The SRO hotel features 100 rooms primarily utilized for short-term rentals, generating robust cash flow. Additionally, the ground floor boasts a retail convenience and gift store, adding a valuable revenue stream to the asset. The entire property is well-maintained, ensuring a strong foundation for future growth and profitability.

 

The Borrower: Expertise Meets Opportunity
The borrower’s track record was a key factor in securing this loan. A seasoned operator with a proven background in hospitality and property management, they bring a wealth of experience to this venture. Their business plan is poised to elevate the property’s already strong cash flow by optimizing operations and implementing revenue-enhancing strategies. This demonstrates how private money lending can empower established professionals to execute their vision swiftly and effectively.

 

Why Private Money Lending Was the Solution
Traditional lending institutions often struggle to meet the nuanced and timely needs of experienced operators looking to act quickly in competitive markets. This is where private money lending shines. For this acquisition:

  •  Speed and Certainty: The borrower required fast funding to secure this prime property. Private money lending delivered the capital promptly, ensuring the deal closed on time.
  • Tailored Approach: Unlike conventional lenders, private lenders can structure loans around the specific needs of the borrower and the asset.
  • Focus on the Opportunity: The loan was approved based on the property’s strong cash flow and the borrower’s expertise, highlighting the flexible underwriting criteria of private lenders.

A Bright Future for South of Market Street
San Francisco’s south of Market Street area continues to be a dynamic and evolving neighborhood. Investments like this not only bring financial returns but also contribute to the vibrancy of the community. With a seasoned operator at the helm, the SRO hotel is set to thrive, offering clean and comfortable accommodations while supporting local businesses through its retail presence.

 

Conclusion
Private money lending remains an indispensable tool for real estate professionals who require speed, flexibility, and a partnership-oriented approach to financing. This $3.66 million acquisition loan is a testament to how private lenders can bridge the gap between opportunity and execution, empowering experienced operators to achieve their goals and unlock the potential of unique assets.


Whether you are a seasoned investor or exploring options for your next real estate venture, private money lending can provide the customized solutions you need to succeed in today’s competitive market.

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Funded Loans, Acquisition, Commercial, Short-Term Loan

$300,000 Acquisition Loan in Sacramento, CA

Sacramento Bakery Expansion

Sacramento Bakery Expansion

Loan Amount: $300,000

Loan Term: 24 Months

LTC: 48%

Loan Position: First Position Deed of Trust

The Opportunity

A thriving family-owned bakery based in Rio Linda has expanded into Sacramento with the acquisition of a new commercial building, marking a significant milestone in its growth journey. This $300,000 acquisition loan will enhance their production capacity and strengthen their market presence in the local community.

 

Unique Advantage
Our familiarity with the property provided a distinct advantage in this transaction. Having previously financed the building’s acquisition for its prior owners, we possessed comprehensive knowledge of the property and location. This institutional insight enabled us to expedite the process, completing the deal in under three weeks.

 

Client Profile
At the heart of this success story is a family-owned bakery deeply committed to crafting exceptional products for their customers. Their dedication to quality and service has fueled steady growth, necessitating this expansion to meet increasing demand. While they initially sought conventional financing, timing challenges led them to seek a more agile solution.

 

Strategic Solution
Our financing solution was carefully structured to align with the bakery’s operational needs and growth objectives. Key features include:

  • $300,000 acquisition loan
  • Accelerated closing timeline (under three weeks)
  • Flexible terms tailored to the business’s cash flow
  • Strategic location for business expansion

Impact & Future Growth

This acquisition provides the bakery with:

  • Increased production capacity
  • Enhanced operational efficiency
  • Improved ability to serve their growing customer base
  • A strong foundation for future expansion

Partnership in Action
This transaction exemplifies our commitment to supporting local businesses with:

  • Deep market knowledge
  • Streamlined loan processes
  • Understanding of family business dynamics
  • A focus on building long-term relationships

Looking Forward
We’re proud to play a role in this bakery’s growth story and stand ready to support other businesses in achieving their expansion goals. Whether you’re an established enterprise or an emerging entrepreneur, our team provides the financial expertise and support needed to turn business aspirations into reality.

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