Loan Amount: $1,800,000

Loan Term: 18 Months

LTC: 62%

Loan Position: First Position Deed of Trust

Why Private Money Loans Are the Key to Unlocking Multifamily Investments

When traditional banks fall short, private money loans step up to provide the flexibility and speed necessary 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.

Loan Amount: $350,000

Loan Term: 12 Months

LTV: 40%

Loan Position: First Position Deed of Trust

How a Private Lender Helped Refinance a Family-Owned Grocery Store in San Francisco

Finding the right partner can make all the difference when it comes to navigating the challenges of commercial real estate financing. Recently, Rubicon Mortgage Fund stepped in as a trusted private lender to provide a $350,000 refinance loan for a long-standing grocery store located on Mission Street in San Francisco, California. This deal highlights how private lenders can offer tailored solutions when traditional banks fall short.

The Challenge: Traditional Financing No Longer an Option
For over 40 years, this family-owned grocery store has been a cornerstone of the Mission Street community. Surrounded by well-known establishments and benefiting from a prime location, the business has thrived for decades. However, when the time came to refinance their existing debt, the property’s asset class became an obstacle. The bank—citing a shift in their lending priorities—was unwilling to continue financing the loan.
This left the family in a difficult position, as they needed a solution not only to refinance their debt but also to restructure the property’s ownership and partnership agreements.

The Solution: A Private Lender Steps In
Rubicon Mortgage Fund stepped in to provide the $350,000 refinance loan, offering the family the flexibility and speed they needed. As a private lender, Rubicon was able to look beyond the asset class—focusing instead on the property’s value, the borrower’s vision, and the grocery store’s longstanding success.

This loan allowed the family to:

• Restructure Ownership: The refinance enabled them to streamline their partnership, removing certain stakeholders to ensure smoother operations moving forward.
• Preserve Their Legacy: By securing private financing, the family was able to maintain ownership of their property and continue serving the community.
• Position for the Future: With a clear exit strategy to return to bank financing in the future, the family is well-positioned to transition back to traditional lending once the restructuring is complete.

The Value of Private Lending
Private lending offers a unique advantage for situations like this. Unlike traditional banks, private lenders are not confined by rigid underwriting standards. Instead, they can focus on the bigger picture, including the borrower’s goals and the potential of the property.
In this case, Rubicon’s ability to act quickly and provide a customized solution ensured that the family’s property—and their business—remained intact. This type of flexibility is a hallmark of private lending and is why so many borrowers turn to private lenders when traditional financing options fall short.

Mission Street: A Prime Location
Mission Street is one of San Francisco’s most vibrant corridors, known for its diverse culture, thriving businesses, and deep-rooted community ties. The grocery store’s location surrounded by established businesses further underscores its value as an essential part of the neighborhood.

The Exit Strategy: Returning to Bank Financing
The borrower’s long-term plan is to return to bank financing once their partnership restructuring is complete. With the property’s prime location and the grocery store’s solid reputation, the family is confident in their ability to transition back to traditional lending, further solidifying their business’s future.

Conclusion
This $350,000 refinance is a testament to the crucial role private lenders play in supporting businesses and property owners when traditional financing is no longer an option. For this family-owned grocery store, Rubicon Mortgage Fund provided more than just a loan—we provided a lifeline to help them preserve their legacy, restructure their partnership, and secure their future.

If you’re facing challenges with traditional financing, a private lender like Rubicon Mortgage Fund can offer the flexibility and personalized solutions you need to achieve your goals.

Loan Amount: $3,660,000

Loan Term: 12 Months

LTC: 60%

Loan Position: First Position Deed of Trust

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

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.

Loan Amount: $300,000

Loan Term: 24 Months

LTC: 48%

Loan Position: First Position Deed of Trust

Sacramento Bakery Expansion

The Opportunity

A thriving family-owned bakery currently based in Rio Linda has expanded into Sacramento with the acquisition of a new commercial building, marking a significant milestone in their 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.

Loan Amount: $650,000

Loan Term: 12 Months

LTV: 43%

Loan Position: First Position Deed of Trust

Transforming a Modest Home into a Vibrant 5-Home Subdivision

Hollister, CA – Rubicon Mortgage Fund, a leading direct lender specializing in short-term commercial real estate loans, is pleased to announce the successful funding of a $650,000 cash-out refinance loan for a unique single-family residence on 30 acres of land in Hollister, California.

A Strategic Refinance for Maximum Potential

The experienced borrower, a local business owner with a proven track record in property development, plans to leverage the cash-out refinance to unlock the property’s full potential. The funds will be used to subdivide the front five acres of the 30-acre lot into five one-acre lots, each suitable for building a single-family home. The existing single-family residence, which resembles a compound with a shed and garage, will be renovated and sold.

The property’s vast acreage and agricultural potential offer endless possibilities for future development. With careful planning and execution, the borrower aims to create a thriving residential community while maximizing the value of the land.

A Non-Traditional Deal, Requiring a Non-Traditional Lender

The unique nature of the property, coupled with the vacant status of the single-family residence, made it challenging to secure traditional financing. Rubicon Mortgage Fund’s ability to assess non-traditional deals and provide flexible financing solutions proved to be the perfect fit for this project.

A Low-Leverage, High-Impact Investment

Rubicon Mortgage Fund’s low-leverage approach to lending ensures prudent risk management while maximizing returns for investors. This strategic investment in the Hollister property exemplifies the Fund’s commitment to supporting innovative real estate projects and empowering experienced developers to achieve their goals.