$550,000 Cash-Out Refinance Loan Berkeley, CA
Rubicon Mortgage Fund recently facilitated a $550,000 Cash-Out Refinance Loan on a building in Berkeley, California. The property in question is a stabilized 5-unit building that has been under the ownership of a local long term real estate investor. The loan became necessary due to the impending maturity of the existing mortgage.
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The borrower’s initial loan application with a traditional bank was declined primarily due to structural concerns related to the building’s foundation. Like many older structures in Berkeley, this building’s foundation, constructed of brick, presented a risk factor that conventional lenders deemed challenging.
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The banker handling the transaction recommended Rubicon Mortgage Fund for the cash-out refinance loan, given our specialization in asset-based lending. We successfully settled the borrower’s outstanding note/debt, providing the necessary liquidity for renovations, notably reinforcing the brick foundation.
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Upon completion of the renovations, the borrower intends to transition back to their traditional banking relationship, underscoring our role as a bridge lender in this context.
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Furthermore, the property’s location in a family-friendly neighborhood enhances its appeal and investment potential, reflecting positively on its overall value.
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Loan Amount: $550,000
Loan Term:Â 12 Months
LTV: 44%
Loan Position: First Position Deed of Trust
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