Loan Amount: $11,000,000

Loan Term: 12 Months

CLTV: 50%

Loan Position: First Position Deed of Trust

Loan Amount: $700,000

Loan Term: 12 Months

CLTV: 35%

Loan Position: First Position Deed of Trust

Construction Loan Success: How Rubicon Mortgage Fund LLC Helped a Repeat Borrower Navigate Complexities in California

Today, we’re sharing the story of a repeat borrower who sought additional construction funds for a project already underway. This scenario might seem straightforward, but it brought with it some unique challenges and opportunities that highlight the importance of strategic thinking in hard money lending.

The Collateral: Unique and Valuable Properties

The primary collateral for this loan was a lot that included an used auto dealership. Another property used for a residential duplex. The diverse mix of properties added an interesting twist to the project and provided solid value. Unique neighbors, indeed!

In addition to this lot, we also had a cross-collateralized piece of land. This ‘vacant-ish’ land, as we affectionately call it, is not truly vacant. It is large and in the process of being subdivided and sold. The proceeds from this sale are earmarked to pay off our loan, adding another layer of security to our investment.

The Strategy: Leveraging Cross Collateral

Cross collateralization is a strategic tool in the world of hard money lending. By using the vacant land as additional security, we were able to structure a deal that met the borrower’s needs while protecting our interests. The sale of a portion of this land will directly fund the repayment of our loan (exit strategy), ensuring that we are covered even if the primary construction project faces delays or issues.

The Outcome: Construction on Solid Ground

It’s important to clarify that the construction project is happening on half of the land that the owner intends to keep. This strategic decision allows the borrower to continue developing their property while ensuring that the sale of the other parcel provides the necessary funds to pay off the loan. By focusing on the land, they plan to retain, the borrower can maximize the value and utility of their property without overextending their resources.

Why Choose Rubicon Mortgage Fund LLC for Your Construction Loan in CA?

Navigating the complexities of construction loans in CA requires experience, expertise, and a willingness to look beyond the surface. At Rubicon Mortgage Fund LLC, we bring all these qualities to the table. Our team understands the local market, the nuances of construction projects, and the importance of flexible, creative financing solutions.

Whether you’re a repeat borrower or considering a hard money loan for the first time, we are here to help you achieve your goals. We assess each project on its own merits, considering the unique challenges and opportunities it presents. Our goal is to provide the funds you need while ensuring that both parties are protected and poised for success.

Conclusion

In the world of hard money lending, each project is a puzzle waiting to be solved. The story of our repeat borrower underscores the importance of leveraging cross collateral, and strategically planning construction projects. At Rubicon Mortgage Fund LLC, we are committed to helping our clients navigate these complexities with confidence and clarity.

If you’re looking for a construction loan in CA, consider partnering with Rubicon Mortgage Fund LLC. Our experience, expertise, and personalized approach make us the ideal choice for your financing needs. Contact us today to learn more about how we can help you turn your construction dreams into reality.

Loan Amount: $600,000

Loan Term: 12 Months

LTV: 50%

Loan Position: First Position Deed of Trust

Recently, Rubicon Mortgage Fund completed a significant commercial property refinance transaction for a long-standing client, underscoring the importance of building and maintaining strong relationships in the financial sector. The deal involved a $600,000 cash-out refinance, primarily aimed at fulfilling crucial business objectives.

Our client, a prominent figure in the Bay Area’s thriving tech ecosystem, leads an international software company. Like many growing enterprises, they identified a need for additional working capital to fuel their expansion and maintain operational flexibility. This scenario perfectly illustrates the complex financial landscape that modern businesses navigate, where traditional funding avenues may not always align with the rapid pace and unique demands of the tech industry.

The commercial property refinance is on an industrial office condominium, which serves as an asset in our client’s portfolio. Located in a strategic industrial park with convenient access to Highway 880, the property not only provides a steady rental income stream but also represents a sound long-term investment in the competitive Bay Area real estate market.

This transaction highlights several key aspects of our approach at Rubicon Mortgage Fund:

1. Flexibility: We understand that each business has unique financial needs. By offering a commercial property refinance option, we provided our client with the liquidity necessary to address immediate business expenses and establish a robust line of credit.

2. Industry Insight: Our experience in working with tech companies allows us to appreciate the sector’s specific challenges and opportunities, enabling us to structure deals that align with their business models.

3. Relationship-Based Lending: We value long-term partnerships with our clients. This approach allows us to better understand their evolving needs and provide consistent, reliable support throughout their growth journey.

4. Strategic Asset Utilization: By leveraging an income-generating property, our client was able to access substantial capital without disrupting their core business operations or diluting equity.

As the financial landscape continues to evolve, particularly in dynamic regions like the Bay Area, the role of alternative lending solutions becomes increasingly vital. At Rubicon Mortgage Fund, we remain committed to bridging gaps in the market, offering innovative financial products that empower businesses to thrive and expand.

This recent commercial property refinance not only demonstrates our capability to handle complex refinancing needs but also reaffirms our dedication to fostering long-lasting relationships with our clients. We look forward to continuing our support for businesses across various sectors, providing the financial backbone they need to achieve their ambitious goals.

Loan Amount: $900,000

Loan Term: 24 Months

CLTV: 56%

Loan Position: First Position Deed of Trust

In the ever-evolving landscape of real estate finance, Rubicon Mortgage Fund stands out as a resource of innovative solutions and steadfast support for property owners. Recently, Rubicon demonstrated its expertise by facilitating a remarkable $900,000 cash-out refinance for a mixed-use retail and apartment building. This deal not only showcases Rubicon’s deep financial understanding but also highlights its commitment to preserving the unique character and heritage of local communities.

The borrower, a determined and resourceful individual, found themselves in a precarious situation with an existing property at risk. Through Rubicon’s intervention, the cash-out refinance provided the much-needed liquidity to save this treasured asset, ensuring the continuity of their property portfolio and stabilizing their financial footing.

The funds secured through the refinance are earmarked for paying off the borrower’s existing loan on another property, providing a crucial lifeline that will enable them to focus on maintaining and enhancing their properties. By facilitating this transaction, Rubicon Mortgage Fund has played a pivotal role in safeguarding the future of these beloved community assets.

As conventional loans mature, borrowers often find themselves in need of swift financial solutions to bridge the gap before securing long-term financing. This is where a bridge loan from Rubicon Mortgage Fund comes into play, offering a short-term, flexible solution to maintain momentum and stability during transitional periods. Rubicon is the go-to answer for those seeking quick and reliable financing to navigate these critical junctures.

What makes this refinance truly special is the iconic nature of the property involved. Located in the heart of Port Costa, CA, this building is a beloved bar and restaurant that has become a cornerstone of the local community. Known for its vibrant atmosphere and cherished by residents, this destination holds a special place in the hearts of many. The building is also home to 17 lofts, providing unique living spaces that perfectly blend modern comfort with historic charm.

The refinance deal was further bolstered by the inclusion of another iconic Port Costa building as collateral: the town’s post office. This post office is not just a functional facility but a vital part of the community, serving as the primary P.O. Box location for residents.

At Rubicon Mortgage Fund, we take immense pride in our ability to deliver bespoke financial solutions that address the unique needs of our clients. Recently, we had the pleasure of assisting a borrower in refinancing a condominium within a newly constructed 20-unit development in Los Altos—a location renowned for its luxury and desirability in the Bay Area. This opportunity not only underscores our commitment to excellence but also highlights the synergistic relationships we cultivate with banks, enabling us to serve a broader clientele with specialized needs.

This deal was brought to us through a referral from a bank, exemplifying the collaborative spirit that drives our operations. By working closely with financial institutions, Rubicon Mortgage Fund positions itself as a trusted partner capable of stepping in where traditional banking solutions may fall short. This benefits borrowers and banks alike, creating a robust support network for complex financial ventures.

The borrower in this scenario was no ordinary client; he was the visionary developer behind the entire 20-unit building. As the developer of this newly constructed development, he chose to carve out one unit for himself.

The allure of this refinancing deal was significantly enhanced by the prime location of the property. Situated in Los Altos, a high-end area revered by Bay Area locals, the development stands as a testament to luxury and convenience. Los Altos is not only a prestigious residential enclave but the building also offers proximity to a vibrant downtown area, making it a highly sought-after location for discerning homeowners.