WHAT IS AN ASSET BASED LOAN?
An asset-based loan is a loan that is secured by a physical asset. This means that the borrower who is looking for the loan is not as big of a factor as the asset itself. For Rubicon Mortgage Fund, we generally lend up to 60% of the value of a physical asset. Meaning, if a property is valued at $1,000,000 – Rubicon will potentially lend up to 60% of that, or $600,000. This allows a person who has wealth tied up in real estate to take a loan against their property and receive cash they need quickly.
• Moreover, loans that are asset-based rely on the value of the property as collateral for the loan. This allows people who may not otherwise qualify for funding to use their property value as collateral. Asset-based loans can be used for real estate transactions that may have valuable assets but limited cash flow or credit history. These types of loans can provide investors with access to capital by leveraging their existing assets; such as a home. The amount of the loan typically depends on the value of the assets being used as collateral and is held in first position.
Asset-Based Private Money Lending
makes sense when:
• Your current loan is coming due and you are unable to refinance.
• Unable to qualify for a conventional loan.
• Buying out partner/spouse.
• Cash out for property improvements.
• You need money fast for your transaction.
Lending for:
• 1031 Exchange• Construction Financing
• Restructuring Debt
• Investment Acquisition
• Loans to Trusts
• Vacant Properties