$955K Cash-Out Bridge: Income-Producing Duplex Rental
Jersey City, NJ — A long-time investor owned a leased, cash-flowing duplex free of useful leverage but couldn't tap it: revolving-credit utilization had pushed his score into the fair range, so banks declined. Helvetica funded a 65% LTV first mortgage on the property's merits, releasing capital for an active California development and giving him 12 months to repair credit and refinance into permanent debt.
The Borrower's Problem
The borrower had owned the Jersey City duplex since 2006 and operated it as short-term rentals, producing consistent gross rental income in the years before the loan. At the same time, he was processing plans for a multifamily construction project in Encinitas, California, and needed working capital to keep that entitlement work moving.
The equity was clearly there — the duplex appraised at $1,470,000 — but the paper was not. Heavy utilization on revolving lines had dropped his credit score into the fair range, and older, since-cured mortgage delinquencies remained on file. Banks stopped at the credit report rather than the asset, and a conventional cash-out refinance was off the table on any timeline that mattered.
The Helvetica Solution
Helvetica underwrote the collateral and the plan instead of the score: a leased, seasoned, income-producing duplex in a transit-oriented submarket, with a first mortgage sized at 65% of appraised value, interest-only over 12 months. The loan was additionally secured by 100% of the membership interests in the LLC holding the $3.8M Encinitas property, which strengthened the structure without requiring the borrower to sell anything or restructure his portfolio.
Proceeds did double duty: fund the California development work and pay down revolving balances, which directly addressed the utilization driving his score down.
Benefit to the Borrower
- Unlocked roughly $955K of trapped equity without selling a cash-flowing asset
- Approved on collateral strength despite a fair credit score and past delinquencies
- Capital delivered on the development schedule, not a bank committee's
- Proceeds used to cut revolving debt and rebuild the credit profile
- Interest-only payments supported by in-place rental income
- A clear 12-month runway to conventional long-term debt and construction financing
Deal Highlights
- First mortgage, 65% LTV against a $1,470,000 appraisal
- 3,310 SF duplex built in 2001; two units operated as three rentals
- Journal Square location with PATH access to Manhattan
- Secondary collateral: pledged LLC interests in a $3.8M entitled property
- Exit: credit repair, then refinance into permanent financing
Equity-rich but bank-declined?
Helvetica funds cash-out and bridge loans from $300K–$10M+ on investment and business-purpose real estate, typically closing in 3–10 days following receipt of all requested documentation.
