$665K Cash-Out Refinance: A Church Retreat Home in Nipomo
Nipomo, CA — A non-profit church owned a newer single-family home it used as a member retreat — no income, no full-time occupant, and no conventional way to borrow against it. Helvetica funded a $665,000 first-mortgage cash-out refinance so the church could entitle land it owns in Palm Desert for a warehouse development.
The Borrower's Problem
The borrower — a non-profit church — held a 3,086 SF home built in 2015 that it used as a retreat for its members. The property produced no income and no one lived in it full time, which put a conventional refinance out of reach despite substantial equity.
Meanwhile, the church owned land in Palm Desert it wanted to entitle for a warehouse development. Entitlement work takes capital long before a project can support traditional financing, and the church's cash was tied up in real estate.
The Helvetica Solution
Helvetica underwrote the collateral rather than the income stream: a $665,000 first mortgage at 65% of the home's $1,025,000 market value, on a 12-month interest-only term. The cash-out proceeds went directly to the Palm Desert entitlement work.
The exit was straightforward — refinance conventionally once the development project is further along, or sell one of the church's other Palm Desert holdings to retire the loan.
Benefit to the Borrower
- Unlocked equity in a non-income-producing property
- Funded land entitlement without selling any holdings
- Interest-only payments kept monthly carry low
- 12-month term matched the entitlement timeline
- No conventional income documentation required
Deal Highlights
- First mortgage of $665,000 on a single-family residence
- 65% LTV against a $1,025,000 market value
- 3,086 SF home built in 2015, used as a church retreat
- Proceeds funded entitlement of development land in Palm Desert
- Exit: conventional refinance or sale of other holdings
Equity in a property a bank won't touch?
Helvetica funds bridge and refinance loans from $300K–$10M+ on investment and business-purpose real estate, typically closing in 3–10 days following receipt of all requested documentation.
