San Bernardino Hard Money Bridge Loan

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San Bernardino Hard Money Bridge Loan

A Southern California real estate investor obtains a cash-out hard money bridge loan for a property in San Bernardino County through First Capital Trust Deeds.

Occasionally a house flipper client doesn’t sell a property within the 12-month window that they expected, and need to roll over their fix and flip loan into a hard money bridge loan. Some trust deed investors are amenable to extending the term, usually charging a one point extension for as little as three months or up to a year.  However, other investors stick to the 12-month balloon payment schedule, calling the loan payable in full. The latter was the situation on this house in San Bernardino County that didn’t get sold in time to pay off the 12-month note, and the lender called the loan due in full.

Since the property wasn’t completely renovated, the borrower was able to refinance the loan with another trust deed investor for an additional 12 months in order to complete the renovations and resell the property.

Even though this was a small loan, it was successful in that it got the original lender paid off, which alleviated a lot of stress from our borrower’s life (and ours!) and bought the owner time to complete the full renovation of the home.

Nobody likes being under the gun and not able to satisfy their loan obligations. The new trust deed investor received a nice loan on a property that should resell within the next 5-6 months. Plus, the previous trust deed investor was paid off and able to redeploy the $100,000 toward other hard money lending opportunities.

Hard Money Bridge Loan Terms:

  • $109,000 Loan Amount (70% LTV)
  • 10.00% Interest-Only
  • 12-Month Term
  • No Prepayment Penalty
Do you have a similar financing scenario?
Inquire about your financing options with FCTD.