Every few months one of our client’s renovation projects runs past 12-months and they need to either extend their loan with the existing lender or refinance with a new private money lender. The latter was the case with this San Francisco 12-month private money bridge loan which replaced a previous fix and flip loan that had been taken out 11.5 months earlier.
San Francisco-area projects tend to go past the one-year mark as the scope of renovations are bigger. Moreover the permitting process throughout the Bay Area is a lengthy process compared to faster turning areas like in Southern California.
This new loan simply paid off the existing purchase money loan and gave the real estate investor an additional year to sell the house. Chances were the loan would be paid off within 3-4 months, but still it was good for one year.
San Francisco 12-Month Private Money Bridge Loan Terms:
- $650,000 Loan Amount
- 12-Month Term
- No Prepayment Penalty