Every few months one of our client’s renovation projects runs past 12-months and they need to extend the loan with the existing lender or refinance with a new private money lender. The latter was the case with on this San Francisco 12-Month Private Money Bridge Loan which replaced a previous fix and flip loan that was taken out 11.5 months ago.
Some renovation projects go quickly while others go past the initial 12-months of the purchase money loan. San Francisco-area projects tend to go past the one-year mark as the scope of renovations are bigger and 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 are, the loan will be paid off within 3-4 months, but still, it’s good for one year.
San Francisco 12-Month Private Money Bridge Loan Terms:
- $650,000 Loan Amount
- 12-Month Term
- No Prepayment Penalty