Hard money problems!

[John Kane]

Hello all. I have a complicated property that is in the middle of rehab. It is over budget and way behind on schedule. Most of the delay has been due to zoning issues. I have a hard money loan on the property and am fine making the monthly payments. The problem is that its a 12 month loan. I am in the 11th month now. The property will be a huge cash flowing duplex in a great area in Philadelphia. I want to refinance the property and keep it probably forever.  My lender is really beating me up to extend the loan for an additional three months. I would really like to learn what other options I have. The utilities will be done on the property in two weeks then drywalled shortly after, so the current condition of the property really limits my options. I have heard of bridge loans but am not 100% sure on how they work. Or if its possible to get one after having a hard money loan already. Thanks for any info!

[Matthew Crivelli]

John refing into another bridge loan would end up costing you more than an extension. Best option is to extend and to get it taken care of ASAP. Another option would be to sell it and walk away or get foreclosed on. The extension might cost a few thousand but it will buy you time to finish the project. Get everything squared away and then refi into a long term solution would be my best advise.