Investor · Philadelphia, PA · Member since 2020 · 20 posts · 3 votes
Good afternoon, I was in the middle of two new builds in the Philly market when COVID hit. Construction was closed down for two months due to a city mandate that ate up two months of my twelve-month loan with one of my HML. This company has not been easy to work with; the draw requests are always slow to be responded to, not to mention the inspection process has been a nightmare. I wanted to paint a picture of my relationship with this HML before I laid out my question. My loan is up in August; the house will be to on the market on July 6th; I do not see it selling in 24 days. How should I bring up asking for an extension on loan? In the past, if I needed an extension and I have, I just paid the points. This time there was nothing I could do, any advice or suggestions would be welcome.
Investor · Philadelphia, PA · Member since 2020 · 20 posts · 3 votes
6y
Originally posted by @Odie Ayaga:
What do you mean there was nothing you could do? Did you use up all your extensions?
I used a broker to find me this HML, I looked over the contract and there is no section for an extstion. I was thinking of tryng to refi and buy him out but the cost associated with refinanacing would eat at the profit.
Investor · Philadelphia, PA · Member since 2020 · 20 posts · 3 votes
6y
Originally posted by @Mayer M.:
@Garrett Culpepper
In all honesty sounds like your margin is too tight if a refi will eat up your profit.
Could your share the details of your properties? Numbers, Location, property type (i.e. single family, duplex, etc.)
You haven’t answered why you didn’t use a traditional bank for the funding. Bad credit? Bad margin?
We have a few single-family rentals in Colorado, Finishing a new build in Point Breeze, and this location I am having an issue with is in Fish Town. It was a troubled project from the start, so, yes, my margin is not that great on this project (not much of a deal now). A lesson learned, I gained the experience and now know what type of properties to avoid when doing this big of a project. This was the first project in Philly; there are a lot of issues with these homes since the houses were built in the 1920s, I see you are from South Jersey so you must be familiar. I am setting up a call with the HML tomorrow, I have excellent credit, but I like using HML or PML. Thank you both for chiming in and giving some advice.