Private Money Lending for Incomplete Construction Projects
Pacific West Finance works with private money lenders who provide high-leverage construction completion loans for projects that need additional capital or additional time to see the project through to the finish line.
Real estate can sometimes be unpredictable with project and funding delays coming from several different directions. Often, real estate investors or house flippers are managing 6-10 projects at a time, budgeting their cash on-hand for renovations, monthly debt-service, and other fixed and unexpected costs.
Another reason our clients take out construction completion loans is that their larger projects take longer than the 12 month duration of the original hard money fix and flip loan which is coming due and the existing lender will not be granting an extension. Pacific West Finance has house flippers in San Francisco and San Diego who have experienced a very lengthy permitting process with the city that has pushed their projects out beyond the 12-month period of the original loan.
Many of our clients have also experienced temporary cash shortfalls due to a delay in the sale of one of their completed projects. When this happens, they can either wait it out or quickly reposition the debt on another project using private money construction completion loans.