Hard money lenders and COVID restrictions

[Garrett Culpepper]

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.

[Mayer M.]

@Garrett Culpepper

Just tell them due to COVID you need a 3 month extension

Why haven’t you used a traditional bank for funding?