Exit strategies for your loan
Every loan needs an exit. Three paths — refi, sale, or 1031 exchange.
AVCG loans are short-term. That means every loan is underwritten with an exit strategy — a specific way you'll pay it off within 12 months. Three paths cover almost every deal.
Sale
For fix & flips and new construction, the exit is almost always a sale. The loan is paid off from the resale proceeds at closing.
Refinance
For rental refi and some new construction, the exit is a long-term refi — typically a DSCR loan or a conventional bank mortgage on a stabilized property. AVCG's loan is paid off when the refi funds.
1031 exchange
For bridge deals that are part of a 1031 exchange, the exit is completion of the exchange — the exchange proceeds pay off the loan.
What if the exit runs long?
Extensions are considered case-by-case. The most important thing is to communicate early — 30 to 60 days before maturity — so we can restructure, extend, or rate-and-term as needed. There is no prepayment penalty if the exit comes earlier than planned.
Have more questions?
Talk to a specialist — we'll walk through anything the guide didn't cover.