A mortgage broker brought us a scenario with a client trying to buyout her partners on an investment property they owned in San Diego. They had bought the property together, fixed it up, and leased it out. She wanted a quick closed, so she opted for short term loan as it was the most cost effective for her business plan since her main goal was to sell the property once an ADU was built. Had she of gone with a conventional loan, she would have been locked into a 1+ year prepayment penalty and planned to have sold within 8 months. This deal was funded in 12 days with no appraisal.
