A borrower wants a 6 month extension and no personal money can touch the file

Note one: 54k, 11 percent, matured last month, borrower paid off clean. Note two: 42k, 11.5 percent, 4 months left, same borrower, secured on a rehab in a small market where the exit comps have moved down maybe 6 percent since I funded.

He called asking for a 6 month extension on note two at the same rate, plus 18k of additional draw to finish the scope. I can fund the 18k from the IRA, I have 44k in cash there. What I cannot do is fund anything personally, and I cannot do any of the work myself, which matters because if this goes sideways the property needs a general contractor and a legal process paid entirely from account funds.

Running the numbers, the extension at the same rate is worth about 2,400 in additional interest over six months on the current balance. The 18k draw at the same rate adds roughly 1,035. Against that, my exposure goes from 42k to 60k on a property whose exit has softened, with one borrower now representing everything I have deployed.

What I am weighing: extend and fund the draw at a higher rate with a modification recorded, extend without new money and let him find the 18k elsewhere, or decline and hold him to the maturity date knowing a foreclosure would run through IRA cash. I don't have a strong view yet.