This is how construction loans work 🔨
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Summary
AI-generatedConstruction loans work by reimbursing in phases, known as draws. Lenders will do a feasibility study on the scope of work to see if the rehab costs make sense and the inspector will verify that you did the work you said you were going to do. Construction loans let you leverage more of your money for bigger and better projects.
Key insights
Hard money lenders don't give all construction loan money at once.
Mistakes to avoid
Be aware that lenders can charge you every time an inspector goes through the property.
Curated by Learn STR by GoStudioM · Summary & key insights generated by AI · Reviewed by editorial