How Construction Loans Work for Beginners (2021)

Sean PanMay 7, 20218m 7s5.2K viewsScore 65
Pricing & Profitability
beginner
construction loans
hard money loans
rehab financing
real estate investing
draw process
M

Summary

AI-generated

Learn how construction loans work, typically added to hard money loans, to fund rehab projects. Understand the draw process, feasibility studies, and associated fees involved in accessing these funds for your real estate investments.

Key insights

  • Lenders disburse construction loan funds through a draw process, not all at once, to ensure funds are used appropriately for the project's scope of work.

Mistakes to avoid

  • Receiving the full construction loan amount upfront is a mistake; funds are disbursed via a draw process after work is completed and verified.

Tools & resources

  • Sean Panchannel

    Sean Pan's channel offers insights into real estate investing, including hard money and construction loans.

Frequently Asked Questions

Curated by Learn STR by GoStudioM · Summary & key insights generated by AI · Reviewed by editorial