[leadplayer_vid id=”54015497C0257″]
I'm back again with private money lender and real estate investor Beau Eckstein. This time out, I asked him about construction loan “draws”.
Beau gave us the lowdown on how hard money construction loan draws work with private money lenders.
Construction lenders need a line item budget. From that, your private money lender will “draw up” a budget and payment schedule. This payment, or draw, schedule, will be followed through to a construction project's completion.
Draws could involve one draw or many, up to 20 and more. Large construction projects are better managed this way. In days gone by, many projects blew their budgets, overspent on initial outlays, and generally failed because they ran out of money.
Hard money lenders have gotten smart. They know that a sound budget with solid draws paid out to the contractor for construction or rehab purposes is a best practice for large (or small) construction deals.
Need $150000 for spec build in Washington Grey’sHarbor area 1800 sqft 3 bed 2 bath 2 car garage single story
Comps are $188.00 sqft on the low side
Lots start at $ 15000
Power sewer water at street
38 years in the trades have built or had somthing to do with over 1000 homes
Have $ 25000 cash