Ep. 132 | Mid-Build, Out of Money: Construction-In-Progress Loans Explained

Construction loans are one of the fastest-growing products in private lending but what happens when a borrower runs out of capital halfway through a build? Ryan and Neal break down construction-in-progress loans: what they are, why borrowers end up needing them, and why banks won't touch a project once the shovel's in the ground. They walk through a real deal they funded in Charlottetown, P.E.I. a property 48% complete with a $675K as-complete value, covering the structure, the borrower profile, LTV management through the draw process, and what makes these loans work for both sides. If you're a broker or private lender who hasn't explored this product yet, this episode is for you.Show Notes:0:00:35 — Welcome & episode format0:02:23 — What construction-in-progress loans are and why banks won't help0:03:57 — Why borrowers run out of money mid-build0:09:57 — The Charlottetown deal breakdown0:12:14 — Borrower profile & credit challenges0:15:50 — Why private lending is the only option0:18:36 — Key takeaways for brokers & lendersResources:Keystone Capital GroupCPLP Instagram: @cplpodcastKeystone Instagram: @keycapgroupFind Neal On:Instagram: @neal.andreinoLinkedIn: Neal AndreinoFind Ryan on:LinkedIn: Ryan MacNeilE-mail: [email protected]