Twelve practical lessons
A commitment is not a bank balance, Understand both borrower and project review, Read the cost and value limits and more.
FIRST MOVE GUIDE / 05
How Construction Loans Work
Understand lender limits, draw requests, cash timing and the conditions behind a construction loan.
Your output: a lender comparison, a draw checklist and a realistic cash bridge. Read Guide 01 for the broader funding options; this book focuses on operating a construction loan.
$5ONE-TIME PURCHASE
24 pages · 4 reusable worksheets
Read online + downloadable PDF
24 pages · 4 reusable worksheets
Read online + downloadable PDF
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BUILDVANTFIRST MOVE GUIDE / 05HOW CONSTRUCTION LOANS WORK
Learn the decision.
Work the example.
Build your plan.
Learn it. Apply it. Check your reasoning.
An original worked case
A hypothetical lender considers $500,000 of eligible cost and a $450,000 accepted value. Its illustrative caps are 70% of cost and 75% of value. These are teaching assumptions, not available loan terms.
An exercise with an answer
Make the decision yourself, then compare your reasoning with the explained answer. See what could change the decision.
Four tools you can reuse.
Lender fit and terms
Fill it in for your project, identify missing evidence, and assign the next action.
Draw preparation checklist
Fill it in for your project, identify missing evidence, and assign the next action.
Cash bridge
Fill it in for your project, identify missing evidence, and assign the next action.
Loan control calendar
Fill it in for your project, identify missing evidence, and assign the next action.
A commitment is not a bank balance.
A construction loan usually makes funds available under specified conditions rather than handing the borrower the full commitment on day one. The loan agreement controls eligible costs, timing, documentation and disbursement.
A lender may require equity to be contributed before or alongside draws. Ask exactly how that sequence works and which costs count toward the requirement.
Separate the approved maximum, amount already drawn, remaining availability and funds actually accessible today. These four numbers answer different questions. A contractor payment cannot rely on availability that remains conditional.
Before you buy.
Who is this for?
Beginners preparing a small real estate development project and people who want clearer questions for their professional team. It is not a technical certification, legal document or individualized investment recommendation.
How is the book delivered?
After payment, use your checkout email to sign in or create a free Library account and verify the email. Your Library provides the online reader and PDF download. Fillable PDF fields work in compatible readers; save and check your completed copy.
Do I need the other guides or a membership?
No. This guide stands on its own. Other books, the $9.99 Blueprint and $29.99/month membership are optional separate purchases.
Can this guarantee my project will work?
No. The examples are hypothetical and rules vary. The book helps you prepare and identify questions for qualified local professionals.
Make your next decision with better preparation.
Guide 05 · $5
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