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 format
• 0:02:23 — What construction-in-progress loans are and why banks won't help
• 0:03:57 — Why borrowers run out of money mid-build
• 0:09:57 — The Charlottetown deal breakdown
• 0:12:14 — Borrower profile & credit challenges
• 0:15:50 — Why private lending is the only option
• 0:18:36 — Key takeaways for brokers & lenders

Resources:
Keystone Capital Group
CPLP Instagram: @cplpodcast
Keystone Instagram: @keycapgroup

Find Neal On:
Instagram: @neal.andreino
LinkedIn: Neal Andreino

Find Ryan on:
LinkedIn: Ryan MacNeil
E-mail: [email protected]