Canadian Private Lenders’ Podcast
The #1 Podcast on Private Mortgage Lending in Canada. Ryan MacNeil and Neal Andreino of Keystone Capital Group outline their private mortgage lending experience and help you grow your mortgage business, while focusing on the importance of the growing Canadian Mortgage Broker channel.
Canadian Private Lenders’ Podcast
Ep. 132 | Mid-Build, Out of Money: Construction-In-Progress Loans Explained
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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: ryan@keycap.ca