Term: Construction Reserve / Draws

Loan proceeds that are held in reserve and advanced in periodic disbursements, called Draws, to fund real estate construction costs.  

Articles relating to Construction Reserve/Draws: 

Construction Loan Considerations: 5 Best Practices for Lenders

Lending money for construction projects carries a meaningful level of risk. It is essential for lenders to develop an overarching vision and strategy that heeds these risks, or else the …

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