“Construction Loans can be a Problem”

“Construction Loans can be a Problem”

 

 

 

 

Dr. Mr. Petrowsky

Your name was given to me by Mark XXXXXXX who is currently building our home. He has been telling me for weeks that I should contact you.

We have been having trouble with my bank every time Mark needs a draw. It seems each time what we are asking for ends up being totally different from what they are willing to give us.

Just so you know, I have already put over $600,000 into this project. The construction loan that we have is $400,000 of which we have taken about half, the problem is I am told by Mark that it will take another $300,000 to finish.

Being a doctor doesn’t give me the time to deal with these day to day issues and most importantly, I am running out of available cash. Can you help? Dr. R. XXXXXXXXX

 

 

I can truly understand why many banks do not like to do construction loans and unfortunately many of the ones that do them structure them badly from the start which creates problems for the client and the bank.

 

We have been doing construction loans for many years. I don’t even remember a time when there was an issue with one of these loans.

 

Educating the client and the builder (sometimes they are one in the same) as to what the process is including the draws is when the CO is received from the town or city.

 

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Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com

www.righttracfg.com

www.joepetrowsky.com

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Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

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Comment balloon 2 commentsJoe Petrowsky • July 18 2019 04:19PM

Comments

Good morning, Joe Petrowsky construction loans are often misunderstood and the participant does not understand how they work..... you're a good source for guidance....

Posted by Barbara Todaro, Marketing Agent for The Todaro Team (RE/MAX Executive Realty ) 3 months ago

Good morning Joe. Never understood why construction loans caused such mental paralysis, but it does! Having the right source makes the whole process move smoothly. Enjoy your day 

Posted by Wayne Martin, Real Estate Broker - Retired (Wayne M Martin) 3 months ago

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