I'm new to construction lending and just had my first draw dispute. The lender's inspector said the foundation was only 70% complete but the builder says it's 85% and the draw request was for 80%. The lender is holding the draw and the builder is threatening to walk off the job. How do you handle these situations?
I'm getting more inquiries about financing ADU (accessory dwelling unit) construction. Homeowners want to build a backyard cottage or garage conversion to rent out. Is there a private lending market for this? The loan amounts are small ($100-300k) which I know is a challenge.
I keep hearing about build-to-rent (BTR) as the next big thing in residential. Developers building entire communities of SFR homes to rent rather than sell. Is this a real opportunity for mortgage brokers to get involved in the construction financing? What does the deal flow look like?
I've been getting more inquiries from builders who are struggling to find construction financing. Banks have pulled way back on construction loans. Are private lenders filling the gap? What are the current terms looking like for ground-up SFR and small multifamily?