What is construction loan?
Financing for ground-up development or major redevelopment, advanced in draws as work is completed and verified. Among the highest-risk forms of senior CRE debt because the asset is not yet income-producing.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.