Sunset provides construction and Rehabilitation loans to investors. These loan operate as line of credit where the borrower may access those funds for construction purposes. The caveat is that these loans are only drawn when certain portion of the project is completed as it operates for construction reimbursement. The disbursement of funds is done through a fund control to ensure work has been properly performed.
No Payment on Construction Holdback
No payment on construction hold back is HUGE. Imaging having to pay on money that you do not have access to. For instance if you borrow 1 million for construction portion of your project at 9%, you would have to pay $90,000 per year on monies that you did not use. Assuming if the purchase money loan is too 1 million, then you effective interest rate is 18%. At Sunset you do not pay for construction hold back to the extend that it’s not used.