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Interest Reserve
March 14, 2010
Standard lending policies for construction loans typically will allow the lender to build in an interest reserve if the property is not cash-flowing during the construction phase. The interest reserve is kept in an escrow account and money can be drawn from there to make interest payments during the ramp up phase.
At Remington our analytical teams work with our clients to teach them how to account for these payments. Feel free to call me directly and ask more about how this works.
Tags: Interest Reserve, Remington