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Why Is It That Construction Loans Are Almost Always Used

question 5

Essay

Why is it that construction loans are almost always used to finance all or most of the construction costs in a development investment, even when the investor has plenty of cash that could be used to pay for construction?


Definitions:

Micronutrients

Essential vitamins and minerals required in small amounts by the body for proper growth, development, and functioning.

Vitamins

Organic compounds that are essential in small quantities for the body's normal growth and activity.

Diet

The kinds of food that a person, animal, or community habitually eats, often tailored for health, religious, ethical, or weight-control reasons.

Minerals

Naturally occurring inorganic substances with a definite chemical composition and crystalline structure, essential for human health.

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