Construction Loans

Question 1

1. Describe what types of interests each of A, B, C, D and the Grantor have in the following. Be as specific as possible in describing each interest.

“To B for life, then if A is married, to A. If A is not married, then to C if C is married. If C is not married, then to D, if living.”

Question 2

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

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