Why the Lender is Always in First Position
Why does the lender hold the asset? It turns out there are a very good set of reasons. In this video, Scott Choppin, Urban Pacific Founder and CEO explains why the lender is always in first position.
Scott: Your lender, the 75-percent loan-to-cost lender, construction or perm lender, will always generally be in a first position. In other words, they have a deed of trust against the land, or the building, or the asset - whatever project type you're working on. They want to have a first legal right, or a first encumbrance, or a first trust deed that protects them. They are in first position of ownership in the context of encumbrances.
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