"In this video, hard money lender Beau Eckstein answers the question, “How are investors using construction loans to acquire properties?”
The answer is through an acquisition loan, where typically the real estate investor needs a 20 percent down (financing 80 percent of the deal), followed by a construction loan that finances the rehabilitation of the property. This is called “capital stacking”.
Real estate investors have several options for acquiring properties, both on the front end and on the close."
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