Learn from Industry experts options for holdbacks and the pros and cons of each.

What is a Holdback?

A Holdback refers to the amount of loan funds designated for the completion of a project. These funds are released as draws on a reimbursement basis for documented and approved construction work.

Purpose of Holdbacks:

• Risk Management: Protects the lender by ensuring the project progresses as planned.

• Quality Control: Ensures work is completed to the agreed-upon standards before funds are released.

Types of Holdbacks:

• Standard Holdback: The approved budget amount withheld until project completion.

• Draws: Funds released in stages as specific project milestones are achieved.

• Final Draw: Final funds released only after the entire project is completed and inspected.

Holdbacks Benefit Investors by:

• Ensuring project milestones are met before additional funds are disbursed.

• Protecting against incomplete or substandard work.

• Helping manage cash flow and project budgeting.

At Truly Investor Capital, we offer flexible holdback options tailored to your project's needs, ensuring a smooth and successful financing experience. Understanding and effectively managing holdbacks can significantly impact the success of your rehab or construction project.

Trust Truly Investor Capital to guide you through the process with expertise and personalized service.