Construction loans never take second position because subordination kills your exit strategy. A clean first-position loan with good rates attracts developers and REITs. That's why the deal structurer takes 50% of the profit.
Are you locking up deals in the deal room? Right. I understand that. Uh-huh.
Right. So it says right here, number 4, they want to give construction loan subordination, meaning that they'll approve a subordinate second position loan. Nope, that's not how it's going to work. So, and it says right there, this could kill your exit strategy, meaning that like if we— if— because if I can get a good loan term, then I can sell that project with a loan in place that has good rates, good terms and all that to a developer and/or a REIT. Right. So they'll— That's the thing is like, I'm not just selling the dirt and Katya did a great job finding this, but this is why I get 50% is because if I can structure the terms on it for the next guy that we can turn around and set them up to win. Boom, done. That's the value that I bring to the table.
