By Don McClain | Founder & Principal, Medro Advisors. Build one dated sources-and-uses review: gross replacement loan plus owner contribution must cover the confirmed payoff, transaction expenses and required reserves. Do not deduct a cost from proceeds and count it again as a use. Ask which underwriting constraint controls the proposed loan amount, then test what happens if proceeds are lower or closing moves. A policy-rate headline cannot resolve a property-specific cash gap.
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