October 2011
Beginner
442 pages
11h 49m
English
It is important to understand what, if any, additional monies a lender may insist be set aside by the owner/borrower. The concept of setting aside funds each month to pay anticipated project expenses is referred to as reserves or as an “impound.”
What does it mean to create a reserve or an “impound account”? The lender requires that a certain amount of money is paid to the lender each month, in addition to the monthly principal and interest payments, to cover anticipated expenses. This is also referred to as “filling up the buckets.”
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