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Video Title: Development Spending Dialog Construction Draw Fee
- video duration: 2:09 minutes
- direct link to this video: https://www.planease.com/commercial-real-estate-video-training.aspx?1=DevSpendDialog&2=QuickConstDrawFee.mp4
The fee on the construction draw is based off the two limit of or the cap number for the construction draw. If we put a number in like one, that's going to be one point based off the amount in the two limit of or the cap. When we click OK, it'll bring us to the assumption edit screen. If we click on construction draw, the audit one to the bottom left is going to show us this loan. You can see in the first month the amount of interest that's added to principle is higher than second month and that's because of the fee. To see this more clearly, let's zero out the draw rate. So there's no interest and now we're just seeing the fee amount. The fee amount is based off these last two assumptions, the one point and the draw limit. If we change the point to two, you'll see that the fee is now crease to 80,000. Change it back to one, goes back to 40. If we change the draw limit from 4 million to 3 million, now the fee is based off one point of the 3 million, so it's 30,000. So this is where it's shown, and it's added to the principal as part of the alone interest.
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