At what point on the timeline is a construction loan taken out?
Say that a developer takes out a construction loan for a project.  The loan amount would be a cash inflow in the proforma, and the construction costs and loan payments would be cash outflows.  So, during what year does the cash inflow from the loan take place?  Is it in year 0?  Year 1?  I'm just not sure how this works exactly.

Thanks for any help!
[{"id": "dwyoihv", "text": "Usually the loan proceeds start coming in once the Borrower has burned through a set amount of its own equity.  So if you are borrowing $100 for a $130 project, you need to show the bank that you have contributed your $30 first, then the bank will fund advances (usually once a month) from the $100 to pay your contractors.  So you submit an invoice and lien waiver from your contractor for work that month, and the bank will pay the contractor.  This is a simplified version. ", "replies": [{"id": "dwytnr1", "text": "But the bank is going to want it\u2019s deed of trust or mortgage to be recorded before any work starts, depending on the state. If work is already started they might make you cease all construction activities for a period of time to prevent any mechanics liens from priming the lenders lien. Better to get the loan in place but not funded before ANY work gets done. ", "replies": [{"id": "dwz73u4", "text": "Yes correct. You need to enter into the loan first.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "dwyoob8", "text": "It depends. Typically construction loans aren't fully funded, so you wouldn't represent the entire amount in Year 0. But, whatever the initial funding is you'd represent in Year 0. Like, maybe if a portion of the construction loan was used towards the purchase price or predevelopment work. Then you'd have to use whatever you draw on going forward, and the interest cost would increase as the drawn loan get's higher. \n\nDoes that make sense? ", "replies": [], "depth": 1}, {"id": "dwyvmov", "text": "At the later of the minimum of equity being funded or the closing on the land", "replies": [], "depth": 1}, {"id": "dwz5sau", "text": "After you\u2019ve pulled permits or are nearing completion of pulling permits. The lender is going to want to see the construction budget and architectural drawings. After you get approved, The construction loan will typically be a short term loan (6 months-2 years depending on scope of project) and proceeds will be drawn in stages throughout the process. Invoices are submitted and the bank or fund control company will review work in progress with frequent site visits. After the construction is complete, you will need a take out loan to refinance the construction loan after completion and CO is issued ", "replies": [], "depth": 1}]