John, a real estate developer, identifies a vacant lot in a growing suburban area. He decides to build a small apartment complex on the site to cater to the increasing demand for rental properties in the area. John obtains a New Construction Loan to purchase the land and finance the construction of the apartment complex.

With the loan funds, John hires an architect to design the building, obtains the necessary permits, and begins construction. Throughout the construction process, John receives periodic disbursements from the lender to cover the ongoing costs. Once the apartment complex is completed, John can either sell the property for a profit or refinance the New Construction Loan into a permanent mortgage to generate rental income.