3- payable serially over a 5-year period with a balloon at the end. The other half is a revolving credit over the 5-year period which can be borrowed, repaid, and reborrowed as often as desired during the period. Another form of bank borrowing is widely used by home builders. While there are variations on the term, the principle is very much the same. The contractor arranges for a permanent take-out upon the completion of the project, for example a mortgage loan from the insurance company or the government. Against this permanent take-out, the bank extends a construction loan, making advances as the construction progresses. Upon the completion and its acceptance by the owner, the proceeds from the permanent financing and the down payment by the owner are used to pay off the construction loan to the bank. Oftentimes the contractor can arrange for an appraisal that will allow a loan high enough so that the contractor has no money of his own tied up in the project. In one of the undertakings in which we are interested, the joint venture will - - Buying equipment on time is another device often used. This may be done under a conditional sales contract, a purchase-money obligation, a lease with an option to buy with rental payments applying in whole or in part against the purchase price or any of the other variations in common practiced. Rental of equipment is still another method of financing, but is limited in its application to situations where the equipment is available for rent on attractive terms to the contractor. Rental is rarely the cheapest method for the contractor, but it is sometimes the best method, especially where the length of the job or its nature will not allow full write-off of the equipment over the life of the job. Rent is a deductible expense for tax purposes and allows the contractor to be certain that at the end of the job his profit will be in the form of cash and not in the form of used equipment.