What is the major concern construction lenders express

Assignment Help Finance Basics
Reference no: EM131326633

What is the major concern construction lenders express about the income approach to estimating value? Why do they prefer to use the cost approach when possible?

In the latter case, if the developer has owned the land for five years prior to development, would the cost approach be more effective? Why or why not?

Reference no: EM131326633

Questions Cloud

What will the construction lender be concerned : A presale agreement is said to be equivalent to a take-out commitment. What will the construction lender be concerned about if the developer plans to use such an agreement in lieu of a take-out?
How development projects be differentiated from one another : What is the difference between the assignment of a take-out commitment to the construction lender and a triparty agreement?
Write a paper that presents a synthesis of your ideas : Define the problem in the scenario that you have chosen. Analyze the problem in the scenario.Generate options for solving the problem in the scenario. Evaluate the options for solving the problem. Decide on the best option for solving the problem.
How the accounts are interrelated : Based on the actual facts in the case determine the emphasis you want to place on various accounts. Also reflect back over your entire accounting program and think about how the accounts are interrelated.
What is the major concern construction lenders express : What is the major concern construction lenders express about the income approach to estimating value? Why do they prefer to use the cost approach when possible?
What is sensitivity analysis and how might it be used : What do we mean by overage in a retail lease agreement? How might it be calculated?- What is sensitivity analysis? How might it be used in real estate development?
Do you agree or disagree with the given : It is sometimes said that land represents "residual" value. This statement reflects the fact that improvement costs do not vary materially from one location to another whereas rents vary considerably.
What will be the total project cost for parker road plaza : What will be the total project cost for Parker Road Plaza (excluding loan commitment fees and interest carry)? What will be the total direct costs?
Discuss the diagnostic statistical manual : Refer to the Diagnostic Statistical Manual of Mental Disorders (DSM-5) or your class textbook and choose two co-occuring disorders of interest.discuss the following for each disorder selected: prevalence rate, etiology, prognosis, and most efficaci..

Reviews

Write a Review

Finance Basics Questions & Answers

  Provide any analysis to justify your decisions

You do not have to provide any analysis to justify your decisions. You must only provide some reason for picking that company.

  In 2011 wythe county hospitals total patient revenues were

in 2011 wythe county hospitals total patient revenues were 5 million. in 2020 patient revenues are expected to be 27.75

  Assignment-budget planning and control

Babycakes, a specialty bakery, is the company that will be considered for all parts of your budget planning and control report. For this assignment, you will develop a three to four (3 - 4) page paper in which you address the following.

  United ratios common stock has a dividend yield of 4

united ratios common stock has a dividend yield of 4 percent. its dividend per share is 2 and it has 10 million shares

  Interest is compounded semi-annually

What is its value today if the appropriate interest rate is 8% and interest is compounded semi-annually?

  Determine the expected rate of return

Phoenix Corporation common stock is at present selling for $20 per share. Security analysts at Smith Blarney have assigned following probability distribution to the value of Phoenix stock one year from now;

  What is net value of payments vs. receipts in today dollars

Carol Thomas will pay out $6000 at the end of the year 2, 8000 at the end of year 3 and receive 10000 at the end of year 4. With an interest rate of 13%, what is the net value of the payments vs. receipts in today's dollars?

  Define multinational corporation and spot exchange rate

Define the following terms: a. Multinational corporation b. Spot exchange rate c. Forward exchange rate d. Direct quote versus indirect quote e. Option f. LIBOR g. Euro

  If you were elected to select between fixed freely floating

1. if you were elected to choose between a fixed freely floating or a dirty float exchange rate system which would you

  Calculate the annual cash flows

Assume you are considering investing in a landscaping business. The cost of the equipment is $80,000 and you will need to invest other $20,000 in net working capital.

  How will donut shop’s eps be affected if its amount of ebit

Executives of the Donut Shop have determined that the company’s DOL is 3X and its DFL is 6X. According to this information, how will Donut Shop’s EPS be affected if its amount of EBIT turns out to be 4 percent higher than expected?

  Research the financial successes and challenges

Using the Internet choose one (1) publically traded firm, and research the financial successes and challenges that the chosen firm has encountered. Select financial statements the firm has released within the past three (3) years, and study them c..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd