What will the construction lender be concerned

Assignment Help Finance Basics
Reference no: EM131326637

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?

Why don't permanent lenders usually provide construction loans to developers? Do construction lenders ever provide permanent loans to developers?

Reference no: EM131326637

Questions Cloud

What are sources of risk associated with project development : Describe the process of financing the construction and operation of a typical real estate development.- What are the sources of risk associated with project development?
Explain the major concepts behind computers : Explain the major concepts behind computers, computer algorithms, and computer literacy. Explain the technologies that have contributed to the exponential growth of the Internet and the World Wide Web (WWW)
What is a standby commitment and when and why is it used : What is a standby commitment? When and why is it used?- What is a mini-perm or bullet loan? When and why is this type of loan used?
Describe several points with which you agree or disagree : Explain what you think about the argument. Describe several points with which you agree or disagree. Explain how the passages support your opinion.
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?

Reviews

Write a Review

Finance Basics Questions & Answers

  Forecast horizon of five years

Using the residual income model, prepare a valuation of the common stock of Welmark Corporation as of Year 3 under the following assumptions: a. Forecast horizon of five years. b. Sales growth of 10.65% per year over the forecast horizon and 3.5% t..

  Calculate the discount factor that will be applied

Orlando Pixie Dust is considering an option to buy some land in Brazil 9 years into the future. The acquisitions department discounts future projects at 2%. Calculate the discount factor that will be applied to the future cash flow.

  What is the amount of the current assets

A firm in inventory, $1,8600 in fixed assets in accounts receivable, $210 in accounts  payable, and $70 in cash. What is the amount of the current assets?

  All loans are fully amortizing which should be selected

1.Joshua and Jim have owned a property for 15 years, the value of which is now $200,000.The balance on the original mortgage is $100,000, and the monthly payments are $1,100, with 15 years remaining.

  Determine the probabilities

The probability that a university graduate will be offered no jobs within a month of graduation is estimated to be 5%. The probability of receiving one, two, and three job offers has similarly been estimated to be 43%, 31%, and 21%, respectively. ..

  Determine the financial statement disclosures

Andrews, CPA, has been engaged to audit the financial statements of Broadwall Company for year ended December 31, 20X1.

  What is a current and non-current asset

What is a current asset? What is a non-current asset? What is the difference between the two types of assets? In which financial statement would you find these assets?

  What is the bond''s yield to maturity

You just purchased a bond which matures in 5 years. The bond has a face value of $1,000, and has an 8 percent annual coupon. The bond has a current yield of 8.21 percent. What is the bond's yield to maturity?

  The booth companys sales are forecasted to increase from

the booth companys sales are forecasted to increase from 1000 in 2002 to 2000 in 2003. here is the december 31 2002

  Expected rate of depreciation for the dollar

What is the expected rate of depreciation for the dollar? the dollar is expected to appreciate 5%, what interest rate on euro deposits is required if the concepts of interest-rate parity and capital mobility are to hold?

  Tirty years later in 1988 the averagecost was 13700 what

in 1958 the average tuition for one year at an ivy leagueschool was 1800. thirty years later in 1988 the averagecost

  Finding the bond value

What was your average annual capital gains yield over the past three years on this bond ('07-'10)? Note: just find the capital gains yield, not the "total" yield.

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