Learn about the factors that affect the structure of a loan for construction and real estate development. This course breaks down the line items of a construction budget and proforma then explains how to calculate the interest expense and maximum loan amount on the construction loan by examining the timing of spend of different line items from the construction budget. Examine quantitative and qualitative terms in the term sheet and how they affect the structure of the construction loan. Finally, this course builds out different construction development scenarios and looks at how loan repayment works in all these scenarios.
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