1. Describe two ways for a developer to raise equity (initial capital) for a development project.

2. Explain the significance of community residents, local politicians, and approving bodies (i.e. Dept of City Planning, community boards, etc.) in the regulatory process

3. Describe two types of liens, and how each can disrupt a development project. What are some measures a developer or general contractor can take to prevent these?

4. State and describe at least three types of financial institutions that developers typically source loans from.

5. Mezzanine debt is established as an intermediate funding mechanism that usually supplements the equity investment and first mortgage. Any traditional lender may use it in negotiations. Typically, deals with mezzanine debt are structured with a 70 percent mortgage, 5 to 25 percent mezzanine debt, and the remainder from the developers equity. Unlike a mortgage, a partnership interest is assigned in case the developer defaults on the loan, making mezzanine a convertible debt-equity instrument. Why might mezzanine debt entice a lender?

6. Describe the function of a construction loan vs. a permanent loan (take-out).

7. Explain the importance of release provisions on purchase money notes (PMNs) when trying to obtain development financing from lenders for land development.

8. When contracts are bid on price per unit, why might a subcontractor deliberately bid high on the item for which the quantity was underestimated? In this case, how is a subcontractor likely to bid on the other (accurately estimated) items?

9. How does a developer assess the accessibility of a prospective development site?