Third-party lenders sometimes provide gap financing for project developments. Why is this lending used? How does it

Question:

Third-party lenders sometimes provide gap financing for project developments. Why is this lending used? How does it work?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Real Estate Finance and Investments

ISBN: 978-0073377339

14th edition

Authors: William Brueggeman, Jeffrey Fisher

See More Books

Question Posted: Sep 26, 2018 01:12 PM

See More Questions

Contesso Travel Inns Ltd. is a successful Canadian-controlled private corporation that owns and operates a small chain of eight hotels in western Canada. The hotels offer high-quality lodging at...
You, CA, have been working for Plener and Partners, Chartered Accountants (P&P), a mid-size CA firm, for three years. You have been assigned a new project for a long-term client of your firm, Oxford...
Gap, Inc., is trying to incorporate human resource and supplier considerations into its management decision making. Here is Gaps report of findings from a recent Social Responsibility Report: Because...
When the freed slave saw the real physical object? A) He was perplexed by the object when he was told what they were B) He was dazzled by the light C) He didn't believe what he was told D) all adove...
Why should a company attempt to speed up its receivables and slow down its payables?
Bay Front Co. receives $240,000 when it issues a $240,000, 10%, mortgage note payable to finance the construction of a building at December 31, 2012. The terms provide for semiannual installment...
How does sales fit within marketing activities?
Analyzing Gross Profit Percentage on the Basis of an Income Statement The following summarized data were provided by the records of Slate, Incorporated, for the year ended December 31, 2012:...
Pass a variable named verified_email from dashboard.html to usersinfo() in python file using AJAX. May I know why when I click on the Personal Information link, nothing happen? At which part did I...
Student researchers Adam, Edward, and Kian wondered if music would affect performance for certain tasks. To find out, they had student volunteers sort a shuffled set of 26 playing cards by face value...
What is a mini-perm or bullet loan? When and why is this loan used?
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?
Answer the following questions about a scenario where the p-value is small (e.g., < .05 or < .01). a. Why would it be incorrect to say that these results are important? b. Why would it also be...
A PROPERTY THAT IS SUBJECT TO A PARTIAL TAKING IN EMINENT DOMAIN HAS BEEN VALUED AT $ 6 0 PER SQUARE FOOT. THE PART THAT IS BEING TAKEN IS BEING USED TO EXPAND A TURN LANE AND NO DAMAGES ARE...
Prepare an Income statement for Rex Manufacturing for the year ended December 31 using the following Information. Hint Not all Information given is needed for the solution. Finished goods inventory,...
When viewing the Royal Proclamation of 1763 - and then the BNA Act of 1867 - and ultimately the Canadian Charter of 1982 - it is clearly visible how the First Nations people have been "swept under...
A former NJ State worker, Danny Noonan injured his back at work and had back surgery. He was placed on full disability; however, the State of NJ thought he was not truthful with them about his...
The Art of Not Being Governed" (18 min. 9 sec.) by Yale University Located at: https://youtu.be/aVwrUsib4vU?si=wpPMAgu6HKV_RuEA 1. Who are the 'hill people,' and why are they not 'primitive'? 2. How...
Mr. and Mrs. Soon are the sole shareholders of SW Inc. For the last three years, SW has employed their son as a sales representative and paid him a $30,000 annual salary. During a recent IRS audit,...
In the figure, two loudspeakers, separated by a distance of d1 = 2.63 m, are in phase. Assume the amplitudes of the sound from the speakers are approximately the same at the position of a listener,...
Home mortgage lending is heavily regulated by federal laws. Is this a result of Congressional pandering to consumer groups, or are there good reasons why home mortgage lending should be regulated...
On an adjustable rate mortgage, do borrowers always prefer smaller (i.e. tighter) rate caps that limit the amount the contract interest rate can increase in any given year or over the life if the...
Explain why a home equity mortgage loan can be a better source of funds for household needs than other types of consumer debt.
s Machine-hours required to support estimated production Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Required: 1. Compute the plantwide predetermined...
How do visionary leaders navigate the complexities of organizational dynamics to cultivate a culture of innovation and adaptability ? Explain
Finnish Corporation manufactures custom molds for use in the extrusion industry. The company allocates manufacturing overhead based on machine hours. Selected data for costs incurred for Job 532 are...

Third-party lenders sometimes provide gap financing for project developments. Why is this lending used? How does it

Question:

Step by Step Answer:

Gap financing is necessary when a construction loa...View the full answer

Real Estate Finance and Investments

Students also viewed these Business questions