Introduction
Course introduction
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High level considerations
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Terms and definitions
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1. Reaching Loan-to-Cost
Construction loan budget: Key components and analysis
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Land acquisition, due diligence, and closing costs
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Understanding soft costs in construction projects
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Fee structures in construction loans: An overview
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Types of fees in construction projects explained
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Land servicing costs and their role in loan structuring
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Hard costs: The largest expense in construction projects
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Financing options and strategies for construction projects
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Sales, marketing, and lease-up costs explained
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Miscellaneous costs in construction loan budgets
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Contingency planning for construction loan structuring
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Loan-to-cost roundup: Nuances in line items
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Loan-to-cost roundup: Differences in line items
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Loan-to-cost roundup: Other concepts and calculations
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Loan-to-cost roundup: Loan amount and required equity
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2. Calculating Interest Expense
Calculating interest during preconstruction
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Calculating interest during construction
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Calculating interest for pre-leasing, lease-up, stabilization, and sale
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Determining the maximum loan amount
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Midway check-in: Calculating interest expense
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3. Qualitative Terms in the Term Sheet
Understanding interest rates in construction loans
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Structuring interest payments in construction loans
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4. Qualitative Terms in the Term Sheet
Understanding loan-to-cost, interest rates, and tradeoffs
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Key qualitative terms in the term sheet
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5. Construction Loan Repayment
Development scenarios in construction loan repayment
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Build-to-sell units in real estate development
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Selling stabilized assets: Repayment strategies
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Take-out loans for construction loan repayment
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6. Final Considerations
Understanding the capital stack in construction
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Promote structures in real estate development
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Conclusion
Structuring a construction loan course summary
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Glossary_Structuring_a_Construction_Loan.zip
(53 KB)