QUESTION SIX

a$)$ What are the sources of risk associated with project development?

$(2$ marks$)$

b$)$ What are some development strategies that many developers follow?

$(2$ marks$)$

c$)$ Describe the process of financing the construction and operation of a typical real estate development.

$(4$ marks$)$

d$)$ Why don't permanent lenders usually provide construction loans to developers?

$(2$ marks$)$

e$)$ What is the major concern construction lenders express about the income approach to estimating value?

$(1$ mark$)$

f$)$ What is sensitivity analysis? How might it be used in real estate development?

$(2$ marks$)$