Question
You are a small developer and have a construction deal that has been approved. Youre now looking for a lender and an equity partner. Its
You are a small developer and have a construction deal that has been approved. You’re now looking for a lender and an equity partner. It’s a $100M all-in cost to purchase and build the project. You’ll get $60M in debt from a senior lender (no mezzanine debt allowed) and the remainder in equity.
How would you structure the $40M equity?
What considerations would you evaluate and discuss with the lender?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Structuring the 40 million equity for your construction project and discussing it with a lender involves several considerations Heres a common way to structure the equity and key points to discuss wit...
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Fundamentals Of Management
Authors: Ricky Griffin
10th Edition
0357517342, 978-0357517345
