Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You are preparing a loan package for financing of a land development project with a cost of $2.5 million and infrastructure costs of $12,000 per
You are preparing a loan package for financing of a land development project with a cost of $2.5 million and infrastructure costs of $12,000 per lot on 50 acres and entitled to build 200 single family lots over the next four years. The primary risks to a potential lender are?
(A) Inability to obtain a higher density of lots in the development.
(B) A decrease in the sales prices per lot and lower lot absorption.
(C) An increase in the sales prices per lot and higher lot absorption.
(D) An increase in the market level of interest rates.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started