In land development projects, why do lenders insist on loan repayment rates in excess of sales revenue?

Question:

In land development projects, why do lenders insist on loan repayment rates in excess of sales revenue? What is a release price?

AppendixLO1

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: 9780073524719

13th Edition

Authors: William Brueggeman, Jeffrey Fisher

See More Books

Question Posted: Jul 27, 2024 05:00 AM

See More Questions

What are the Four Eras of Commercial Aviation Safety in order from the 1950's to the future?
Income statement information for Linz Corporation in 2014 follows. a. Administrative expenses, $220,000 b. Cost of goods sold, $880,000 c. Extraordinary loss from a storm (net of taxes, $20,000),...
Write the functions in Problems in the form P = P 0 a t . Which represent exponential growth and which represent exponential decay? P = 15e 0.25t
The department of management science at Tech has sampled 250 of its majors and compiled the following frequency distribution of grade point averages (on a 4.0 scale) for the previous semester: GPA...
Briefly describe the convergence efforts related to financial statement presentation.
1 ) What is separation of ownership and control and how does this problem get solved? 2 ) Do futures contracts benefit both sides of the deal and how?
What are some of the physical considerations that a developer should be concerned with when purchasing land? How should such considerations be taken into account when determining the price that...
Construct a concept map illustrating the relationship between batteries and electrochemical ideas.
What are the strengths and advantages of AI technology and machine learning? What are the weakness'?
What is the difference between a prescriptive jurisdiction where a Certificate of Need (CON) is required or in jurisdictions where market forces drive healthcare?
1. How important is a preventive maintenance checklist? 2. What characteristics should a theme park employee have to be able to ensure the safety of guest during the ride? 3. What should a report on...
Compare and contrast the needs of leisure and corporate market segments. How are the demand patterns different for each? (think day of week, months of year). How best would a hotel operational team...
Why Lego prefers to crowdsource design ideas from end users whereas Apple Inc. chooses to restrict its R&D projects within the firm's boundary? What are the contributing factors that may lead to the...
A baseball player holds a 36-oz bat (weight θ 10.0 N) with one hand at the point O (Fig. P12.1). The bat is in equilibrium. The weight of the bat acts along a line 60.0 cm to the right of O....
What are the principal alloying elements in SAE 4340 steel?

In land development projects, why do lenders insist on loan repayment rates in excess of sales revenue?

Question:

Step by Step Answer:

Real Estate Finance And Investments

Students also viewed these Business questions