Large Development Financing

By
Mortgage and Lending with Dominion Commercial Consultants

 

One of the biggest mistakes made by commercial lenders is to become blinded because of the size of a development deal, and because of this not rationally review the merits of a project.

 We see multiple projects a month and the majority of them do not have the items in place necessary for any financing source to want to fund a project.

If you are reviewing a large development project, before you get blinded by the potential commission, confirm these important points:

1) Does the developer have money into the project

2) Are the entitlements in place

3) Are the financials and the pro-forma up to date

4) Is there a well thought out marketing strategy

5) Has the developer been involved in projects of this type and size before

These may seem like simple points, but confirming and reviewing this information before pursuing financing can save you a great deal of time and energy.

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Rainer
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Dwayne West
Atlanta Real Estate - Canton, GA
Canton Georgia Real Estate
Paul,Welcome to this great community of Real Estate professionals and mortgage professionals here at Active Rain.
Mar 20, 2008 11:17 AM #1
Rainer
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Greg Steffens
Mountain Country Realty - Lake Arrowhead, CA
Hey Paul - Welcome to AR and congrats on your first post.  I've only been a member for a short time and am already seeing benefits.  Take the time to poke around on other peoples' sites and see what their blogging.  Keep it up!
Mar 20, 2008 12:25 PM #2
Rainmaker
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Rick Sergison
Keller Williams Real Estate Associates in the Toronto Area - Pickering, ON
Durham Region Real Estate Blog

I just stopped by to welcome you to Active Rain. I hope that you find it a great benefit to your business and that you see the value that I have also found here. I am from Charlottesville Virginia and using Active Rain has really increased my business!

My main blog on Active Rain is here: Charlottesville Real Estate Blog, not the link at the bottom of this post.

I hope you will look into the many groups as there are some great group both local and broad based,....

enjoy!

Mar 20, 2008 07:02 PM #3
Rainer
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Katie Graham
Cherry Creek Properties, LLC - Denver, CO
Denver Real Estate
I'm not too familiar with commerical lending. I look forward to future posts so I can educate myself. Welcome to the rain!
Mar 20, 2008 11:27 PM #4
Rainmaker
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Benjamin Clark
Homebuyer Representation, Inc. - Salt Lake City, UT
Buyer's Agent - Certified Negotiation Expert

Welcome to Active Rain! For some tips on how to get started here, check out my blog entry at ActiveRain Fast-Start Tips for Quick and Easy Points

Happy blogging and good luck!

Mar 21, 2008 02:02 AM #5
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Rainer
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Paul May, Jr.

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