The Complete Guide to Financing Real Estate Developments

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McGraw Hill Professional, May 22, 2007 - Business & Economics - 450 pages
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Get Answers to All Your Questions About Financing Real Estate Development -- and Tailor a Finance Package that Meets Specific Your Needs

The Completee Guide to Financing Real Estate Developments offers a detailed roadmap to navigate the complex process of financing small to large-scale real estate projects, such as office buildings, apartment complexes, and hotels.

Real estate expert Ira Nachem explores the pros and cons of large versus small institutions; how to structure and present a loan proposal, the approval and closing processes; the truth about appraisals, guarantees, insurance and lien law; financial and physical bonuses and constraints, environmental issues and many other topics.

Nachem presents in-depth information and explanations that answers questions on:

  • Who the Commercial Real Estate Lender Really Is
  • What Information Should the Borrower Produce
  • How a Workable Budget is Created
  • How the Lender Evaluates a Borrower
  • What the True Value of an Appraisal Is
  • What goes into a Lender's Loan Presentation
  • What to Expect at a Closing
  • What Key Legal Documents are Most Important
  • What the True Value of a Guarantee Is
  • How the Borrower and Lender Prepare for the Funding Process
  • What Is involved in Loan Administration After the Closing
  • What Is the View from the Borrower's Perspective
  • What Are some of the Constraints and Incentives to Development
  • What Are the Values and Risks of Insurance and Bonding
  • What Is the Reason for Title Insurance and how does it work
  • What Are the Complexities of Lien Law and how does it work
  • How Is the Loan Eventually Repaid
  • What Real Estate Math Is Essential for the Professional
  • How Important Are Environmental Issues
  • How Can the Lender Find New Loan Prospects
  • What Are the Risks and Rewards of Loan Participations

Featuring a wide range of helpful examples and illustrations, The Complete Guide to Financing Real Estate Developments covers many of the day-to-day realities faced in the real estate industry including the differing perspectives of lenders and borrowers, their personal pressures, personalities and politics, and much more.

 

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Contents

Preface
xi
Acknowledgments
xvii
Chapter 1 The Commercial Real Estate Lender
1
Chapter 2 The Borrowers Information
18
Chapter 3 Budgeting
53
Chapter 4 Evaluating the Borrower
87
Chapter 5 Appraisals
115
Chapter 6 The Loan Presentation
137
Chapter 12 Constraints on and Incentives for Development
341
Chapter 13 Insurance and Bonding
361
Chapter 14 Title Insurance and Lien Law
383
Chapter 15 Loan Repayment
397
Chapter 16 Real Estate Math
422
Chapter 17 Pricing
446
Chapter 18 Environmental Concerns
463
Searching for Loan Prospects
483

Chapter 7 The Loan Closing Legal Documentation and Guarantees
189
Chapter 8 Preparing for the Funding Process
223
Chapter 9 Loan Mechanics after Closing
267
Chapter 10 Project Completion
306
Chapter 11 The Development Process from the Borrowers Perspective
319
Chapter 20 Loan Participations
495
Chapter 21 Problems and Issues
509
Index
531
About the Author
548
Copyright

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About the author (2007)

Ira W. Nachem has over 25 years of commercial real estate experience in finance, investment, development, construction and management. His executive positions in real estate banking, development, management and brokerage have given him direct involvement in all kinds of credit and equity transactions collateralized by all types of properties throughout the United States. He currently lectures on real estate and construction finance at New York University.

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