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Most Common Mistakes Developers Make When Structuring Construction Financing
by Emily John
Alex: Welcome back to the show. Today we’re talking about something that doesn’t always get the attention it deserves in real estate development — construction financing.Jordan: Yeah, and it’s funny because most construction projects don’t fail because of one big dramatic problem. Usually it’s a bunch of smaller things that build up over time.Alex: Exactly. Maybe the draw process is slower than expected, or the budget ends up being tighter than planned, or the lender’s process doesn’t really work with how the project unfolds in the field.Jordan: And in today’s environment, capital is more selective, margins are tighter, and developers really have to think carefully about how their financing is structured from the start.Alex: So today we’re going to walk through eight common mistakes developers make when structuring construction financing, and how avoiding
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ABOUT THIS SHOW
Alex: Welcome back to the show. Today we’re talking about something that doesn’t always get the attention it deserves in real estate development — construction financing.Jordan: Yeah, and it’s funny because most construction projects don’t fail because of one big dramatic problem. Usually it’s a bunch of smaller things that build up over time.Alex: Exactly. Maybe the draw process is slower than expected, or the budget ends up being tighter than planned, or the lender’s process doesn’t really work with how the project unfolds in the field.Jordan: And in today’s environment, capital is more selective, margins are tighter, and developers really have to think carefully about how their financing is structured from the start.Alex: So today we’re going to walk through eight common mistakes developers make when structuring construction financing, and how avoiding
HOSTED BY
Emily John
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