Residential construction is a specific type of construction. It is unique in that repayment is not from cash flow or operating the property as incomeproducing, but rather from the sale of units. In this course, learners will examine the distinctive aspects of homebuilder loan requests, including the risks.
Homebuilder Lending is one of the courses in RMA’s Commercial Real Estate Lending Decision Process (CRELDP) library.
Topics covered include:
• Acquisition, development, construction lending, and associated risks
• Homebuilder lending vs. other CRE construction lending
• How to complete a discounted cash flow analysis
• How to calculate a sensitivity analysis assuming a changes in lots
sold per quarter