Exam 16: Financing Project Development

Even after obtaining permanent financing,a developer still maintains the right to alter a project's design or the level of expenditures.

Why would a developer be willing to manage a completed project even after it has been sold?

Permanent loans generally provide the money to pay off the construction loan in segments,as the work progresses.

Which of the following is a "soft cost" of construction?

Permanent funding commitments usually contain many funding contingencies.Which of the following typically is NOT one of those contingencies?

Construction loans provide the money to construct a building and are usually provided by life insurance companies or pensions funds.

Which of the following is one reason that construction lenders typically prefer the cost approach to valuation over the income approach?

The demand for retail space should be examined in terms of the characteristics of the tenant's demand in a given market.

ADL lenders recognize that too much of what may lead to significant overbuilding and an excess supply of space in a local market?

In determining whether a project is commercially viable given the prevailing market rents,land prices,and construction and financing costs,a developer would be likely to conduct a(an):

Developers usually hold back about ________ percent of each progress payment.

One of the risks of project development is "project risks," which are the result of unexpected changes in general market conditions affecting the supply and demand for space.

A permanent take-out commitment is:

Interest on a construction loan is usually paid:

In comparison to permanent financing,the rates and rate variability for a construction loan would be: