Construction Financing:Easiest Method
Construction financing can be input simply as AVI[38] as an interest rate on external borrowings and as AVI[39] as the interest rate on internal borrowings. External borrowings will then be made up to the limit of the permanent financing takeout, and they will be repaid as funds are available (as from equity financing) and fully repaid when the permanent mortgage closes. Construction financing can extend past the opening date of the project if the closing of the permanent mortgage is delayed until after opening. Funds required in excess of those available from external sources will be met with internal funds and interest will be charged at the AVI[39] interest rate. Internal interest charges will cease when the external construction loan is repaid.
| input | description | help# | importance | frequency |
|---|---|---|---|---|
| AVI[37] | Bridge loan interest rate:equity & operations | 541 | 4 | |
| AVI[38] | Construction financing interest rate | 541 | 4 | |
| AVI[27] | Contruction interest to impose (or CSF[;12]) | 541 | 3 | |
| AVI[39] | Internal interest rate | 541 | 3 | |
| AVI[33] | Number of MTGES to include in const. loan ceiling | 541 | 2 | |
| AVI[183] | Exclude cash losses from operations from construction loan | 541 | 2 |
