Monthly Archives April 2018

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Questions: Quick Answers About Construction, Risks & Financing…

These two questions were asked by a reputable economist in my circle a year ago? What should we expect from second quarter GDP growth? Is construction helping or hurting? Recently, while underwriting, advising about financing and discussing the current economic market landscape with a small developer about a project, a couple of related questions were asked. The answers are below and may be helpful if you needed fast answers.

Construction that finishes phase 3, and the building goes into operation, producing cash flow – not much of hurting here but plenty of help for local sub-market economy and even small businesses.  However, if the project is stalled, the sponsor walks away or just cannot finish the project, that’s just a hard pill to swallow – plenty of hurting here...

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