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Tag Archives: construction loans

COMMERCIAL FINANCE 701 — Construction contracts and risk mitigation

  A commercial construction project is a multifaceted venture.  The numerous parties, erratic pricing of materials, potential for defects, unpredictable local governments, tight profit margins, and vital financing all contribute to a challenging project.  The parties need a well-drafted construction contract. THE PROCESS Reaching the point of actually needing a construction contract can be exhausting.  Necessary steps include site selection, ...

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COMMERCIAL FINANCE 701 — Enhancing a title policy with endorsements

Although often overlooked, title policy endorsements are an integral part of a commercial real estate title insurance policy.  These optional add-ons greatly enhance the coverage and protection provided to an insured owner or lender. My law partners Molly Jeffcoat Moody and Ben Williams, the usual authors of this column, discussed in a prior column the differences in title certificates, title ...

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COMMERCIAL FINANCE 701 — Appraisals, cap rates & loan dollars

An appraisal is one of the most significant obstacles to a competent developer’s obtaining a commercial loan.  Once received, the anticipated appraisal chiefly goes unread – except for a few critical numbers.  This article discusses appraisals, cap rates and loan dollars. What is an appraisal? Not surprisingly, the feds have their own definition of “appraisal.”  At 12 CFR 225.62, the ...

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