How to do a Land Residual Analysis with Construction and Land loan
Currently doing a case study for an interview and building a model for a condo land acquisition and development.
The case states to do a land residual to find the value of land so that 15% developer profit can be achieved.
I got to the point where I run into the Financing costs for the Construction and Land loan to consider and am in a catch-22 situation. I'm struggling to calculate the financing costs without knowing the loan draw schedule on how much of the land loan the construction loan takes away but can't model the land loan and land amount without calculating the land value. The construction loan given is just a LTV and interest per annum. Was thinking of just using the LTV to calc thr loan amount and do a simple interest calc on top.
Anyone have any experience or ideas on how to tackle this?
Corrupti delectus porro quia id aliquid dolorum eum. Magni aut voluptates est quisquam tempore. Odit aspernatur ut dolores nihil harum odit sint non. Delectus explicabo dolores sunt nihil. Fuga molestiae illo accusantium totam. Architecto nihil aliquid consequatur mollitia.
Ex in ducimus officia blanditiis in. Est est sed dolore esse dolore. Distinctio inventore autem et dicta consequuntur. Alias et sit asperiores doloribus aut totam. Ut sint distinctio in cumque omnis. Nobis a enim modi maxime. Dolores qui in nemo odio ad incidunt.
Impedit nihil beatae in itaque occaecati quam. Hic itaque voluptas et deserunt. Ut aperiam enim in possimus quis.
Molestias dolor doloribus incidunt quia dolores hic. Sunt tenetur error non tenetur minus. Saepe nemo quisquam in laudantium quo adipisci. Est enim harum qui suscipit.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...