For all that work at a development shop, can you give us some light on all the hats you wear.
How involved are you on the construction side? Do you work on bidding and coordinating with GC? Who checks up on the construction progress? How involved are you with communicating to the architect?
Also does your boss or the executive team have a background in construction? How involved are they in regards to the building aspect? Do they go on job sites and see the work done by GCs and speak with them on a weekly basis or this handed off to another team? Who is responsible for the actual project being built on time? Is there a project management team at most development/REPE shops?
Do you have third party construction/project managers or an in house team?
How involved are you with financing these projects? What are the typical provisions and standard Terms of a construction loan? When buying a development site, do you get a loan that funds the land cost and as well as 100% of the construction costs as well or do you have to draw down your equity in the project first? Can someone please inform me on the specifics of a construction loan and how it's gets paid? Is interest being accrued most of the time which gets capitalized when refinancing to a perm loan?
Last question - when you complete the project and it's going through lease up (e.g multifamily) how are you able to pay off your permanent loan since you don't have so much cash flow yet? Is there a specific loan for this scenario?
Thanks. I know there's a lot of questions but any insight would be appreciated.
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