Construction Lending Has Slowed. What are the implications?

Developers, like all entrepreneurs, are great problem solvers. Problems of all varieties occur, and while efficient access to accretive debt financing won’t rate as one of Donald Rumsfeld’s “unknown, unknowns,” the recent challenges associated with securing a construction loan have had, and will continue to have, significant impacts on the developer. What Happened? As we […]

San Diego’s Smart Growth Solution

San Diego is known to many as America’s Finest City, beloved for its endless miles of scenic coastline, amazing weather, top-notch restaurants, and friendly, laid-back attitude. It’s become a top destination for both homebuyers and businesses, and the region’s population is expected to increase by about 33% by 2050. However, the already-strained infrastructure currently in […]

Learn. Bring Your Entrepreneurial Ambitions to Reality.

If you want to achieve, become a world-class learner. That’s the tweet-sized heart of this blog. I grew up in a loving home of modest means. Creating a better reality for my future self became something of a mandate. Like my mom’s best friend used to say, “Money doesn’t suck, the lack of money sucks.” […]

Promotes vs. Splits – What’s the Difference?

Developers and real estate operators partnering with 3rd party equity sources typically secure profits larger than the percentage of equity capital they invest into their projects. These outsized profits, often called a promoted interest, allow sponsors (the developer or operator) to get more profits than they would otherwise based solely on their actual ownership or […]

Airbnb Further Disrupts Real Estate.

ULI San Diego/Tijuana just played host to JaJa Jackson at the Quartyard in downtown SD. JaJa is Head of Landlord Partnerships at Airbnb. His mandate is pretty clear: expand Airbnb’s market penetration. The lunch was fascinating and by far one of the more stimulating ULI events I’ve attended in recent years. Maybe that’s just because […]

When Not to Approach a Capital Provider

SAN DIEGO, Sep. 11, 2014 /GLOBEST/ — Borrowers should know the difference between a deal that’s market ready vs. a notion of a project before approaching lenders, Fident Capital’s principal Kevin Choquette tells GlobeSt.com. We spoke exclusively with Choquette about the opportunities and challenges in equity financing today. GlobeSt.com: What type of financing do you […]

A Zero-Risk Loan: The Developer’s Dream

We’ve written two previous blogs on understanding and reducing developer risk, one illustrating the differences between completion guarantees and repayment guarantees, the other covering the full array of bonding mechanisms. To review, the first article illustrates how completion guarantees offer lower risk for the developer than repayment guarantees. The second points out how bonds can […]

Common Borrower Mistakes and How to Avoid Them

Borrowers seek the best terms available from prospective lenders. One way to secure such favorable treatment is to simply know the rules of the road when developing your lender relationships. We reached out to several of our better lending resources and gathered opinions on the major mistakes they see borrowers make time and time again. […]

Bonds and the Developer – Reduce Risk

Developers face a world of uncertainty. Changes in the market, the regulatory environment, the financial condition of their partners, materials costs, capital markets, plus neighborhood opposition and litigation are just a few aspects of this difficult landscape. Developers take on all of these uncertainties and considerable risk to create a successful project. Bonds provide a […]

Top 5 Things JV Equity Looks for in a Partner

Every aspirational real estate entrepreneur wants to do big deals, even if they don’t have the capital to finance them on their own. For example, taking down a $118MM office asset for repositioning can be done partially with debt, but many times the addition of an equity partner to the venture is needed. Joint ventures […]