BOOK
REVIEW
Reviewed by. Mr. JANAGAN.R,
II Semester, M.Arch (RED),
MEASI Academy of Architecture.
Author : IRA W. NACHEM
Cost of the book:
$ 79.95 USA
Publisher : McGraw-Hill Education India Pvt. Ltd.
,B-4,
Sector 63, Noida, UP - 201 0301
Phone: +91 120 438 3400,
Fax: +91 120 4383 401 - 403
Email: marketing_india@mcgraw-hill.com
Author
Ira W. Nachem has served as an executive in the real estate banking, development,
management, and brokering industries. He has more than 25 years of commercial
real estate experience in the areas of financing, development, investment,
construction, and management, and today he delivers lectures on real estate
& construction finance at New York University.
Real estate expert Ira Nachem in this book
explores the pros & cons of large
versus small institutions; how to structure and present a loan proposal, the
approval and closing processes; the truth about appraisals, guarantees,
insurance and lien law; financial and physical bonuses and constraints,
environmental issues and many other topics.
Nachem presents in-depth information
& explanations that answers questions like
Who the Commercial Real Estate Lender
Really Is;
What Information Should the Borrower
Produce;
How a Workable Budget is Created?
How
the Lender Evaluates a Borrower?
.
The book deals mainly about real estate
lender. The lender according to the author is one who has special expertise in
area that requires creativity & intelligence. The book deals with the
lender’s qualities, job opportunities, education, work hours and office politics
required. After giving a brief knowledge about the lender the author narrates
the borrower’s information required by the commercial real estate lender.
The author outlines the following like the quality of
loan application, proposal size, area description, market analysis, economic
analysis, mainly the principals of the borrower and maps needed for getting
information about the borrower’s development.
The way the loan presentation to be done is given in
an appealing format. The creation of project budget is an integral part of the
project’s loan structure. This budget is given to the lender which is finalized
by the analyst with its pros and cons. The borrower’s may have conflicting
motives regarding the budget either they diminish the cost or exaggerate it.
With the budget being presented to the lender the
borrower is evaluated with his cash flow, liquidity, overall leverage,
receivables, payables, net worth and contingent liabilities. Apart from above
information about his health and character labeling is also gathered. The
appraisal of the project is done by various universally recognized methods,
and the value of the project at completion and stabilization (property at
expected level of utility) is analyzed.
Featuring a wide range of helpful examples and
illustrations, “The Complete Guide to Financing Real Estate Developments”
covers many of the day-to-day realities faced in the real estate industry
including the differing perspectives of lenders & borrowers, their personal
pressures, personalities and politics, and much more.
Written by real estate expert Ira Nachem, this
hands-on reference explores the nuts-and-bolts of real estate finance, including
guidance on how the borrower should create and structure a credit proposal, how
the lender should analyze & create a credit presentation, and how each can
take advantage of opportunities and overcome obstacles. The book having 547
pages is worth reading by the stakeholders in Real Estate Development apart
from the scholars exploring real estate profession.
Src: B and C
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