THE COMPLETE GUIDE TO FINANCING REAL ESTATE DEVELOPMENTS

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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