Chapter 8 Questions By Arianna Sandoval

1.       During what step of the Development is it advisable to search for negative evidence in order to “kill a deal”?

a.       Precommitment

b.      Postcommitment

c.       Marketability Study

d.      Construction

2.       Purchasing an exclusive option on the property means gaining the right to close the purchase of the site by some specified due date. T/F

3.       The marketability study focuses on a particular property. T/F

4.       What does “taking the construction lender out” refer to?

a.       To not pay off the construction loan

b.      money

c.       The permanent lender extinguishes the collateral interest a construction lender has on the project

d.      There is no lender that is willing to lend money for construction

5.       What is not part of the first step in the process of development?

a.       Conduct due diligence

b.      Find a site

c.       Define a concept

d.      A rough draft of a site plan

6.       Inspections during the construction and lender inspections serve the same purpose. T/F

7.       The developer has two options after construction is completed; manage the asset or sell. T/F

8.       In the precommitment stage it is important to spend as much money needed to come up with the decision of continuing with the project or killing the deal. T/F

1. A  2.T  3.T  4.C  5.A  6.F  7.T  8.F