Bankability

Bankability is a quotient that communicates the seriousness of intent of the developer to the lenders.

Here are a few concerns about developers that lenders might have:

  • What’s the developer’s “skin in the game?”
    • What is the developer investing to show their commitment to the project?
  • Will the developer be able to complete the project on time?  
    • What are the developer’s past track records & EPC Partnerships? Do they indicate an ability for timely development?
  • How soon can the operations stabilize in the case of commercial development?
    • Will there be any pre-leasing arrangements and at what amount? 
  • How soon will the homes be sold out in case of residential development?
    • Will there be any pre-sales and if so how much? Does this figure substantiate appropriate repayment?