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?