by InDev Capital | Jan 16, 2018 | Global Deep Value Investor Section, Resi Restart Finance Whitepaper
. Introduction As with most real estate cycles, at one point in time things appear to be perfect. This usually corresponds to a low interest rate environment, strong demand, available land, credit, and suppliers that can execute. Often during these boom times, the...
by InDev Capital | Dec 2, 2017 | Resi Restart Finance Whitepaper
Banks in Brazil are fairly conservative. In fact, even in Brazil’s worst downturn, actual mortgage default rates remain relatively low. Banks’ credit decisions come at the end of the construction process when the bank actually receives the title of the property. A key...
by InDev Capital | Dec 2, 2017 | Resi Restart Finance Whitepaper
During the boom, there was a shortage of quality engineers and significant upward pressure on construction costs. In general, in today’s market hitting budget is achievable and expected. It is important that the developer has a top-tier quality team of engineers or...
by InDev Capital | Dec 2, 2017 | Resi Restart Finance Whitepaper
Importantly, due to the liquidity in the market during the expansion, developers invested enormous sums of capital in marketing their projects. This huge expense was largely due to the fact that there were so many competing projects. This marketing cost was often...
by InDev Capital | Dec 2, 2017 | Resi Restart Finance Whitepaper
It is important to analyze all competing projects that have been launched or are likely to come on board within the 5-year period of the investment. Along with the characteristics of competing projects, it is valuable to understand how many units have sold, at what...
by InDev Capital | Dec 2, 2017 | Resi Restart Finance Whitepaper
A key question is whether the developer with which the investor considers a partnership has the capability to last through the downturn and market turnaround. Some developers may not make it through the down cycle. On this point in particular, local asset managers can...
