Buyer-Financed Development Is The New Normal

Law360, New York (December 6, 2013, 4:50 PM EST) -- With demand for high-end residential condominiums quickly outpacing supply in a number of large cities, developers are going forward with construction of projects that had been tabled during our recent turbulent financial decline. While financial recovery is certainly underway, financing challenges continue. 

Lenders are still reluctant to make large construction loans. Developers, who are classically adverse to increasing the capital invested in a project, are turning to the buyer-financed model to fund the pre-construction and construction phases of their projects.

The model — also known as...
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