The Spaniard (formerly The Elliott)

[sooner88]

Financing will be the biggest issue on this.

[Pete]

Financing will be the biggest issue on this.

True, but rich people usually don't need to finance 80% of a home purchase.

[sooner88]

True, but rich people usually don't need to finance 80% of a home purchase.

Speaking more about the construction financing.

[Pete]

Speaking more about the construction financing.

It's more or less the same thing with residential. They won't approve construction loans until they have x amount of pre-sales, and you can't have pre-sales unless the buyers qualify.

[sooner88]

It's more or less the same thing with residential. They won't approve construction loans until they have x amount of pre-sales, and you can't have pre-sales unless the buyers qualify.

Right, but it also depends on the strength of the developers / guarantors. We're working on a few deals like this right now and while pre-sales are a factor, there's a few other factors that come in... especially when it's a group, albeit qualified, that's doing their first large project.

[Pete]