Dealing with Senior Lenders
- 1. Diligence and underwriting of institutional lender
- 2. Credit underwriting, completion guaranty
- 3. Draw procedures for construction period
- 4. Leveraging of job creation
Negatives of having a senior lender involved
- 1. Subordination of lien and cash flow available for repayment
- 2. Limits flexibility in restructuring or workout scenario