GLOSSARY · DEVELOPMENT
What arepresales?
Contracts signed before construction completes. Construction lenders often require a level of qualifying presales before first drawdown.
IN PRACTICE
Not every contract counts. Lenders usually set rules for what qualifies, such as deposit size, buyer type and how many sales can go to one party. A presales campaign should be run with those rules in hand from the start, or the numbers can look strong and still fall short of the facility conditions.
FROM THE JOURNAL
THE TUESDAY LETTER One considered note, each week. The week's article and a short market note. Read by developers, lenders and private investors.