GLOSSARY · CAPITAL & STRUCTURING
What is a residual stockloan?
A facility secured over completed but unsold lots or apartments, used to repay construction debt or release equity while the remaining stock sells.
IN PRACTICE
A residual stock loan buys time when the construction facility is due but the market needs longer to absorb the last lots. Lenders look closely at the realistic sale price of what remains and how quickly it can sell, so honest pricing of the stock is what gets these facilities approved.
RELATED TERMS
THE TUESDAY LETTER One considered note, each week. The week's article and a short market note. Read by developers, lenders and private investors.