The developer's fee is defined as the payment made by the owner of a project to an individual or an entity which guides the design, approval and construction purposes.
The debt service includes the interest payments on debt and principal payments to retire debt. For the purposes of accounting, interest payments are considered to be expenses while principal payments are considered to be capital expenditures.
A Cost-Plus-Percentage Contract is an agreement on a construction project in which the contractor is provided a specified percentage profit which is above the actual cost of construction.
Closing refers to the act of transferring the ownership of the property from the seller to the buyer in accordance with their mutual contract. However, the period when the closing takes place is also known as closing. It is the final stage in the sale of a real estate property when representatives of the buyer…
The carrying cost is related to the retention of an asset that is under development or construction. These costs include interest and realty taxes and are usually added to the capital of an asset.
Cash Flow From Operations is the cash that has remained from net operating income after deduction of debt service and ground lease payments but not capital expenditures or income taxes.
Capital Improvements are expenditures that remedy a property's deterioration, appreciably prolonging the useful life of a property, or adding to the value of the property.
Bridge financing is the temporary financing required to cover the period prior to the advancement of funds under a committed financing arrangement.
Building codes are regulations established by local authorities describing the minimum structural requirements for buildings and include foundation, roofing, plumbing, electrical and other specifications for safety and sanitation.
Betterment is the improvement of a real property that includes the sidewalk of a road which can increase the value of the property. The term is frequently applied to public improvements. However, in appraisal terminology, it is equally applicable to any fixed improvement which enhances value.