article thumbnail

Key Financial & Safety Metrics for Subcontractor Qualification 

Autodesk Construction Cloud

For another, work delays from 2021 are likely to impact the risk of subcontractor default in 2022 and beyond. . The following standard financial ratios can help risk management teams evaluate potential trade partners during the subcontractor qualification process. FINANCIAL RATIOS: DEBT . Debt Ratio .

Safety 94
article thumbnail

Types of Capital for Construction Businesses

Levelset

Several different types of capital — working capital , debt capital , and equity capital — are common in the construction industry. For most businesses, working capital will be front of mind, but debt capital and equity capital serve important purposes as well. Debt capital. 3 types of capital for construction.

Debt 97
professionals

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

20-Year High Mortgage Rates Won’t Crash the Housing Market—Here’s Why

Pro Builder

While a sudden slowdown could cause price drops of 10% to 15% nationally, strong employment gains and equity cushions will prevent a crash similar to the 2010 housing bubble and bust, Realtor.com reports. Vanden Houten thinks a housing crash “is improbable,” but said a low probability risk of a 15% fall in home prices would wipe out $6.2

Housing 98
article thumbnail

Home Price Appreciation Benefits Some Homeowners but Leaves Many More Scrambling

Pro Builder

While some are swimming in equity, others are drowning in debt—and losing their homes as a result. Property tax increases are causing foreclosure rates to rise in states where homeowners are already facing high unemployment rates, income inequality, and large debt-to-income ratios. Wed, 12/15/2021 - 10:07. Financials.

Debt 52
article thumbnail

Phases of Commercial Real Estate Development

Construction Marketing

Developers must understand the various financing options, such as traditional bank loans, private equity, and government programs. The developer may also be responsible for arranging to finance the project, which can consist of a combination of equity and debt. You must secure financing for the project.

article thumbnail

What You Should Know Before Taking a Construction Loan

Construction Marketing

To win the construction loan approval, make at least a 20% down payment, ensure you’ve got a great credit score, low debt to income rate, sufficient earnings to pay off the loan, construction and project budget approval, and general contractor or builder approval. What to consider about construction loans.

article thumbnail

Single-Family Rental Homes Are Becoming Top-Performing Investments

Pro Builder

Investors have poured about $30 billion in debt and equity into the sector in 2021, with many billions more in future commitments, Mr. Hunter said. Investors are stepping over each other in the Sunbelt markets like Phoenix, analysts and builders say, risking a supply glut. Traditional home builders like Lennar Corp. Horton Inc.

Debt 52