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Real Estate Investment Trusts (REITs): Understanding the Construction Connection

Construction Marketing

Real Estate Investment Trusts (REITs) are owners, operators, and financers of income-generating real estate properties. The primary purpose of a REIT is to generate income for its investors through rental income, capital gains, or both. As such, it may lead to higher rental income and property values.

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How To Negotiate A Higher Credit Limit With Your Building Material Supplier

Levelset

Contractors trying to grow their business and take on larger projects often struggle to manage their cash flow to purchase the materials they need. Many contractors use trade credit to delay paying for materials and keep more cash in their pockets. Most material suppliers aren’t going to spontaneously raise your credit limit.

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Restoration: How to Manage Cash Flow While Waiting for an Insurance Check

Levelset

Meanwhile, you’re incurring expenses that drain your bank account, like purchasing materials and paying employees. A cash flow statement is an analysis of incoming and outgoing cash for a certain time period (usually one month). Each project you work on has expenses that need to be paid and income that will be received.

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Phases of Commercial Real Estate Development

Construction Marketing

You must secure financing for the project. Developers must understand the various financing options, such as traditional bank loans, private equity, and government programs. This phase includes determining the project’s scope, selecting materials, and determining the necessary permits and approvals.

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What You Should Know Before Taking a Construction Loan

Construction Marketing

A construction loan is high-interest, short-term financing that you can use to custom-build your home. It covers land acquisition costs, building materials, construction permits, labor, contingency and interest reserves, closing costs, and plans. Discussed below are the things you should know before taking out a construction loan.

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How to Avoid Running Out of Cash on a Construction Project

Levelset

Bigger projects require more materials and more labor, which means higher cash requirements. And in construction, you can’t bill for the work until you’ve completed it — which means there’s an even longer delay from when you purchase materials or provide the work and get paid. Finance material purchases. Poor planning.

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What's next for affordable housing in 2024?

BD+C

We’re seeing affordable housing in a variety of scales and types, with increasing emphasis on sustainable design—from Passive House design to sustainably sourced material selection. As architects, we’re asking how we can communicate the value of residents and communities with a creative approach to program, massing, and materials.

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