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What is meant by the term "developer's equity" and why is it important to construction lenders?

What is meant by the term "developer's equity" and why is it important to construction lenders?

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Developer's equity is the amount or the percentage of amount a developer is paid from a project after deducting all the load and debts associated with the project. The percentage is decided based on number of developers present for the project and the total value of the project after deducting it's loans and debts. Construction lender generally cosnider this amount before lending to the project so that they could get a guarantee of their money being returned and to analyse the financial situation of the project and the developer. It assures them of their amount .

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