Business / Real Estate / Take-Out Financing: Long-term permanent financing. In the usual large construction project, the developer obtains two types of financing. The first is the interim loan, a short-term loan to cover construction costs. Before lending any money, however, the interim lender normally requires a commitment by a permanent lender to agree to take out the interim lender in which the lender pays off the construction loan and leaves the developer with a permanent long-term loan when the building has been completed.
Business / Real Estate / Participation Financing: Where a lender becomes a partner in a development. MORE
Business / Finance / Permanent Financing: Long-term financing using either debt or equity. MORE