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Practice Drills: Structuring a Real Estate Development Financing Deal

A drill-heavy course for family office investors, angel syndicate leads and active traders moving into private real estate credit and equity. You work on one sample residential project in Thane from land purchase to possession. You build its cost stack and sales forecast, find the month by month funding gap, size a bank construction loan, price a credit AIF mezzanine NCD, split the equity between developer and investor, write the waterfall, covenants and security package, stress test the whole structure against delay, price and cost shocks, compute every party's returns, and finish by writing the term sheet and IC memo. All deal numbers are illustrative.

Real Estate Development FinanceCapital StackMezzanine DebtCredit AIFsDistribution WaterfallCovenantsRERA EscrowStress Testing

MODULES

5

DURATION

~3 hrs

TRACK

Alternative Investing

What You'll Master

Build a development project's full cost stack and month by month cash flow

Forecast sales and collections under RERA's 70 percent escrow rule

Find the funding gap and size senior construction finance against it

Price a mezzanine NCD from a credit AIF and structure preferred and common equity

Draft an escrow priority, cash sweep and distribution waterfall

Set sales velocity, cover and cost overrun covenants that actually bite

Assemble a security package: mortgage, receivables hypothecation, share pledge and guarantees

Stress test delay, price and cost scenarios tranche by tranche

Compute IRR and equity multiple for every party at the table

Write the term sheet and investment committee memo for the deal

Access Level

LEARNER

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Everything included

Full Text Playbooks

Actionable Exercises

Mobile Reading Mode

Lifetime Updates

Curriculum Breakdown

Chapter 1: Setting Up the Deal

3 Lessons

Drill Setup: The Thane Residential Project We Will Finance9 min read

Drill: Building the Project Cost Stack From Land to Possession12 min read

Drill: Forecasting Sales Velocity and Collections Under RERA's 70 Percent Escrow Rule12 min read

Chapter 2: Sizing the Capital Stack

4 Lessons

Drill: Finding the Month by Month Funding Gap11 min read

Drill: Sizing Senior Construction Finance Against Cost and Security Cover12 min read

Drill: Pricing a Mezzanine NCD From a Credit AIF12 min read

Drill: Splitting the Equity Between Developer and Investor11 min read

Chapter 3: Writing the Terms

3 Lessons

Drill: Drafting the Escrow Priority, Cash Sweep and Distribution Waterfall13 min read

Drill: Setting Covenants That Actually Bite10 min read

Drill: Assembling the Security Package10 min read

Chapter 4: Stress Testing the Structure

3 Lessons

Drill: Running Delay, Price and Cost Overrun Scenarios Tranche by Tranche13 min read

Drill: Computing IRR and Equity Multiple for Every Party12 min read

Drill: Reverse Stress Testing the Deal to Find What Breaks It11 min read

Chapter 5: Closing the Deal

2 Lessons

Drill: Tax and Regulatory Checks Before Signing10 min read

Drill: Writing the Term Sheet and Investment Committee Memo12 min read