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Every analysis, breakdown and explainer, newest first.
Housing 101
The owners of a new building put in the money that absorbs losses first. This lesson explains why that money has a price, how the price is measured, and what happens to construction when it is not paid.
Housing 101
Most of the money in an apartment building is borrowed. This lesson explains the construction loan, the permanent loan, how lenders size them, and how the mortgage constant turns debt into rent.
Housing 101
Revenue, vacancy, operating expenses, net operating income, yield on cost, cap rate, DSCR, cash-on-cash. The pro forma decides whether a building gets built. If the math does not close, nobody builds.
Housing 101
Lenders and investors front the cost of a new building in layers, each with its own risk and return. Renters repay them through rent, and sometimes the public covers part of the cost through subsidies.
