<aside> 📍 This session delves into the financial requirements of the project. It evaluates the project feasibility through the use of pro formas and identifies the best financing vehicle for the project. Students will understand the different types of financing from financing pre-development activities and land acquisition to construction financing, permanent financing and mezzanine/subordinated financing. Following this session, participants will be able to assess which financial vehicles best suit their project.

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Learning Guidelines

If you're a first-time real estate developer, it's essential to grasp the dynamics of the market, demographics, and how to foster strong relationships with both the community and your team. Here are the key areas you should delve into:

1. Understand Toronto's housing market and recognize the need for sustainable housing provisioning in our cities
   • Identify trends in the housing market that can inform your project
   • Define Real Estate Development and describe the process
2. Understand the Missing Middle policies
3. Learn about the municipal and provincial structures surrounding property development
4. List the major players in the real estate industry and define the role of each of the major players (in real estate development more generally, and the key players in your municipality/GTHA)
   • Understanding trade relationships that would support the realization of your project
   • Identify trends in the housing market that can inform your project
   • Define Real Estate Development and describe the process

SESSION INSTRUCTORS:

**Jason Allen John:** Director of Finance at Partna Housing https://www.linkedin.com/in/jasonallenjohn/?originalSubdomain=ca

SESSION RELATED LINKS

• Session 4 Outline
• Session 4 Zoom Recording
• Session 4 Power point
• Session 4 Notes

KEY TERMS

Definitions for these terms can be found in the glossary

• Mortgage
• Residential financing
• Commercial Financing
• IRR (Internal rate of return)
• Cap Rate
• Credit Score
• The 5 C’s of Credit
• Joint Venture
• GP/LP (General Partner/ Limited Partner
• Line of Credit
• A-Lender
• B-Lender
• Private Financing
• CMHC
• Multi-Unit
• Mezzanine / Subordinated Financing

RESOURCES TO LEARN MORE

Partna Housing:

1. Reference Tools from ULI Course_II Team Pro Forma Template_working doc

https://docs.google.com/spreadsheets/d/194oDSQvkd9BQAITzwhl_AQr9IhZGpnYL/edit?rtpof=true&sd=true#gid=670384723

1. Pro-Forma Option 1

https://docs.google.com/spreadsheets/d/1dNAwF8dv4LDGCh2rP6AQ88FFvzlYfuFc/edit?usp=share_link&ouid=100723771113335724158&rtpof=true&sd=true

1. Pro-Forma Option 2

https://docs.google.com/spreadsheets/d/12C72lR6K92H3CZU31CUr2il6KEVX2TPh/edit?usp=share_link&ouid=100723771113335724158&rtpof=true&sd=true

1. Pro-Forma Option 3

https://docs.google.com/spreadsheets/d/1YFMaUcLhhhzGrEe4a4sapEEePkYguD5O/edit?usp=share_link&ouid=100723771113335724158&rtpof=true&sd=true

1. Pro-Forma Option 4

https://docs.google.com/spreadsheets/d/1zJv7bql8uLXfnQDEJxSmcJMpYUoSRN-X/edit?usp=share_link&ouid=100723771113335724158&rtpof=true&sd=true