Project Financing Blog

BIO — Doug Shipman, principal and CEO of Developers Financial Solutions, has spent over 30 years as a real estate executive specializing in developing large-scale and complex projects. His development experience includes some of the most prestigious companies located in Palm Desert, Calif., Scottsdale, Ariz., Las Vegas and Houston. He can be reached at: [email protected]

The Obama administration outlined three options to change the way home loans are financed, calling for the shutdown of mortgage giants Fannie Mae and Freddie Mac over the next five years and reducing or eliminating the role of government in helping borrowers secure mortgages

When implemented, the proposals will make it more expensive for borrowers to buy a home and thus restrict the availability of mortgages. It also marks a significant departure from past government policies, which entitled homeownership as a virtual right.

One of the primary obstacles to obtaining private project financing is understanding the differences between the formal banking experiences that home builders are accustomed to and the new world of private project financing. Here are some of the characteristics and business practices that clearly differentiate banks from the private market:

Private project financing entities...

QE-2 Qualitative Easing implemented and explained. These are the best definitions of Quantitative Easing.  This is Clearly written by some smart people and worth the 6 minutes of your time, and a Great use of smart humour to explain complexity. Did you know that Goldman Sachs can front run the Fed?

The media has been talking about how the Fed has to be careful not to let inflation get "out of control" in the coming months and years.  In fact, just last week, there was a headline talking about how another round of Quantitative Easing (QE2) bringing the risk of "unleashing 1970s inflation genie."

Mortgage Bonds are trading lower on what appears to be a changing sentiment towards the risk of deflation.

The entire market of private debt and equity financing is playing a much larger role in the development and homebuilding space than ever before, and with the banks on hiatus, (for the most part) private financing and equity Joint Ventures are likely to the New Normal.

The PCBC show held its first Capital Markets Forum in June. The program was well attended and many of the industry’s top financial experts were on hand. Here’s a roundup of the highlights from the event:

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