Funding Target
Funding target is the total capital amount required to complete a property acquisition or development project, including purchase price, fees, reserves, and working capital.
| Target Component | Typical Percentage |
| Property purchase price | 85% to 90% |
| Acquisition costs | 5% to 8% |
| Initial reserves | 2% to 3% |
| Working capital | 2% to 4% |
| Contingency buffer | 3% to 5% |
| Funding Sources | Share |
| Equity (investor capital) | 20% to 40% |
| Senior debt (mortgage) | 60% to 75% |
| Mezzanine or seller financing | 0% to 15% |
| Developer incentives (off-plan) | 0% to 10% |
Related Terms
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