Loans specifically targeted by regulators. These are used to finance real estate that has a comparatively high volatility of loss rate. These include in particular – loans to pay for expenses during the land acquisition, development and construction phases, as well as – loans for the purpose of financing the purchase price or to finance development and construction measures of any real estate property where the source of repayment at the time the loan is granted is either the future uncertain sale of the property or future payments originating from uncertain sources – for example, because the property has not yet been leased at a price customary in the respective regional market for the type of property in question – unless the borrower has appropriately measured equity capital. – See real estate loan.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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