Homebuilding Glossary Topic

Finance & Deals

The Finance & Deals glossary explains the metrics and financing structures that determine lot basis, cash efficiency, and portfolio risk tolerance.

What is an A&D loan?

An acquisition and development loan finances land purchase and horizontal improvements before vertical home starts.

What is cash-on-cash return in homebuilding?

Cash-on-cash return measures annual pre-tax cash flow relative to invested cash, useful for community and portfolio comparisons.