Forward Funding
An arrangement where an investor funds the construction of a development in exchange for ownership of the completed asset. The investor effectively purchases the building before it is built, providing the developer with construction capital.
Why it matters
Forward funding eliminates sales risk for the developer but typically results in a lower price than open market sales.
In Profivo
Profivo currently has no dedicated forward funding modeling. You can approximate by configuring a unit group with an adjusted sales schedule and a price discount from market value. Full structured forward funding support is on the roadmap.