As a construction lender, you have many things to prioritize. Things can go wrong quickly, so to avoid being taken advantage of, we’ve compiled a short list of warning signs to consider when taking on a new construction investment.
Cybercriminals are upping their game. Amidst the ongoing global pandemic, an immense number of people are working from home and are more digitally connected than ever.
As the old saying goes, with no risk, there’s no reward.
To be sure, commercial construction lending can be risky. Indeed, the sector isn’t easy in the best of times because of its complex, multi-faceted process, often peppered with overruns, delays, and missteps. Now half-way through Q4, amidst the lingering effects of COVID-19, most commercial construction lenders are reeling and needless to say, caution is recommended given the uncertain and unpredictable future.
Most lenders use draw inspections as a best practice to validate construction progress before disbursement of funds. While many small banks use independent inspectors in conjunction with the draw process, larger financial institutions with broad portfolios can benefit from hiring a nationwide draw inspection company for a number of specific reasons.
For many, Labor Day signifies three things: a day off, the end of summer, and a large get-together full of hot dogs, barbeque, and watermelon (pre-COVID, of course).