The discipline of doing things right

The discipline of doing things right

First posting in a while… Construction loans can sometimes be horrendously difficult to close. Having recently experienced a particularly difficult case reminded me of this blog and the stage I left it at.
In my last post I covered the basic definition of soft cost of construction, and would now like to emphasize the importance of recorded keeping. The borrower referred to in the first paragraph neglected this very essential. What made everything worse was the fact that he had done it over a two year period.
With real estate price stabilization we could not appraise the property for more than we had and the equity that was gained through spending could not be established. Receipts for the architect and engineer were not available the guy had retired and moved on and cancelled checks were not available.
The money was substantial and the construction project well behind schedule. We eventually closed the loan, but what a difficult project.
www.constructionloansfaq.com



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