Contractor Profile Review
Choosing a General Contractor is one of the first, and most important, choices made before a project begins. Knowing that a General Contractor is qualified to complete the asset on time and free of liens reduces the overall risk of a construction project dramatically.
CFSI Loan Management reviews a General Contractor’s experience, calls and verifies references from past customers, verifies subcontractor and supplier references, verifies the contractor’s license, obtains and reviews liability insurance, obtains a credit report, obtains a criminal background check, collects a W9 form, and reviews the General Contractor’s Driver’s License against the U.S. Government’s terror watch list. With all of this information, our client can be assured that a contractor is qualified.
CFSI will also monitor license and insurance expiration dates throughout the construction phase and obtain updated documents as needed.
CFSI works directly with the General Contractor to obtain all of the documentation needed to complete the profile. Our high touch approach will allow our clients to work on the loan approval, while CFSI completes the Contractor Profile Review quickly.
Project Feasibility Review
One of the biggest risks in construction lending is making a loan on an asset not yet in existence. If a project is not feasible from the start of construction the project may be in trouble long before it begins.
In order to lessen this inherit risk, CFSI Loan Management offers a pre-close feasibility review of your project. By reviewing the budget, contract, plans/specifications, appraisal and permits CFSI can present a clear picture of the project even before the first concrete is poured. Any potential issues related to insufficient budgets, weak contracts, or under-detailed plans (and more) will be determined prior to loan closing, thus allowing these to be addressed and corrected before any loan funds are disbursed.
CFSI works directly with the General Contractor to obtain all of the documentation needed to complete this review. Our high touch approach will allow our clients to work on the loan approval, while CFSI completes the project review quickly.
Cost To Complete Analysis
The most common reason that a construction project gets into trouble is an insufficient budget. If a project was not budgeted properly there might not be enough funds to complete the asset. Determining the next steps to take in this situation requires obtaining a “Cost to Complete” budget.
CFSI Loan Management can review an existing construction project and determine the amount of funds needed to complete the asset. The Cost to Complete analysis takes into account substandard work that will need to be replaced/fixed, increases in construction costs since the project was originally bid, and the level of finishes to be used in the final stages of construction. By reviewing the existing budget, the plans/specifications, and obtaining a detailed inspection report, CFSI can give the lender a roadmap on how to finish the project.
CFSI works directly with the General Contractor to obtain all of the documentation needed to complete the analysis. Our high touch approach will allow our clients to obtain the costs to complete the project quickly.