Minimize Your Risk: The Important Role of Due Diligence in Fund Control
Before you can issue a construction loan, you must do your due diligence in reviewing every aspect of the project, the borrower’s portfolio and the proposed budget. Without detailed and complete due diligence, it increases your risks and leaves uncertainty on the table.
So what is due diligence when it comes to fund control?
Oftentimes, it starts well before a loan is issued. Construction loan budgets always have the potential for cost overruns that may result in project delays and overspending. Due diligence means taking every precaution possible to analyze the viability of a loan, validate the sufficiency of any budget costs that have been submitted for underwriting, and research the portfolio of the buyer with a thorough budget cost review and analysis.
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The reason so many lenders turn to QuickDraw Fund Control is because we specialize in fund control, cost analyses and loan portfolio inspections for construction loans. We have been working specifically in the construction industry for years and have amassed a large and reliable cost database. We’re able to provide an insider’s perspective that allows for an in-depth review of every detail regarding the loan’s construction costs, the budget outline and the borrower’s viability based on other construction projects under their care. We’ll take a careful look at their performance in terms of execution and project timelines to make extra sure they are someone you can trust with your funds.
SEE ALSO: How Inspection Reports Help Construction Lenders
We understand that millions of dollars in construction loans are dispersed every month. QuickDraw Fund Control performs due diligence to protect the lenders we work with and minimize their financial risks in the industry.
Before you issue a major construction loan, you need to cover every base. You can count on the professionals at QuickDraw Fund Control for due diligence and comprehensive budget cost reviews and analyses. We’re in the business of minimizing risks for lenders and maximizing funds disbursement for construction projects. It’s what we do best!