Professional Services

Habitat Advisory Group can help minimize your construction lending risks, maximize customer satisfaction and add revenue to your lending department’s bottom line. We also have other programs to help supplement your quest to be a successful construction lender.

Sound interesting?
Read on……………

Not all banks and credit unions partake in the business of construction and home improvement lending. Most institutions recognize the higher income associated with these types of lending, but refuse to enter the construction market due to the higher risks involved. Higher risks, such as creative underwriting, fluctuating marketability, builder experience and the uncertain process of construction. Most of these risks can be calculated while the most important, the construction process, cannot.

We would expect that most underwriting is done with diligence and accuracy in an effort to protect the institution’s assets. Though, when it comes to the disbursement process, most institutions take a back seat and rely on appraisal companies or a lending department representative to perform an accurate evaluation of the construction progress. Without the experience of actually being in the building trade, they may or may not understand the complexity and cost of a particular phase and may or may not recommend the appropriate release. If the release is too large, the institution is at risk and if the release is too small or overlooked, the builder becomes disgruntled and struggles to make efficient progress plus the institution is not maximizing their interest income. There are also very savvy builders, who make a habit of deceiving the inspectors, in an attempt to release monies needed to cover other expenses, leaving the institution very, very vulnerable to their LTV.

Habitat Advisory Group has dedicated great efforts to fine-tuning a process, which helps protect the institution’s construction investment through education, technical knowledge and many years of building experience. This allows for a time efficient, cost affective inspectional procedure, which is mutually beneficial to your institution and your construction customers.

Lender - Construction Disbursement Inspections

Habitat Advisory Group has in place a construction disbursement inspectional process, which integrates years of construction experience with the latest communications technology. Time is a precious commodity in the world of business today and something you should not waste on a task you are not qualified to do. Our construction disbursement inspectional system is one of great efficiency and can be tailored to fit most lending department’s inspectional criteria. We use efficient scheduling, along with technical knowledge to help deliver a disbursement report, which is both accurate in content and produced in a timely manor. The use of digital equipment allows us to utilize the Internet to deliver our reports to lending departments on the same day as the inspection takes place. This allows the customer quicker access to the allocated funds, thus keeping the project in forward motion. Contact us for more information about our Construction Disbursement Inspections at info@habitatadvisory.com.

Lender - Road Construction Progress Inspections

The construction of roads within a subdivision can be a complicated and costly process. Habitat Advisory Group has hands-on experience in the design, engineering and construction of subdivision roads. As both a service to the institution and the builder/developer, we perform periodic road construction progress inspections, allowing the institution to disburse moneys needed to keep the builder/developer moving forward. Most institutions rely on civil engineers, appraisal companies or a lending department representative, to perform road construction progress inspections, in an effort to protect their lending investment. We always recommend the utilization of an engineering firm to certify the accuracy of the layouts along the way but there is no need for this expense every time disbursement inspections are performed, so Habitat can become that interim economical solution. Our knowledge of the road construction process along with the ability to understand subdivision plans, allows us to provide a service, which is both welcomed by the builder/developer and is a valuable and comforting service to the lending institution.
As with our construction disbursement inspections, our road progress inspectional system utilizes digital equipment and the Internet to deliver our reports to lending departments on the same day as the inspection takes place. Contact us for more information about our Road Construction Progress Inspections at info@habitatadvisory.com.

Disbursement Schedule and Budget Review

Very often disbursement schedules are created by the lending institution and then customized by the borrower. Not every home is constructed in a cookie cutter style and for those that are not, the disbursement schedule must be customized to fit the project. The borrower usually has the knowledge needed to request the allocation of funds in a manor consistent with the scope of the project but can the lending institution verify such requests? Habitat Advisory Group reviews disbursement schedules to insure that allocations are appropriate for both the protection of the lending institution and the needs of the borrower. Contact us for more information about our Disbursement Schedule and Budget Review at info@habitatadvisory.com.

Subdivision Site Plan Opinion of Feasibility and Budget Review

During the subdivision planning stages, the builder/developer, the engineers and the architects quite often get so caught up in the process, they loose track of what is reality. Habitat Advisory Group has been through the subdivision process first hand and will act as a third party unbiased set of eyes. Through a plan review, site visit, and evaluation of the economic aspects of the project, we will submit an opinion of feasibility and budget. Most lending institutions and builder/developers appreciate the opinion of an outside firm to either support or challenge their assumptions. Whether a plan, or any part of it, is supported or challenged, the invested parties feel more comfortable in their decisions when they move forward on the project. Third party opinions are a very valuable tool in the overall process and when utilized correctly can help to maximize income and minimize the risks for all parties involved. Contact us for more information about our Subdivision Site Plan Opinion of Feasibility and Budget Review at info@habitatadvisory.com.

3rd Party Arbitration Service

We all hate to think of the problems encountered in construction lending, but as prudent business people we must. Periodically disputes will arise between a lender and a borrower regarding a construction issue such as expectation differences, quality issues, safety issues and/or holdback amounts. Habitat Advisory Group acts as an independent, construction qualified, 3rd party, who can be the go between for borrowers and lending institutions to resolve many construction-lending issues. We all should concentrate on what we do best and not waste our time trying to facilitate an issue we are not qualified to facilitate. Habitat Advisory Group should be on your list of people to call when issues arise that warrant a professional construction opinion. Contact us for more information about our 3rd Party Arbitration Service at info@habitatadvisory.com.

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