When it comes to construction lending, nothing is more important than going in with your eyes wide open. Construction lending comes with a lot of risks, so fully understanding those risks is an essential part of every lender’s job. In fact, there are significantly more risks in construction lending today than there were just two years ago.
Despite those added risks, the strategy for a successful construction loan remains much the same: knowing fully where your project stands, understanding your project’s risks and how the project can best be executed, and using the proper tools and best practices to mitigate potential risks. The execution of the project doesn’t really change, you are just “building a better mousetrap.”
Expecting the unexpected and properly preparing for ways to mitigate risks is just one part of a lender’s job. Keeping current with the market, the changing practices of contractors, and the risks they both present is the second part.
The following article, featured in the Fall 2022 issue of Private Lender Magazine by AAPL, reviews the four big risk factors construction lenders should currently be aware, ways lenders can vet the project prior to closing on the loan, and additional protections that can be put in place throughout the construction process.
To read this article online, click here | To download the PDF, click here
April 15, 2025
In this edition of Affordable Housing Updates, we tackle the funding issues that are arising due to changes in federal spending, how to optimize the green building process as the green certification world changes, and offer two project profiles that showcase how Partner may help you with your next project. Last but not least, learn about Partner's SiteLynx client portal, an intuitive platform for report ordering, delivery, and analysis.
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The WAIRE Program is one of many steps California is taking to address air quality and emissions within the commercial real estate sector. For warehouse operators, compliance with this program is essential, not just to avoid penalties but to align with broader trends in sustainability and regulatory compliance.
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Partner Engineering and Science, Inc. is pleased to announce the appointment of Alex Greear as Relationship Manager, bringing over five years of specialized due diligence expertise to expand our client service capabilities.
