Loan Monitoring / Lender Representation

Pre-Loan Due Diligence Review
We perform an independent assessment of the borrower’s project plans, budgets, schedules, entitlements, and team qualifications. Our findings help lenders evaluate risk before funding and structure the loan appropriately.

Budget & Cost Review
We analyze the borrower’s development budget to assess adequacy, reasonableness, and contingency allocations. We compare projected costs to market benchmarks and flag areas of potential overrun or underfunding.

Schedule Assessment
We review the project schedule for logic, feasibility, and alignment with loan terms. Our team identifies potential timeline risks and evaluates whether key milestones are realistically achievable.

Document & Contract Review
We review key project documents—including construction contracts, GMP agreements, loan agreements, insurance policies, and consultant agreements—to ensure lender protections are in place and responsibilities are clearly defined.

Monthly Construction Draw Review
We evaluate borrower draw requests for accuracy and compliance with work in place. This includes verifying backup documentation, lien waivers, invoices, and percentage-of-completion assessments before recommending lender approval.

Site Inspections & Progress Reporting
We perform regular site visits to independently verify construction progress, quality, and compliance with plans and specs. Detailed field reports with photographic documentation are provided for lender records.

Change Order Review & Impact Analysis
We track all change orders, reviewing their justification, cost impact, and effect on schedule. We flag any changes that may affect loan security or budget integrity and advise the lender accordingly.

Contingency Monitoring
We monitor the use of borrower contingencies and track potential exposure. If contingency use exceeds thresholds, we provide early warnings and recommend corrective strategies.

Soft Cost & Non-Construction Oversight
We review non-construction project expenditures such as permits, legal, professional fees, and developer costs to ensure alignment with approved budgets and loan conditions.

Insurance Compliance Monitoring
We review and track all required insurance certificates for the borrower, general contractor, and consultants, ensuring active and sufficient coverage remains in place throughout the project.

Permitting & Entitlement Tracking
We monitor the status of required permits and approvals, verifying that all entitlements are secured and maintained. Delays or expirations are flagged early to minimize project and loan risk.

Schedule & Budget Variance Reporting
We provide monthly reports outlining any deviations from the approved budget or schedule. Each report includes analysis, potential impacts, and recommendations to safeguard lender interests.

Loan Covenant Compliance Tracking
We ensure borrower compliance with loan covenants related to budget controls, schedule milestones, insurance, reporting obligations, and other project-specific requirements.

Final Closeout Verification
At project completion, we verify that all punch list items are complete, final lien waivers have been submitted, and all closeout documentation—including warranties and as-builts—has been provided before final loan disbursement.

Risk Mitigation & Advisory
Throughout the loan term, we advise the lender of emerging risks and recommend mitigation strategies. This includes monitoring market changes, contractor performance, and borrower actions that may impact project success or loan repayment.