Whether you are the lender, borrower or any of the other parties involved in a transaction, today's competitive commercial construction lending market demands a full understanding of the lending process. From the players and products, to underwriting and due diligence, the negotiation and documentation of commitments and loan documents, loan closings and disposition of troubled loans is a confusing path.
- Just a closer look at the land and improvements with thee
- Permissive zoning vs. impermissive restrictions
- Basics of construction loan underwriting - part I - ( a cursory review)
- Basics of construction loan underwriting - part II - (the documentation)
- Initial Closing, recording, disbursing the equity and loan proceeds, cost certification and final closing
- The attendee will be able to discuss the people involved in the loan process.
- The attendee will be able to identify the different sections of the title report.
- The attendee will be able to review land improvements that are taken into consideration.
9:00 a.m. - 10:00 a.m.
I. The Closing (An Overview)
A. The Drama And The Players
B. Construction Loan Underwriting In A Nutshell
1. The Land And Improvements
2. The 'Key Documents' Are Integrated
3. Initial Closing
4. Construction Disbursement
5. Cost Certification
6. Final Closing
10:00 a.m. - 11:00 a.m.
II. Just A Closer Look At The Land And Improvements With Thee
A. Legal Descriptions
B. Evidence Of Title
1. The Abstract Of Title And Attorney's Opinions
2. O And E's, Title Commitments, Title Insurance, Special Endorsements
C. Permissive Zoning vs. Impermissive Restrictions
D. Soils Reports
E. Environmental Audits
F. Availability Of Utilities And Surrounding Amenities
11:00 a.m. - 11:15 a.m.
11:15 a.m. - 12:15 p.m.
III. Basics Of Construction Loan Underwriting Part I (A Cursory Review)
A. Muzzling The Cost Of Construction (The Development Plan)
B. What Are You Going To Build? (The Architectural Documents And Local Government Control)
C. What Is It Going To Cost? (The Mortgagor's/Contractor's Cost Breakdown)
D. Where's The Money? (Mortgagor's Credit History And Financial Statements)
E. Whence The Return? (Realistic Projections Of Income And Operational Cost)
12:15 p.m. - 1:15 p.m.
Lunch (On Your Own)
1:15 p.m. - 3:00 p.m.
IV. Basics Of Construction Loan Underwriting Part II (The Documentation)
A. The Mortgagee's Firm Commitment
B. The Key Loan Documents Are Integrated
1. Mortgagor Organization Documents
2. Architectural Agreement
3. Contractor Documents
4. Assurance Of Completion Of Construction
5. Security Instruments
6. Title Documents
7. The Disbursing Agreement
9. Mortgagor's Attorney Opinion
3:00 p.m. - 3:15 p.m.
3:15 p.m. - 4:30 p.m.
V. Initial Closing, Recording, Disbursing The Equity And Loan Proceeds, Cost
Certification And Final Closing
A. The Initial Closing
B. Disbursing The Loan Funds Construction Accounting Writ Small
C. Cost Certification Construction Accounting Writ Large
D. Final Closing