Eight Steps to Prepare Your Next Construction Project for Underwriting
by Denita Schreier, CCIFP, CMA
Since the onset of the global pandemic, there has been much volatility in the construction industry, initially driven by the brief-but-steep pandemic-related downturn, then due to inflation, material availability challenges, and a construction workforce shortage. With construction costs still reeling at record highs, coupled with rising interest rates, it’s important to have a well-presented project to the financing partner. Construction underwriters are focused on reducing project risk, and it is critical to have all your proverbial ducks in a row before seeking underwriting.
You’ve probably heard the statement that “chance favors the prepared mind.” As a real estate owner, project developer, and constructor, we’ve learned a lot about the process and the information needed in advance. Don’t leave underwriting to chance. Here are eight critical steps to prepare your next construction project for underwriting.
To successfully persuade a bank to underwrite your project, you need to demonstrate what is driving the project, showcase the opportunity, enhance your credibility, and establish transparency. When you are able to do these things, underwriters will be more comfortable with the perceived risk, and more likely to underwrite your project.
Do you have questions about this process or need assistance getting your project ready for underwriting? I’d love to hear from you! Reach out to me at dschreier@wdsconstruction.net.
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