The Construction Lending Process Made Simple
The linchpin in many construction projects is financing. How confident are you in your ability to successfully guide clients through key lending process steps and ensure this vital component is in place? Attend this comprehensive guide to construction project financing and let our experienced faculty provide you with the information you need to keep your clients' projects on track. Avoid critical missteps that may delay-or even deny-financing for construction projects - register today!
- Get a grasp on the fundamentals of construction project financing and avoid critical errors.
- Obtain key information that validates construction project value and puts lenders' minds at ease.
- Provide assurances to lenders that show providing construction project financing is an acceptable risk.
- Refine your construction loan negotiating skills and obtain terms that benefit your client.
- Proactively avoid pitfalls when drawing construction loan funds.
All times are shown in Eastern time
- The Mechanics of Construction Lending
10:00 - 11:00, John Paul Parks
- Short-Term Financing vs. long-Term Financing
- Construction Permanent Mortgages
- Lending Parameters
- Loan Term
- Loan Maturity
- Take-Out Commitments of Other Lenders
- Gap Loans
- Tenant Finish Holdbacks
- Initial Steps and the Underwriting Process: Ensuring Key Documents Validate Project Value and Provide Assurances
11:15 - 12:15, John Paul Parks
- Market Feasibility Studies, Pre-Leasing Information, Etc.
- Plans, Timetables and Cost Projections
- Borrower Financial Information
- Environmental Site Assessments
- Negotiating Changes on Nonbinding Term Sheets and Commitment Letters
- Obtaining Pre-Closing Assurances for Lenders
12:15 - 1:15, John Paul Parks
- Essential Loan Documentation
- Title Searches
- Continuation Agreements
- Payment and Performance Bonds
- Evidence of Permits - When Funded Out of Loan Proceeds
- Budget and Cost Saving Contingencies
- Ensuring Lien Priority for Lenders
- Takeout Commitment Letters
- Reviewing and Negotiating Loan Agreement Essentials
1:45 - 2:45, Michael R. Garner
- Key Representations and Warranties
- Indemnities and Guarantees
- Covenants that Give Lenders Control
- Conditions for Drawing Funds
- Holdback Provisions
- Conditions for Final Disbursements
- Drawing Funds: Avoiding Errors and Missteps
2:45 - 3:45, Michael R. Garner
- Essentials to Include in Draw Requests: With Checklists
- Title Updates: When are They Necessary?
- Forwarding and Advancing Funds
- Lender Retainage Rights
- Avoiding Issues: Change Orders, Cost Overruns, Loan Shortfalls, etc.
- Ethical Considerations
4:00 - 5:00, John Paul Parks
- Responsibilities to Borrowers and Lenders
- Identifying and Avoiding Conflicts of Interest
- Maintaining Integrity of the Profession
- Attorneys' Fees
This informative overview of construction project financing is for attorneys. Construction professionals, banking professionals, real estate developers and paralegals may also find it useful.