Due diligence as it relates to fund control begins prior to the issuing of a construction loan. Because construction loan budgets, may contain potential cost overruns that can result in project delays, QuickDraw Fund Control takes every precaution necessary by researching the borrower and the borrower’s project. To further reduce risk, lenders will partner with QuickDraw Fund Control, drawing upon our construction expertise to offer an unbiased analysis and recommendation based on the borrower’s budgets, blueprints and financials. Consequently, lenders receive a more detailed report on the health of the than when they first started, and can feel confident in the lending choices they make.
The goal of due diligence is to help the lender validate the sufficiency of the costs that have been submitted for the underwriting. To this end, QuickDraw Fund Control joins in the larger scope of the underwriting process to provide specific details on the construction budget, timeline and loan.
To succeed in our role during underwriting, QuickDraw Fund Control employs strategies at a large scale, ones that explore the overall portfolio of a borrower, while also narrowing in on site-specific details of the construction project at hand. Two of the most common due diligence services we offer are a loan portfolio inspection and a budget cost review and analysis. The loan portfolio inspection reviews the entire portfolio of construction projects under the borrower’s care. Do they usually complete projects on time? And within budget? QuickDraw Fund Control uncovers the answers. Second, we conduct a budget cost analysis and review, where we review the project budget outlined by the borrower and determine if the costs are reasonable.
With millions of dollars in loans dispersed every month, QuickDraw Fund Control has ample experience performing due diligence for clients. With a long list of happy clients, across a variety of construction projects, QuickDraw Fund Control regularly witnesses the difference it makes when a lender has the information they need before issuing a construction loan.