Case Study: Construction Contracting and Oversight
Client: Renovation Lending Firm
Our client was a renovation loan company with a borrower whose contractor wasn’t following the rules and was performing work without a permit. The City issued a stop-work order and the project stalled. Ultimately, the borrower had to fire the contractor and eventually ran out of money.
ParkVue Realty needed to come in and roll up our sleeves and figure out a way to fix the mess that had been made and get the project back up and running with minimal loss to our client. Our first course of action was to work with the client to revise the scope of the project. The plan was to reduce costs, do a minimum amount of work necessary for the property to appraise at a value that would enable the borrower to refinance out of the short-term rehab loan.
We needed to be strategic with our approach, not only to get the best price but had to ensure we had a contractor that wouldn’t let us down and waste even more time and money. Therefore, we obtained 3 bids from trusted contractors to finish the project. Our reputation with the building department came in handy and we leveraged our relationship with them to help approve updated plans and lift the stop-work order. The borrower was able to complete the project and refinance out of the short-term loan and best of all, our client did not suffer a loss.