Mike Kosmoski Featured on Credit Union Conversations Podcast

Credit union conversations - episode 31: so you want to do construction loans?

Mike Kosmoski, SVP, Construction Services at LCS, was a featured guest speaker on the Credit Union Conversations Podcast hosted by Mark Ritter. In this episode, So You Want To Do Construction Loans, Mark and Mike try to demystify one of the complex and rewarding lending areas that can also be filled with pitfalls and peril if not done properly.

In This Episode

  • [01:50] Mike shares his education and professional background.
  • [03:14] Mike outlines the various services LCS provides.
  • [09:52] What was the construction industry like during peak-pandemic?
  • [13:43] How does the construction industry handle inflation uncertainty and the different types of construction management agreements?
  • [19:13] Mike describes the steps LCS takes to produce a risk report on the construction project and discusses difficult conversations when the review substantiates that a project cannot be built for the bid.
  • [24:41] How do draw management and a draw inspection protect the owner?
  • [30:10] Mike explains why a property condition report can assist lenders.
  • [33:16] Mike relates a nightmare story costing $200,000.

Key Takeaways

  • Construction lending creates value for a community. At the same time, properties in disrepair define that community. New construction projects contribute to society.
  • Some people are intimidated by construction lending because they are risk-averse. However, with proper oversight, many problems can be avoided.
  • Lenders should get assistance from a lender consulting firm at the project’s conception and before funding to avoid costly mistakes.


Mark Ritter Website

About Mike

Mike Kosmoski is a career construction professional with over 22 years of multidisciplinary work experience in the construction industry. He holds a B.S. in Architecture from the University at Buffalo and has used that knowledge to assist in all facets of a diverse group of construction projects. His career path has allowed him to be involved in a wide variety of construction methods and building compositions. Prior to joining LCS, Mr. Kosmoski was Director of Construction for a Buffalo-based multifamily contractor with a nationwide presence.

With an in-depth knowledge of the preconstruction discipline, Mr. Kosmoski is highly skilled at plan and specification cost reviews, property condition assessments, schedule creation/analysis, conceptual estimating, scope of work generation and drawing constructability reviews. Also, his involvement as a construction project manager allows him to QA/QC outgoing reports with a highly critical eye. Mr. Kosmoski’s background and depth of knowledge provides our clients the perfect resource to assist with a wide variety of risk management solutions.

About Mark

Mark Ritter is the CEO of MBFS and an expert in credit unions and business lending. His primary role at MBFS is overseeing the strategy of helping credit unions assist members with business needs and consulting with credit unions on planning the delivery of services to their membership.

In 2002, Mark started Members 1st Federal Credit Union’s business lending program as “one person and a desk” with no policies, products, staff, systems, or business members. That program grew to be one of the top ten in the nation.

In 2012, he took on the challenge of being the CEO of a business lending CUSO. Mark was the fifth CEO in five years for the organization, which lost money every month of its existence. Since joining MBFS, Mark increased the number of credit unions the CUSO services by over 8x, grew the revenue by , and 10x, and ensured positive cash flow every full year he’s been at the CUSO. More importantly, MBFS has helped countless credit union members gain the financing they need for business and investment needs.

To learn more, reach out to Liz Mahoney, Director of Sales & Business Development today.