Building Smarter: The Onset of Construction Due Diligence

Welcome to the latest blog post of “SmarterLending”! Today, we’re excited to announce a brand new episode from our podcast, titled “Building Smarter: The Onset of Construction Due Diligence.” This episode marks the beginning of a compelling two-part series focusing on the nuances of Construction Due Diligence within SBA Lending, a topic critical for lenders, borrowers, and professionals within the construction industry.

Hosted by Liz Mahoney, Director of Sales and Business Development at Lender Consulting Services, and an expert with 16 years of national lending expertise, this episode is a treasure trove of insights. Liz, alongside a panel of distinguished experts including Michelle Walters (SBA Loan guru), Nick Jellam (President of Jellam Law, PA), and Michelle Alabiso (Senior Project Manager and Director of Construction Operations at Lender Consulting Services), delve into the complexities that differentiate new construction from renovation projects. They unravel common pitfalls in SBA lending, emphasize the importance of meticulous due diligence, and share horror stories that underscore the risks of non-compliance and financial mismanagement.

Key takeaways from this episode include:

  • The contrasting due diligence processes for new constructions versus renovations, highlighting the unique challenges each presents.
  • Insights into common pitfalls for SBA lenders, with expert advice on maintaining compliance and financial health during construction projects.
  • Real-life horror stories serving as cautionary tales for those navigating the construction lending landscape.
  • Practical guidance on red flags to watch out for in construction projects, the significance of plan, specification and cost review (PSCR), and effective solutions to common due diligence issues.
  • An exploration of the legal ramifications of inadequate due diligence and the protective measures lenders can take.
  • This episode not only educates listeners on the ins and outs of construction due diligence but also equips them with the knowledge to navigate the complex landscape of SBA lending more confidently. Whether you’re an industry veteran or new to the field, “Building Smarter: The Onset of Construction Due Diligence” offers valuable perspectives to enhance your understanding and practices in construction lending.

In addition to the wealth of information shared in our podcast, Lender Consulting Services (LCS) stands ready to assist SBA Construction Lenders in navigating their due diligence needs. Our expertise and tailored services ensure that lenders can mitigate risks, comply with regulatory requirements, and support their clients effectively through the construction process. From plan, specification and cost reviews to risk assessments, LCS provides the necessary tools and insights to facilitate a smooth and compliant lending experience. Leveraging our services means partnering with a team that understands the intricacies of SBA lending and construction due diligence, helping lenders to not only prevent potential disasters but also to streamline their processes for efficiency and success.

Don’t miss this insightful discussion. Tune in to “SmarterLending” for smarter strategies and insider knowledge that keeps you ahead of the curve. Stay tuned for our upcoming second episode in this series, where we’ll continue unraveling the intricacies of Construction Due Diligence in SBA Lending.

Meet Our Guests

Liz Mahoney

Liz Mahoney is host of the SmarterLending podcast. As part of the Senior Management team at LCS, Liz is instrumental in driving the strategy and growth of the Sales and Business Development division. She leads her team in nurturing existing relationships and developing new ones with lending clients nationwide, providing tailored consultations and education on LCS’s Valuation, Environmental, and Construction products to meet clients’ Risk Management needs.

Download Liz’s Resume

Connect with Liz on LinkedIn

Michele Alabiso

As Senior Project Manager, and Director of Construction Operations at LCS, Michele is responsible for project management of multiple Construction Monitoring projects. She conducts various construction inspections, completes and reviews Plan, Specification and Cost Review reports and completes and reviews Property Condition Assessment reports.

Download Michele’s Resume

Michele Walters

Over the past decade, Michele – who you may know as SBA Loan Gal – has become the go-to-expert for all things regarding SBA lending. Michele uses her financial and lending experience to help entrepreneurs realize their dream of running successful businesses by financing business acquisitions and refinancing debt to improve cash flow.

Download Michele’s Resume

Connect with Michele on LinkedIn

Nick Jellum

Nick Jellum is the President of Jellum Law, P.A. where he focuses his practice on advising the firm’s financial institution clients throughout the Country on all aspects of commercial loan transactions, from loan documentation and loan workouts, to collections and liquidation, specifically focusing on SBA 7(a) government-guaranteed loans.

Download Nick’s Resume

Connect with Nick on LinkedIn

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