A Better Way to Manage CRE Construction Loan Risk

Learn the key issues to assess when determining the level of construction risk for an individual project

 Construction loans for commercial real estate (CRE) remain a major part of commercial bank lending. This webinar provides an overview of the key issues involved in analyzing and assessing the risk of a project. You'll learn how to configure a loan administration approach for each project based on the unique risk factors involved rather than a one-size-fits-all solution.

Presenters: Hear from Richard Hamm with Advantage Consulting, who has been training bankers on commercial lending for over 25 years, and Will Mitchell, CEO of Rabbet, a construction finance solution used across billions of dollars in commercial lending.

Target Audience: Commercial lenders, credit analysts and support staff that deal directly with commercial construction loans; mortgage bankers, private bankers, small business lenders, loan review specialists, special assets officers, lending managers and credit officers indirectly involved in the construction lending process

Estimated Program Length: 60 minutes

Lenders know that construction risk has three basic elements: getting the project completed (1) on time, (2) within budget, and (3) according to plans and specifications. But these risk elements are not equal in every project. If they are not equal, why use a “one size fits all” or standard approach to every project? Granted, there is a need in many areas of lending for a standard approach, but the heart of risk management involves applying risk controls where risk is present. Most standard approaches are a compromise. They “over-control” less risky situations, while they “under-control” the riskier situations.

The better way: For many years, Richard Hamm with Advantage Consulting has advocated a differentiated approach to construction loan administration based on the level of risk. This fits nicely into Rabbet’s software that provides a rules-based approach that allows for customization of risk controls for each specific project. This webinar will discuss creating a differentiated approach to loan administration and how software solutions can help.

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You'll hear from:

  • Richard Hamm, Advantage Consulting

    Richard Hamm has been training bankers for 29 years, designing and delivering courses specializing in commercial lending and credit, including portfolio and risk management, commercial real estate (CRE) and appraisals, plus selling and negotiating skills, and director training.

  • Will Mitchell, Rabbet

    Will is the co-founder and CEO of Rabbet, a software helping real estate developers and lenders efficiently manage construction finances. Will spent 10+ years in commercial real estate and completed his undergraduate studies in architecture and structural engineering from the University of Virginia.

  • Matt Daly, StructionSite

    Matt is the co-founder and CEO of StructionSite, an automated site documentation tool combining 360 cameras and AI. Matt spent 9 years at FARO Technologies learning about lean manufacturing and process control while helping automotive and aerospace manufacturers implement 3D scanning solutions on their production lines.

  • Jake Fingert, Camber Creek

    Jake is a General Partner at Camber Creek, a venture capital firm providing strategic value and capital to tech companies focused on the real estate market. Previously a Senior Policy Advisor at the White House under President Obama, Jake now coordinates Camber Creek’s operation and portfolio management.