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Construction lending provides developers with essential funding through various loan types to transform raw land into completed buildings, requiring a mix of trust, faith, and thorough underwriting. Lenders who specialize in construction financing typically earn higher margins than traditional lenders due to the increased risks during the construction phase, working alongside developers through project completion until the loan is either repaid through sale, refinancing, or permanent financing.

Rabbet, the leading provider of real estate development management software, today announced a partnership with AvidXchange, the leading provider of accounts payable (AP) and payment automation solutions for the middle market. The partnership will enhance the invoice management process for real estate development teams.

Construction loan software modernizes the traditionally time-consuming construction draw process by automating tasks and enabling real-time project monitoring for lenders and borrowers. This solution delivers significant benefits including a reduction in administrative time, improved risk management, and increased interest earnings for lenders.

It happens—invoices get duplicated, funds are overdrawn, or budgets go bust. In this real-life example, we examine how issues like these are possible even with the most detail-oriented teams.

The New York Lien Law creates unique challenges for developers by requiring multiple funding sources and strictly regulating how building loans can be used for hard costs versus soft costs, leading to complex financial tracking requirements. While managing these multiple funding sources traditionally involves tedious spreadsheet work and manual processes, modern construction finance platforms can help developers automate compliance tracking and streamline their funding management.

A third-party construction draw inspection happens when the inspector, often hired by the lender, reviews the progress of a construction project. The following three examples came up during third-party inspections. They help to illustrate the actions required by construction loan administrators to evaluate and decide how to act on the draw request.

If everyone benefits from quicker payments, why does it take so long for everyone to get paid? Here's a breakdown of the complicated nature of slow payments.

A construction-to-permanent loan is a specialized financing solution that combines a construction loan with a permanent mortgage into a single loan product.

Rabbet, the leading provider of construction finance software announced today that it has partnered with Berkadia, the top FHA construction loan servicer, to double servicing capacity.