Construction costs generally fall into two categories: hard costs and soft costs. Here’s what each of them means and why distinguishing between them matters.
Real Estate Project Managers Need These 3 Things to Succeed In busy development firms, real estate project managers often deal with large portfolios of complex projects. Succeeding in the field requires more than just industry knowledge—it demands specific skills and…
Everything Real Estate Developers Need to Know About Return on Cost Real estate developers lean heavily on data to make informed decisions and maximize profitability, and return on cost is one of the data points that’s essential to master. Real…
Yield on cost is a crucial metric in real estate development that helps developers assess the potential profitability of their investments. Here’s everything developers need to know.
What is a Lien Waiver? A lien waiver in the construction industry is a legal document that’s exchanged between parties involved in a development project. Contractors, vendors, and developers sign lien waivers to agree that no one will place a…
In today’s ever-changing economic landscape, managing a construction portfolio is more complex than ever. With rising costs, shrinking labor availability, and stricter loan requirements, real estate developers need clear, accurate financial oversight and transparent communication with equity partners. Many construction…
In 2024, the U.S. construction industry reached a new milestone: $280 billion in costs directly tied to slow payments. This alarming figure doesn’t just represent wasted money; it reveals a systemic issue that threatens project timelines, increases risks, and weakens…
In the realm of real estate development, financing is the cornerstone that determines if a project will pencil. Among the myriad financing options available, HUD financing stands out with its unique approach in fostering affordable housing projects. This specialized financing…
The construction lending landscape is evolving rapidly, and with that evolution comes new pressures: audits, regulatory scrutiny, and rising expectations from shareholders. In this environment, relying on manual processes to manage construction loans isn’t just inefficient—it’s risky. Outdated workflows based…
In real estate development, managing project finances efficiently is critical—whether it’s a $10 million or a $100 million project. However, one common pain point that almost every team encounters is gaining access to accurate, real-time financial data. In fact, 60%…
Overcoming Affordable Housing Financing Challenges Across the United States, there is a need for 7 million more affordable housing units for extremely low-income families. Renters in all demographics face rising costs, with rents increasing 24% in the last three years.…
Following the global Microsoft outage in July 2024, a confidential assessment found that half of large U.S. banks analyzed have insufficient risk management processes. Banks and lending institutions are under pressure to improve their risk management processes, whether that’s protecting…
Everything you need to know about draw requests in real estate development.
Cost Overruns In Construction According to industry research, 85% of construction projects experience cost overruns. Customers using Rabbet on the contrary experience cost overruns on only 25% of projects. In the world of real estate development, budgeting accurately is crucial for…
With so many moving pieces of the puzzle that is a real estate development, development managers owe it to themselves to ensure their projects run as smoothly as possible. A huge part of this is using the right tools and…
In the real estate property development industry, risk mitigation is a never-ending project, and finance teams are often the first to take the fall if something goes wrong. Whether a duplicate invoice was paid or a draw request is taking…
Construction loan administration leaders have always shouldered a heavy load. Whether you’re doing a final double-check of your team’s work or pulling together documents for more frequent audits and reporting, the responsibility is only becoming more high-stakes. According to The…
As an accountant or controller for a real estate development firm, have you ever wished you had more time at work to get back to your actual job? You naturally want to save time on low-value tasks so you can…
Controllers in real estate development firms have a heavy load to bear. Other departments often don’t know the importance of the processes that need to be followed in the finance department. They might not know exactly which documents need to…
Managing risk isn’t easy when you’re relying on a spreadsheet. The lack of intuitive solutions for commercial real estate developers has created a massive problem in the built industry. Risk in the CRE industry has dramatically increased over the past…
Developers are united in one universal struggle: Excel. Excel is the industry standard tool in Commercial Real Estate. It’s the most widely used program for both lenders and developers but the least favorite program or tool for both groups. Excel’s…
The benefits of automation for property developers extend far beyond saving time. Improving the accuracy of your draws and successfully managing budgets, change orders, contingency reserves, and project risk are also improved by using the right tools and technology. Tracking…
The world of construction finance is rapidly evolving, and 2024 has brought some pivotal shifts that are reshaping how developers and lenders operate in the commercial real estate (CRE) space. From grappling with a heightened focus on risk management to…
Twelve months ago, I reflected on the difficulties in investing in CRE due to the uncertainty in the market and current status of the T-bill in my white paper “Maximizing Returns in CRE….”. And most of the market uncertainty outlined…
Download the 2023 State of Construction Finance Report In the construction finance realm, 2023 introduced pivotal shifts that changed how developers and lenders operate in the commercial real estate space. Rabbet’s 2023 State of Construction Finance Report provides crucial…
Rabbet’s 2021 State of Construction Finance Report revealed that most lenders and developers are using spreadsheets to carry out major parts of their process, but complain about its inefficiency.
