Challenge: I have taken possession of a foreclosed property and it is in various stages of construction completion. I am going to the bank for funding to complete the work. Can Boyken International help me determine my cash required to complete the projects at the level of quality needed to complete the construction?
Solution: We were contacted recently by a banker who was in the process of foreclosing on an apartment complex that was approximately 40% complete in construction activities. The complex included finished buildings that were vacant, partially finished buildings that were framed but not dry-walled and building sites that contained only a poured foundation with no vertical construction started.
Boyken inspected the property and provided a written report to the bank which outlined the
“Cost to Complete” the unfinished buildings and an analysis of the quality of the construction that was already in place.
In addition, Boyken conducted an on-site meeting with the banker that included a walk-through of all the buildings on the property. During the meeting the banker described his desired objectives, enabling the team to determine a step by step process of what would be required of the various trades to complete the project.
We were able to alleviate his anxiety as well as provide a detailed back-up report and “game plan” to his stakeholders that gave them a better understanding of the value of the partially developed property, the process to complete the project and some ideas on how to recoup the bank’s assets during difficult market conditions.
