argue that now is a great time to build or renovate with additional guard rails in place aimed solely at ensuring the project succeeds in achieving its end goal: profit. At the end of the day the borrower and the lender have the same objective. With fewer people able or willing to take on the challenge, competition is lighter, and lenders are eager to back projects that are well-structured and well-managed. Whether you’re a seasoned developer or someone new to the commercial real estate space, one thing is clear: Success today depends on preparation. If you’re planning to build, expect questions and oversight. Expect more than you would have a few years ago. If you come prepared with a clear plan, a qualified team, and the right professionals in your corner, you’ll find that smart lenders are still ready to help you bring your vision to life.
much more involved process than simply writing a check and hoping for the best. One of the biggest changes in the lending world is how much third-party oversight is now involved. In the past, lenders might rely heavily on what the borrower told them. Now, they bring in professionals— inspectors, cost analysts, and construction advisors—to make sure everything adds up. These professionals are there to confirm that the work is happening on time, it’s staying within budget, and there are no major surprises. In many ways, these third-party experts are the lender’s eyes and ears on the construction site. These inspections do more than keep the borrower honest—they also help avoid misunderstandings, manage expectations, and keep both sides informed. It’s not about catching people doing something wrong; it’s about making sure the lender and the borrower are working from the same playbook. Borrowers who understand this shift and work with these third-party professionals from the beginning tend to have an easier time getting funding. They’re seen as more prepared, more organized, and more trustworthy. In today’s market, trust goes a long way.
TAYLOR MILLER
delayed. If something goes sideways, the unfinished property may not be worth much, making it a risky form of collateral. Because of that risk, lenders are asking for a lot more up front. They want detailed budgets, solid timelines, experienced teams, and a clear plan for how the finished project will be used—whether that’s leasing apartments, selling condos, or signing tenants for retail space. They want proof the borrower has thought through every detail before a single dollar is handed over. The oversight doesn’t stop after the loan is approved either. Most construction loans now require progress draw inspections at every stage. Independent inspectors visit the site to make sure construction is progressing as planned before each payment is released to the contractor. It’s a
PREPARATION WINS THE LOAN
Taylor Miller is a project specialist and marketing coordinator for Construction Inspection Specialists, where he provides commercial and private lenders with expert opinion on the level of completion for construction projects across the nation. He has been actively involved in the construction and inspection industries since 2016, focusing on commercial appraisals and cost analysis services.
This tighter lending environment has changed the way real estate projects are done. Investors need to be better organized, more transparent, and more disciplined. They need strong teams and detailed plans. They also need to accept that lenders are going to be more involved throughout the life of the loan. Some borrowers may view these added lending protocols as a hindrance, like more “yellow tape.” However, one could
Miller also manages marketing campaigns, social media, and design responsibilities for CIS.
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