Life Insurance Company Lenders Benefit with Built

Avatar photo
Adam Preski
PUBLISHED: 02/16/2021

Your policyholders trust you to make prudent investment decisions while maximizing risk-adjusted returns. Life insurance companies participating in large-scale commercial real estate development projects in gateway markets are provided the opportunity to achieve incredible yields, but construction and development comes with inherent risks. Built Technologies’ Construction Lending Suite eliminates manual errors, processing delays, and risks associated with construction draw management so you can focus on growing your portfolio and foster better borrower relationships. CRE construction can be unpredictable—but with the right digital tools, you’ll be able to increase loan profitability, improve lender to borrower efficiency, and mitigate the risk involved so you can build your portfolio to operate like a well-oiled machine.

To make sure you are getting the most out of your investments, use Built to ensure that your draw management process is friction-free, information is transparent, and that your best customers are happy and eager to complete more projects with your team. Built’s platform is specifically designed to provide institutional construction lenders with the online tools required to serve  their best builders and borrowers, all while taking care of the details that can be overlooked. Your speed and efficiency are critical to keeping your competitive edge in the market. In addition to maintaining your edge, you are focused on mitigating risk by having complete oversight and reporting control over your projects, allowing you to focus your resources on securing only the best opportunities for your real estate portfolio. Managing the complexity of your national projects as a lender requires the right tools. The right tools can open doors to the right opportunities, empowering you to invest in projects that are well-positioned to succeed.

The Built Construction Lending Suite is created specifically with your goals in mind, with features that:

mitigate-riskMitigate Risk

Proactively mitigate risk by identifying key trends and risks within your portfolio—and at the individual loan level—that are likely impossible to recognize otherwise. Spreadsheets are prone to manual data entry error, among other potential weaknesses. As you carefully choose the projects you invest in, you should also carefully choose the tools you use to manage them. Built will alert you if a loan is overdrawn, stale, past maturity and more, that way you can focus on the deal flow and risk-adjusted yield generation, and not back office loan management.

increase-transparencyCreate Transparency

Built provides a clear system of record, allowing construction costs to be accurately tracked by both the lender and the borrower, including a full audit trail. The transparency provided by having all of your important loan information all in one place is not only beneficial for your internal processes, but also eliminates the need for back and forth communication that can cause delays. Additionally, Built allows you to manage and store documents in a single, secure location—so nothing gets lost or misplaced.

reduce-frictionReduce Friction

The real work on a construction loan begins post-closing when lenders, borrowers, and contractors are required to follow the script and complete the project with precision, on time, and in accordance with legally binding loan covenants. Reduce friction in the lending process by streamlining the way funds get disbursed. A digital draw management system improves project and fund-level transparency and oversight to increase efficiency. Using Built enables your team to reduce risk while effectively managing complex funds disbursements and draw packages, resulting in fewer errors and faster draw payments.

increase-loan-profitsIncrease Loan Profits

Faster draw payments equals more profitability on your loan—and happier customers. Complex construction loans require a thorough draw administration process and the faster your loans are approved and the borrower gets paid, the less cost is incurred to you which increases the margin on your loan. Built’s digital solution consistently reduces draw times by streamlining the draw administration process, boosting your profits and enhancing the customer experience to keep your most successful sponsors coming back for more business.

Construction lending is part of what you do—but it’s not all of it. You have specific resources allocated to this part of your investment portfolio, so ensure that you’re only working with the best builders to complete the best projects to get the highest return on your investments. As the world navigates the market post-pandemic, the demand for new construction multifamily units is expected to steadily increase, especially in gateway markets that continue to provide the jobs and lifestyle sought after by the country’s largest demographics—Millennials and Generation Z. And, when it comes time for people to return to major cities in the U.S.—like Boston, New York, San Francisco, or Los Angeles—these markets will be positioned to come back strong. When you’re preparing for increased apartment demand in a post-pandemic world, now is the time to consider implementing a modern cloud-based technology solution to streamline your construction draw management process, creating efficiency, eliminating risk, and giving you a distinct advantage to your competition in an active investment space. To meet that demand, use Built.

Working with institutional clients on strategies to maximize their portfolio value has been the focus of my entire commercial real estate career. As a capital markets advisor, I have been a part of teams who have represented clients in multidimensional CRE originations, including ground-up development joint venture equity and debt capitalizations across a variety of national markets. In my experience within the commercial real estate space, I know how important understanding and managing risk is in your decision to pursue certain projects with specific borrowers. Whether those risks are related to market conditions, interest rate volatility, and sponsor selections, it’s critical to implement risk management tools that ensure your projects are completed within budget and on time. When I joined the Built team, it was evident that the types of clients I’d worked with in the past would benefit greatly from our digital solution to further improve their draw management processes on large-scale projects. As we introduce our product to lenders like you, we’re confident that you will be able to take full advantage of the ways that Built reduces friction and risk while increasing transparency, speed, and loan profitability—all to your benefit.