In the unfortunate event lenders take back properties from other builders or individual home owners and the project is in the bad spot of needing to be completed in order to sell Investor Construction can step in and finish the property at a discounted construction management rate acceptable to the lender. Although lenders do not want to be in this situation some construction projects are too far along to demo but not far enough for most buyers to be interested and many builders are nervous to step in and take on another builders problem. This leaves the lender in a bad spot. Investor Construction was started on the idea of low cost, flat fee construction for builders and investors so working with lenders on REO completion is no different.
It happens but builders are known for not paying bills. Unfortunately, home buyers who have hired a builder, and signed contracts, may not find out the builder has problems until the lender tells the home buyers their builder cannot qualify with the lender. Investor Construction has stepped in on previous occasions to take over construction for both the home buyer and lender. We give both the lender and home owner the comfort knowing an experienced custom home builder can step in and solve both parties problem and complete construction.
Don't laugh . . . It happens. Sometimes construction projects go wrong and the lender is in a bad spot. Is that project a builder spec? An investor's project where they hired a builder? A homeowner who hired a builder? All of these scenarios are funded by lenders and something can go wrong and it is usually something has happened to the builder. Either the builder became ill or passed away, went AWOL and stopped communicating, stopped paying bills and was cut off either by vendors/subs or stopped paying interest carry to the lender and the lender cut off the builder. These scenarios DO HAPPEN and Investor Construction is a rare builder who will actually take on finishing these troubled construction jobs . . . and we have history of doing it.
For investor and home owner construction projects the lender may not be able to force those people to use a specific builder but the lender can give recommendations on other builders to use. Since most builders will refuse to take on troubled construction projects the lenders options are very limited but this is where Investor Construction can step in on a referral from the lender.
Rescue construction does not have to be limited to troubled construction projects either. We have been hired by OTHER BUILDERS to get their contruction back on track to meet scheduled move-in dates they were concerned they would not make on their own . . . even though they are a builder. So rescue construction affects more than just troubled construction projects. It is unfortunately part of the business.