Define the Finished Property
Describe the planned building, its size, intended use, and completion standard. Plans and specifications should agree with the budget. Changes to layout or finishes can affect cost and valuation, so document the version being submitted for review and maintain a record when decisions change.
Review the Land and Site
Land ownership alone does not establish that construction can begin. Identify access, utilities, grading, drainage, and other site conditions that affect the scope. A lot with an attractive purchase price may require substantial preparation. Separate site expenses from the building budget to make those assumptions visible.
Confirm Permits and Approvals
Determine which approvals are required for the actual project and which have been obtained. Explain outstanding items and the expected sequence. Financing review and municipal approval are separate processes. A planned start date should account for both rather than assuming one review automatically resolves the other.
Create a Detailed Construction Budget
Break costs into meaningful categories and distinguish committed prices from estimates. Include professional work, site preparation, labor, materials, permits, and a contingency. A useful budget lets a reviewer see what each amount buys and where the project still depends on an unconfirmed assumption.
Select and Document the Builder
Prepare information about the contractor’s responsibilities, proposed contract, and relevant project history. Confirm who manages subcontractors and who carries required insurance. The construction relationship needs a defined scope and payment process so that financing, inspections, and work progress can follow the same plan.
Understand Draw Funding
Construction funds may be released in stages rather than all at once. A draw can depend on completed work, supporting invoices, inspections, or other conditions. Ask how the proposed program handles requests and reimbursement. Your working capital plan should cover the time between a contractor’s bill and an approved release.
Track the Schedule and Carrying Costs
The construction schedule affects interest, insurance, taxes, and other carrying expenses. Identify major milestones and allow room for weather, supply, or inspection delays. Evaluate whether available cash can support a longer project and whether the loan term leaves enough time for the intended completion and exit.
Manage Change Orders
A change order should explain the new work, its cost, its schedule effect, and the source of funding. Small changes can accumulate into a material budget difference. Keep approved changes with the original contract so that the current project cost remains understandable throughout the construction period.
Match Valuation to the Plans
A proposed completed value should reflect the property described in the plans and specifications. Explain assumptions about size, features, condition, and intended use. Financing decisions depend on the applicable valuation process, so an investor’s projected sales price should remain a planning estimate until supported by the required review.
Plan the Completion and Exit
A finished building is one milestone; repayment is another. Identify whether the exit involves a sale or longer-term financing and what must happen first. Completion documents, occupancy, lease-up, or permanent-loan conditions can affect the time between the last construction task and the loan payoff.
Prepare a Construction Request
Bring site information, plans, the budget, contractor details, approval status, and the intended start and completion dates. State whether land is already owned and how much equity is available. A complete project narrative helps surface questions early instead of discovering them after work has begun.