a leading intelligent construction finance platform, today released
findings from its 2019 State of Construction Finance survey with
insights from real estate lenders and developers on priorities,
performance and overall sentiment toward the construction finance
process, as well as emerging trends for the industry.
The report found evidence of digital readiness among lenders and
developers in an industry that has historically been slow to adopt new
technology. Recognizing the potential impact of artificial intelligence
and automation, more than 70 percent of lenders surveyed agree that
aspects of the draw process can be automated, and 67 percent of
developers think automation will expedite the process. Additional key
findings from the report include:
None of developers surveyed believe their lender’s process is
streamlined or efficient and 42 percent report the process is
frustrating, slow or painful.
According to respondents, only 48 percent of data used for
construction draws is centralized in a system, leaving over half
trapped in spreadsheets, PDFs and emails.
Although surveyed lenders and developers have different perceptions of
the state of construction finance, both lack confidence in the
process. A third of lenders do not have portfolio-level reports and
nearly 50 percent of borrowers are not confident that they submit draw
requests with all required information.
“We continue to hear from both lenders and developers that there are
inefficiencies in the current construction loan process, underscoring
our mission to fuel the connected construction economy,” said Will
Mitchell, CEO of Rabbet. “Construction financing is only getting more
complex as competition increases and more people are involved. Lenders
and developers are demanding technology that intelligently drives
confident decision-making and quicker disbursement of funds.”
Conducted in April 2019, Rabbet surveyed qualified commercial lending
executives and real estate developers with portfolios ranging from under
$10 million to more than $1 billion. While some respondents report using
a system like Rabbet to manage their construction finances, the majority
of respondents did not.
Rabbet is bringing efficiency, accuracy and transparency to the complex
connected construction economy. The intelligent construction finance
platform uses machine learning to parse documents and connect
information for reduced administrative burden, verifiable compliance and
faster decision-making for real estate lenders and developers. Based in
Austin, Texas, Rabbet is venture-backed by QED Investors, Camber Creek
and Goldman Sachs. For more information, please visit www.rabbet.com.