Posts Tagged ‘Private Lender’

A Lender’s Perspective: Pre-Construction Suggested Items for Project Management – a few things to consider.

For those that are Fixing and Flipping or Buying and Holding, I thought I would post some suggested tips when managing your own project.  This is from my construction control management experience and while most rehabbers, builders, developers and investors know a lot of these suggested steps, my posting is just meant as a helpful guide-line reminder, to assist you in your successful completion of future projects.  Let me know what you think and if you have any questions, please leave them here or email me at Barry@InstantFunder.com.  Wishing you luck and success with all of your projects.  Best, Barry

 

Pre-Construction Suggested Items for Project Management

1. Building Permit requirements

2. Additional Insured requirements – (general & subcontractors)

3. Project Plan Set availability, if any

4. Quality control is the contractor’s responsibility to adhere to specifications

5. Subcontractor’s contact information list for lien waiver tracking

6. Progress payment (Draw) submittal requirements

a. Spreadsheet format with requested line item levels of completion

b. Lien waiver releases

c. Invoices for stored materials, services, etc

d. Design changes that may impacts costs

e. Contingency line item impacts

f. Progress Schedule changes

g. Copy of building permit cards

h. Inspection dates within 48 hours of request

i. It’s safe to assume that “If it’s not seen, it’s not going to be funded”

7. Discussion of project schedule, date of agreed work completion

8. Who has authority to approve project changes? 

 

Here is an interesting article that should be of interest to everyone?

Is the Dollar Dying? Why US Currency Is in Danger?

CNBC.com  02/14/13 12:49 PM ET
By:  


Getty Images

The U.S dollar is shrinking as a percentage of the world’s currency supply, raising concerns that the greenback is about to see its long run as the world’s premier denomination come to an end.

When compared to its peers, the dollar has drifted to a 15-year low, according to the International Monetary Fund, indicating that more countries are willing to use other currencies to do business.

While the American currency still reigns supreme — it constitutes $3.72 trillion, or 62 percent, of the $6 trillion in allocated foreign exchange holdings by the world’s central banks — the Japanese yen, Swiss franc and what the IMF classifies as “other currencies” such as the Chinese yuan are gaining.

“Generally speaking, it is not believed by the vast majority that the American dollar will be overthrown,” Dick Bove, vice president of equity research at Rafferty Capital Markets, said in a note. “But it will be, and this defrocking may occur in as short a period as five to 10 years.”

Bove uses several metrics to make his point, focusing on the dollar as a percentage of total world money supply.That total has plunged from nearly 90 percent in 1952 to closer to 15 percent now. He also notes that the Chinese yuan, the yen and the euro each have a greater share of that total.

“To the degree that China succeeds in increasing its market share of the world’s currency market, the United States is the loser,” Bove said. “For years, I have been arguing that the move of the Chinese makes perfect sense from their point-of-view but no sense for the Americans.”

PLAY VIDEO

Hedge funds are making billions betting against the Japanese yen. Greg Zuckerman, author of “The Greatest Trade Ever,” offers insight.

For a country with a budget deficit in excess of $1 trillion a year, the consequences of losing standing as the world’s reserve currency would be dire.

“If the dollar loses status as the world’s most reliable currency the United States will lose the right to print money to pay its debt. It will be forced to pay this debt,” Bove said. “The ratings agencies are already arguing that the government’s debt may be too highly rated. Plus, the United States Congress, in both its houses, as well as the president are demonstrating a total lack of fiscal credibility.”

Bove is not the only one sounding the reserve currency alarm, though the issue has fallen off the front pages as hopes for a sustained U.S. recovery have taken hold and the stock market has surged to near-record highs.

But the looming battle over budget sequestration in Washington could revive long-standing fears of fiscal stability.

“If (dollars) no longer offer the safety that investors have come to expect, they will not function as the stable collateral required by bank funding markets,” Barry Eichengreen, a professor at the University of California, Berkley, warned in a Financial Times commentary late last year. “They will not be regarded as an attractive form in which to hold international reserves. And they will not be seen as a convenient vehicle for merchandise transactions.”

To be sure, the markets at this point are not acting like the dollar is in severe trouble. The greenback has maintained its position as a general safe haven in times of trouble.

“Longer term, of course, countries are going to diversify away from the dollar if they can. There are more favorable investment opportunities out there if you can catch yield,” said Christopher Vecchio, currency analyst at DailyFX, a trading firm. “Despite the increase in risk to the U.S. dollar and Treasury, investors still feel safest at home.”

But the Federal Reserve’s successive quantitative easing programs, which have created $3 trillion in new greenbacks, continue to spur worry over the dollar’s status.

“The No. 1 security issue we have as a nation is the preservation of the U.S. dollar as the world’s reserve currency,” said Michael Pento, president of Pento Portfolio Strategies. “It’s a thousand times more important than a nuclear bomb being tested by North Korea. It’s a thousand times more important that we keep the dollar as the world’s reserve currency, and yet we are doing everything to abuse that status.”

The dollar’s seemingly precarious status is why Pento remains bullish on gold and believes the dollar’s demise as the premier reserve currency could end even sooner than Bove predicts — perhaps by 2015.

“Five to 10 years — that would be an outlier,” he said. “I would say 2015, 2016, that would be the time when it becomes a particularly salient issue. When we’re spending 30 to 50 percent of our revenue on debt service payments, we enter into a bond market crisis. The dollar starts to drop along with bond prices. That would set off the whole thing.”

A Lender’s Perspective: Pre-Construction Suggested Items for Project Management – A Few Things To Consider.

For those that are Fixing and Flipping or Buying and Holding, I thought I would post some suggested tips when managing your own project.  This is from my construction control management experience and while most rehabbers, builders, developers and investors know a lot of these suggested steps, my posting is just meant as a helpful guide-line reminder, to assist you in your successful completion of future projects.  Let me know what you think and if you have any questions, please leave them here or email me directly at Barry@InstantFunder.com. Wishing you luck and success with all of your projects. 

Pre-Construction Suggested Items for Project Management

1. Building Permit requirements

2. Additional Insured requirements – (general & subcontractors)

3. Project Plan Set availability, if any

4. Quality control is the contractor’s responsibility to adhere to specifications

5. Subcontractor’s contact information list for lien waiver tracking

6. Progress payment (Draw) submittal requirements

a. Spreadsheet format with requested line item levels of completion

b. Lien waiver releases

c. Invoices for stored materials, services, etc

d. Design changes that may impacts costs

e. Contingency line item impacts

f. Progress Schedule changes

g. Copy of building permit cards

h. Inspection dates within 48 hours of request

i. It’s safe to assume that “If it’s not seen, it’s not going to be funded”

7. Discussion of project schedule, date of agreed work completion

8. Who has authority to approve project changes?