Jesse OZ’s Top 10 Tips for Project Managing a Successful Closing
Jesse Ozanian from the ZDC team has been slaying the closings this year, knocking out construction closings and perm conversions like hotcakes. Midstream, Mercy Housing California’s Senior VP of Real Estate said:
“Jesse is always on top of everything and never loses his cool…it’s amazing. Plain and simple, for us he’s The Closer.”
Here are Jesse’s top 10 tips for managing a successful closing:
Understand lender process and timeline, which may include credit approval, disbursement of funds, ordering required reports and the timeline surrounding reports.
Set achievable expectations with lenders and investors. Communicate internal timeline and discuss project hurdles early and regularly.
Review closing checklist(s) often / delegate tasks within development team as much as possible. Identify long lead time items and prioritize.
Keep running tally of costs. Make sure predevelopment invoices and draws are in good order for lender/investor review.
Create and manage internal settlement statements to track and verify escrow calculations – escrow will often make mistakes!
Send loan docs and 3rd party agreements out for review early to allow time for negotiation. Internal review should consist of upper management, asset management, accounting, and in-house and outside counsel. 3rd party agreements could include architect and general contractor review, which may take additional negotiating time.
Create tools to help manage loan document tracking and signatures. Be clear on specific signing instructions which may include duplicate copies, notaries, and hard deliverable dates. Allowing time to schedule signers and notaries will ensure a smooth process.
For renovations - start 3rd party lease/easement subordination agreements as early as possible. 3rd party laundry/cable subordination can take months to process!
Start insurance process early – provide insurance requirements to broker as soon as possible.
Stay ahead of the game on your cost cert if dealing with a perm conversion. It often takes several drafts at a few weeks each to get it dialed in and lender/investor requirements can vary in terms of how final it needs to be to fund.
Please let us know if you have tips or tricks to add! Of course, also let us know if ZDC can help with your closing or other project management needs. ZDC works coast to coast.
Zen Sawyer
President
Zen Development Consultants LLC
