AUSTIN, Texas--(BUSINESS WIRE)--
Shows evidence of digital readiness among real estate lenders and developers despite lack of streamlined processes
Rabbet, 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.