Real Estate Services (RE Services) will walk with you through the entire building process from when you first consider a project to the dedication of your building. We’ll partner with you to make your project a success. Some examples of when you should contact us are:
When you first consider a project
This allows RE Services to give you information up front that will help you from the beginning, to consider a project that is manageable for a church in your situation. This includes, but is not limited to, running financial projections to help you know what a reasonable project budget is, how to select an architect, and capital fund drive assistance.
Before you have engaged an architect
Consulting with RE Services before you begin a project allows you to go to your architect with preliminary budget numbers and a square-footage estimate so you don’t design something beyond your means. After you have preliminary cost estimates from an architect, it’s good to meet with RE Services again to see how the preliminary estimates match up with the initial projections.
When developing a capital fund drive
It’s important for RE Services to know what the capital fund drive is expected to bring in so that appropriate counsel on project size as a result of the fund drive can be given.
When pledges are made to a capital fund drive
Knowing what funds the church attendees have pledged to the project is vital. A strong capital campaign can increase both the project size and the borrowing power of a church. Likewise, a weak capital campaign may mean reduction in project size and limitation of options for years to come.
After you have bid out the project and before you enter into a construction contract
Architect estimates are meant to give you a ballpark cost, but it’s not until you have firm construction bids that you will know the true cost of your project. You also can’t make an application to National Covenant Properties (NCP) until you have either firm construction bids or a Guaranteed Maximum Price Contract. Once you have firm numbers they need to be checked against the latest RE Services financial projections to make sure the project is still within boundaries. You should also contact us before you enter into a final contract for construction so we can review and make sure it matches with the NCP loan process and construction escrow payout options.
Before applying for an NCP Loan
RE Services will be your primary contact for making a loan application to NCP. Please contact RE Services early to help get your loan application together and submit it in time for an NCP board meeting, which occur every other month.
Before you start construction
After your loan is approved, but before you begin construction, a construction escrow will need to be established. Before that can happen, NCP, the title company, the church, and your general contractor need to have a conference call to discuss the construction escrow disbursement options and finalize the details of your construction escrow.
RE Services likes to get updates throughout the construction process, but we especially want to know if anything is going differently from what was planned, especially if the project appears to be going over budget. If the project cost/source is not in balance (i.e., the combination of your cash and your loan are not sufficient to complete the project), dialogue will need to take place to see what options are available.
As with any successful relationship, it’s better when there is clear and open communication. The more the parties talk, the better. Communicating more than necessary is better than communicating less than necessary. When in doubt, talk to RE Services.