Sekady Construction Lending Software for Private Lenders

Rocky Butani, CEO of Lender Link, interviewed George O. Flint from Sekady to learn more about their construction software for private lending companies (aka hard money lenders). Watch the video or read the interview transcript below.

Interview Summary: Construction Management Software for Lenders

Introduction: Rocky Butani interviews George Flint about a construction management software system designed for private lenders financing rehab and construction projects. The discussion explores how the software streamlines the lending process, improves transparency, and enhances efficiency.

Key Benefits for Lenders:

• Improved Borrower Experience & Efficiency: The software simplifies the draw request process, allowing borrowers to submit required documents easily. Lenders can process requests efficiently with minimal manual effort.
• Portfolio Management & Risk Mitigation: Lenders can set alerts and generate reports to monitor loan activity, such as tracking the frequency and amount of draw requests.
• Streamlined Draw Process: Lenders can order inspections and verify title down data within the platform, ensuring compliance and reducing administrative burden.

Transparency & Stakeholder Collaboration:

• Project Visibility: The platform allows borrowers, contractors, and subcontractors to upload documents, invoices, and photos, providing lenders with real-time transparency.
• Flexible User Access: Lenders can invite relevant parties, such as fund control companies, investors, and inspection firms, to access project details and approval workflows.
• Draw Request Workflow: The system supports different levels of participation, allowing borrowers alone to manage requests or incorporating subcontractors for additional oversight.

Integration with Other Software Systems:

• The software integrates with loan origination and servicing platforms, minimizing redundant data entry.
• Lenders can seamlessly transition projects from origination to construction management without switching between systems.

Communication & Document Management:

• Centralized storage for project documents reduces reliance on emails and texts.
• Messaging features within the platform streamline communication between lenders, borrowers, and contractors.

Key Challenges Addressed:

1. Centralized Information Storage: Eliminates scattered communications and document tracking issues.
2. Budget Version Control: Ensures accuracy and prevents unauthorized changes.
3. Approval Processes: Lenders can control fund allocations and enforce budget discipline.

Pricing Model:

• Monthly subscription-based pricing, depending on the number of files managed.
• Costs range from a few hundred to a few thousand dollars per month, based on loan volume.

Payments & Fund Disbursement Flexibility:

• Multiple Payment Options: Lenders can choose to disburse funds directly to the borrower, general contractor, or subcontractors.
• Best Practices for Payment Distribution: Direct payments to subcontractors help prevent fund misallocation.
• Optional Subcontractor Inclusion: Borrowers can manage their own payments if preferred, or lenders can mandate full transparency by requiring subcontractor participation.

Conclusion: The construction management software offers lenders a robust solution to streamline project oversight, enhance transparency, and manage risk efficiently. The system’s flexibility allows users to customize workflows, integrate with existing software, and ensure that all stakeholders remain informed and accountable throughout the project lifecycle.