PRIMARY THIRD-PARTY ENGAGEMENTS IN EVERY LOAN INVESTMENT
To protect investor capital and maintain a disciplined, transparent lending process, BCCG integrates multiple independent third-party professionals into every construction loan it originates. Each firm plays a specific role in validating project viability, monitoring progress, and safeguarding investor funds from underwriting through final repayment. These engagements ensure that every loan investment presented to our investors benefits from rigorous oversight, accurate reporting, and multiple layers of fiduciary protection.
Independent Construction Estimator
Before any loan is approved, BCCG commissions a certified independent cost estimator to thoroughly review the builder’s construction budget. Their objective is to verify that material and labor costs are realistic, current, and neither inflated nor understated.
If the estimator identifies inaccuracies or recommends modifications, BCCG adjusts the construction loan amount accordingly—ensuring that project financing is grounded in real-world cost assumptions and providing investors with a more secure capital structure.
Real Estate Appraisal Firm
Additionally, BCCG engages a local licensed appraisal firm with expertise in residential and commercial development valuations. Every loan we underwrite includes a certified appraisal that confirms the project’s “as-is” value, projected “as-completed” value, and market viability.
This objective valuation supports responsible underwriting and provides loan participants with confidence that each investment is backed by credible, market-based collateral benchmarks.
Title Company / Loan Closing Agent
A qualified title company—or, depending on the market, a local real estate attorney—manages all title and closing responsibilities. Their services include:
- Providing a complete title report and title search
- Issuing full title insurance coverage
- Coordinating lien waivers and partial releases as construction funds are distributed
- Facilitating the final loan closing on behalf of all parties
This layer of oversight ensures the collateral remains legally protected and free from unapproved encumbrances throughout the build cycle.
Escrow Agent for Investor Funds
The same title/closing company also serves as the Escrow Agent for all Note Investment Participation funds.
For each project, a dedicated escrow account—with its own unique account and routing number—is established exclusively for the investors participating in that loan. Investors deposit their participation amount into escrow 7–10 business days prior to closing, ensuring all capital is verified and cleared before any loan documents are executed.
Once all funds clear escrow, the Escrow Agent issues a Clear to Close Memorandum, permitting BCCG’s counsel to prepare and circulate the final loan closing package for execution.
Construction Site & Draw Inspection Company
Throughout construction, BCCG hires a specialized third-party inspection company to monitor the work in real time. Their responsibilities include:
- Conducting recurring on-site inspections before each disbursement
- Documenting progress through detailed written reports, photos, and videos
- Confirming that previously disbursed funds were used according to the approved budget
- Recommending whether the next construction draw should be released
This provides investors with ongoing assurance that the project is advancing as planned and that loan proceeds are being used responsibly.
Construction Proceeds Disbursement Agent
To maintain strict financial controls, BCCG also appoints an independent Loan Disbursement Agent. This agent is responsible for releasing funds to the project’s construction manager strictly according to the executed construction draw schedule.
No draw is released without proper documentation, third-party inspection approval, and confirmation from both BCCG and the title company—adding another protective checkpoint for investors.
Independent Trust Company (Custodian of Sale Proceeds)
For every project, BCCG requires the title company to establish a separate trust account with an independent corporate trust institution.
This Trust Company becomes the custodian of the sale proceeds generated from the finished lots, homes, condos, or townhomes. These funds are contractually earmarked for repayment of principal and interest to investors. Once the required payoff amount has accumulated, the Trust Company transfers the entire balance to the loan servicing agent 5–7 business days before loan maturity, ensuring a smooth and timely investor repayment.
Independent Loan Servicing Company
Finally, all investor payments—whether monthly interest distributions or final principal/interest repayment—are administered by an independent loan servicing company, acting as the Investor Remittance Agent.
Their fiduciary duties include:
- Distributing monthly interest (funded from the loan’s interest reserve)
- Issuing full principal-and-interest repayment at maturity
- Maintaining the “Registry of Loan Participants,” based on executed assignments of mortgage
This independent servicing structure reinforces transparency and ensures every investor receives timely, accurate, and verifiable remittances.