How can a construction project lose money without the owner even knowing? Chris DeVito, general manager of Built, says it often shows up in the construction loan draw schedule. In a look back at 10,000+ projects completed in the last three years, Built found that when owners lost money it was mostly due to delays, and one draw cycle of more than two weeks typically derailed a project substantially. (Chris notes it isn't the only cause. All figures are Built's own.)
On this week's Commercial Real Estate Secrets, Aviva and Chris cover:
• Why one construction loan draw taking more than two weeks can derail a project, and the under-a-week target
• How delays pile up into carry costs, lost lease revenue, general conditions and lender extension fees
• Aviva's attorney's parallel: how an LOI negotiation predicts how the PSA will go
• Why pre-development budgets rely on stale data, and how Built uses its dataset to refresh them
• What a developer should check first on a Monday morning: outstanding draws, payables and change orders
• Where AI helps (data entry) and where human judgment still wins
• The one change Chris would make: standardize budgets and ask your lender what delays a draw
• Fire round: red flags, the "10x" question, and the lapsed-insurance trap on delayed projects
• Chris's commercial real estate secret: whoever has the best data wins
⏱ Chapters:
0:00 The Slow-Draw Warning
0:31 Meet Chris DeVito and Built
2:04 AI, ChatGPT and Vibe Coders
4:31 How Projects Lose Money Unnoticed
6:32 Aviva's LOI and PSA Parallel
7:47 An Accurate Development Budget
13:52 The Monday Morning Dashboard
15:57 Where AI Helps and Where It Doesn't
20:04 AI vs. Boots on the Ground
24:02 The One Change Owners Should Make
26:51 Fire Round: Red Flags and Insurance
30:33 Chris's CRE Secret: Data Wins
32:18 Where to Find Chris and Built
📍 Connect with Chris DeVito:
LinkedIn: https://www.linkedin.com/in/chris-devito-12187974/
Built: https://getbuilt.com/
Disclosure: Chris DeVito is the general manager of Built, a software company discussed in this episode. Figures about Built's platform and data are Built's own. Guests' opinions are their own.
#commercialrealestate #realestatedevelopment #construction
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