Real Estate Management

Real Estate Management Program for Financial Institutions

One Source Development Solutions serves it’s Clients by offering a comprehensive process of professional Real Estate Management. It is our belief that the ultimate success of a project rests upon the basic foundation of teamwork that must be built and fostered by the various professionals serving on the project team.

Through our development company – Renaissance, we have developed many subdivisions containing thousands of lots and are very proficient at facing the challenges of the development process very successfully.

Financial institutions find themselves in precarious situations involving development/construction loans in this day and time. One Source offers several solutions and gives the bank an un-biased opinion (from a proven, successful developer) to ensure continued success in the real estate industry. One Source provides the following services:

Financial Institute Construction Oversight
Completion of any development where the Bank becomes the Developer due to foreclosure
Prepare a foreclosed development in an “as-is” condition for transfer to another developer for completion

In addition to providing your lending institution with aid towards dealing with any foreclosed, completed or incomplete developments, we represent many investors that are actively looking for “deals” on developments or development land that has gone through foreclosure.

Financial Institute Construction Oversight:

One Source Development Solutions, on behalf of and for financial institutions, reviews construction loans, development loans, project design plans and project construction to protect the financial institution from overzealous contractors and inexperienced home builders. Our financial service division responsibilities are broken down into the following:

Review construction loans, development loans, project design plans and construction
Fully analyze the project budget to assure the bank that adequate funding will be available to complete the project
Schedule of Values is established to cover all aspects of construction equal to the total value of the project
Applications for Payment from contractors is forwarded from the bank to One Source
One Source will review and substantiate that the draw being applied for has been completed
Project site inspections to evaluate, in detail, the percent complete of each line item in the schedule of values and verify the amount and percentage requested is representative of the actual completed construction
Takes photographs documenting the work has been completed
Creates a spreadsheet to assist in verifying the accuracy of the math and other calculations on the Application for Payment including:
- Original Loan Amount
- Net change by Change Orders
- Contract Sum to Date
- Total Earned Paid
- Amount of previous payments
- Current payment due
- Balance to finish
Recommend to the financial institution acceptance or rejection of the Application for Payment as may be determined
Inspections will be made and reports generated when the total amount of requests for payment, less the amount of previous payments made prior to and approved by the previous inspection, exceeds the threshold of fifty thousand dollars ($50,000.00) or at the discretion of the financial institution.

Information for Financial Institutions regarding

Land Development Foreclosures:

We have prepared the attached “check list” of documents needed by the Bank relative to a foreclosure and our notes describing why the documents are necessary or needed. For informational purposes, if the foreclosure is “friendly”, then these are the items the Bank would need from the existing developer in order to move forward in completing the development in the most efficient and inexpensive manner. In the event the foreclosure is “adversarial”, then these are the items the Bank would need to address in order to efficiently move forward in completing the development or preparing the incomplete development for transfer to another developer for completion.

Prior to foreclosing on a Residential Land Development (incomplete), the following information and documentation would be wise to obtain, ascertain, or understand. This information and documentation is necessary to provide the foreclosing Financial Institution the greatest advantage towards understanding what is necessary for the completion of the development and / or transfer to a prospective buyer.

Below please find a list of the basic necessary documents and development related information to be obtained relative to a standard residential real estate development. Please note that each individual development can be very different based on many factors and that this is a simple guideline form – we will comprehensively review any development that you may foreclose on to determine the most efficient and inexpensive way to either complete the development or prepare the development in an “as-is” condition for transfer to a prospective purchaser.

Documents / Information to obtain: (assuming the development is not complete and the final plat has not been recorded in the register’s office) – many of these documents may have been created but not recorded in public records and therefore will not appear in a title search. It is in the Bank’s best interest to obtain the following information in order to have a comprehensive understanding of the development’s status during foreclosure – which will provide the necessary information regarding the Bank’s responsibilities and liability exposure once the foreclosure is complete and the Bank is the new “owner” of the property.

Legal Description of the total property.
Legal Description of each phase of the development – if the development is divided into separate individual phases for construction.
Legal Description of any portion of the property that has been transferred – examples are as follows:
- Road right-of-ways that have been transferred to a governing body,
- Land swaps with adjacent property owners,
- Municipal dedications,
- Out-Parcels that may have been sold, etc.
Legal Description of any easements that have been granted in favor of the development – examples are as follows:
- Construction access easements,
- Off-site Utility extension easements (water, gas, electric, sewer, drainage, etc.),
- Detention easements,
Planning Documents – examples are as follows:
- Boundary surveys,
- Off-site utility outfall, access, etc. surveys,
- Topographic surveys,
- Hydrologic (drainage) surveys,
- Environmental Assessments (hazardous waste, etc.),
- Wetland Identification surveys,
- Flood plain identification surveys,
- Soil surveys – comprehensive soil analysis,
- Rock outcropping surveys,
- Tree location surveys,
- Traffic studies,
- Aerial photographs, etc.

Construction Documents – assuming all construction documents have been prepared and submitted and approved by the local governing body (stamped by a civil engineer for construction) – examples are as follows:

- Preliminary Plans – site plan
- Grading Plans,
- Drainage Plans,
- Detention Plans,
- Road plan & profiles,
- Erosion control Plans,
- Sewer Plans,
- Water Plans,
- Natural Gas Plans,
- Electric Plan
- Off-Site Utility extension Plans
- Entrance Feature Plans
- Amenity Plans,
- Landscape Plans, et
Construction Activity Documents – (Developer related documents) – examples:
- Developer’s Operating Budget – showing detailed outline of each phase of the development and itemized list of each of the construction related items including quantities and budgeted cost – as well as actual cost to-date,
- Copies of all construction draws made to-date (with copies of all invoices paid),
- As-built documents for all improvements,
Construction Activity Documents – (Developer related documents): continued…
- Detailed List of all contractors, sub-contractors, suppliers, etc. that have done work on the site or supplied materials for the development.
  - Planner,
  - Surveyor,
  - Civil Engineer,
  - Landscape Architect,
  - Clearing and grubbing Contractor,
  - Earth Moving / Excavation (dirt) Contractor,
  - Pipe Contractor (sewer, water, drainage),
  - Utility Installation Contractor (electric, gas),
  - Curb and Gutter / Sidewalk (concrete) Contractor,
  - Lighting Contractor,
  - Paving Contractor,
  - Erosion Control / Environmental Contractor,
  - Stabilization Contractor – (seed, sod, etc.)
  - Amenity Contractor – (fencing, entrances, etc.)
  - All material Suppliers

Environmental Documents – examples are as follows:

TDEC application – NOI
Existing SWPPP – with all supporting information
Copies of any TDEC violations
Copies of all erosion control inspections – prepared on behalf of the developer to meet all TDEC erosion and sediment control requirements.

Governmental – Municipal Documents, examples are as follows:

Zoning application and approval documents (with any conditions),
Preliminary Plan and approval documents (with any conditions),
Development Agreement – including all conditions, etc.,
Copies of any Bonds or Letters of Credit for the development,
Copies of any governmental inspections and reports, etc.

Subdivision (Development) Documents, examples are as follows:

Covenants and Restrictions for the development
Home Owners Association document
Architectural Review Committee – with guidelines

Marketing Documents, examples are as follows:

Development / Subdivision Graphics – showing overall layout design (and phasing),
Entrance Feature or Common Area Graphics – showing the proposed subdivision amenities,
Website for the Development

Below please find the same outline form of “Documents and Information to obtain” with our notes briefly describing each item:

Legal Description of the total property.
Note: in our experience, the original legal description in the deed of trust (prior to development) should be used for the foreclosure excluding any areas of the property that have been sold or transferred (land swaps, out-parcels, etc.) by metes and bound description. This overall legal description should include any areas that may have been dedicated (road right-of-way dedications, public dedications, HOA dedications, etc.) so that the “Bank” obtains any rights to those areas and leaves no rights to the prior owner.
Legal Description of each phase of the development – if the development is divided into separate individual phases for construction.
- Note: if the development includes multiple phases, make certain that the legal description in the deed of trust covers all of the property in each of the phases and obtain a legal description of each phase (including road right-of-ways, etc.) which may be used at a later date in transferring ownership of individual phases to different parties.
Legal Description of any portion of the property that has been transferred – examples are as follows:
- Note: again, make certain that all property relative to the development is contained within the legal description used for foreclosure except parcels that have been sold in fee simple to another party (out-parcels or land swaps).
Road right-of-ways that have been transferred to a governing body,
- Note: the “Bank” should obtain (and be able to transfer to another) any rights of the prior owner to the property contained within the road right-of-ways in the event that it becomes necessary to formally “close” or abandon a road within the development.
Land swaps with adjacent property owners,
- Note: if the “developer” has performed any land swaps with an adjacent property owner to improve the boundaries of the development, the “Bank” should be certain to obtain legal ownership of any of the land obtained for the benefit of the development. In some cases, the “additional land” that is used for the overall benefit of the development is not secured by the banks Deed of Trust, and the “Bank should carefully deal with this prior to foreclosure.
Municipal dedications,
- Note: this includes any future road right-of-ways, park areas or other portions of the development dedicated or transferred for public use.
Out-Parcels that may have been sold, etc.
- Note: these obviously will not be a part of the foreclosure – however, if the developer retained any rights (easements, architectural control, etc.) on the land sold, the “Bank” should attempt to gain control of any of these rights as they may benefit or burden the property being foreclosed.
Legal Description of any easements that have been granted in favor of the development – examples are as follows:
- Construction access easements,
  - Note: in some instances, the developer may choose or a governing body may insist that construction equipment and traffic enter the development site in a specific way – if this is through another person’s property and an easement has been granted to the developer to do so, the “Bank” needs to obtain the same rights by having the easement rights transferred to the “Bank”.
- Off-site Utility extension easements (water, gas, electric, sewer, drainage, etc.),
  - Note: again, if off-site easements have been granted for the benefit of extending utilities to the development site, the “Bank” should become the beneficiary of said easements.
- Detention easements,
  - Note: in some instances, a developer may make a deal with an adjacent property owner for the benefit of the development by creating a detention basin (pond) on the adjacent property owner’s property. If this is the case, the “Bank” should obtain the same rights as the developer to this easement so that the “Bank” can transfer said easement to the governing body that requires the detention improvements.
Planning Documents – examples are as follows:
- Boundary surveys,
  - Note: used to have a full understanding of the entire boundary of the development site and any improvements or existing easements that may exist.
- Off-site utility outfall, access, etc. surveys,
  - Note: in the event that there are any off-site improvements necessary, this survey should show the extent of those areas to be affected.
- Topographic surveys,
  - Note: used to determine the pre-development land conditions. In some cases, future phases may have post-condition topographic surveys completed in order to determine dirt volumes for the development (stock piles).
- Hydrologic (drainage) surveys,
Note: used to determine the pre-development run-off values in order to determine detention requirements.
- Note: if there are any large streams, creeks, etc. that may be under the jurisdiction of TDEC or the Corps of Engineers, this survey will show the extent of such.
- Environmental Assessments (hazardous waste, etc.),
  - Note: this assessment will show if there are any environmental issues that must be addressed on the property.
- Wetland Identification surveys,
  - Note: used to determine if there were any existing wetlands found on the pre-development site.
  - Note: if there were wetlands found on the site – a determination must be made as to whether they have been properly mitigated (or protected) to eliminate any possible liability for the “Bank” related to TDEC or the Corps of Engineers.
- Flood plain identification surveys,
  - Note: if a portion of the property is located within the 100 year flood zone or “floodway” of a nearby stream, this survey will show the extent to which the property is encumbered.
  - Note: if a portion of the property is planned to be “filled” to remove any floodplain property from the site, then assessment must be made as to whether the proper documents and applications have been made to officially remove the property from the floodplain and the status thereof.
- Soil surveys – comprehensive soil analysis,
  - Note: this survey should show the existing soil conditions of the site and specifically identify those soil areas that are “highly erosive” so that the proper erosion control measures can be applied.
- Rock outcropping surveys,
  - Note: this survey should show any evidence of rock outcroppings on or near the surface of the property that may be a concern for final development grading of the site or utility installation.
- Tree location surveys,
  - Note: many governing bodies require a tree location survey of the development site to indicate a specific size and type of trees found on the site prior to development which impacts the requirements of landscaping, preservation, etc. for the overall development.
- Traffic studies,
- Note: this document provides the necessary information regarding whether turn lanes, etc. must be constructed to allow safe ingress and egress for the development.
- Aerial photographs, etc.
  - Note: this document is beneficial for the purpose of seeing pre-development conditions of the property.

Preliminary Plans – site plan
- Note: this document will show the overall development plan of the site including lot size, lot configurations, road configuration, easements, setbacks, etc.
- Note: a review of the plan is necessary to determine if all improvements outlined within the construction documents meet the requirements of the Plan of Development as approved by the governing body.
Grading Plans,
- Note: review the existing grading plan to determine how much of the site has been graded and what remains to be completed.
- Note: review the existing grading plan to determine if grading changes can be proposed to cut cost for the overall final grading of the development.
- Note: if the grading has not been completed on the site, a review of the site in necessary to determine if there is enough soil to balance the site – of if there is excess soil that must be removed from the site all together or if there is a shortage of soil on site to complete the grading plan and soil must be brought in from off site.
Drainage Plans,
- Note: review the existing drainage plan to determine how much site work (drainage improvements) has been completed and what remains to be completed.
- Note: determine if there are any “blue line” streams (waters of the state) on the site and have they been protected to prevent any liabilities, fines, etc.
Detention Plans,
- Note: review to determine if all detention requirements have been met and are functioning properly.
Road plan & profiles,
- Note: review the road plan and profiles to determine if all roads constructed to-date are constructed as designed and approved.
Erosion Control Plans,
- Note: review existing SWPPP with TDEC and determine if there should be any changes made to the plan for on-site erosion control measures to be compliant.
Sewer Plans,
- Note: review sewer plans and determine what improvements have been made and what improvement need to be completed.
Water Plans,
- Note: review to determine what work has been completed.
Natural Gas Plans,
- Note: review to determine what work has been completed.
Electric Plans,
- Note: review to determine what work has been completed.
Off–site Utility Extension Plans,
- Note: review to determine what work has been completed
Entrance Feature Plans,
- Note: review to determine the extent of any improvements completed and if they are required by the development agreement with the governing body or if they may be modified to reduce the overall development cost.
Amenity Plans,
- Note: review to determine the extent of any improvements completed and if they are required by the development agreement with the governing body or if they may be modified or eliminated (if feasible) to reduce the overall development cost.
Landscape Plans, etc.
- Note: review to determine the extent of any improvements completed and if they are required by the development agreement with the governing body or if they may be modified to reduce the overall development cost.

Construction Activity Documents – (Developer related documents) – examples:

Developer’s Operating Budget – showing detailed outline of each phase of the development and itemized list of each of the construction related items including quantities and budgeted cost – as well as actual cost to-date,
- Note: a review to determine if any funds were not used for improvements on the development site.
- Note: review to determine the costs for remaining improvements needed to complete the development.
Copies of all construction draws made to-date (with copies of all invoices paid),
- Note: review for the purpose of determining if any services or supplies have been paid for that are not present at the site.
As-built documents for all improvements,
- Note: very important – the as-built documents for the improvements (sewer, drainage, road grades, etc.) will show whether the improvements were made according to plan and will be accepted by the governing body when all work is complete.
Detailed List of all contractors, sub-contractors, suppliers, etc. that have done work on the site or supplied materials for the development.
- Note: This list is important – the continued aid of these professionals and contractors may be the most inexpensive route to take in completing the development. Examples of these are as follows:
  - Planner,
  - Surveyor,
  - Civil Engineer,
  - Landscape Architect,
  - Clearing and grubbing Contractor,
  - Earth Moving / Excavation (dirt) Contractor,
  - Pipe Contractor (sewer, water, drainage),
  - Utility Installation Contractor (electric, gas),
  - Curb and Gutter / Sidewalk (concrete) Contractor,
  - Lighting Contractor,
Paving Contractor,
Erosion Control / Environmental Contractor,
Stabilization Contractor – (seed, sod, etc.)
Amenity Contractor – (fencing, entrances, etc.)
All material Suppliers