Future Value Construction Inc., its principals, and associates can NOT Guarantee the success of your Project.
All Projects involve certain risks and are more suitable for those people with adequate capitol to maintain a comfortable cashflow position, without the need for immediate liquidity.
Management - Risk vs Return
Risks associated with Construction that Investors and Owners should be aware of:
- Future Value Construction Inc., its principals, and associates can not guarantee the success of your project. All investments into Real Estate and Construction involve certain risks and are suitable for those people with adequate funds to maintain a comfortable lifestyle after investing, without the need for immediate liquidity of said funds.
- The value of property may be estimated by an appraiser, or other reputable organization, but please remember that the opinion of the value is based solely upon available current data, and based upon a specific date. There is no assurance that this estimate will reflect a fair market value upon the final sale. General and local economic conditions are subject to change prior to the investment repayment. Case and point, is the ongoing recession that the real estate and construction industry finds itself working through currently.
- Although the investor makes the final investment decision, the success of the investment will depend, in part, upon the experience and quality of the management of the mortgage banker / broker. Make sure you understand all aspects of your investment to include; Risk vs Return, Term of the loan, disbursement procedures, and subsequent servicing by the broker. Future Value Construction Inc. supervises all of its projects, and provides inspections prior to disbursements on construction loans when applicable.
- The borrower’s ability to repay the loan will depend upon the borrower’s financial conditions which could change over time. In most cases, especially with construction loans, we will typically require an interest reserve account, conditionally financed through the loan, which helps insure the ability to pay interest payments throughout the construction loan period.
- There are general risks associated with all real estate investments, including, but not limited to, national or local economic conditions. Some variables include; neighborhood values due to foreclosures, changes in interest rates, real estate taxes, the supply and demand for certain types of property, and the ability of the borrower to obtain necessary financing. Government and local regulations can create unanticipated delays, as do, acts of nature in some cases.
- Default by the borrower or other could interrupt your monthly payments for management. Under extreme cases, it may be necessary for Future Value Construction Inc. to foreclose or take other actions to protect our investment. It is possible that the total amount recovered upon foreclosure can be less than the amount of your original principle investment. This may result in the loss of your capital. We recommend diversifying your investment capital, if possible, throughout multiple projects.
- If a borrower files a reorganization or bankruptcy, the foreclosure process could be stalled. Trust deed investors could incur significant legal fees and costs in attempting to obtain relief from the automatic freeze on collection proceedings provided by the Bankruptcy Code. Relief may consist of obtaining court approval to release the property out of the bankruptcy so that the property can be foreclosed upon. Furthermore, the court could modify the terms of the loan by extending the due date, changing the interest rate and/or payment structure, or causing the priority of the loan to be subordinated to a bankruptcy court-approved financing plan.
- Management offered through Future Value Construction Inc. is non transferable, and is specific to a single project. Multiple projects will typically have case by case management contracts.
- This web site constitutes neither an offer to sell nor a solicitation of an offer for any management. All contract offers are made, and subject to, availability after Future Value Construction Inc. has reviewed the management request, and then created an offering.