Estimated reading time: 2 minutes, 13 seconds
At Levco, we are always innovating. After all, one of our motto’s is “A better idea always wins” To that end we now have the ability to take payments through our client portal.
We have consistently struggled with a problem that rears it’s ugly head every time our client’s have funds that are metered by a third party. Examples include a lending institution or insurance company on larger projects. You see, we takes draws weekly and lending institutions meter money as work is inspected. Inspections cost $100-$2oo each! Having jobs inspected weekly would be ridiculous.
The escrow account was born
My Idea won, it works perfectly to eliminate us altering our perfect process to accommodate theirs. Nothing changes as far as the work goes. This works especially well with 203K (Rehab loans) which are a royal pain for contractors.
Escrow, derived from the Old French word escroue, meaning a scrap of paper or a roll of parchment. This indicated the deed that a third party held until a transaction was completed. These days, escrow has all the security of a solid third party to keep track of things while making sure the rules are followed when payments are made between buyers and sellers.
From Levco’s perspective:
- Our business works on weekly draws
- The practice is smooth and simple.
- Weekly draws allow us to employ the best and brightest talent
From our Client’s perspective:
- You get the security of having your funds in the bank.
- You get a simple and secure way to transfer the funds.
- They want to have access to any remaining funds after the project is complete.
How it works
You set up an account at our bank and seed it with some funds from your bank. We provide you with draws weekly and you authorize a funds transfer into our account. As the project goes on and you are ready for an inspection you order it from your lending institution. They fill your escrow account up again. Once the project is over and everything is paid for, you simply close out the account.
If this is the sort of transaction that sounds good to you, we can look at incorporating and escrow account into your next remodeling project.
Your comments are welcome. To ask questions or get more information about remodeling, email me directly or visit our contact page.
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