No. MREC does not mingle client funds, nor does MREC have access to or control of client funds. Our clients can spend their own money as they wish—or as is permitted by their lender—at any time. However, for our clients’ benefit, MREC does track their expenditures, and offers advice and recommendations to clients prior to the release or disbursement of such funds. When clients release or authorize disbursements, those payments are made directly to the appropriate vendors from the funding source, and they do not pass through MREC. Because we track clients’ funds, we can ensure that they do not exceed their budgets, and that funds are reallocated properly and within loan parameters if overspending does occur. Constantly monitoring budgets in this way is extremely helpful to clients as we assist them with reconciling costs at the end of the project and with moving into the permanent financing phase. Clients can also use MREC and our review process to shield themselves from vendors who may seek payment pre-maturely.
