Weak projects, no matter how great they appear, can turn a funder off if any of the following conditions are present:
1. The project has a funding deadline - a funder would rather take a project that will work if they have to wait for funding. Funders frown on projects that have a deadline. For example, "If I'm not funded in 5 weeks, I'll lose the property." We as intermediaries would never accept a project like this when there are hundreds more that won't be calling us every day and giving us guilt trips for their project not being funded.
There are many reasons a project could be delayed and it's completely out of our funder's hand. We've even noticed a trend with a few of our funders, where they do not give a closing date. They'll say, "60-90 says, but there is no scheduled closing at this time" So what does the client think? If he isn't funded in 60 days, there are serious problems and he feels the need to call everyday and become a nuisance to the funder...which only hurts the developer.
2. The project will only work in a specific location. Your project must be strong enough that it can work where you want to buy the land or 2 or 3 other locations. These are typically JV clients that bring nothing but an idea to the table. Your project should not be dependent on the funder buying a particular piece of land that could be bought while waiting on funding. Short and sweet, we are not going to burn a bridge with our funders by having pushy and demanding clients that can't produce a dime of equity in their projects. We are the nice guys and enjoy working with people that don't pressure us or the funder. Naturally, we'll do the best we can, but there are enough projects out there that aren't under the gun to get funded. True, we can fund bridges and hard money deals in 5-10 days, but every funder is different. I suggest you read: http://nobscommercialmortgages.blogspot.com/2010/03/what-happens-to-pushy-demanding.html Thanks, Brian Walker- I can be reached at 281-764-1605
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