One of the biggest mistakes made by commercial lenders is to become blinded because of the size of a development deal, and because of this not rationally review the merits of a project.
We see multiple projects a month and the majority of them do not have the items in place necessary for any financing source to want to fund a project.
If you are reviewing a large development project, before you get blinded by the potential commission, confirm these important points:
1) Does the developer have money into the project
2) Are the entitlements in place
3) Are the financials and the pro-forma up to date
4) Is there a well thought out marketing strategy
5) Has the developer been involved in projects of this type and size before
These may seem like simple points, but confirming and reviewing this information before pursuing financing can save you a great deal of time and energy.
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