What the funder is looking for
Surprisingly it’s not the “deal” that makes a funder want to fund a development project. Of course, the deal is important but it’s the client’s ability and rapport with the funder that really makes a lender want to lend. Without a mutual respect and understanding, it won’t work. It’s a “team effort”. Building houses is by no means an easy job. The management of a site and all that goes with it is a highly skilled operation, many things can go wrong.
To quote from the Business Dictionary. “Teamwork means that people will try to cooperate, using their individual skills and providing constructive feedback, despite any personal conflict between individuals”.
The team, of course, extends to the professionals involved; Lawyers, Valuers, Architects and Project Managers should also be working together towards the end goal and that can only be achieved by good communication. This requires regular meetings and trust me it’s worth it.
An experienced developer client will ensure this and an experienced funder will expect it.
I can’t think of any client or funder who is not keen to move on to the next deal and how much easier it will be surrounded by a great team working together.
Written by John Dalby, Executive Consultant Scotland for BLG Development Finance