Since this is a blog about every detail of the project I guess that means we need to share the good with the bad or the successes with the challenges. I’ve been told that development is mostly about coming up with a good idea and then overcoming a bunch of challenges to ultimately end with a successful project. So here is our first challenge. Maybe it’s the second if you consider it took us 9 months to find lots that fit the requirements for our project.
I called the local bank that I had chosen to check on the progress of the construction loan to find out that they were no longer interested in financing our project. This was the bank that we chose after interviewing many financial institutions to find one that met our criteria. One that offered reasonable loans, is local and looking to invest in small companies using “triple bottom line” accounting to benefit the environment and community in addition to the financial bottom line. I was happy with my choice and had been assured that they were excited about the project and everything looked great on paper and all we needed were formal approvals from the “higher-ups.”
The main reason given was that the bank did not believe we could build a house for $100K (and the other for slightly more) and that they were sure we would go over budget like many of the other developers they have chosen to finance recently. I was upset to say the least, politely argued a couple of points, realized I was getting nowhere and decided to begin looking elsewhere for funding.
So we are now looking at other lenders and remaining optimistic. I am confident we will find someone truly interested in the uniqueness of the project and the benefits that differentiation will make to it. One that will look at the overall quality of the team we have assembled rather than just the numbers.
I am personally putting everything I have behind this project and am determined to get it done one way or the other. I had a few moments of doubt last night but I am back to full spirit today and ready to tackle this hurdle and the next one that is behind it. Hopefully there will be a valuable lesson documented at the conclusion of each of our hurdles overcome along the way to help others trying to do the same thing somewhere else.
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