At Solutions Project Funding, we invest, co-invest, and arrange joint ventures with
various partners for projects and renewable energy that lack the liquidity, net
worth, and or management expertise and experience that will convince a lender to
fund the project, or convince a lender that if funded, the existing team can take
the project to completion.
We see projects every day that are simply not going to be funded due to a lack of
liquidity. There does not exist a true 100% plus funding for any project, and any
one that claims so, is scamming for something. If you do not have significant equity
invested, verifiable dollars already paid into the project or equity in land owned,
funding is not likely. If you do not have the liquidity to actually get to the closing
table, provide any required appraisals, third party feasibility, permits, approvals,
and closing costs, your not going to ever see the closing table on your own.
Many lenders base a decision to fund a project to a specific loan to value or loan
to costs based on the developers net worth. While most loans are non-recourse to
the developer, using the project as the security, if you cannot demonstrate your
ability to complete the project with the requested funding, it will either not be
approved, or the lender will require to take an ownership position. Projections
for sales and costs, are just that, projections, and market conditions, supply issues,
consumer demand, etc may play havoc with them, or perhaps throw them off by 5% to
20%. If so, do you have the net worth to convince a lender that the project will
be finished, the loan re-paid?
Solutions can either become your partner and provide the liquidity, management,
net worth, and funding to the project, or place your project with another lender
that will do the same. If you have the ability to fund or arrange funding for your
project, great, but if you truly do not, we think owning 40% to 60% of a project
beats owning 100% of a business plan that never gets funded.
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