Today’s Conversations

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The Road Now

Adam: How can I help you?

Client: I want to develop some land and build 69 homes on it.

Adam: What is the cost of the land and how much do you need to build?

Client: The land is 4 million and I need 8 million to build.

Adam: So your all in cost are 12 million?

Client: Yes that is correct.

Adam: How much do you currently have into the project?

Client: Nothing.

Adam: So you need an equity partner?

Client: No I want nothing to do with any partner.

Adam: So how can I help you?

Client: I would like to borrow the 12 million.

Conversation # 2

Adam: How may I help you?

Client#2: I want to build a strip mall in Ohio.

Adam: How much do you need and how much do you currently have into the project?

Client#2: I need 16 million and I have no skin in the game.

Adam: So you need and equity partner?

Client#2: Yes we have to have one.

Adam: We can do that, who are the guarantors?

Client#2: There are no guarantors, we formed an LLC.

In another conversation, same type of client, no skin in the game, willing to take on an equity partner, but insisted he would dictate the terms and interest rate. Reminds me of when I was selling cars. Clients would come into the dealership and want the most expensive car with no money down, bad credit, and insisting on 1% for 72 months. I guess if you don’t ask huh? More like get a grip.

What a day!

Adam

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