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Monday, October 27, 2008

Daily Observation - Waiting...Cost her the Deal

Tonight I want to share with you an experience that has replayed itself over and over during the last couple of months. Procrastination cost the deal. While clients were debating the interest rates, the fees or any of the other myriad of excuses for not moving forward, when they finally decided it was time to move, the lenders left the arena.

Got a call today from a potential client in AZ, she wanted us to finally move on the biz op she called me about over forty-five days ago. I regrettably told her that the lender that was offering the program which I was confident I could fund was no longer offering the program. What was she to do?

We had to go back and completely restructure the proposal, by adding in the option of her buying the building rather than renting with the option to purchase a year out. We also have to have her put up a substantial amount of collateral, something that was not even contemplated forty-five days ago.

In essence her waiting to make a decision has cost her a lot more now that we may be able to fund the deal, but all of her property will have to be collateralized and she will also have to purchase the building. The building is less than the biz op so I still have our work cut out for us to find a lender.

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