If the returns were guaranteed the banks would lend at a lower rate + a cut of profits. There is a reason they don't throw their money into projects and take equity. When the music stops its always them who ends up holding title anyway then selling it in a line to a cash rich investor who wants to pay under market value less 30% or worse. So if they have lent 80% they lose. Sending you to the wall doesn't change it.
They want to have a minimal stake for that outcome. They want security they can walk away from. A site with a 80% complete build isn't even worth the land value if it comes to a firesale. They don't want a 80% stake in a project that may or may not suffer delays, cost blow outs and difficulty selling. They are very happy to allow you to take that profit but they want out - fast. The bigger the project the more security they want.
I worked for a bank and when the economy tightens they have huge teams of asset management people whose job it is to close up loan books and if necessary sell asap. They don't care if you lose. They just don't want absolute exposure.
They want to have a minimal stake for that outcome. They want security they can walk away from. A site with a 80% complete build isn't even worth the land value if it comes to a firesale. They don't want a 80% stake in a project that may or may not suffer delays, cost blow outs and difficulty selling. They are very happy to allow you to take that profit but they want out - fast. The bigger the project the more security they want.
I worked for a bank and when the economy tightens they have huge teams of asset management people whose job it is to close up loan books and if necessary sell asap. They don't care if you lose. They just don't want absolute exposure.