|**Getting The Construction Loan**||<– Date –> <– Thread –>|
|From: John Major (jmajordayna.com)|
|Date: Thu, 11 Jan 1996 12:25:32 -0600|
So, we're all learning here that getting the money together to actually build the development is one the Great Leaps for CoHousing groups. Of course, having a developer on board to sign for it makes this much easier, and I get the impression that in Europe the government helps out a lot. But I was under the impression that a majority of CoHo developments in this country have been built with the *group* as the developer, to save money and control hassles, largely. SO - how many units did *you* have spoken for when you secured your construction loan? We at Wasatch CoHo have 10 firmly committed households that are in the process of pre-qualifying, and another few that will probably join up soon. Our site plan shows 25 units, with another 5 spaces. We are coming up quickly on the point where we will have to approach the lenders, and are recruiting as fast as we can to have as many units committed before we go to the banks. But our professional team (architect, development consultant, and so forth) are telling us that we won't be able to get more than five more units built "on spec", given our pooled collateral. What has been the experience of the completed developments in the US so far? The Salt Lake City real estate market is exploding, as we need to start construction as soon as possible. We are confident that we can sell what we build, but we have to convince the banks as well. Some information from other folks could be very helpful here, so speak up! Thanks - John Major jmajor [at] dayna.com Wasatch CoHousing Salt Lake City, UT
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