Re: Your bank loan
From: Willie Schreurs (williefortnet.org)
Date: Sun, 1 Sep 1996 22:13:08 -0500
On Fri, 30 Aug 1996, Conkling, Rowena wrote:

> If you only asked for a 5% deposit, how did you pay for your land and for 
> architects, lawyers, and other development costs?  I realise land in other 
> places is notthing like as high as it is in Eastern cities like Cambridge, 
> but that seems like a VERY small investment.  We are asking those who can to 
> put up 30%  overa period of several months (and other members are lending 
> additional amounts at moderate interest rates)  to cover land, development 
> costs and equity for a construction loan.

        As I said, 5% was the *required* deposit; many people put up 
more.  Also, early in the project several of the members either became 
equity investors in the project or provided loans.  There were also some 
outside investors.  I have no idea of the amounts involved, but it was 
enough to purchase the land and to get the design, etc. rolling.  I also 
think that our developer, Wonderland, took on an amount of the risk of 
the project and the contract with them was structured so that they will 
participate in the profit (if any, but it looks like there will be) at 
the end.

        It seems to me that a requirement as high as 30% would put 
*serious* limitations on the number of people who could be involved and 
would appear to kill completely any notion of affordability.


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