financial planning
From: LPManiccia (LPManicciaaol.com)
Date: Wed, 25 Sep 1996 10:13:00 -0500
We are an early stage group doing our financial plan for large sum
investments.  We have read all the archives on the subject and finding some
good ideas but need much more detail.  We have decided that we would like to
create an incentive to invest early, by increasing the buy-in as the risk of
the project goes down.  For example, when the county issues permits to build,
the buy-in price would go up.  Another way to do this would be to pay out an
interest payment to the current investors, thereby increasing their value
invested.  New members would then have to contribute that amount.  We are
also considering paying interest to all members for their investments, and
paying interest to members who have invested above the target amount.  We
welcome suggestions on how to do this, and copies of bylaws containing this
information in detail.  What success have completed projects had in paying
out interest to their early investors?  Was there enough money at the end to
make the payments?
Another major unanswered question for us is how to handle members who have
made large sum investments who want to leave the group.  When/how do they get
their money back, assuming the project goes through to completion?  Do they
get paid interest for having their money tied up for a period of time?  Do
they get their money refunded as soon as another household joins the group or
at the completion of the project?  We have made our dues non-refundable, so
this is only applying to the large sum investments.
Thanks!

Leslie  Maniccia
Cascadia Cohousing
Seattle, WA
(206)525-4073
lpmaniccia [at] aol.com

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