Cohousing-L Mailing List: RE: community financing

[Eileen McCourt (emccourt]

Agreed.  It's definitely high risk.  As I said, the ultimate test is whether
you can stand to let it go if the investment is lost.  It is also important
to have faith in the integrity of the recipient of the investment.  And it
has to be a relatively small sum, or you would want to be on the title.  In
my case it was 5K.  Sometimes 5K can make the qualifying difference, because
it increases purchasing power by much more than the value of the investment.
The income to pay the mortgage has to be there on the other end as well.

This is not really a solution for moderate and low income buyers.
Institutional solutions for affordable housing are obviously better, and
reach a much wider audience.  There are some folks who do not qualify for
institutional help because of income limitations, but need help to get over
the hurdle of the down payment.  The co-investment option can work in this
situation, if all the other indicators are on track, too.  Otherwise I would
not recommend it, unless you are willing to leave your money in until the
house is sold, as some institutional programs allow for.

--eileen

Eileen McCourt
Oak Creek Commons
Cohousing in Paso Robles, CA
emccourt [at] mindspring.com
http://oakcreekcommons.org/

 -----Original Message-----
From:   cohousing-l-admin [at] cohousing.org
[mailto:cohousing-l-admin [at] cohousing.org]  On Behalf Of David Mandel
Sent:   Monday, July 30, 2001 1:55 AM
To:     cohousing-l [at] cohousing.org
Subject:        Re: [C-L]_community financing

I'm glad it worked out for Eileen and her friend/investor, but I would be
very
wary of such arrangements and enter into them only with someone who is a
very
close and trusted friend. There is too much that can go wrong.
David Mandel



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