|RE: community financing||<– Date –> <– Thread –>|
|From: Eileen McCourt (emccourtmindspring.com)|
|Date: Mon, 30 Jul 2001 10:45:02 -0600 (MDT)|
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 _______________________________________________ Cohousing-L mailing list Cohousing-L [at] cohousing.org Unsubscribe and other info: http://www.communityforum.net/mailman/listinfo/cohousing-l
- community financing Debbi Schaubman, July 26 2001
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