From: Eileen McCourt (
Date: Wed, 14 Jul 2004 09:07:26 -0700 (PDT)
At Oak Creek Commons, we gave double credit for the first 30K in
investments, and 50% bonus for the next 20K, so if you put in 10K of the
first 30K, you would be credited with $20,000 toward the purchase of your
house.  If you put in 5K of the next 20K, you received $7,500 credit toward
the purchase of your home.  This was intended to compensate for the highest
level of risk at the outset of the project, when the land was under option,
and we were still trying to raise enough money to purchase the property.
There was a real risk that all of the early money would be lost.

We also established a buy-in amt (5% of anticipated cost) and paid interest
on any money invested in the project beyond the 5%.  We ultimately raised
$1.5 million from group members, including the 5% buy-in.  Several members
refinanced their homes, took money out of other investment vehicles, etc,
for the initial purchase of the land.  Interest rates were offered above
market rate to compensate for the risk. 

Your situation might call for a reasonable level of profit sharing in the
initial subdivision, also.  Another thing that happened at Oak Creek is that
some people were entitled to profit sharing AND interest based on the
Streamlined Development Model that Wonderland Hill uses for project funding.
These folks plowed their profit share back into the project so that we were
able to offer one of our homes at a $150,000 discount to a qualified family,
creating one permanent truly affordable home at Oak Creek.  

Eileen McCourt
Oak Creek Commons
Paso Robles, CA


-----Original Message-----
From: [at]
[ [at]] On 
Of Linda Gluck/Treehouse
Sent: Wednesday, July 14, 2004 8:41 AM
To: cohousing-l [at]

Our cohousing group has found land we want, but it is too expensive for us
and larger than we need. We want to buy it, sell off three parcels, and keep
the rest.

The purchase price is high. Some of our members will be taking the risk  -
buying the property in the hopes that the parcels will sell at a good price,
so their investment can be recouped.

Those early investors are taking their money from their current investments,
and putting it on the line in this real estate investment, as if they were
developers. How should they be compensated?

Thanks for your ideas,

Linda Gluck
Ulster County Cohousing

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