Re: Banks Who Financed Cohousing
From: byron patterson (byronpattersongmail.com)
Date: Sun, 28 Jan 2007 17:26:14 -0800 (PST)
On 1/28/07, Byron Patterson^ byronpatterson [at] gmail.com> wrote:

I guess it is fine for financial establishments to state their political
position on land and property use, but the financial institution's political

position is marginal in a community's development. Eminent domain
laws can be as helpful to the viability of a community and simultaneously
disable a portion of a community. Understanding financial tools will help
communities in chosing the proper financial institution to
acquire financing.
Also, it help to understand the potential financial institution's community
exposure. If an instituion is over saturating financial tool in a market
place
it can higher the risk level for potential customers.


On 1/28/07, Sharon Villines <sharon [at] sharonvillines.com> wrote:


On Jan 27, 2007, at 10:12 PM, Steve Faber wrote:

> We shopped around to about 15 banks, about 10 would agree to meet
> with us after looking at our performa.  7 larger, national banks that
> had bought out local banks turned us down or gave us unreasonable
> terms (25% down, 100% presold).

One piece of information that is important in this is to say whether
you are working with an experienced real estate developer or not. When
a group is doing development themselves, banks will not be happy
because they feel unsure that the project will get built. Developing
real estate is a very complex task and banks do not fund inexperienced
people, like they don't fund business start-ups.

Gilda Iriarti who used to do the loans for the Cohousing Company
advised me long ago to go to the bank when you are looking at
developers because they know who has brought in projects on time and
under budget. They will "take a chance" on someone they have worked
with before.

Ironically, I suspect the larger the bank gets, the less willing they
are to take a chance.

Sharon
-----
Sharon Villines
Takoma Village Cohousing, Washington DC
http://www.takomavillage.org
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