Re: historical examples of coho development in falling market?
From: Ann Zabaldo (zabaldoearthlink.net)
Date: Wed, 4 Mar 2009 13:11:34 -0800 (PST)
Chris and all -- you are correct. BOTH construction AND the take out mortgage funds were in place at the 2nd orientation for TVC. I was just speaking to the need to have end user money in place because people think building cohousing is like buying a house. You go look for the $$ after it's built. That may be too late.

But you are correct that you would negotiate or use the construction lender to get the best mortgage deal.

Best --

Ann Zabaldo
Takoma Village
Washington, DC
Principal, The Cohousing Collaborative
McLean, VA

PH: 703 663 3911
FAX 202 291 8594







On Mar 4, 2009, at 2:12 PM, Chris ScottHanson wrote:


Ann,

We find that it is premature to try and do anytime with take out
lending before final negotiations on the construction lending are
underway.  It is the construction lender who has the greatest
motivation to identify the take out lending, and often they want to
participate in this themselves.

An example is JP Cohousing where Wainwright Bank did construction
lending and most of the take out loans as well.  They would have done
more of the take outs if the cohousers had all gone to them.  As
cohousers are not easily herd-able, many JPCohousers chose to go with
their own bank or other mortgage lender.

In Brooklyn we plan to work with the construction lender to structure
an offer, much like Wainwright did, to package the take out loans with
reduced fees and low appraisal costs.

Chris

On Mar 3, 2009, at 12:00 PM, Ann Zabaldo wrote:

I would suggest getting your take out mortgage money lined up in
advance.  That's one thing the developer, Don Tucker of Eco Housing
had in place from the beginning. At the second orientation for Takoma
Village waaay back in 1998 he walked in and the lenders walked in
behind him. Ditto for Eastern Village. I worked on both projects and
what I learned is that building a community in which people can't get
loans is a sure fired way for the development to fail. So always have
the mortgage money lined up.

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