in development cash calls / fundraising - how did you do it?
From: Kristi Barlow (kristibrooklyncohousing.org)
Date: Sat, 7 Nov 2009 10:48:38 -0800 (PST)

Bklyn Coho continues to struggle to find its way through these difficult banking times. Even at 75% of units spoken for, banks are not financing acquisition & construction.

I am writing today to ask those of you who had to raise substantial operating money during pre-development to share your experience with systems for doing so.

Because of early highly successful fundraising, BC has been in the position for over a year of having a large amount of operating funds in the bank, and we did not need to do cash calls along the way. But we are now entering a period of time where my opinion is that remaining LLC funds must be conserved for property acquisition only, and ongoing operating expenses (substantial here in Brooklyn) must be raised from the members anew.

So I'm wondering how others have done this. Monthly ongoing cash calls for general operating fund? Dedicated Cash calls at time of each decision to spend significant money? Other? Did everyone have to participate equally in a cash call, or were people expected and able to contribute varying amounts? (and did it work if voluntary?)

It should be noted that our initial early money incentives have been exhausted, and that according to our LLC Operating Agreement each family has already exceeded its minimum contribution for membership. So technically, any additional operating contributions will be voluntary.

In order to present some recommendations to our group I'd like to be able to share the specific experience of other groups who raised significant money each month prior to site acquisition (money to pay professionals, do feasibility studies, etc).

thanks in advance,
Kristi

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