Re: in development cash calls / fundraising - how did you do it?
From: Kay Wilson Fisk (kwwilsonbartcommunity.org)
Date: Sat, 7 Nov 2009 12:54:55 -0800 (PST)
We took out loans from some of our members who had funds in CDs, etc. We
signed loan contracts, and I believe we paid whatever the prime rate was at
the time the loan was made. Some of those loans were short term just to
carry us over a few months, and some were long term and were only paid back
when the last unit sold, some 2 years later than the first units.

Kay
Bartimaeus Cohousing at Meadow Wood


-----Original Message-----
From: cohousing-l-bounces+kwwilson=bartcommunity.org [at] cohousing.org
[mailto:cohousing-l-bounces+kwwilson=bartcommunity.org [at] cohousing.org] On
Behalf Of Kristi Barlow
Sent: Saturday, November 07, 2009 10:49 AM
To: Cohousing-L [at] cohousing.org
Subject: [C-L]_ in development cash calls / fundraising - how did you do it?



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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