|Re: percentage of members to build||<– Date –> <– Thread –>|
|From: Kathryn McCamant (kmccamantcohousing-solutions.com)|
|Date: Mon, 19 Sep 2016 12:00:07 -0700 (PDT)|
From Sharon: And as Gilda Iriarti who used to do the financial stuff for the Cohousing Company, advised a group in Florida and probably many others, work with a bank from day one. Ask your banker for referrals to architects, developers, etc. Because they are on the money end of things and see projects succeed and fail everyday, they know who consistently brings in projects on time and within budget. Interview bankers upfront. And talk about real estate development not required meals, support networks, or self management. I knew Gilda well, and she was a great mentor for us early on. But I beg to differ. Most cohousing groups would scare away banks (and developers) if they talk to them early on. And you never get another shot at “introducing” your project cleanly again. If their take away from that first meeting is that you are a bunch of nice, well intentioned folks who have no idea what you’re getting into…… it will be hard to convince them to take a fresh look later when you’ve gotten your shit together. The construction lending world is a small world, even in big markets, so I have found it much more effective to build up a group, make sure they are “real” about costs and the money, and then put together a really strong package to send out to banks, and actively “shop” the construction loan. As developer Jim Leach always reminds me, if you have the buyers (that will/can buy for what it is really going to cost to build your project), you can find the money to build it. The bigger challenge tends to be finding enough qualified cohousing buyers ready to put their funds in to a forming project. Katie -- Kathryn McCamant, President CoHousing Solutions 241B Commercial Street Nevada City, CA 95959 T.530.478.1970 C.916.798.4755 www.cohousing-solutions.com On 9/18/16, 9:38 AM, "Cohousing-L on behalf of Sharon Villines" <cohousing-l-bounces+kmccamant=cohousing-solutions.com [at] cohousing.org on behalf of sharon [at] sharonvillines.com> wrote: > On Sep 18, 2016, at 7:53 AM, Susan Adams <sadams430 [at] gmail.com> wrote: > > What percentage of your anticipated membership did you have before you > began to build your homes? Unless you are self financed, banks will set this number — the construction loan will require a certain percentage of homes to be “under contract.” Banks do finance developers who have tons of assets, but I don’t think those developers are financing cohousing, at least this week. The percentages I’ve heard as bank requirements is 72%-75%. I remember the day when the purchase option on our land was expiring. We had to have signed contracts plus a 5% non-refundable deposit for 75% of the units had to be in by close of business the next day. Since many of us were not even living locally and others had funds in accounts that were not available with 24 hours notice, it was a scramble. We were fortunate to have a member who was able to do short term loans to people who didn’t have access and somehow we managed this long distance. If we had not been able to do that, we/the developer would have lost the land. Property prices had gone up so much in our area that the land owner would have been very happy to have it back. BUT that said, you have to keep moving as if you had 75% or whatever your bank requires of the units sold. Proceed on faith to work as hard as you can because that is what sells units. And as Gilda Iriarti who used to do the financial stuff for the Cohousing Company, advised a group in Florida and probably many others, work with a bank from day one. Ask your banker for referrals to architects, developers, etc. Because they are on the money end of things and see projects succeed and fail everyday, they know who consistently brings in projects on time and within budget. Interview bankers upfront. And talk about real estate development not required meals, support networks, or self management. Sharon ---- Sharon Villines Takoma Village Cohousing, Washington DC http://www.takomavillage.org _________________________________________________________________ Cohousing-L mailing list -- Unsubscribe, archives and other info at: http://www.cohousing.org/cohousing-L/
- percentage of members to build Susan Adams, September 18 2016
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