|Your post in choosing - l||<– Date –> <– Thread –>|
|From: Jim Bronson (jimbronsonashlandgmail.com)|
|Date: Fri, 6 Aug 2021 18:48:44 -0700 (PDT)|
Thanks for your thoughtful reflection, Mac. River Song is at 24 out of 28 sold. Hoping our bank is sufficiently impressed with that and the equity investments of about $850 in addition to our 20% of our unit cost. The are offering us 65% loan to construction cost, which seems skimpy to me in view of the 75% we could have gotten 1.5 years ago. Just for the fun of it, what was your construction loan to cost? Wishing you very well on your Phase 2 project. Jim Bronson River Song Design Team Message: 3 Date: Thu, 5 Aug 2021 12:25:13 -0600 From: Mac Thomson <macthomson [at] me.com> To: Coho-L-postings <cohousing-l [at] cohousing.org> Subject: Re: [C-L]_ members responses to the question about cohousing communities that have not made it Message-ID: <7097A759-19F4-49E2-BD23-EB102D514C03 [at] me.com> Content-Type: text/plain; charset=utf-8 Back in 1999 when we developed Phase 1 of Heartwood Cohousing, we had planned to partner with Jim Leach so that banks would recognize Jim as a successful developer with a strong balance sheet and therefore offer us a construction loan. As it turned out, we were 100% pre-sold before obtaining our construction loan. That was good enough for the bank so we no longer needed to partner with Jim. Jim very graciously agreed to be our development consultant, but not our partner. That meant we paid him an hourly rate for his help, but didn?t end up sharing the risk or splitting the profits with him. The net result was that the community ended up with an extra $100K. Two takeaways here: Banks get very excited about a project being 100% pre-sold. Get there if you can. But of course that means that the pre-buyers need to have entered a legal agreement to buy a home and put enough money into the project to demonstrate they?re not going to walk away. Jim is a great guy. Cohousing wouldn?t be as successful as it is today without Jim, Katie, Chuck, and many others who have given so selflessly. -- Mac Thomson Heartwood Cohousing Phase 2 Project Manager http://www.heartwoodcohousing.com
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