Cohousing-L Mailing List: Re: Re: Re: Cohousing --->funding other projects with d

[Harry Pasternak (Harry_Pasternak]

Good point.

That kind of thing happens up in the Toronto Canada. The Estonians in Toronto
formed an organization and over time accumulated funds that were used for a
variety of projects. A few years back they sponsored  a project that bought
an entire block of older homes in downtown Toronto. This neighborhood was
renovated (yes they kept the porches) and is now set up as a cooperative, and
essentially operates the same as the traditional cohousing neighborhood.
There is a mix of low, middle and upper incomes in this neighborhood. Its
been going for about sixteen years.

By the way here are some other non-conventional sources for funds:

- Lawyers and Accountants whose clients bring them money to invest in
mortgages-these clients want a higher rate of return than banks and other
institutions can offer. Essentialy its cuts out the "middle man". The
borrower DOESN'T pay any fees and generally it's the more friendly approach,
fewer costs and a better attitude towards unconventional housing concepts-but
the interest rate will be the same as the banks. Check with your own lawyer
or accountant to find out which accountants and lawyers are involved in
loaning mortgage money.

- Fraternal organizations. Similar to ethnic associations. These groups
accumulate funds over time. The money is loaned to members and to the
children of members at low interest OR no interest. Check with your parents
and relatives.

- Rodale Publishers did a survey of people a few years ago on people who
attended a building workshop and then built there own home. 65% of the folks
surveyed received the necessary building funds from friends and relatives. 

- One method of having a friend or relative loan you money to build even
though they don't have any cash---if the friend or relative has paid off
their own mortgage-they then remortgage their own home and in turn, loan you
the money. Again the interest rate tends to be lower, in this case.

- If you carry a whole life insurance policy, the insurance company will loan
you back your own money-typically at a lower than the going interest rate. 

- Special deals. For example, farmers in New York State can receive mortgages
with an interest rate of only ONE PERCENT, if there incomes fall below a
certain level. 
In Canada, if your income falls below a certain level, you then only need 5%
of the cost of the home as a down payment, a federal agency is involved in
this case.
 As well, in Canada , you can loan yourself any money that you have set aside
in a self-directed retirement fund.

- Last but not least, go and talk to the personel "officer" in the company
that you work for-sometimes they have a policy to loan employees money-they
like to recieve more interest than the banks offer as well.

Harry Pasternak

- sent via an evaluation copy of BulkRate (unregistered).