Re: Incentives for early joiners | <– Date –> <– Thread –> |
From: Berrins (Berrinsaol.com) | |
Date: Sun, 23 Apr 2000 18:46:04 -0600 (MDT) |
In a message dated 4/21/00 9:43:20 PM Eastern Daylight Time, welcome [at] olympus.net writes: << You can also make a decision as a group to accept an interest-bearing loan from a member, with a written contract. We did that a time or two, and it worked ok. >> We did that at Pathways for the building phase, and saved a ton of money. This is the way I remember it working (John Ryan, our development coordinator, would know many more of the details)... When the builder starts building, they need a lot of up front money to pay folks and buy supplies. The original plan called for us to approach banks and ask for loans. The builder said he would lend us a bunch of money if we could raise enough money among ourselves to demonstrate (in a monetary sense) our comittment to the project. Lending our own money to ourselves and bypassing the banks saved us several tens of thousands of dollars in bank fees alone. Most folks lent money at less than market rates, saving us more money; these loans have been paid back at the closings. We raised enough money among ourselves that by the time we needed the builder to lend us money, we were just getting to the first closings, bringing in the serious bucks. I don't believe the builder had to actually lend us much. We have talked about lending to ourselves after we are all moved in for toher things besides building, but that has raised issues of "living beyond our means." That's a whole separate issue! -Roger
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Incentives for early joiners Lynn Nadeau, April 21 2000
- Re: Incentives for early joiners Mariana Almeida, April 21 2000
- Re: Incentives for early joiners RowenaHC, April 22 2000
- Re: Incentives for early joiners Raines Cohen, April 22 2000
- Re: Incentives for early joiners Berrins, April 23 2000
- RE: Incentives for early joiners Rob Sandelin, May 1 2000
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