RE: question from a grad student | <– Date –> <– Thread –> |
From: Berrins (Berrinsaol.com) | |
Date: Tue, 16 May 2000 22:27:07 -0600 (MDT) |
In a message dated 5/16/2000 8:27:01 PM, olevy [at] cosmosgame.com writes: << No, the problem is not government, it is the bankers. ....the hard cold reality is that if we want to build, we need to make our development bank happy. The problem is, our development bank wants us to pay 23% of the project cost upfront plus any expected over-runs. And we recently got an updated bid from our contractors only to find that their prices have gone up 15% since last Fall -- the Seattle building market is absolutely out of control at the moment. Even this wouldn't be too much of a problem except that the banks we talked to won't attach a monetary value to our common facilities. So in effect, we have to consider the common facilities as a cost over-run. In practical terms this means we have to come up with that much more money up front. >> At Pathways we got lucky; the Pathways development entity (who we were before we were owner occupied) never had to go to the banks. Our contractor/developer agreed to lend us money, at decent market rates, after we were willing to lend ourselves a bunch of money in advance (I think it was 10% of the total budgeted costs, but I'm not sure). This made some money for the developer (which would have gone to the banks) and saved us about $50,000 in bank fees. If you can find an enlightened developer who would like to make a few extra bucks on the project by loaning you money, you may be able to bypass the banks also. Good luck. Roger Berman Pathways Cohousing Northampton, MA
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question from a grad student E. Rice, May 16 2000
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- RE: question from a grad student Berrins, May 16 2000
- Re: question from a grad student Mark Richardson, May 16 2000
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- Re: question from a grad student Jeff Hobson, May 17 2000
- Re: question from a grad student E. Rice, May 18 2000
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