Cohousing-L Mailing List: RE: community financing

[Rob Sandelin (floriferous]

I have not heard of a cohousing  group  using co-investing before. I think
its an interesting idea but might not be realistic because it assumes that
their are community members investors with enough capital to not only secure
their  own mortgage but to invest in  another. Also how would this
investment pay dividends? Current conservative investment portfolios are
drawing 5-8 percent a year. What financial return would an investor get from
such a scheme? Real estate  appreciation only is collectable upon the sale
of the unit, not a very secure or steady income potential.

I am assuming such an idea would put all the investors on the title? Or
would they draw up some sort of other legal arrangement? I would be sure to
consult with the bank giving the mortgage  before doing this to be sure they
will fund such a mortgage situation.

Rob Sandelin


-----Original Message-----
From: cohousing-l-admin [at] cohousing.org
[mailto:cohousing-l-admin [at] cohousing.org]On Behalf Of Debbi Schaubman
Sent: Thursday, July 26, 2001 11:42 AM
To: cohousing-l [at] cohousing.org
Subject: [C-L]_community financing


Greetings!

Great Oak Cohousing (Ann Arbor, MI), currently in the programming phase, has
been exploring ways to address affordability issues.  Our Affordability
Committee has gone through the cohousing-l archives, read the materials on
the TCN www site (and other related sites), and haven't been able to find
very much information on the specific topic we've begun to consider:
co-investment.   (Sorry if we simply missed the information!)

We're interested in learning about other communities' experiences with this
model (or ones similar to it): a group of community members invest money and
buy 10% to 30% of a few units.  Those units would then need a smaller
mortgage, have a smaller monthly mortgage payment, and require a smaller
down payment.   Our sense is that, assuming some appreciation in the real
estate, the investor, the household and the community would all benefit from
this approach.

Thanks for any information, suggestions, horror stories, etc. you can share.

Debbi Schaubman
(who is eagerly awaiting a Spring/Fall 2003 move-in!)



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