Cohousing-L Mailing List: Re: financial planning

[Tom Lent (tlent]

Everyone in Berkeley Cohousing pays an equivalent basic investment amount
which at this late date (we are under construction so approaching the
permanent financing time) is equivalent to the minimum down payment on the
smallest unit. No interest is paid on that base amount. 

Base investment is payable to withdrawing members when we are totally sold,
ie., when we have all 14 units sold, the last one in buys the first one out. 

Investments over that base amount receive 9% interest, paid out quarterly.
We charge ourselves a monthly development fee that, among other things,
covered the cost of these interest payments (until we went into
construction) so we weren't borrowing money to cover interest. The
development fee is credited toward your down payment on the permanent loan.
New members have to catch up on the development fee when they join, in
addition to paying the base amount. 

Loan investments are payable only on completion of construction and close of
permanent financing (although they do have a 1999 sunset)

Tom Lent - Berkeley Cohousing
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Tom Lent * 2220 Sacramento St * Berkeley, CA 94702-1907
           email: tlent [at] igc.org * phone: 510/845-5243
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