Cohousing-L Mailing List: Re: 50% rate of return

[Mariana Almeida (mqa]

Basically, it is interest on the money that you are putting into your "real
estate speculation". The 50% return rate means that if you put in $5000 you
will get yout original $5000 plus $2500 (which is 50% of the $5000). A
group will usually not pay this to you in cash, but will instead treat it
as part of the downpayment towards your unit. The reason that you cannot
say that it *is* your downpayment money is that you may in fact lose it
all, for really what you are doing is investing in real estate speculation
(in a real estate deal that you desire to live in.)

Learned it all at Getting it Built Workshop run by CoHousing Company.
Highly recommended.  

Mariana
SF Bay Cohousing, CA



At 04:23 PM 4/21/00 -0500, C2pattee [at] aol.com wrote:
>ok-i'm willing to admit to being a financial ignoramus.  what exactly do you 
>folks mean by 'rate of return'?  did initial investors get an interest rate 
>of 50%? are they getting the dollar amount of the return as cash or as a 
>reduction in final home cost?
>
>several of us in greater hartford ct cohousing are reading these articles 
>with great interest, as we get ready to jump into the great unknown of 
>putting up serious money to get started.  i was surprised to read that one 
>group is hiring various professionals, but not a development consultant.  we 
>haven't selected our development consultant yet, but the firmest decision 
>we've made so far is that we need one.
>
>
>Christine Pattee
>Greater Hartford CT Cohousing
>c2pattee [at] aol.com
>
>> Date: Wed, 19 Apr 2000 18:38:51 -0700
>>  From: Mariana Almeida <mqa [at] pacbell.net>
>>  To: cohousing-l [at] freedom2.mtn.org
>>  Subject: Re: Membership fees (WAS Money and Greater Hartford Cohousing)
>>  Message-ID: <4.1.20000419183215.00c25850 [at] postoffice.pacbell.net>
>>  
>>  East Bay Cohousing (in SF Bay, CA) just passed a membership dues agreement
>>  that is almost identical to the one Lydia describes below. We are looking
>>  for a site right now.
>>  
>>  Lydia, how were you all able to specify a return for early investment in
>>  the high risk phase? We are feeling that without a site (with a price and #
>>  of units it can hold) we cannot make a good guess on the rate of return.
>>  How did you come up with 50% as the the rate of return for that phase? Does
>>  that phase go from option to end of feasibility period? 
>>  
>>  Thanks in advance, 
>>  Mariana Almeida
>>