Cohousing-L Mailing List: Re: Re: discount for early members

[Sharon Villines (sharon]

Early investors always put in more work and take more risk that later 
investors. They also risk time since their lives are "on hold" longer 
while they wait for the project to get built.

It is standard practice for early investors in all kinds of real estate 
projects to have one price while later investors have higher prices, 
depending on the market. Later investors have far less risk and less 
hassle. They join a project that has already weathered some of the 
storms and is ready to move forward.

The problem is calling this a discount. That builds resentment. 
Investing early allows the project to move forward and early money is 
much more valuable that late money. Early investors should be given 
prices based on costs at the time of investment and the degree of risk 
involved.

It would be better for these prices to be set at the time, however, 
rather than being decided at a later time when it is not so clear who 
was early and who put in more labor. That way each household would know 
what was what when they joined the group (signed a document of 
commitment) rather than facing it later.

Perhaps it should be called a credit against the purchase?

Sharon
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Sharon Villines
Takoma Village Cohousing, Washington DC
http://www.takomavillage.org

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