Cohousing-L Mailing List: Re: historical examples of coho development in falling market?

[Chris ScottHanson (cscotthanson]

Ann,

We find that it is premature to try and do anytime with take out  
lending before final negotiations on the construction lending are  
underway.  It is the construction lender who has the greatest  
motivation to identify the take out lending, and often they want to  
participate in this themselves.

An example is JP Cohousing where Wainwright Bank did construction  
lending and most of the take out loans as well.  They would have done  
more of the take outs if the cohousers had all gone to them.  As  
cohousers are not easily herd-able, many JPCohousers chose to go with  
their own bank or other mortgage lender.

In Brooklyn we plan to work with the construction lender to structure  
an offer, much like Wainwright did, to package the take out loans with  
reduced fees and low appraisal costs.

Chris

On Mar 3, 2009, at 12:00 PM, Ann Zabaldo wrote:

> I would suggest getting your take out mortgage money lined up in
> advance.  That's one thing the developer, Don Tucker of Eco Housing
> had in place from the beginning.  At the second orientation for Takoma
> Village waaay back in 1998 he walked in and the lenders walked in
> behind him.  Ditto for Eastern Village.  I worked on both projects and
> what I learned is that building a community in which people can't get
> loans is a sure fired way for the development to fail.  So always have
> the mortgage money lined up.